By Nicholas G. Miller

Shares of Fastly soared after the company reported a jump in fourth-quarter revenue fueled by artificial intelligence adoption and rising demand for its services.

The stock jumped 63% to $15.19 in midday Thursday trading, on track for its largest percentage increase on record.

AI-based traffic is making Fastly customers' network needs increasingly complex, analysts said.

"The capabilities of a company like Fastly are rapidly becoming important again, and customers are seeking them out accordingly," said Raymond James analysts Frank Louthan and Rob Palmisano. "We believe Fastly excels at complex network trafficking needs, and this is contributing to the success in 2025 and the positive outlook for 2026."

Analysts note that Fastly is successfully cross-selling its services, driving additional business, particularly with its largest customers.

The company's fourth-quarter revenue rose 23% to $172.6 million, beating Wall Street's forecast of $161.4 million.

Fastly's remaining performance obligations were up 55% year over year to $354 million.

The company guided for 2026 revenue of $700 million to $720 million and adjusted earnings of 23 cents to 29 cents a share. Analysts had estimated for full-year revenue of $667.8 million and adjusted earnings of 13 cents a share.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

February 12, 2026 11:43 ET (16:43 GMT)

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