Fastly (FSLY) is expanding beyond a content delivery network, or CDN, into an edge platform, but the financial contribution from its artificial intelligence opportunity remains uncertain, BofA Securities said.

The analysts said in a note Tuesday that the company at its investor day highlighted improving platform adoption, with three straight quarters of 20% plus revenue growth and 117% last twelve-month net retention. Multi-product usage is also increasing, with 72% of large customers using at least two product suites, while 30% use four or more.

"While the platform narrative is increasingly coherent, the financial update was a bit lackluster, and management plans to discontinue segment reporting at the end of FY26," the analysts added.

The analysts said they were warming to potential agentic AI traffic growth, but they need more detail on how much of that traffic the company is actually seeing, how it will monetize it, and how differentiated its AI products are.

BofA raised its price target on Fastly to $22 from $20 and reiterated its underperform rating.

Shares of Fastly were down more than 7% in Wednesday trading.

Price: 24.22, Change: -1.87, Percent Change: -7.15