Fastly, a leading global edge cloud platform, reported fourth-quarter earnings that significantly exceeded analyst expectations, sending shares surging 43% in premarket as the company delivered record revenue and raised its outlook for the coming year.
The edge computing specialist reported adjusted earnings of $0.12 per share, doubling the analyst consensus estimate of $0.06. Revenue reached $172.6 million, handily beating the $161.36 million analyst expectation and representing 23% growth YoY.
"Our fourth quarter results mark an inflection in Fastly’s growth as we achieved record revenue, gross margin, and operating profit," said Kip Compton, CEO of Fastly. The company’s shares jumped dramatically following the announcement, reflecting investor enthusiasm about the company’s accelerating growth trajectory.
Fastly’s fourth quarter was marked by record gross margins, with non-GAAP gross margin reaching 64.0%, up from 57.5% in the same period last year. The company also reported remaining performance obligations (RPO) of $353.8 million, a 55% increase YoY, indicating strong future revenue visibility.
Looking ahead, Fastly provided guidance that significantly exceeded analyst expectations. For the first quarter of 2026, the company expects revenue between $168-174 million versus the consensus of $159.6 million, and adjusted earnings of $0.07-$0.10 per share compared to analyst estimates of $0.01.
For the full year 2026, Fastly projects revenue of $700-720 million, well above the consensus of $667.8 million, with adjusted earnings of $0.23-$0.29 per share versus the $0.13 analyst estimate.
The company’s security revenue showed particularly strong growth, increasing 32% YoY to $35.4 million, while network services revenue grew 19% to $130.8 million. Fastly’s enterprise customer count reached 628 in the fourth quarter, adding 32 customers compared to the same period last year.
Fastly’s last 12-month net retention rate improved to 110% in the fourth quarter from 106% in the previous quarter, indicating the company’s success in expanding relationships with existing customers.