Abstract

Fastly, Inc. will report quarterly results on February 11, 2026 Post Market, with expectations for revenue and EPS growth supported by continued enterprise customer engagement and operational discipline previewed in its prior report.

Market Forecast

Based on the company’s projections, Fastly, Inc. targets this quarter’s revenue at $161.36 million, up 16.70% year over year, and adjusted EPS of 0.06, up 1,417.54% year over year; margin guidance was not specified. Highlights center on a stable enterprise-driven revenue base with an improving operating profile, and the outlook points to sustained growth from product adoption within existing accounts. The most promising segment remains enterprise customer expansion anchored by last quarter’s $148.52 million contribution, supported by total revenue growth of 15.32% year over year.

Last Quarter Review

Fastly, Inc. delivered revenue of $158.22 million, a gross profit margin of 58.35%, a GAAP net loss attributable to the parent company of $29.48 million (net profit margin -18.63%), and adjusted EPS of 0.07 with year-over-year growth of 250.00%. A key highlight was outperformance versus expectations: revenue exceeded estimates by $7.43 million and EBIT of $11.61 million beat by $10.85 million, signaling operating leverage amid cost controls and revenue scale. Enterprise customers contributed $148.52 million while non-enterprise customers contributed $9.71 million, with total revenue rising 15.32% year over year.

Current Quarter Outlook

Enterprise Customers

Enterprise customers remain the company’s primary revenue engine, representing $148.52 million last quarter and approximately the vast majority of the sales mix. The near-term outlook hinges on renewal quality, expansion rates within the installed base, and broader utilization of Fastly, Inc.’s platform by large accounts. Higher usage volumes from these customers tend to translate into a favorable blend of recurring revenue and data delivery workloads, which supports both revenue visibility and incremental operating leverage. Upsell opportunity in performance and security features within accounts that already rely on the platform can help reinforce retention and average revenue per customer, especially as deployments deepen with application modernization cycles. In this context, stable enterprise activity is expected to underpin the revenue estimate of $161.36 million and support management’s target EPS of 0.06, while leaving room for potential upside if usage intensity trends remain favorable through quarter-end.

Revenue Trajectory, Profitability, and Margins

The company’s revenue projection of $161.36 million, up 16.70% year over year, suggests demand continuity and an ongoing benefit from larger enterprise accounts leaning into the platform during seasonal traffic swings. Translating higher volumes into profitability remains a central priority; EBIT is estimated at $9.38 million, representing a forecast year-over-year expansion of 472.49%. This mirrors the prior quarter’s operating progress, where EBIT reached $11.61 million and materially beat expectations by $10.85 million. Management’s disciplined approach to network efficiency, capacity procurement, and optimization of infrastructure costs aims to preserve the gross profit profile that reached 58.35% last quarter. The net profit margin, which was -18.63% in the previous quarter, is the metric to watch: narrowing losses, reflected in the quarter-on-quarter improvement of 21.46% in net profit, signal a path toward consistency in earnings generation and greater alignment between revenue scale and operating costs. Importantly, this quarter’s adjusted EPS estimate of 0.06 and year-over-year growth of 1,417.54% imply that normalization in profitability is ongoing, with expense allocation and operating leverage working together to deliver measurable bottom-line progress.

Growth Potential Segment

The growth potential lies in deepening engagement within established enterprise accounts, where additional product modules and enhanced platform capabilities can extend revenue capture. Product attach momentum in areas such as performance optimization and security features provides avenues to broaden wallet share among customers already committed to the platform, creating incremental revenue opportunities without requiring wholesale new logo acquisition. Such cross-sell potential aligns with the structure of last quarter’s revenue mix, which was heavily weighted toward enterprise at $148.52 million and supported total year-over-year growth of 15.32%. As these capabilities are adopted and integrated more broadly into customers’ application delivery stacks, the company can deliver improved resilience in usage-driven revenue while fortifying its path toward sustained margin enhancement. The segment’s progress this quarter will be assessed by the richness of enterprise expansions, the pace of product activation, and the consistency of usage patterns across high-traffic customer cohorts.

Operational Execution and Earnings Quality

Execution discipline highlighted in the last quarter’s beat on both revenue and EBIT sets expectations for continued focus on cost structure and earnings quality. The central consideration is translating revenue scale into cleaner profitability: a gross profit margin of 58.35% underscores the potential for strong contribution margins when usage scales, and cost optimization initiatives can further temper volatility below the line. The key to earnings quality comes from predictable usage patterns among enterprise customers, reinforced by effective contract management and pacing of investments relative to observed demand. This quarter’s EPS trajectory toward 0.06 illustrates how incremental improvements in operating efficiency can compound through both the top line and cost line, supporting a smoother glide path into future periods.

Customer Mix and Usage Behavior

The revenue composition, with enterprise contributing $148.52 million and non-enterprise contributing $9.71 million last quarter, emphasizes the concentration in large accounts. In the current quarter, changes in usage patterns among top customers, distinct traffic seasonality, and the activation of new features are likely to drive variance against the revenue estimate of $161.36 million. A durable uplift in enterprise usage helps limit revenue volatility, while a measured increase in non-enterprise activity can represent incremental gains, particularly when smaller customers adopt higher-value features. The aggregate effect of customer mix dynamics will influence network utilization, average unit economics, and per-customer profitability, tying back to the company’s efforts to narrow the net loss and lift adjusted EPS.

Cost Efficiency, Capital Allocation, and Operating Leverage

Maintaining and improving the cost base relative to the revenue trend remains central to this quarter’s performance narrative. With last quarter’s net profit margin at -18.63% and quarter-on-quarter improvement in net profit of 21.46%, there is a clear emphasis on pushing toward greater operating leverage. Efficient capacity management, disciplined vendor terms, and network route optimization support stable gross margins even as usage volumes fluctuate. The outlined EBIT estimate of $9.38 million suggests management’s confidence in blending revenue expansion and cost containment, while the EPS outlook points to tangible progress in converting operating improvements into earnings. A balanced approach to capital allocation, prioritizing network performance investments that generate measurable return in the form of improved customer experience and usage retention, will be watched for its impact on sustained earnings momentum.

Key Variables Affecting the Stock This Quarter

Three variables are poised to influence sentiment around the stock: the trajectory of enterprise usage versus expectations, the durability of the gross margin profile as traffic mix evolves, and the company’s ability to maintain operating leverage consistent with its EBIT and EPS targets. If enterprise engagement comes in ahead of internal pacing, the revenue estimate of $161.36 million may be conservative, and upside could manifest through improved utilization and pricing effects. Keeping the gross margin close to last quarter’s 58.35% level would validate cost-management efforts and help narrow the GAAP net loss. Achieving the EPS estimate of 0.06 and demonstrating year-over-year growth at 1,417.54% provides tangible support for the profitability narrative, reinforcing confidence that the operating model is scaling.

Analyst Opinions

The majority view in recent previews is constructive. Craig-Hallum maintained a Buy rating on Fastly, Inc. with a price target of $13.00, highlighting an improving execution backdrop and a pathway to better operating leverage as revenue scales. This stance aligns with the company’s latest performance data points: last quarter’s revenue of $158.22 million and EBIT of $11.61 million exceeded expectations, and management’s forecast for this quarter—revenue of $161.36 million and adjusted EPS of 0.06—frames a narrative of steady progress in profitability. The Buy perspective emphasizes continuity in enterprise engagement, the benefits of disciplined cost execution, and the potential for margin stability as network optimization initiatives compound. Analyst commentary supporting these themes focuses on earnings quality and repeatable drivers of improvement rather than one-off tailwinds, which is an important distinction for assessing sustainability through subsequent quarters. That lens prioritizes the linkage between product adoption inside the enterprise base and incremental revenue capture, underscoring that greater usage consistency is central to both top-line predictability and bottom-line resilience. In aggregate, the constructive view expects revenue growth of 16.70% year over year to be accompanied by—and increasingly translated into—measurable gains in EBIT and EPS, thereby validating management’s operating thesis and supporting a firmer valuation narrative tied to execution milestones.