Fastly Q2 revenue beats expectations on strong security revenue growth

Fastly

05/08/2026 22:03

Overview
Edge cloud platform's Q2 revenue rose 23% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company posted record gross margin and strong growth in security and network services

Outlook
Fastly raises full-year 2026 revenue outlook to $732 mln-$746 mln
Company expects Q3 2026 revenue between $184 mln and $190 mln
Fastly sees full-year 2026 non-GAAP net income per share at $0.50-$0.54

Result Drivers
SECURITY REVENUE - Security segment revenue grew 43% yr/yr, outpacing other segments
NETWORK SERVICES - Network services revenue increased 17% yr/yr, supporting overall growth
CUSTOMER RETENTION - Last 12-month net retention rate rose to 117%, highest in over three years

Company press release: ID:nBwbq8Rhma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$183.32 mln
$173.95 mln (12 Analysts)
Q2 Adjusted EPS
Beat
$0.15
$0.07 (12 Analysts)
Q2 Loss Per Share
 
$0.10
 
Q2 Net Loss
 
$15.59 mln
 
Q2 Gross Margin
 
63.3%
 
Q2 Gross Profit
 
$115.95 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Fastly, Inc. is $24.50, about 1.8% below its August 4 closing price of $24.95
The stock recently traded at 68 times the next 12-month earnings vs. a P/E of 84 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)