Fastly Exceeds Expectations with Robust Quarterly Performance

12.02.2026 - 11:40:43

Fastly US31188V1008

Fastly Exceeds Expectations with Robust Quarterly Performance - Foto: über boerse-global.de

Fastly's latest financial release for the fourth quarter and full fiscal year 2025 delivered a decisive beat against analyst forecasts. The report, issued yesterday evening, highlighted particular momentum in the company's security offerings and provided an optimistic outlook for 2026, raising questions about its ability to sustain this newfound profitability.

The cloud services provider posted a record $172.6 million in fourth-quarter revenue, representing a 23% year-over-year increase and significantly surpassing its own guidance range of $159 to $163 million. Profitability metrics were equally strong, with non-GAAP earnings per share coming in at $0.12, double the $0.06 consensus estimate.

A key contributor was the core network services business, which grew 19% to $130.8 million. The security segment demonstrated even greater dynamism, expanding by 32% to $35.4 million. While smaller segments like compute and observability solutions saw explosive growth of 78% from a low base, they contributed a more modest $6.4 million to the total top line.

Future Visibility and Customer Momentum

Operational strength is further evidenced by customer retention and future revenue visibility. The company's remaining performance obligation (RPO), representing contracted revenue not yet recognized, climbed to $353.8 million by the end of December?a substantial 55% increase from the prior year. This points to a robust pipeline for the coming quarters.

Furthermore, Fastly's net retention rate improved to 110%, up from 106% in the previous quarter. The enterprise customer count also rose, adding 32 clients year-over-year for a total of 628. CEO Kip Compton characterized these results as an inflection point, noting the achievement of record margins and a strong position to capitalize on AI-driven demand.

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Confident Guidance and Financial Fortification

Management expressed confidence for the ongoing fiscal year, issuing guidance that exceeds current market expectations. For the full 2026 fiscal year, Fastly anticipates revenue between $700 million and $720 million. The midpoint of this range implies growth of approximately 14%.

On the bottom line, the company is targeting non-GAAP earnings per share of $0.23 to $0.29 for 2026. To bolster its financial position, Fastly has issued $180 million in new convertible senior notes due in 2030. The proceeds were used to repurchase existing debt maturing in 2026, thereby extending the company's debt maturity profile and stabilizing its balance sheet structure.