Fastly reported third-quarter revenue of $190.19 million, up 20.2% from a year earlier. That beat the Zacks Consensus Estimate of $188.28 million by 1.02%. Earnings per share were $0.17, against $0.07 a year ago and an estimate of $0.12, a surprise of 41.67%. Network Services revenue rose 16.2% to $138 million, above the $133.74 million estimate. Security revenue grew 31.5% to $44.7 million, but missed the $46.24 million estimate. Other revenue rose 37% to $7.4 million, below the $8.73 million estimate. Fastly had 634 enterprise customers, against an estimate of 630. Its shares fell 17.4% over the past month.

Fastly earnings ahead: AI traffic monetization in spotlight. Published Nov 04, 2026, 10:51 AM (C) Reuters. Fastly Inc. reports third-quarter earnings after the close Wednesday, with investors focused on whether a surge in AI-driven internet traffic is translating into meaningful revenue growth for the edge computing provider. Analysts expect Fastly to post earnings of 12 cents per share on revenue of $187.8 million for the September quarter, representing year-over-year growth of 69% and 19%, respectively. Sequentially, the revenue forecast represents a modest 2.5% increase from the prior quarter's $183.3 million, though expected earnings would decline 21% from the second quarter's 15-cent result, which handily beat estimates. Twelve analysts rate the stock a Buy, with a consensus price target of $28.55 implying 35% upside from the current $21.07 share price. EPS estimates have remained flat over the past week and two months, while revenue estimates have held largely steady with a slight uptick of 0.13% over the past 60 days. What Investors Are Watching The key debate centers on AI traffic monetization. Oppenheimer, which upgraded Fastly to Outperform in October with a $35 price target, believes "growing contract values and early monetization of agentic AI traffic" can drive high-teens to low-20s growth over the next few years. Industry data shows agentic AI traffic jumped 41.5% in the third quarter, with Meta's Muse routing 18% of its traffic through Fastly's network. But skeptics question whether this traffic growth moves the revenue needle. DA Davidson maintained its Neutral rating, arguing that while AI agents will drive incremental traffic, "the idea Muse will be a significant near-term catalyst is not based in the reality of how FSLY makes money, which is on bytes in CDN (73% of Q2 Rev)." -0.60 (-2.85%) Real-time Data · 11:31:03 · USD Start trading FSLY now Security product momentum is another focus area. Management has highlighted robust demand for newer Bot Management and DDoS products, each growing more than 100% year-over-year. Analysts will look for evidence that these higher-margin security offerings can offset pressure in Fastly's core content delivery business. Multi-product adoption metrics matter as well. The company disclosed at its September investor day that 72% of large customers now use two or more product suites, with 30% using four or more - a key indicator of platform stickiness as Fastly transitions from a CDN provider to a unified edge platform. In the second quarter, Fastly delivered a sharp earnings beat, posting 15 cents per share against a 7-cent consensus and revenue of $183.3 million that topped the $173.9 million estimate. The company has now posted three consecutive quarters of 20%-plus revenue growth, with a net retention rate of 117%. Wednesday's results will test whether Fastly can sustain that momentum and prove AI-driven traffic growth represents a durable tailwind rather than merely an increase in low-margin bytes. Ask WarrenAI What's your entry and stop on FSLY? Your pre-market routine takes 20 minutes and three tools. By the time you're done, the setup on FSLY can be gone. AI chart analysis reads the FSLY chart in under 60 seconds. It scans 15 indicators, surfaces only the ones that matter right now, and hands you a trading plan with entry, stop-loss and profit targets. Set a custom alert on those levels and you'll know the moment FSLY hits them. Works across multiple intraday timeframes, on 94,000+ assets. Now 55% off for Black Friday early birds.