Fastly, Inc. (FSLY) AI Stock Analysis

Fastly, Inc. operates an edge cloud platform that spans across the United States, Asia Pacific, Europe, and globally, processing, serving, and securing applications for customers. Specializing in Infrastructure as a Service, its platform includes Compute@Edge, a programmable solution for web and application delivery backed by a developer hub with APIs and solution patterns. The company provides edge dictionaries, access control lists, authentication services, dynamic site acceleration, and real-time logging. Its streaming capabilities feature live streaming, media shield, and origin connect, while edge security offerings include DDoS protection, cloud and edge web application firewalls, and transport layer security services across diverse digital industries.

Fastly generated FY2025 revenue of $624.0M, up 14.8% from $543.7M in FY2024 and expanding at a 5-year CAGR of 16.5% from FY2020. Gross margin widened to 57.1% in FY2025 compared to 54.4% in FY2024 and 48.5% in FY2022. Operating losses have narrowed, moving from an operating margin of -61.8% in FY2021 to -18.9% in FY2025. Annual net income improved from -$222.7M in FY2021 to -$121.7M in FY2025, while annual EPS registered at -$0.11. For the latest quarter ended June 30, 2026, quarterly revenue growth accelerated to 23.3% year-over-year, bringing trailing twelve month revenue to $687.2M with an operating margin of -7.9%.

As of June 30, 2026, Fastly held $337.5M in cash and short-term investments against total debt of $398.3M, resulting in net debt of $60.8M. The company maintains total assets of $1.50B, shareholders' equity of $990.8M, a current ratio of 3.36, and a debt-to-equity ratio of 0.40. Cash generation improved significantly in FY2025, producing operating cash flow of $94.4M and free cash flow of $65.8M after capital expenditures of $28.7M. Over the trailing 5-year period, share count grew by 33.4%.

Fastly closed at $22.47 on October 16, 2026, trading at a forward P/E of 47.4x, well above the 18.8x median of its US-listed Technology peers. Its enterprise value stands at $4.79B, producing an EV to revenue multiple of 7.0x and a price-to-sales ratio of 5.2x, compared to the peer median price-to-sales ratio of 2.8x. The stock has outperformed the broader market over the past year with a 1-year return of 183.0%, compared to 16.8% for the S&P 500, but its 5-year return sits at -49.9% versus 83.0% for the index.

Fastly holds 5 Strong Buy, 1 Buy, 5 Hold, and 1 Sell ratings from Wall Street analysts. The mean price target is $28.55, which sits 27.0% above the last closing price of $22.47. For the fiscal year ending December 31, 2026, consensus calls for revenue of $741.0M and EPS of $0.53, representing 304.1% EPS growth. Fastly has beat EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of Fastly, Inc. (FSLY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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