- Analysts highlighted accelerating revenue, expanding margins, and growing AI-driven traffic as positives.
- RBC Capital, Piper Sandler, and DA Davidson raised their price targets on Fastly.
- Fastly beat Q4 estimates and guided well above consensus for 2026.
Shares of Fastly (FSLY) posted their best day ever on Thursday after the edge cloud company’s fourth-quarter (Q4) earnings beat and upbeat 2026 outlook drew a wave of price-target raises from analysts.
FSLY stock surged 72% on Thursday to close at $16.04, marking its strongest session on record and its highest level since February 2024.
Wall Street View On FSLY: ‘Very Clean Quarter’
RBC Capital raised Fastly’s price target to $12 from $10, implying a 25% downside from current levels, and kept a ‘Sector Perform’ rating. The brokerage said the company delivered another “strong quarter” with revenue beating consensus by about 7% and all segments accelerating for a fourth consecutive quarter.
Piper Sandler lifted its price target to $14 from $11, implying a 13% downside from the stock’s last close, and maintained a ‘Neutral’ rating. The brokerage said Fastly delivered a “very clean quarter” that marked its largest beat since 2019 and another quarter of acceleration on the back of large-customer strength and share gains, while also guiding about 6% above expectations for 2026.
DA Davidson raised its price target to $13 from $9, implying a 19% downside, and kept a ‘Neutral’ rating after the Q4 earnings beat. The firm said traffic growth appears to be in a “much healthier place” than it has been in the last few years, with agentic AI traffic a tailwind.
William Blair upgraded Fastly to ‘Outperform’ from ‘Market Perform’, saying Fastly reported a “stellar” quarter driven by a rising contribution from agentic AI traffic, which it believes “is still in its infancy.” The firm also said customers signed larger deals reflecting broader commitments across network delivery, security and compute, and called Fastly an “underappreciated play” on growth in large language model use and agentic AI.
Fastly Q4 Review: AI Emerging As Growth Driver
The company posted a fourth quarter (Q4) revenue of $172.6 million and adjusted earnings per share (EPS) of $0.12, both surpassing the analysts’ consensus estimates of $161.36 million and $0.06, respectively, according to Fiscal AI data.
Fastly forecasts first quarter adjusted EPS of $0.07-$0.10 on revenue of $168 million-$174 million, above consensus estimates of $0.01 and $159.62 million. For full-year 2026, Fastly guided adjusted EPS of $0.23-$0.29 and revenue of $700 million-$720 million, versus consensus estimates of $0.13 and $667.79 million.
The company also guided to a 2026 gross margin of about 63%, plus or minus 50 basis points, and free cash flow of $40 million to $50 million.
On the earnings call, CEO Kip Compton said Fastly’s recent performance reflects a shift toward faster growth and profitability, pointing to accelerating revenue, expanding margins, and continued positive free cash flow.
Compton said Fastly is seeing AI show up in multiple ways, including increased “agentic” traffic, AI workloads running on the platform, and opportunities in AI bot management to allow “authorized” agents while blocking abuse.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for Fastly was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said, “price crossed above the 50 MONTH sma, 1st time in history it appears. Was over 100 in 2020.”
Another user said, “buy signals!!!!! she's running!”
FSLY stock has risen 59% over the past 12 months.
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