Why Is Retail Seeing 100% Jump In Fastly’s Stock By Month-End?

The company posted a fourth quarter revenue of $172.6 million that grew 23% year over year. Analysts on average expected revenue of $161.4 million as per data from fiscal.ai.

• The company's total revenue was helped by growth in network services whose revenue represented 19% year-over-year growth. Security revenue showed 32% year-over-year growth. 
• Fastly also swung to profit in the fourth quarter compared to the year-ago.
• Fastly said it expects total revenue in the range of $168 million to $174 million for the first quarter of 2026. Analysts expected Q1 2026 revenue of $159.6 million, as per fiscal.ai. 

Fastly (FSLY) shares soared 25% in extended hours of trading on Wednesday after its record fourth-quarter revenue beat estimates. 

The rally in the stock turned investors bullish on the stock with predictions of the stock to rise 100% by the end of Feb. 

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The company posted a fourth quarter revenue of $172.6 million that grew 23% year over year. Analysts on average expected revenue of $161.4 million as per data from fiscal.ai. 

"Our fourth quarter results mark an inflection in Fastly’s growth as we achieved record revenue, gross margin, and operating profit,” said Kip Compton, CEO of Fastly. “In 2025 we made significant progress on Fastly’s transformation and delivered great results.”

Q4 Snapshot

The company's total revenue was helped by growth in network services whose revenue represented 19% year-over-year growth. Security revenue showed 32% year-over-year growth. 

The company also swung to profit in the fourth quarter compared to the year-ago. It reported adjusted net income per diluted share of $0.12, compared to adjusted net loss per diluted share of $0.02 in the fourth quarter of 2024.

The company said it generated $22.4 million of operating cash flow compared to $5.2 million of operating cash flow in the fourth quarter of 2024. 

Outlook

Fastly said it expects total revenue in the range of $168 million to $174 million for the first quarter of 2026. Analysts expected Q1 2026 revenue of $159.6 million, as per fiscal.ai. 

It said its full year-revenue is expected to be in the range of $700 million to $720 million. The higher end of the FY2026 forecast shows 15% growth in full year revenue compared to $624 million it reported for FY2025. 

It also said it expects adjusted profit to be in the range of $0.07 per share to $0.10 per share for Q1 2026. Analysts on average expected adjusted profit to be $0.01 per share. 

“As we look toward 2026, we anticipate continued momentum, with AI as an increasing tailwind for our business,” Compton added. 

How Did Stocktwits Users React?

Retail sentiment around FSLY trended in ‘bullish’ territory amid ‘high’ message volume. 

One user, however, said that Fastly’s earnings did not impress them, except for free cash flow and profitability. 

Shares in the company have risen 17% over the past year. 

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