Fastly . Class A Stock Earnings Reports

Fastly reported a strong Q1 2026: revenue of $173M, up 20% YoY and near the high end of guidance. Key growth drivers were Security (up 47% YoY; now 22% of revenue) and Compute/Other (up 67% YoY), with combined Security + Other growing 50% YoY. Network Services grew 11% YoY, outpacing the market. Trailing 12-month net retention (LTM NRR) improved to 113%. Record RPO was $369M (up 63% YoY) with 75% in the current 12-month portion, and top-10 customers represented 34% of revenue. Gross margin hit a record 65.1%, and operating margin expanded to ~11% in the quarter; non-GAAP net income was $0.13 per share. Cash and investments were ~$330M after paying down debt; operating cash flow and adjusted EBITDA both improved. Management raised FY2026 revenue guidance to $710M–$725M (midpoint +15% YoY) and increased non-GAAP operating profit guidance to $58M–$68M. CapEx will be higher in 2026 (infrastructure 10%–12% of revenue) as the company front-loads capacity for growth and to mitigate supply-chain constraints (notably memory). Management emphasized differentiated platform efficiency, expanded security portfolio traction (including new products like ContentGuard and API Discovery), momentum in edge compute tied to AI/agentic use cases, and disciplined pricing/contract management. Risks called out include component supply dynamics, quarter-to-quarter consumption variability, and general market/renewal timing.