Key Highlights

  • Second-quarter Revenue reached a record $183.3 million, up 23% year-over-year, with security revenue climbing 43% to $41.7 million.
  • Management raised full-year 2026 revenue guidance to a range of $732 million to $746 million, pointing to accelerating AI-related traffic as a forward-looking driver.
  • Operating cash flow for the quarter came in positive at $39.3 million, and GAAP gross Margin reached a record 63.3%.
  • The company announced a Partnership with Experian around AI-driven commerce verification and confirmed an Investor Day scheduled for September 22, 2026.

Fastly, Inc. (NYSE:FSLY), the edge-cloud and content-delivery specialist, reported record second-quarter revenue and raised its full-year guidance, continuing what has been one of the market's stronger technology comeback stories this year.

Fastly's positioning as an edge-computing and content-delivery network provider is riding two tailwinds: rising enterprise Demand for web application security products and a surge in AI-related internet traffic that plays to its infrastructure strengths.

The company reported its second-quarter 2026 results on August 5, 2026, marking a continuation of its multi-year growth trajectory under a revamped go-to-market strategy.

Second-Quarter Results

Fastly posted record quarterly revenue of $183.3 million, up 23% year-over-year, with security revenue climbing 43% to $41.7 million and network services revenue up 17% to $133.9 million.

GAAP gross margin reached a record 63.3%, and Operating Cash Flow for the quarter came in positive at $39.3 million, an encouraging sign for a company that has historically burned cash.

Raised Guidance and AI Traffic

Management raised full-year 2026 revenue guidance to a range of $732 million to $746 million and pointed to accelerating growth in AI-related traffic as a forward-looking driver, reflecting confidence in continued demand for the company's edge infrastructure.

Separately, Fastly announced a partnership with Experian around AI-driven commerce verification on July 24, extending the company's security product offerings into new use cases tied to AI adoption.

Financial Position

On a trailing-twelve-month basis, Fastly's revenue stands at roughly $687 million, continuing a multi-year growth trajectory after full-year 2025 revenue of about $624 million. The company's second-quarter 2026 net loss was $15.6 million, or $0.10 per share, an improvement from prior periods.

Management has guided toward positive non-GAAP profitability for the year, with customer concentration remaining a consideration, as the top ten customers reportedly account for around 37% of revenue.

The Investment Case

Fastly's dramatic year-to-date advance reflects a market that has grown considerably more optimistic about the company's turnaround under a revamped go-to-market strategy, with security-product growth and AI infrastructure demand as key drivers.

Analyst sentiment is mixed-to-positive, with consensus ratings ranging from hold to buy depending on the source, and average price targets reflecting confidence in continued growth alongside acknowledgment of the company's still-developing path to full GAAP profitability.

What Comes Next

The company's Investor Day, scheduled for September 22, 2026, should offer more detail on long-term strategy and targets. Third-quarter 2026 results, expected in the fall, will test whether the company can hit its guided revenue range.

Continued momentum in AI-driven traffic growth, a theme management has emphasized, will also be closely watched, along with any further analyst rating or price-target revisions.

Record Results Support a Raised Outlook

Fastly's record second-quarter results and raised full-year guidance reflect genuine operational momentum, powered by security-product growth, improving margins, and enthusiasm around AI infrastructure demand.

The company's continued execution on its turnaround strategy positions it well within the competitive edge-cloud and content-delivery market, with the upcoming Investor Day expected to provide further detail on long-term direction.