Fastly, Inc. (FSLY)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
$22.71+5.68%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
Warn: Primary pillar under pressure — Operating loss narrows toward -$23.9M in Q1 2026: Q2 FY26 EPS +0.15 vs target -0.14; Q3 FY26 EPS guide +0.12 vs target -0.14.
Fastly is growing revenue steadily, aiming for about $717.5M in 2026. Profit losses are shrinking, with operating income improving from -$46.7M to -$23.9M. The company expects positive earnings per share near $0.30 in 2026. These show progress in fixing the business.
Fastly remains loss-making with EPS still negative recently. The high price-to-earnings ratio of 265 suggests the market expects a big turnaround that may not happen. Cost control and profitability gains could stall, hurting the stock.
The price is about 1% above our fair value near $18, reflecting roughly 15% revenue growth. Our fair value is 28% below the Street median, indicating the market is somewhat optimistic. We see risk in profitability progress.
Breaks if: Operating loss worsens beyond -$46M
Focus on improving operating income through margin expansion and cost discipline.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story, as FSLY works to improve its financial performance after a period of losses. The current thesis state is cautious, with management focused on revenue growth and operating income improvement, but still facing challenges in achieving positive earnings per share.
The market appears to have priced in a low level of fragility, indicating that investors are not overly concerned about immediate risks. However, there is a divergence in valuation, as FSLY trades at a premium compared to its peers, suggesting that expectations may be somewhat elevated.
Management is on track with its priorities, showing consistent revenue growth and improved operating income. However, the trajectory for achieving positive earnings per share remains mixed, and recent financial performance has been weak compared to industry peers.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook for revenue growth. Additionally, the company raised its 2026 revenue outlook, further reinforcing growth expectations. There are no new threats impacting the thesis at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 2 quarters. Non-GAAP operating income improved from losses of -$5.85 million in 2025-Q1 and -$4.59 million in 2025-Q4 to positive $19.14 million in 2026-Q1 and $26.99 million in 2026-Q2. GAAP gross margin expanded from 53.2% in 2025-Q1 to 63.3% in 2026-Q2. Management is delivering improved operating income and margin expansion.
“Record second quarter gross margin of 63.3% and non-GAAP operating income of $26.99 million”
“Record first quarter gross margin of 62.5% and non-GAAP operating income of $19.14 million”
Breaks if: EPS remains negative or below $0.03
Drive towards positive earnings per share through revenue growth and cost management.
Stated as a priority in 2 of last 2 quarters. Non-GAAP net income per diluted share improved from losses of -$0.05 in 2025-Q1 and -$0.03 in 2025-Q2 to positive $0.13 in 2026-Q1 and $0.17 in 2026-Q2. Management is making progress toward achieving positive EPS.
“Non-GAAP net income per basic share of $0.17 compared to non-GAAP net loss per basic share of $0.03 in 2025-Q2”
“Non-GAAP net income per diluted share of $0.13 compared to non-GAAP net loss per diluted share of $0.05 in 2025-Q1”
Breaks if: Revenue falls below $610M in FY26
Continue to grow total revenue year-over-year through platform expansion and customer base growth.
Stated as a priority in 2 of last 2 quarters. Revenue grew from $173 million in 2026-Q1 to $183.3 million in 2026-Q2, representing 20% and 23% year-over-year growth respectively. Management's focus on revenue growth is delivering with consistent double-digit year-over-year increases.
“Record second quarter revenue of $183.3 million grew 23% year-over-year”
“Record first quarter revenue of $173 million grew 20% year over year”
The long-term thesis hinges on several factors, including the potential for the Federal Reserve to cut interest rates, which could provide a boost to tech stocks like FSLY. Additionally, the performance of sector leaders and the company's ability to maintain its recent momentum will be crucial.
Overall, FSLY's outlook is cautiously optimistic, with management making progress but facing significant challenges. Not investment advice.