New York, Feb 17, 2026, 07:23 EST — Premarket
- Fastly fell 1.3% in premarket trading, pulling back after its sharp rally following earnings.
- Zacks bumped up its rating, citing an uptick in earnings forecasts.
- Traders are looking to see if the AI-traffic story actually delivers sustained growth.
Fastly dipped 1.3% to $18.02 ahead of the bell Tuesday, trimming part of last week’s sharp advance as U.S. markets came back online following the Presidents Day break.
The retreat is significant—this stock’s regained its momentum status, and now traders are weighing if this sharp shift in sentiment will last with more filings and analyst notes on deck over the coming weeks.
Fresh momentum hit the stock after Zacks Equity Research bumped Fastly up to a “Rank #2 (Buy)” rating on Monday. The upgrade comes as analysts point to rising earnings estimates, which their model views as a positive driver for the shares in the near term. Nasdaq
Fastly shares took off after the company reported its highest-ever fourth-quarter revenue. It also posted a non-GAAP profit—excluding items like stock-based comp—and put out 2026 guidance that topped its earlier targets.
Kip Compton, chief executive, described the change as a response to demand. “As we look toward 2026, we anticipate continued momentum, with AI as an increasing tailwind for our business,” he said in the earnings release.
Fourth-quarter revenue hit $172.6 million, climbing 23% from a year earlier. Non-GAAP diluted EPS came in at $0.12. For the first quarter, the company expects revenue between $168 million and $174 million, with non-GAAP EPS projected in a $0.07 to $0.10 range.
Fastly submitted its Form 8-K with the results on Feb. 11.
Fastly has been vying for customer budgets in an increasingly packed edge-delivery and security sector, up against industry heavyweights Cloudflare and Akamai. Customers are weighing bundled performance and security offerings versus price.
The catch: this new wave of demand could turn out volatile. AI-driven surges aren’t always steady, and Fastly remains under the gun from pricing squeezes in its main delivery segment. After how quickly the stock’s repriced, there’s not much margin for error.
Traders on Tuesday have their eyes on Fastly, curious to see if shares can stick above $18 after the bell. Volume is another key metric to watch as the market reacts to the company’s fresh rating change.
