New York, February 12, 2026, 06:09 (EST) — Premarket
Fastly (FSLY.O) shares surged nearly 40% in premarket trading Thursday, reaching around $13. The edge cloud company outperformed in its fourth quarter and delivered a 2026 forecast that exceeded expectations by a wide margin. The stock had closed at $9.31 on Wednesday.
The size of the move is significant since Fastly has spent most of the past year behaving like a high-beta stock: any hint of a growth scare wipes out gains. This report flips that script — focusing on profit, margin, and backlog instead of just traffic.
The rebound coincides with investors zeroing in on internet infrastructure firms benefiting from AI-driven demand. Cloudflare, a larger player in web performance and security, projected 2026 sales that topped earlier estimates this week, citing AI-fueled cloud demand.
Fastly reported a 23% jump in fourth-quarter revenue to $172.6 million, driven by a 32% surge in security revenue to $35.4 million and a 19% increase in network services revenue, which hit $130.8 million. The company posted adjusted earnings of 12 cents per share. Looking ahead, Fastly expects first-quarter adjusted profit between 7 and 10 cents per share on revenue ranging from $168 million to $174 million. For the full year 2026, it projects revenue between $700 million and $720 million, with adjusted earnings per share from 23 to 29 cents. CEO Kip Compton said, “Our fourth quarter results mark an inflection in Fastly’s growth as we achieved record revenue, gross margin, and operating profit.” Fastly Investor Relations
Fastly shares jumped over 30% in extended trading Wednesday, hitting roughly $12.30 following the earnings report, according to MarketWatch data.
A regulatory filing revealed Fastly submitted a Form 8-K on Wednesday related to its quarterly report.
The rally hinges on one key question: will this new demand lead to more consistent, less erratic revenue? William Blair analyst Jonathan Ho upgraded the stock, noting that “Fastly delivered a stellar quarter driven by rising contribution from agentic AI traffic,” according to Barron’s. Still, some analysts pointed out customer concentration as a clear vulnerability.
Fastly operates a content delivery network (CDN) with servers positioned near users to boost site and app speed. It also offers security tools that monitor traffic flow. Competing with giants like Cloudflare and Akamai in both performance and edge security, Fastly is smaller and its earnings tend to be more volatile.
Once the market opens, traders will eye whether premarket gains stick as liquidity flows in, and if the stock can keep its momentum without new upgrades. Another key point will be any updates on what’s fueling the surge in activity—specifically, how much stems from ongoing demand versus one-off events.
The upcoming quarterly report is the next major event to watch. Fastly is set to release its results on May 6, per Investing.com’s earnings calendar.
