New York, February 12, 2026, 06:09 (EST) — Premarket
Fastly (FSLY.O) shares jumped about 40% in premarket trading on Thursday, changing hands around $13 after the edge cloud firm posted a fourth-quarter beat and a 2026 outlook that came in well ahead of expectations. The stock closed at $9.31 on Wednesday. (Public)
The size of the move matters because Fastly has spent much of the past year trading like a high-beta name: a little growth scare and the stock gives it all back. This print is the opposite — it leans on profit, margin and backlog, not just traffic.
The rebound also comes as investors chase clearer winners in internet infrastructure tied to artificial-intelligence driven demand. Cloudflare, a bigger peer in web performance and security, forecast 2026 sales above estimates earlier this week as it pointed to AI-related cloud demand. (Reuters)
Fastly said fourth-quarter revenue rose 23% to $172.6 million, led by security revenue up 32% to $35.4 million and network services revenue up 19% to $130.8 million. Adjusted profit was 12 cents a share, and Fastly forecast first-quarter adjusted profit of 7 to 10 cents on revenue of $168 million to $174 million; for full-year 2026 it projected revenue of $700 million to $720 million and adjusted profit of 23 to 29 cents per share. “Our fourth quarter results mark an inflection in Fastly’s growth as we achieved record revenue, gross margin, and operating profit,” CEO Kip Compton said. (Fastly Investor Relations)
In extended trade on Wednesday, Fastly shares rose more than 30% to about $12.30 after the results, according to MarketWatch data. (MarketWatch)
A regulatory filing showed Fastly filed a Form 8-K on Wednesday tied to the quarterly report. (Fastly Investor Relations)
But the rally still leans on a simple question: does the new demand translate into steadier, less lumpy revenue. William Blair analyst Jonathan Ho upgraded the stock and wrote that “Fastly delivered a stellar quarter driven by rising contribution from agentic AI traffic,” Barron’s reported; other analysts flagged customer concentration as the obvious soft spot. (Barron’s)
Fastly runs a content delivery network (CDN) — servers placed close to users that speed up sites and apps — and sells security tools that sit in the path of that traffic. The company competes with names such as Cloudflare and Akamai in performance and edge security, but it is smaller and tends to swing harder around earnings.
Into the open, traders will watch whether premarket gains hold once liquidity arrives, and whether the stock can stay bid without the help of fresh upgrades. The other tell will be any follow-on detail about what is driving the traffic bump, and how much of it is recurring versus event-driven.
The next clear catalyst is the next quarterly report. Fastly is expected to report again on May 6, according to Investing.com’s earnings calendar. (Investing)
