Fastly stock falls 1.92 percent as margins hit a record

Fastly stock (ISIN US31188V1008) closed at USD 25.51 on Nasdaq on October 6, 2026, down 1.92 percent from the previous close of USD 26.01. The latest operating figures show a company growing revenue while expanding its security and edge cloud platform.

Revenue reaches USD 183.3 million

According to Yahoo Finance on August 5, 2026, Fastly's Q2 2026 revenue increased 23 percent year over year to USD 183.3 million, exceeding the company's guidance range of USD 170 million-USD 176 million. The quarter also delivered a record gross margin of 65.8 percent, up from 59 percent in Q2 2025.

Security revenue rose 43 percent year over year to USD 41.7 million, while remaining performance obligations increased 38 percent year over year to USD 341 million. Trailing-12-month net retention reached 117 percent, compared with 104 percent in the year-ago quarter, giving the platform strategy a measurable expansion effect among existing customers.

Guidance points to sustained growth

Fastly raised its 2026 revenue guidance to USD 732 million-USD 746 million, a range reflecting 18 percent growth at the midpoint, according to Yahoo Finance. The company also expects non-GAAP operating profit of USD 88 million-USD 96 million and non-GAAP earnings per diluted share of USD 0.50-USD 0.54.

The operating leverage is important because Fastly's Q2 operating margin expanded from negative 3 percent in Q2 2025 to positive 15 percent in Q2 2026. At the same time, management said infrastructure capital spending would equal 10 percent-12 percent of 2026 revenue, compared with 5 percent in 2025, creating a clear investment trade-off as capacity expands.

Consensus target stands above the close

The analyst consensus remains constructive but measured. MarketScreener lists an Outperform consensus from 12 analysts, with an average target of USD 27.40, a high target of USD 32.00 and a low target of USD 22.00. The average target lies 7.4 percent above the October 6 close of USD 25.51.

That spread leaves the market focused on execution rather than headline growth alone. Fastly's Q2 performance combined 23 percent revenue growth with a 65.8 percent gross margin, but the planned capital investment and the concentration of growth in security, compute and large customers remain important measures for the next report.

Fastly stock stays below its yearly high

Fastly stock closed at USD 25.51 on Nasdaq on October 6, 2026, with a 52-week range of USD 7.74-USD 34.82. Its market capitalization was USD 3.9923 billion and trading volume reached 3,043,964 shares.

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