Fastly, Inc. Q1 2026 Earnings Recap

Fastly's stock plunged 39.7% following earnings, reflecting investor disappointment with the cautious outlook and indications of deceleration despite headline revenue growth and margin gains.

Key Takeaways

• Reported revenue of $173 million, up 20% year-over-year and near the high end of guidance.
• Security revenue grew 47% year-over-year, comprising 22% of total revenue, signaling strong product momentum in this segment.
• Compute category revenue increased 67% year-over-year, marking the largest quarter-on-quarter step-up in this segment's history.
• Network Services grew 11% year-over-year, roughly double the market growth rate, supported by ongoing customer wins and platform reliability.
• Management emphasized AI as a future growth driver with new product developments and pipeline momentum, but no explicit guidance upgrades were given.