Fastly, Inc. (FSLY) · Nov 4, 2026 · Earnings
Fastly earnings beat estimates as security growth lifts guidance
Beat — Non-GAAP diluted EPS $0.17 vs ~$0.12 consensus; revenue $190.2M vs ~$187.8M
Fastly earnings beat Q3 revenue and EPS estimates, while rising security adoption and cash flow support a modest full-year guidance increase.
Fastly is shifting from a delivery-focused edge network toward a broader platform spanning delivery, security, compute, observability, and AI workloads; the commercial goal is to grow faster by cross-selling more products into existing enterprise accounts. Its recent strategy has emphasized AI security and governance as AI traffic expands, while the company has been improving profitability and cash generation.
The quarter beat a reasonable market bar, but not by a wide margin. Revenue reached $190.2 million, above the published consensus of roughly $187.8 million, while non-GAAP diluted EPS was $0.17 versus roughly $0.12 expected. The company also finished at the top of its own $184 million–$190 million Q3 revenue guide, so the surprise was execution slightly ahead of expectations rather than a major forecast break. The filing says, “Total revenue of $190.2million, representing 20% year-over-year growth.”
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|
| Revenue (Financial Highlights) | $190.2M (+20%) | $158.2M | ~$187.8M consensus |
| Non-GAAP diluted EPS (Financial Highlights) | $0.17 | $0.07 | ~$0.12 consensus |
| Non-GAAP operating income (Financial Highlights) | $31.2M | $11.6M | $20M–$24M prior guide |
| Free cash flow (Cash Flow statement) | $25.2M | $18.1M | — |
| Full-year revenue guide (Guidance) | $744M–$748M | — | $732M–$746M prior guide |
The underlying mix is improving in the direction Fastly needs. Security revenue grew 32% year over year to $44.7 million, faster than Network Services growth of 16%, and multiproduct adoption continued to climb: 74% of large customers used at least two product suites and 34% used four or more. That supports the thesis that Fastly is becoming a broader platform rather than simply selling traffic delivery. The filing reports, “Multiproduct adoption among large customers2 reached 74% for two or more product suites, up 7 percentage points year-over-year, while adoption of four or more product suites surged to 34%, up 15 percentage points year-over-year.” 〔0〕
Profitability and cash generation are now more than an adjusted-income story. Non-GAAP operating income rose to $31.2 million from $11.6 million, adjusted EBITDA reached $43.5 million, and free cash flow increased to $25.2 million. GAAP operations still produced an $11.3 million loss, and stock-based compensation remained substantial at $37.3 million for the quarter, so the improvement is real operational progress but not yet GAAP profitability. The filing says, “Generated $40.0million of operating cash flow compared to $28.9million in the third quarter of 2025. Generated $25.2million of positive free cash flow compared to $18.1million in the third quarter of 2025.”
The guidance increase is constructive but modest. Fastly moved full-year revenue guidance from $732 million–$746 million to $744 million–$748 million and introduced Q4 revenue guidance of $198 million–$202 million. The midpoint rose only about 1%, which confirms continued execution but does not materially reset the growth outlook. The stronger signal is that full-year non-GAAP operating-income guidance now stands at $107 million–$111 million, above the previous $88 million–$96 million range, although some of that improvement reflects the company’s already-established margin expansion.
Two operating details temper the clean headline. Remaining performance obligations declined sequentially to $333.5 million from $340.9 million, while the top ten customers rose to 39% of revenue from 37%, increasing concentration. Those are not enough to offset the quarter’s beat, improving retention, and stronger cross-selling, but they argue against treating the result as a wholesale rewrite of Fastly’s growth profile.
Bottom line: Fastly delivered a narrow earnings beat and modestly raised its outlook, with security cross-selling and cash generation validating the platform expansion. It advances the existing story rather than fundamentally changing it.
What to watch next
Q4 earnings report, early February 2027
Original filing on SEC EDGAR
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