SAN FRANCISCO, May 5, 2026, 10:01 PDT
- Fastly shares were up roughly 15% before the company’s first-quarter report, set for release after Wednesday’s closing bell.
- That uptick came on the heels of a wider AI-infrastructure surge, with DigitalOcean reporting a 22% rise in revenue and AI customer annual recurring revenue leaping 221%.
Fastly Inc. shares surged late Tuesday morning, continuing a strong 2026 run just ahead of the edge-cloud company’s first-quarter earnings report. As of 1:00 p.m. Eastern, the stock was up 15.17% at $31.66, according to MarketBeat.
Timing’s in focus here. Fastly is set to report earnings after Wednesday’s closing bell, and all eyes are on whether that February bounce was just a quick blip or the first sign of a longer AI-fueled comeback. The company’s earnings call is scheduled for 1:30 p.m. Pacific time.
AI has quickly become the go-to label for the trade. DigitalOcean on Tuesday reported first-quarter revenue up 22% to $258 million. AI customer ARR—annual recurring revenue connected to AI clients—jumped 221% to $170 million. “The Inference and agentic era needs its own cloud,” CEO Paddy Srinivasan said. DigitalOcean Investors
Fastly jumped 16.1% and Cloudflare climbed 8.7%, according to StockStory. The moves came on the heels of DigitalOcean’s results, which, StockStory noted, boosted investor belief that AI-driven demand isn’t just fueling the giants anymore—it’s spreading into wider infrastructure spend.
Fastly provides edge cloud services—software, security, and content-delivery tools running closer to users, aiming for quicker load times and protection right at the edge where traffic first hits the network. The company describes its platform as covering edge compute, delivery, security, plus observability, the industry’s shorthand for real-time system monitoring.
Analysts surveyed by MarketBeat expect Fastly’s first-quarter revenue to hit $170.26 million, with adjusted earnings pegged at 8 cents a share. Back in February, Fastly projected its own revenue between $168 million and $174 million, alongside non-GAAP earnings in the 7 to 10 cent range.
Fastly’s fourth-quarter numbers topped expectations. Revenue reached $172.6 million, climbing 23% from the same stretch last year. Non-GAAP diluted earnings came in at 12 cents per share. “An inflection in Fastly’s growth,” CEO Kip Compton said of the quarter, pointing to AI as “an increasing tailwind.” Fastly
Analysts are keeping a sharp eye on the AI traffic numbers. Following Fastly’s fourth-quarter results, William Blair’s Jonathan Ho told Investor’s Business Daily the company pulled off a “stellar quarter,” buoyed by “agentic AI traffic.” That’s traffic from software agents capable of acting with minimal human input. Investors
Here’s the rub: Fastly shares have already surged more than 200% this year, bumping up against their 52-week high, according to StockStory. That doesn’t leave much of a cushion if results simply meet expectations. Another detail from the company—its top 10 customers made up 34% of revenue in the fourth quarter, a level of concentration that adds risk if any major client shifts usage.
Competition’s a big issue here. Fastly puts Akamai and Cloudflare on its list of rivals in legacy content-delivery, API and app security, plus serverless edge compute. Notably, the company points out that plenty of these players are better equipped financially and technically. All of which makes Wednesday’s guidance just as critical as any quarterly results.
