New York, February 13, 2026, 05:32 EST — Premarket
Fastly, Inc. (FSLY) climbed another 5.1% in premarket trading Friday, reaching $16.86 after soaring 72.3% on Thursday. FSLY shares closed the previous session at $16.04.
Fastly operates a content delivery network, with servers positioned to keep data near users for quicker site and app loading, and also offers security tools that guard web traffic. As AI systems scour the internet for information, investors think that surge in web traffic may be making its way into Fastly’s results.
Fastly reported a 23% jump in fourth-quarter revenue, hitting $172.6 million, with adjusted earnings coming in at 12 cents per share—those numbers leave out what the company calls non-core costs. For the first quarter, Fastly is guiding to revenue between $168 million and $174 million, and expects adjusted EPS in the 7 to 10 cent range. Looking further out, the company is targeting 2026 revenue of $700 million to $720 million, and sees adjusted earnings per share in the 23 to 29 cent band. CEO Kip Compton called the latest quarter an “inflection” point for growth. The company noted its ten largest customers drove 34% of the latest revenue. Fastly also raised $180 million via 0% convertible notes maturing in 2030—these can be swapped for stock—and spent $149 million to repurchase notes set to mature in 2026. investors.fastly.com
Remaining performance obligations jumped 55% to $353.8 million, marking a solid rise in contracted revenue still to be booked. Security revenue also moved up, gaining 32% to hit $35.4 million. Fastly wrapped up the quarter with 628 enterprise customers. Net retention rate? That ticked higher too, reaching 110%, according to Investing.com.
William Blair’s Jonathan Ho pointed to “rising contribution from agentic AI traffic” as a key factor behind the results and his upgrade, according to a note cited by Nasdaq. The term agentic AI covers software agents capable of acting with limited human input—meaning more automated requests for CDNs like Fastly to process. Nasdaq
Akamai Technologies jumped over 10%, Investors.com reported, with traders searching for clues in the sector following Fastly’s results. Cloudflare, which also operates in web delivery and security, is a listed competitor.
Fastly shares whipsawed from $13.38 to $17.86 on Thursday, with 116.2 million shares changing hands—an unusually heavy volume for a small-cap tech name. That much activity can swing the regular session in either direction.
Morgan Stanley disclosed in a Schedule 13G filed Wednesday that it owned 8.07 million class A shares of Fastly, or 5.4% of the company. The filing itself is dated Feb. 11.
Yet Fastly’s surge means shares now reflect little room for error, and bulls aren’t ignoring the company’s dependency on a handful of big customers. D.A. Davidson analyst Rudy Kessinger bumped his target up to $13, but stuck with a “hold” rating, pointing to concerns over the concentration risk, according to Barron’s. Barron’s
Thursday brought losses for tech shares, with traders looking ahead to Friday’s U.S. inflation numbers—a key hurdle for rate-sensitive stocks. Fastly faces a straightforward question now: will demand return after the bell, or will those earlier gains evaporate once the data lands?
