Fastly, Inc. Class A Common Stock

Fastly laid out a platform strategy at its September 22 Investor Day that targets $1.1 billion to $1.3 billion of revenue in 2029, a 14% to 21% annualized growth rate from 2026, alongside 67% to 71% gross margins, 20% to 22% operating margins, and 12% to 15% free cash flow margin. Shares jumped 14% after management outlined the path toward double-digit annual growth. The company said 72% of its customers now use at least two product suites, up from 58% two years ago, and 30% use four or more, up from 7%, while Q2 revenue rose 23% year over year, net revenue retention climbed to 117% from 113% in Q1, and remaining performance obligations increased 38% to $341 million. Fastly cited its own research finding AI traffic grew roughly 6.5 times faster than human traffic between January and May 2026, with more than half of AI requests requiring origin access versus less than 9% of human requests, and on September 21 it launched AI Runtime Control, AI Firewall, and new API Security capabilities. An Odd Diligence analysis of tests involving Meta's Muse assistant found Fastly in 29.3% of tests, suggesting it may play a meaningful role in some Muse agentic workloads. At the end of Q2, 28 hedge funds held Fastly, down from 41 in Q1 and 37 in Q4 2025, though D.E. Shaw increased its stake 153% to more than 6.6 million shares.

Fastly, Inc. expanded its Fastly for AI portfolio with AI Runtime Control, AI Firewall, and new API Security tools, giving organizations real-time visibility and control over AI traffic across models, applications, and enterprise APIs on its global edge platform. By unifying AI governance, security, and routing at the edge, Fastly aims to let customers run increasingly complex AI and agent workloads without locking into a single model provider. The company's investment narrative projects $947.9 million in revenue and $76.8 million in earnings by 2029, with a fair value of $27.00, a 9% downside to its current price. Some of the most optimistic analysts were already modeling revenue near US$981,000,000 by 2029. The Comcast partnership remains relevant because it shows how Fastly's edge software can be embedded deeper into a major operator's network for latency-sensitive workloads, including AI inference.

Fastly shares jumped 13% on Wednesday as Wall Street firms weighed in on the company's investor day, held the day prior. At the event, management unveiled FY29 targets including a revenue CAGR of 14%-21%, non-GAAP operating margins of 20%-22%, and FCF margins of 12%-15%. RBC Capital Markets analyst Rishi Jaluria, who has a Sector Perform rating and $25 price target, said the execution required to achieve these targets alongside competitive CDN dynamics keeps him in wait-and-see mode, and noted shares traded down about 5% on the day of the event, lagging the roughly flat IGV. D.A. Davidson analyst Rudy Kessinger highlighted new AI products, saying demand for newer Bot Management and DDoS products, each growing 100%+ Y/Y, remains very robust, and he raised his price target to $23 from $21 while keeping a Neutral rating. Piper Sandler analyst James Fish said the 2029 target range was slightly above buyside expectations and could prove conservative given the rise of agentic AI.

Bandwidth reported second-quarter revenues of $219.9 million, up 22.2% year on year, exceeding analysts' expectations by 1.4%, and posted the highest guidance raise among the 12 software development stocks tracked. The company, which provides cloud-based communications software and APIs for customers including Microsoft, Google, and Zoom, saw revenue and EBITDA guidance for next quarter beat analysts' expectations, and its stock is up 3.8% since reporting, trading at $54.24. Across the group, revenues beat consensus estimates by 3.2% and next quarter's revenue guidance came in 1.8% above, with share prices up 11% on average since the latest results. Fastly delivered the best quarter in the group with revenues of $183.3 million, up 23.3% year on year and 5.3% above expectations, while Akamai posted the weakest performance, with revenues of $1.1 billion, up 5.4% year on year and 0.6% above estimates. Twilio reported revenues of $1.50 billion, up 22% year on year and 5% above expectations, and PagerDuty reported revenues of $124.4 million, flat year on year but 0.9% above expectations, adding 126 customers to reach a total of 15,506.

Fastly reported quarterly revenue of $183 million, up 23% year over year, with security revenue climbing 43% and delivery services revenue rising 17%, CFO Rich Wong said at a Piper Sandler conference. Remaining performance obligations increased 38% year over year, and the current portion of RPO rose 44%, which Wong attributed to stronger customer commitments amid component shortages. Wong credited the security growth to an expanded portfolio that now spans five security products, up from a single web application firewall, and to improved sales execution under Scott Lovett, who joined as head of sales in mid-2024. Bot management and DDoS protection each posted triple-digit year-over-year growth, and net retention reached a four-year high of 117%. Fastly also said it will hold an investor day at Nasdaq MarketSite in New York to discuss a longer-term operating model and its outlook over the next three years, though it does not plan to provide fiscal 2027 guidance at the event.

Comcast announced a Fastly-powered edge platform integrated across its nationwide network, targeting ultra-low latency services. The company reported new broadband buildouts in Glades County, Florida and Jackson County, Michigan, reaching thousands of previously under-connected locations. Management highlighted AI-focused edge capabilities, including support for streaming, gaming, and emerging AI services delivered closer to end users. The rollout embeds Fastly's software into more than 200 edge compute centers, extending Comcast's Connectivity & Platforms push into broadband innovation, intelligent WiFi, and bundled services. Comcast operates as a global media and technology group, a dual position that lets it test AI-focused connectivity services on its own network footprint while also selling them to customers.

Comcast and Fastly announced a next-generation content and application delivery partnership that embeds Fastly's programmable edge software into Comcast's edge compute platform, pushing live streaming content closer to customers' homes for millions of Xfinity members. The deployment creates an industry-first hyper-local service layer across Comcast's nationwide network, which includes more than 200 AI-powered, data-processing edge compute centers distributed across the country. Initial results have demonstrated substantial gains in data delivery and significant reductions in round-trip latency compared to traditional content delivery mechanisms, with the platform designed to handle massive live streaming traffic, real-time security, edge compute, and AI services. Elad Nafshi, Chief Network Officer at Comcast, said the stakes will never be higher than during the upcoming fall football season, when a single streaming game can drive record network traffic, and that integrating Fastly establishes a new approach for delivering the biggest moments in streaming. Kip Compton, Chief Executive Officer at Fastly, said extending Fastly's platform into Comcast's network brings more local performance and real-time traffic management to streaming, compute, and security applications while infusing intelligence into the network layer for the AI era.

Shares of edge cloud platform Fastly jumped 3.7% in the afternoon session after the company joined Experian's Agent Trust ecosystem to help businesses verify AI agents and authorize transactions in real time. The collaboration with Experian aims to enhance security and trust as autonomous commerce grows. Fastly closed at $20.23, up 4.1% from the previous close. The stock has had 60 moves greater than 5% over the last year, indicating the market considers this news meaningful but not fundamentally perception-changing.