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FSLY · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Fastly, Inc. Class A Common Stock (FSLY) stock moving?
Fastly beat Q3 2026 expectations with revenue of $190.2M (+20% year over year, versus $187.8M consensus), gross margin of 63.3% (65.8% non-GAAP), $25.2M of free cash flow and LTM net revenue retention of 119%. It raised FY2026 sales guidance to $744M-$748M and adjusted EPS guidance to $0.61-$0.63, and its Q4 guidance ($198M-$202M revenue) sat above consensus. Despite this, the stock closed at $21.04 on Nov 4 and fell to $15.38 on Nov 5 (-26.9%) on 18.8M shares, roughly three times the typical daily volume, with no clear company-specific cause in the news. Several analysts cut price targets afterward: RBC to $19 (Sector Perform), Piper Sandler and Evercore to $24, Citi to $25 (Neutral) and Freedom to $35 (Buy). Management also disclosed that President of Go To Market Scott Lovett plans to retire in 2027 and that a Chief Revenue Officer search has begun. Since Nov 5 the stock has stabilized in a $15.2-$16.9 range, closing at $16.24 on Nov 10 on 4.9M shares, still well below the Oct 27 high of $27.88. The price sits below most published targets, but the thesis depends on the CRO hire and on whether the growth and margin gains hold.
News behind the analysis
- Fastly Reports Q3 2026 Financial ResultsFastly reported Q3 2026 revenue of $190.2M, up 20% year over year and above the FactSet consensus of $187.8M. Non-GAAP operating income was $31.2M.
- Fastly Sees Q4 Adj EPS $0.16-$0.18 vs $0.13 Est; Sees Sales $198.000M-$202.000M vs $196.885M EstFastly guided Q4 2026 revenue to $198M-$202M and adjusted EPS to $0.16-$0.18, both above consensus.
- Fastly Raises FY2026 Adj EPS Guidance from $0.50-$0.54 to $0.61-$0.63; Raises FY2026 Sales Guidance from $732.000M-$746.000M to $744.000M-$748.000MFastly raised full-year 2026 adjusted EPS guidance to $0.61-$0.63 and sales guidance to $744M-$748M.
- Fastly Reports Double Beat, Raises Guidance, Shares Fall: What Investors Should KnowFastly shares fell after the Q3 report despite a double beat and raised guidance. The sell-off continued into Nov 5 on heavy volume.
- RBC Capital Maintains Sector Perform on Fastly, Lowers Price Target to $19RBC Capital kept its Sector Perform rating and cut its price target from $25 to $19 after the Q3 report.
- Evercore ISI Group Maintains Outperform on Fastly, Lowers Price Target to $24Evercore ISI kept its Outperform rating and lowered its price target to $24 following the Q3 results.
- Piper Sandler Reiterates Neutral on Fastly, Lowers Price Target to $24Piper Sandler reiterated its Neutral rating and lowered its price target to $24 after the Q3 report.
- Citigroup Maintains Neutral on Fastly, Lowers Price Target to $25Citigroup kept a Neutral rating and reduced its price target to $25.
- Freedom Broker Maintains Buy on Fastly, Lowers Price Target to $35Freedom Broker kept its Buy rating and lowered its price target from $37 to $35.
- Fastly, Inc. Announces Participation in Upcoming Investor ConferencesFastly confirmed it will attend three investor conferences in November and December 2026.
About Fastly, Inc. Class A Common Stock
Fastly is a San Francisco-based edge cloud company that runs a global network of servers to deliver websites, apps and video quickly and securely, and lets developers run code close to users. It is known for a programmable, developer-focused platform, and it has recently been growing faster: third-quarter 2026 revenue was a record of about $190 million, up about 20% from a year earlier.
How it makes money
Most of its revenue is usage-based fees for network services: content delivery and streaming, charged mainly by how much traffic customers send. A smaller but fast-growing share comes from security products (web application firewall, bot and DDoS protection) and compute products for running code at the edge. Its customers are mostly large enterprises, and a small group of big customers makes up a meaningful share of revenue. Annual revenue was about $624 million in 2025, and the company is still loss-making on a GAAP basis.
What usually moves FSLY
- Internet traffic and usage by large customers
- Growth of security product sales
- AI-related traffic and edge compute demand
- Pricing pressure from larger rivals
- Progress toward profitability and free cash flow