Fastly Stock Soars Over 25% After Q4 Earnings: Here's Why

Core Viewpoint - Fastly has reported strong quarterly earnings, indicating a significant growth trajectory and positive outlook for the future, particularly with the influence of AI on its business [2][3][4]. Financial Performance - Fastly reported quarterly earnings of 12 cents per share, surpassing the analyst estimate of 6 cents [2]. - Quarterly revenue reached $172.61 million, exceeding the Street estimate of $161.36 million and showing an increase from $140.58 million in the same period last year [2]. - The company achieved record revenue, gross margin, and operating profit in the fourth quarter [3]. Future Outlook - Fastly anticipates adjusted EPS for fiscal 2026 to be between 23 cents and 29 cents, compared to the analyst estimate of 14 cents [4]. - Revenue projections for fiscal 2026 are expected to be in the range of $700 million to $720 million, exceeding the estimate of $667.83 million [4]. - The CEO highlighted the momentum expected in 2026, with AI serving as a significant growth driver for the business [3]. Stock Performance - Following the earnings report, Fastly's stock price increased by 26.10% to $11.75 in extended trading [4].