The Agentic AI Revolution: Fastly's Moment

Company Overview - Fastly (FSLY) is an infrastructure software firm specializing in cloud computing, image optimization, security, edge computing technology, and streaming solutions, enabling businesses to deliver secure and high-performance digital experiences [1] - Fastly's network operates on Varnish, a web accelerator that allows developers to run custom code, including AI logic, at the "edge of the internet," facilitating real-time decision-making and reducing latency, bandwidth costs, and enhancing security [1] Agentic AI Boom - The AI industry is transitioning into the "agentic AI" phase, characterized by AI agents that can operate without human supervision, mimicking human decision-making to solve problems in real time [2][4] - Fastly is well-positioned to benefit from the agentic AI boom, as it has established itself early in this space and offers an AI accelerator that makes running agentic AI more cost-effective [4][6] Financial Performance - Fastly reported a 23% year-over-year revenue increase to $172.6 million, surpassing the $161.4 million estimate, with adjusted EPS of $0.12, doubling Wall Street expectations [7] - The company experienced a significant turnaround in net income, moving from a $2.4 million loss in Q4 2024 to a $20.1 million gain in Q4 2025 [7] Future Guidance - Fastly anticipates full-year 2026 revenue to reach $700 million, a substantial increase from approximately $543 million in 2024, indicating strong growth potential in the agentic AI market [8] Market Positioning - Fastly is not only capitalizing on the agentic AI revolution but also assists large language models (LLMs) in storing AI query responses, managing AI scrapers to prevent content theft, and protecting AI-powered applications from cybersecurity threats [9] - The company is experiencing significant institutional demand, as evidenced by trading volumes significantly exceeding average levels following the positive earnings report [11]