Fastly Raises 2026 Guidance Following Record Q2 Results and Edge Pivot

Key Facts

1Fastly achieved 23% YoY revenue growth in Q2 with gross margins reaching a record 65.8%.

2The company raised its full-year 2026 guidance across all lines following a Q2 beat on both top and bottom lines.

3Security and Compute segments grew 46% YoY, reaching a $200M annual run rate.

Amid a strategic pivot toward edge cloud technologies, Fastly reported record financial results for the second quarter of 2026, signaling a successful transition from a traditional CDN provider to a high-growth platform. The company achieved a 23% year-over-year increase in revenue, with gross margins hitting a record 65.8%. Following this beat on both top and bottom lines, management has raised its full-year 2026 financial guidance across all segments.

The outperformance was primarily driven by the Security and Compute segments, which grew 46% year-over-year to reach a $200 million annual run rate. Additionally, the Net Retention Rate (NRR) improved to 117%, reflecting deeper wallet share among existing clients. This growth aligns with broader market data showing a robust 8.2% quarterly increase in US corporate profits, as reported in recent economic growth figures.

Looking ahead, investors will monitor whether Fastly can sustain these record margins as it scales its edge operations. While specific closing prices for FSLY are currently unavailable, market participants are weighing the company's outlook against macroeconomic indicators, such as the US PCE Price Index which stood at 3.7% annually in August, influencing the broader valuation environment for high-growth tech stocks.