Fastly, Inc. announced its fourth‑quarter 2025 financial results on February 11, 2026, reporting revenue of $172.6 million—up 23% year‑over‑year—and a non‑GAAP diluted earnings per share of $0.12, a 100% beat on the consensus estimate of $0.06. The company’s prior‑quarter EPS was –$0.02, so the jump to a positive figure marks a significant turnaround.
Revenue growth was driven by a 32% increase in security revenue and a 78% rise in other revenue, which includes compute and observability services. Network services revenue also grew, contributing to the overall 23% increase. The mix shift toward higher‑margin security and other services, combined with strong demand for edge‑computing and AI workloads, underpinned the top‑line expansion.
Fastly’s gross margin expanded to a record 64.0% in Q4 2025, up from 57.5% a year earlier. The improvement reflects a higher proportion of high‑margin services, pricing power in the edge‑cloud market, and operational leverage as the company scales its network of points of presence.
Management guided for Q1 2026 revenue of $168 million to $174 million and non‑GAAP diluted EPS of $0.07 to $0.10, both above analyst expectations of $166.6 million and $0.06, respectively. For the full year 2026, Fastly projected revenue of $700 million to $720 million and EPS of $0.23 to $0.29, well ahead of the consensus estimate of $0.13. The upward guidance signals confidence in continued demand for AI‑driven edge services and a sustained margin trajectory.
CEO Kip Compton highlighted the quarter as an inflection point, noting disciplined execution and the growing influence of AI as a tailwind. He emphasized that the company’s transformation has moved it into profitability and that disciplined execution will continue to drive growth and margin expansion.
Investors reacted positively to the earnings beat, the robust guidance, and the company’s emphasis on AI and edge computing. The market’s response reflects confidence in Fastly’s ability to capture growing demand for high‑performance, AI‑enabled edge services while maintaining a strong margin profile.
Fastly’s Q4 2025 results signal a decisive shift toward profitability and a clear trajectory of growth driven by AI and edge computing. The company’s record margins, disciplined cost management, and optimistic outlook position it well to capitalize on the expanding AI market while sustaining its competitive edge in the cloud platform space.
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