Fastly Raises Guidance as Revenue Beats Estimates

The cloud infrastructure company reported third-quarter 2026 results that topped Street expectations, though shares fell in after-hours trading.

Updated on Nov. 4, 2026 in Corporate Finance

Isometric editorial illustration of rows of sealed grey server cabinets linked by a curving fiber-optic cable bundle in a plain industrial hall. — Fastly raised its full-year revenue and earnings guidance on Wednesday after third-quarter revenue of $190.2 million beat Street estimates, though shares fell 17.5% in after-hours trading. AI Illustration. Upload story photo >

Fastly reported third-quarter 2026 revenue of $190.193 million, up 20% year-over-year and above a Street consensus estimate of $187.801 million. The company raised its full-year sales and adjusted earnings guidance after reporting results following market close on Wednesday.

Why it matters

The results show growth in both network and security services, with the company's net retention rate reaching its highest level since 2022. Investors reacted negatively, with shares falling 17.5% in after-hours trading, a move that may reflect the announced management transition or guidance that some analysts found less strong than expected.

Network Services revenue reached $138 million, up 16% year-over-year, while Security revenue rose 32% to $44.7 million. Remaining performance obligations ended the quarter at $334 million, up 24% year-over-year.

The players

Fastly

Fastly is a cloud computing and edge networking company that provides content delivery, security, and application services to websites and applications.

Scott R. Lovett

Scott R. Lovett serves as president of Go To Market at Fastly and oversees the company's sales and customer-facing strategy.

The details

Fastly reported gross margins of 63.3% on a GAAP basis and 65.8% on a non-GAAP basis, both matching record levels. The company also expects fourth-quarter revenue between $198 million and $202 million and earnings of 16 to 18 cents per share.

Wednesday: Fastly reports third-quarter results after market close and shares fall 17.5% in after-hours trading.
2027: Scott R. Lovett, president of Go To Market, plans to retire.

Market Landscape

Fastly's 119% last 12-month net retention rate is its highest since 2022, indicating existing customers are expanding their usage. The company's growth in security revenue, up 32%, places it in a segment where it competes with larger cloud and network providers.

Investors holding Fastly shares faced a 17.5% after-hours decline despite the earnings beat, so near-term price movement may depend on how the stock trades when regular sessions resume. The raised full-year guidance could matter for anyone tracking the company's expected profitability.

The takeaway

Strong revenue growth can still produce a share decline when guidance, leadership changes, or expectations shift. Readers tracking earnings reports should compare reported figures against consensus and forward outlook together.