Fastly revenue growth accelerates to 23% in Q2 2026

Fastly (FSLY) reported second-quarter 2026 revenue of $183.3 million, a 23% increase driven by a 43% surge in security sales. This latest filing confirms the acceleration in top-line growth that began in early 2025, marking a distinct shift from the modest expansion seen in the prior year. The company’s stock returned 241.5% in the twelve months to October 9, 2026, significantly outpacing the 17.0% gain for the S&P 500 over the same period.

The operational pivot started with a strategic adjustment announced during the February 12, 2025, earnings call. Management outlined a plan to pitch customers on Fastly’s entire product range, including security solutions and bot protection, rather than relying solely on its core services. At that time, demand had weakened among a few of the company’s largest customers. However, revenue from accounts outside the ten largest grew 16% year over year, a detail obscured by the fact that total revenue had grown only 2.0% in the fourth quarter of 2024.

Subsequent filings demonstrated that this broader sales strategy began to yield results. Fastly reported an 8.2% revenue increase for the quarter ended March 2025 in a filing dated May 7, 2025. Growth accelerated further to 12.3% in the second quarter of 2025, detailed in a report filed on August 6, 2025. While these figures signaled improving momentum, they did not yet indicate a path to profitability. The operating loss remained at 24.6% of revenue in the second quarter of 2025.

The most recent data shows continued strength, though the composition of that growth has changed. In the second quarter of 2026, revenue from Fastly’s ten largest customers grew 48%, while revenue from all other customers grew 12%. This represents a reversal of the trend noted in February 2025, when smaller accounts were growing faster than large ones. Management noted that live sporting events contributed to revenue in the latest quarter but categorized these as episodic factors. The company’s operating loss over the past twelve months has narrowed to 12.0% of revenue, down from 24% a year earlier.

Fastly’s performance has also exceeded that of its peer Cloudflare, which returned 64.1% over the same twelve-month period. Looking ahead, management guided third-quarter revenue to a range of $184 million to $190 million, implying growth of approximately 18% at the midpoint. This expected pace is slower than the 23% reported for the second quarter. The company is scheduled to report its third-quarter results on November 4, 2026.