**Fastly Reports Impressive Q2 2026 Results**
Fastly, Inc. (FSLY) announced adjusted earnings of 15 cents per share for Q2 2026, an increase from a loss of 3 cents per share in the previous year, exceeding the Zacks Consensus Estimate by 114.29%. The company’s revenue climbed 23.3% year-over-year to $183.32 million, surpassing expectations by 5.34%. The increase was attributed to strong performance in Network Services ($133.9 million, up 17%) and Security ($41.7 million, up 43%).
**Key Financial Highlights**
For Q2 2026, Fastly’s last-12-month net retention rate improved to 117%. The average annualized spend per large customer reached $1.11 million, with total revenues from the top 10 customers growing by 48%. Non-GAAP gross margin expanded to 65.8%, and the company recorded an operating income of $27 million, compared to an operating loss of $4.6 million in the previous year.
**Outlook for Future Growth**
Fastly raised its revenue guidance for 2026 to between $732 million and $746 million, projecting non-GAAP earnings of 50-54 cents per share. The company anticipates continued demand driven by AI-related services, particularly in Security and Compute sectors. For Q3 2026, revenues are expected to range from $184 million to $190 million, with non-GAAP earnings projected at 11-13 cents per share.
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