Fastly, Inc. FSLY is seeing growing traction in its Compute business as enterprises increasingly explore AI-driven workloads at the edge. In first-quarter 2026, Fastly’s Other revenues, which include Compute and Observability solutions, soared 67% year over year to $8 million. The company also reported a record $1.6 million sequential increase in the category, representing its largest quarter-over-quarter revenue step-up to date.
The acceleration appears closely tied to rising AI-related demand. Fastly said that increased customer requirements in AI and related areas contributed to Compute momentum during the quarter. The company also noted growing customer interest in features designed to improve interoperability with large language models, enabling workloads to be processed closer to end users through edge infrastructure.
Fastly indicated that customers are increasingly evaluating agentic AI and edge inference use cases, with the company working alongside enterprises on deployment and optimization efforts. It also highlighted that traffic associated with AI agents and automated workloads is becoming a larger share of internet activity over time.
Even with the strong growth, the company characterized many of these AI opportunities as still being in the early stages. Fastly described its current approach as co-innovation with customers on large and complex opportunities tied to AI and edge computing.
The quarter nevertheless showed that Compute is becoming a more meaningful contributor within Fastly’s platform strategy. The sharp growth rate and record sequential increase suggest that AI-related workloads are beginning to create measurable demand for the company’s edge compute offerings.