Fastly, Inc. FSLY entered 2026 with strong momentum, as first-quarter revenues increased 20% year over year to a record $173 million. Rising demand across edge cloud, security and compute services helped the company sustain one of its strongest growth phases in recent years.
The performance followed 23% revenue growth in the fourth quarter of 2025, showing that Fastly has largely held on to the acceleration seen over the past several quarters. Quarterly growth had earlier remained in single digits through much of 2024 before rebounding sharply in late 2025, making the latest 20% increase notable.
The composition of growth remains important. Network Services revenues, still the company’s largest business, increased 11% year over year to $126.2 million. Security revenues climbed 47% to $38.8 million and represented 22% of total revenues, while Other revenues, primarily driven by compute products, surged 67% to $8 million. This mix shows that Fastly’s growth is being supported by both its core delivery business and faster-growing newer categories.
Fastly also benefited from expansion within its customer base. LTM net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader mix of customers. The company also reported record remaining performance obligations of $369 million, up 63% year over year, indicating stronger contracted revenue visibility.
Even so, the pace may gradually normalize from recent highs. Second-quarter 2026 revenue guidance of $170-$176 million implies 16% year-over-year growth at the midpoint, while full-year 2026 guidance of $710-$725 million points to a 15% increase. This indicates that while growth is expected to cool from the recent peak, Fastly still sees a mid-teens revenue trajectory for 2026.
