What Fastly Stock's Security Growth Means For Shareholders

• Fastly reported at the Citi 2026 Global TMT Conference that security and compute activities are now outpacing its traditional content delivery business, alongside four consecutive quarters of operating profit and a net revenue retention rate of 117%.
• The emphasis on faster growing, higher margin security and edge compute services suggests Fastly is reshaping its revenue mix toward products that appear more closely tied to long term customer engagement and recurring usage.
• The next area of focus will be how Fastly's four straight quarters of operating profit intersect with its existing investment narrative and risks.

Scan alongside Fastly and see which peers are pushing toward profitable growth with security and edge workloads by checking our curated 89 AI infrastructure stocks in the same corner of the market.

Fastly Investment Narrative Recap

To own Fastly, you need to buy into an edge cloud platform that is trying to shift its mix toward security and compute while still proving it can sustain profits. The latest update from the Citi 2026 Global TMT Conference speaks mainly to that first part. Four quarters of operating profit and a 117% net revenue retention rate give the current execution story some support. The key near term catalyst is whether higher margin products can keep outgrowing the core CDN. The main risk remains that costs, competition, and customer concentration keep profitability fragile.

The recent commentary about security and compute outpacing traditional content delivery ties back to earlier efforts to expand Fastly beyond pure CDN. Management has talked about leaning into next generation WAF, DDoS protection, and edge compute as ways to deepen customer usage and support higher margin services. That is the same playbook investors are watching now. If cross product adoption continues to rise and more clients rely on multiple Fastly offerings, the operating narrative around recurring usage and net retention stays intact. Execution against that mix shift is what links this news to future catalysts.

Even so, there is a pressure point in the Fastly story that could matter more than the recent share price jump if ...

Read the full Fastly narrative to see the case behind these numbers.

Fastly's narrative projects US$947.9 million revenue and US$76.8 million earnings by 2029. This implies 11.3% yearly revenue growth and an earnings swing of about US$157.9 million, from a loss of US$81.1 million today to the forecast level.

Fastly's forecasts put fair value at $27.00 compared with $22.71, a 19% upside to its current price that may not last long.

Exploring Other Perspectives

For a different angle on Fastly, focus on the bullish view that multi year, high commit contracts could matter more than current profitability worries. The most optimistic analysts were modeling revenue of about US$980.9 million and earnings of US$76.8 million by 2029, before this update. Those forecasts may change as this latest security and compute commentary is incorporated, so treat today as a chance to compare several narratives rather than settle on just one.

To put Fastly's current pricing in context, compare it with 4 other fair value estimates for Fastly from the wider community.

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so trust your own analysis and judgment.

• A great starting point for your Fastly research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• See our latest analysis for Fastly. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Fastly's overall financial health at a glance.

Looking For More Ideas Beyond Fastly?

If the Fastly story has you thinking about where else to focus capital, a quick scan through a few curated screeners can surface other stocks with traits that fit your style, whether you lean toward value, resilience, or future potential.

• For investors who want quality at a reasonable price, review companies flagged in the 31 high quality undervalued stocks. These pair stronger fundamentals with more modest valuations.
• If capital preservation and steadier profiles matter more to you than headline growth, filter for candidates in the 10 resilient stocks with low risk scores. These score better on balance sheet and risk checks.
• When you are hunting for future leaders before they are widely followed, scan the 17 high quality undiscovered gems. These highlight businesses with stronger fundamentals yet lower market attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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