Fastly FSLY is benefiting from strong enterprise growth, which has been a key growth driver. In the fourth quarter of 2025, it reported record revenues of $172.6 million, representing 23% year-over-year growth, the highest in more than three years.
The growth was largely fueled by the company’s enterprise customer base, which accounted for more than 90% of its revenues. Fastly’s enterprise customer count reached 628, showcasing its ability to attract and retain high-value clients.
Fastly’s enterprise metrics remained stable in the fourth quarter of 2025. The Zacks Consensus Estimate for enterprise customer count is pegged at 652 for the quarter, up from 628 in the previous quarter. The consensus mark for enterprise revenues is pegged at $151 million, indicating 12.1% year-over-year growth. The consensus mark for net retention is pegged at 108.75%, lower than 110% reported in the year-ago quarter.
A growing product suite and ecosystem integration are expected to drive platform growth. Fastly is extending its edge capabilities with Next-Gen WAF (Web Application Firewall), Bot Management, API Security (Discovery+Inventory) and Managed Security Services. These tools are designed to support secure, high-speed delivery for performance-sensitive workloads. Partnerships and deeper adoption across accounts like Alphabet $GOOGL, VMware, Shopify $SHOP, Azure and AWS may help support longer-term engagement.
Fastly guided first-quarter 2026 revenues to be between $168 million and $174 million and full-year 2026 revenues in the $700-$720 million range.
The Zacks Consensus Estimate for first-quarter and 2026 revenues is pegged at $171.59 million and $711.06 million, respectively, indicating year-over-year growth of 18.77% and 13.95%.
Fastly Faces Stiff Competition
Fastly faces stiff competition from Cloudflare NET and Akamai $AKAM AKAM, both of which offer overlapping solutions in edge delivery and web security.
Cloudflare continues to expand its programmable edge platform with integrated developer tools and bot protection, directly challenging Fastly’s core offerings. The company recorded 4,298 enterprise customers, reflecting 23% year-to-year growth. Enterprise customers contributed 73% of total revenues, highlighting a shift toward an enterprise-led revenue mix.
Meanwhile, Akamai is strengthening its position in cloud security and computing through acquisitions and a deeper enterprise focus. Both Cloudflare and Akamai are investing in edge innovation at scale. Fastly’s ability to differentiate based on performance and ease of use will remain critical as it competes for enterprise workloads in a crowded, rapidly evolving market.
FSLY’s Share Price Performance, Valuation & Estimates
FSLY shares have soared 235.5% year to date against the broader Zacks Computer & Technology sector’s decline of 5% and the Zacks Internet Software industry’s fall of 18.1%.
FSLY YTD Price Performance
Image Source: Zacks Investment Research
Fastly shares are currently trading with a forward 12-month price-to-sales (P/S) of 6.56X compared with the industry’s 3.62X. FSLY has a Value Score of F.
FSLY Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FSLY’s first-quarter earnings is pegged at 8 cents per share, unchanged over the past 30 days. Fastly reported a loss of 5 cents per share in the year-ago quarter.
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