Fastly delivered standout results for the first quarter of 2026, achieving record revenue and margins while expanding its security offerings and customer base. The edge cloud platform provider reported total revenue of $173 million, marking 20% year-over-year growth.
Financial Highlights
Revenue broke down to $126.2 million from Network Services (up 11% YoY), $38.8 million from Security (up 47% YoY), and $8.0 million from Other (up 67% YoY). Gross margins hit records at 62.5% on a GAAP basis and 65.1% non-GAAP, improving significantly from prior year levels of 53.2% and 57.3%.
Non-GAAP operating income reached $19.1 million, reversing a $5.8 million loss from Q1 2025. Net income stood at $22.9 million non-GAAP, or $0.13 per diluted share, compared to a $6.6 million loss previously. Operating cash flow generated $28.9 million, up from $17.3 million.
Key Metrics and Customer Growth
Remaining Performance Obligations (RPO) surged 63% to $369 million. Large customer count rose to 634, with the top 10 accounting for 34% of revenue. Last twelve months Net Retention Rate (LTM NRR) climbed to 113%.
Executive Insights
“Our first quarter performance demonstrates continued discipline and velocity as we delivered record revenue, gross margin, and RPO,” stated Kip Compton, CEO of Fastly. “Driven by an accelerated innovation roadmap, we delivered 47% year-over-year security revenue growth. This performance reflects expansion within our installed base and robust new business wins, enabling us to raise our 2026 guidance.”
Product Innovations and Wins
Fastly expanded Bot Management with Content Guard to secure AI bots and enhanced API Security with new tools for visibility. The company added coding languages to Compute & Security and launched the Fastly Agent Toolkit for AI agents.
Recent customer wins include a large social media platform for API and Video-on-Demand, a privacy-first browser for VPN, and expansions with digital payment and multinational tech firms. Fastly earned top recognition as a Leader in The Forrester Wave™: Edge Development Platforms, Q1 2026.
Joan Jenkins joined as Chief Marketing Officer to drive global growth.
2026 Guidance Raised
For Q2 2026, Fastly guides revenue to $170-$176 million, non-GAAP operating income of $12-$16 million, and non-GAAP EPS of $0.05-$0.08.
Full-year 2026 outlook now projects revenue of $710-$725 million, non-GAAP operating income of $58-$68 million, and non-GAAP EPS of $0.27-$0.33.
These forward-looking projections account for risks and uncertainties that may impact actual results.
