Fastly Posts Record Q1 2026 Revenue, Narrows Losses on Security Growth
Event summary
- Fastly reported Q1 2026 revenue of $173.0M, up 20% YoY, with security revenue growing 47% YoY to $38.8M.
- Non-GAAP net income turned positive at $22.9M, compared to a loss of $6.6M in Q1 2025.
- Remaining Performance Obligations (RPO) surged 63% YoY to $369M.
- Fastly raised its full-year 2026 revenue guidance to $710M–$725M.
- The company appointed Joan Jenkins as Chief Marketing Officer to accelerate global growth.
The big picture
Fastly's strong Q1 2026 results reflect the growing demand for edge cloud and security solutions as businesses prioritize digital resilience. The company's ability to raise guidance and improve profitability signals confidence in its strategic pivot toward security-driven growth. However, sustaining this momentum will require continued innovation and execution in a competitive market.
What we're watching
- Security Revenue Momentum
- Whether Fastly can sustain its 47% YoY security revenue growth amid increasing competition in the edge security space.
- Customer Expansion
- How the 39% increase in large customers will impact cross-selling opportunities and long-term retention.
- Operational Efficiency
- The pace at which Fastly can improve its non-GAAP gross margin, which rose to 65.1% in Q1 2026.
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