Fastly (NASDAQ:FSLY) Q1 Earnings Soar Amidst Cautious Analyst Price Target Adjustment

Font: Financial Modeling Prep  • May 07, 2026

• RBC Capital maintained a "Sector Perform" rating on Fastly but lowered its price target to $18.00.
• Fastly reported strong first-quarter results, with quarterly earnings of $0.13 per share, significantly beating estimates.
• The company's Q1 revenue surpassed $173.00 million, a 20% year-over-year increase, largely driven by a 47% surge in security revenue.

Fastly (NASDAQ:FSLY) is a leading cloud computing company that specializes in providing a robust content delivery network (CDN). This essential network infrastructure empowers businesses to deliver their websites, applications, and streaming videos to users globally with enhanced speed and security. Fastly operates within a highly competitive market, contending with other innovative technology firms offering similar edge cloud services.

On May 7, 2026, RBC Capital maintained its "Sector Perform" analyst rating on Fastly. This particular grade is often likened to a "hold" recommendation, indicating that the analyst anticipates Fastly's stock performance to align with the average performance of other companies within its specific industry sector.

RBC Capital also adjusted its price target for Fastly, lowering it to $18.00 from its previous target of $20.00. A price target serves as an analyst's projection of a stock's future price. This downward adjustment occurred when Fastly's stock was trading at $19.59, positioning the new target below the prevailing market price at that time.

Despite this cautious outlook from the analyst, Fastly recently reported robust first-quarter results. As highlighted by Zacks, the company announced impressive quarterly earnings of $0.13 per share. This figure not only significantly surpassed the consensus estimate of $0.08 per share but also represents a substantial improvement from a loss of $0.05 per share reported a year ago, showcasing strong EPS growth.

Revenue for the quarter also exceeded expectations, reaching over $173.00 million, which signifies a substantial 20% year-over-year increase. As noted in a release on Business Wire, this impressive revenue growth was primarily fueled by a significant 47% increase in security revenue. Following these positive results, Fastly proactively raised its financial guidance for the remainder of 2026, reflecting confidence in its future performance.