Fastly Q3 Adjusted EPS Jumps 143% to $0.17 and Revenue Rises 20% to $190.2M, Beating Estimates
Revenue grew 20% and adjusted EPS rose 143% from a year earlier, and both came in above the top of the company's third-quarter guidance ranges.
Fastly (FSLY) reported third-quarter 2026 revenue of $190.2 million, up 20% from a year earlier and above the $187.8 million estimate, while adjusted EPS rose 143% to $0.17, above the $0.12 estimate. Both results topped the high end of the company's guidance of $184 million to $190 million in revenue and $0.11 to $0.13 in adjusted EPS. Shares fell about 12% in after-hours trading.
Q3 scorecard
| Parameters | Expected | Actual | Beat/Miss |
|---|---|---|---|
| Adjusted EPS | $0.12 | $0.17 | Beat by 42% |
| Revenue | $187.8M | $190.2M | Beat by 1.3% |
| Change | YoY | QoQ |
|---|---|---|
| Adjusted EPS | ▲ 142.9% | ▲ 13.3% |
| Revenue | ▲ 20.2% | ▲ 3.8% |
Adjusted EPS beat the estimate by 5 cents and revenue beat it by about $2.4 million. Third-quarter 2025 revenue was $158.2 million and adjusted EPS was $0.07. Second-quarter 2026 revenue was $183.3 million and adjusted EPS was $0.15.
Results versus guidance
- Revenue. Fastly guided to $184 million to $190 million in its second-quarter report. Revenue of $190.2 million finished about $0.2 million above the high end.
- Adjusted EPS. Guidance was $0.11 to $0.13. The $0.17 result was 4 cents above the high end.
- Full-year outlook. Fastly's August outlook called for 2026 revenue of $732 million to $746 million and adjusted EPS of $0.50 to $0.54.
Context from the second quarter
- Security. Security revenue grew 43% to $41.7 million in the second quarter.
- Customer expansion. Net retention was 117% in the second quarter, up from 113% in the first quarter.
- Cash flow. Free cash flow was $3.6 million in the second quarter, down from $10.9 million a year earlier, as capital spending rose to $35.8 million from $14.9 million.
What to watch
- Outlook. Whether the full-year revenue range of $732 million to $746 million moves after a third quarter at the top of guidance.
- Security and retention. Whether security growth and net retention stay near second-quarter levels of 43% and 117%.
- Capital spending. How higher capital spending affects free cash flow after the second-quarter decline.
- Related coverage. See our reports on Palantir, Lumen and MercadoLibre.
Sources: Results are from Fastly's third-quarter 2026 report. Estimates are consensus figures. Guidance, second-quarter 2026 and third-quarter 2025 comparison figures are from the company's earlier releases. This article is informational only and is not investment advice.
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