Fastly (FSLY) Stock Forecast & Price Target

Fastly is attractive fundamentally because its unified edge platform is seeing broader customer adoption, with 72% of $100K+ customers using 2+ product suites and 30% using 4+ suites in Q2'26, supporting cross-sell, higher retention, and a stickier revenue base. Revenue growth remains strong, as 2Q26 revenue rose 23.3% to $183.3M and NRR expanded to 117% from 113%, while Security revenue grew 42.6% to $41.7M and newer products like DDoS protection and bot management showed triple-digit growth. Profitability is also improving materially, with non-GAAP EBIT margin expanding from -3.1% in 2Q25 to 14.7% in 2Q26, and management’s FY26 guidance raised to $739.0M plus CY29 targets of $1.1-1.3B signaling continued operating leverage.

Fastly is viewed negatively because its core CDN economics depend on bytes, not requests, and the cited AI-agent traffic appears too small or cannibalistic to materially boost revenue in the near term. Security products such as Bot Management may help, but WAF, Bot Management, and DDoS are mature markets where growth relies on competitive displacement, while the company also faces persistent CDN price compression and competition, especially from Akamai. The stock is further pressured by unprofitability, non-US revenue of ~25-30% of total revenue, and concentration risk, with the top 10 customers contributing 35%+ of revenue.