Fastly Shares Rise After Oppenheimer Upgrade

Fastly shares rose after Oppenheimer upgraded the stock and set a $35 price target, drawing attention to the company’s expanding security business and artificial-intelligence products.

Fastly provides edge-cloud services for websites, applications and application programming interfaces, along with security and computing services. Its recent strategy has emphasized selling multiple products to existing customers.

Fastly’s second-quarter revenue reached $183.3 million, up 23% from a year earlier. Security revenue increased 43% to $41.7 million, while the company’s last-12-month net retention rate rose to 117% from 113% in the first quarter.

Fastly launched AI Runtime Control, AI Firewall and new API Security capabilities on Sept. 21, 2026. The products were available at launch as companies manage growing artificial-intelligence traffic.

Machine-generated traffic accounted for more than 50% of traffic across Fastly’s network in July and August. Artificial-intelligence traffic grew 6.5 times faster than human traffic from January through May.

“To effectively adopt coding agents and implement AI features without losing velocity or eroding existing business resilience, enterprises need control in production, at runtime, without delay, friction, or disruption,” said Kelly Shortridge, Fastly’s chief product officer.

Fastly’s Sept. 22 investor-day presentation projected 2029 revenue of $1.1 billion to $1.3 billion. It also projected compound annual revenue growth of 14% to 21% from 2026 through 2029, a 2029 non-GAAP gross margin of 67% to 71%, an operating margin of 20% to 22% and a free-cash-flow margin of 12% to 15%.

“Record second quarter results reflect strong execution and the deep trust customers place in our technology and our teams,” said Kip Compton, Fastly’s CEO.