Fastly is expanding beyond content delivery into security, compute and observability; Odd Diligence found its infrastructure in 29.3% of Meta’s Muse tests. Shares rose 14% after its Sept. 22 Investor Day, where management outlined a path to double-digit annual growth.
Fastly said 72% of customers used at least two product suites, up from 58% two years earlier, while 30% used four or more, up from 7%. In Q2, revenue rose 23% year over year, net revenue retention reached 117% from 113% in Q1, and remaining performance obligations climbed 38% to $341 million. Fastly’s research found AI traffic grew about 6.5 times faster than human traffic from January to May 2026; more than half of AI requests required origin access, versus under 9% of human requests. On Sept. 21, it launched AI Runtime Control, AI Firewall and new API Security capabilities.
Fastly targets $1.1 billion-$1.3 billion in 2029 revenue, 67%-71% gross margins, 20%-22% operating margins and a 12%-15% free-cash-flow margin; those revenue goals imply 14%-21% annualized growth from 2026. The article identifies an execution risk: whether Fastly can monetize AI traffic faster than infrastructure costs and competition from Cloudflare and hyperscalers erode the opportunity. At Q2-end, 28 hedge funds held Fastly shares, down from 41 in Q1; D.E. Shaw raised its stake 153% to more than 6.6 million shares.
