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Fastly Reports Mixed Q1 Results with Revenue Growth and Lower Guidance

May 7, 2026, 10:21 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Despite better-than-expected revenue, the significant sell-off indicates market disappointment with guidance. Historical trends show similar reactions to raised guidance accompanied by cautious revenue forecasts.

AI summary

What happened, with direct paths to the underlying reporting

Fastly reported better-than-expected Q1 results, yet shares fell significantly post-release. Improved guidance for the full year may indicate long-term growth potential, but current Q2 expectations show a slight slowdown, raising investor concerns.

  • Fastly beat Q1 revenue and EPS estimates but still sold off.
  • Q1 revenue was $173.02 million; guidance reflects slight slowdown.
  • Second-quarter revenue forecasted at $170-$176 million with lower EPS guidance.
  • Full-year guidance raised to $710-$725 million in revenue and 27-33 cents EPS.
  • Security revenue grew 47% year-over-year, showcasing business expansion.

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