Overview
- Fastly used its Investor Day to lay out fiscal 2029 targets that call for $1.1 billion to $1.3 billion in revenue and implied annual growth of roughly 14% to 21%.
- The company introduced three AI-focused products—AI Runtime Control, AI Firewall and enhanced API Security—designed to give customers real-time visibility and control over AI model access and API use.
- Fastly says machine-generated traffic topped 50% in July–August and that AI traffic expanded about 6.5 times faster than human traffic in early 2026, which management says underpins its growth case.
- Market reaction was volatile with an investor-day selloff followed by a rebound that sent shares about 14% higher to a close near $29.65, while analysts split between raising targets and urging caution over the wide guidance range.
- Management framed the change as a shift from a CDN to a unified edge platform that relies on cross-selling—about 30% of large customers already use four or more Fastly products—which will determine whether traffic gains convert into sustained margins and free cash flow.