Fastly (FSLY) Stock Forecast & Price Target

Fastly is well positioned by the surge in agentic AI traffic, with management noting an 11x increase in MCP requests in Sep'26 versus Jan'26 and AI requests growing 6.5x faster than human requests, which should deepen demand across delivery, security, and compute. Its fundamental strength is also visible in customer monetization, as 72% of $100K+ customers now use 2+ product suites and 30% use 4+ suites, while Security grew 42.6% to $41.7M and NRR expanded to 117%. Profitability is improving alongside growth, with Q2'26 revenue of $183.3M, non-GAAP EBIT margin rising to 14.7% from -3.1% in Q2'25, and FY26 revenue guidance lifted to a midpoint of $739.0M.

Fastly is pressured by intense competition, especially from Akamai, in a CDN market that has historically seen significant price compression, limiting the company’s ability to sustain pricing power or margin expansion. Its fundamental profile also looks weak because it remains unprofitable with no expected near-term path to profitability, while free cash flow and operating margin gains may not continue if CDN revenues decline more than expected or if compute and other products fail to compete effectively. The outlook is further constrained by concentration and geographic risk, since the top 10 customers account for 35%+ of revenue and non-US revenue represents about 25-30% of total revenue, exposing the business to customer churn and international volatility.