Fastly (FSLY) Stock Forecast & Price Target

Fastly is supported by accelerating AI-related traffic, with management citing an 11x increase in MCP requests in Sep'26 versus Jan '26 and AI requests growing 6.5x faster than human requests, which can lift demand across network, security, and compute. Its platform is gaining traction as 72% of $100K+ customers now use 2+ product suites and 30% use 4+, while Security revenue grew 42.6% to $41.7M and NRR improved to 117%, signaling stronger cross-sell and retention. Financially, 2Q26 revenue rose 23.3% to $183.3M, non-GAAP EBIT margin expanded to 14.7%, and full-year revenue guidance increased to $739.0M, all reinforcing improving operating leverage and execution.

Fastly is unlikely to see a meaningful near-term revenue inflection from AI agents because its CDN business is monetized on bytes, and the cited incremental traffic from Muse appears immaterial relative to large media customers and even rough estimates of scaled AI usage. Security can benefit from request-based monetization, but management has not yet seen early renewals into higher request tiers from AI, while WAF, Bot Management, and DDoS are mature markets that depend on competitive displacement rather than rapid new demand. The bearish case is reinforced by Fastly’s unprofitability, expected lack of near-term profitability, 25-30% non-U.S. revenue exposure, and 35%+ revenue concentration in the top 10 customers amid an industry marked by price compression and competition from Akamai.