Shares in Fastly Inc. surged more than 30% in after-hours trading today after the cloud-based edge infrastructure and content delivery network provider not only delivered earnings and revenue beats in its fiscal 2025 fourth quarter but also gave an outlook well ahead of expectations.

For the quarter that ended on Dec. 31, Fastly reported adjusted earnings per share of 12 cents, up from a loss of two cents per share in the same quarter of 2024, on revenue of $172.6 million, up 23% year-over-year. Analysts had been expecting earnings of six cents per share on revenue of $161.36 million.

By sector, Fastly reported network service revenue of $130.8 million, up 19% year-over-year, security revenue of $35.4 million, up 32%, and other revenue of $6.4 million, up 78% year-over-year. Network services revenue includes solutions designed to improve the performance of websites, apps, application programming interfaces and digital media. Security revenue includes products designed to protect websites, apps, APIs and users and other revenue includes compute and observability solutions.

As of the end of the quarter, Fastly had 628 enterprise customers, up 32 from the fourth quarter of 2024, and was sitting on $354 million in remaining performance obligations, up 55% year-over-year. Fastly’s customers are also sticking around, with the company reporting a 110% 12-month net retention rate.

Business highlights in the quarter included Fastly expanding its API Security offering with API Inventory to allow customers to review, catalog and manage intended APIs to quickly identify those needing security attention.

Fastly also released a beta of AI Assistant, a context-aware, in-console helper that is designed to improve accessibility to Fastly services for less experienced developers by providing step-by-step guidance and personalized recommendations.

Other releases included a new extension to Fastly’s Custom Dashboards and Alerts that provides deeper, on-demand insights to enable faster decision-making and actions without requiring an observability package and enhancements to its Adaptive Threat Engine that further improve accuracy, time to mitigate and the ability to detect and block short-lived attacks.

For the full year, Fastly reported adjusted earnings per share of 13 cents, up from nine cents the year prior, on revenue of $624 million, up 15% year-over-year.

“Our fourth-quarter results mark an inflection in Fastly’s growth as we achieved record revenue, gross margin and operating profit,” Chief Executive Kip Compton said in the company’s earnings release. “In 2025 we made significant progress on Fastly’s transformation and delivered great results. As we look toward 2026, we anticipate continued momentum, with AI as an increasing tailwind for our business.”

For its 2026 first quarter, Fastly expects adjusted earnings per share of seven to 10 cents and revenue of $168 million to $174 million. Analysts were expecting a penny per share on revenue of $159.6 million.

For the full year, the company expects adjusted earnings of 23 to 29 cents per share and revenue of $700 million and $720 million, also well ahead of the 13 cents per share and $667.8 million expected by analysts.

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