Piper Sandler has revised its price target on Fastly Inc. (NASDAQ: FSLY) upward to $14.00 from $11.00, but the firm left its stock rating at Neutral. Fastly shares were trading at $9.31 at the time the data point was reported, after jumping 16.96% over the most recent week and advancing 35.91% over the prior six months.
In its research note, Piper Sandler pointed to what it described as the company’s "largest beat since 2019" and a further quarter of acceleration led by strength among large customers and gains in market share. The firm also noted that Fastly’s guidance for 2026 came in at roughly 6% above market expectations.
Market-data from InvestingPro included in the research summary indicated the company appears undervalued relative to Fair Value estimates, and that three analysts have recently raised earnings forecasts for the upcoming period. That mix of results and analyst revisions underlies Piper Sandler’s decision to lift the price target while preserving its Neutral stance.
Piper Sandler emphasized that several of Fastly’s largest accounts - including customers that migrated from Edgio - have shifted more of their workloads to Fastly and committed at greater scale. The firm attributed an 89% year-over-year increase in remaining performance obligation (RPO) bookings to those larger commitments.
The research note enumerated a set of tailwinds supporting Fastly’s recent performance: market share gains, favorable dynamics in the content delivery network (CDN) segment amid a less crowded competitive set, effective security cross-selling, and rising traffic from argentic workloads. Over the past twelve months the company has reported 9.45% revenue growth but remains unprofitable across that period.
Despite the upsized price target, Piper Sandler continued to characterize its view of the shares as Neutral, while expressing that it was "impressed with the team" and that these developments are "raising the value of the edge." Separately, InvestingPro data referenced by the research indicated that analysts expect Fastly to reach profitability this year.
Complementing Piper Sandler’s note, Fastly closed out 2025 with a strong fourth quarter. The company reported earnings per share of $0.12, double the $0.06 analysts had forecast. Quarterly revenue was $172.6 million, above the $161.36 million consensus and representing a 23% increase from the prior year.
In other recent coverage, William Blair upgraded Fastly’s rating from Market Perform to Outperform, describing the quarter as "stellar" and calling out the company’s potential in the expanding area of agentic AI and large language model usage. William Blair highlighted that AI-driven traffic is contributing increasingly to the company’s results.
Taken together, the revised price target, stronger quarterly metrics, rising bookings and third-party analyst upgrades underscore a period of positive momentum for Fastly, even as the company works toward consistent profitability.