RBC Capital has increased its price target for Fastly Inc. (NASDAQ: FSLY) to $12.00, up from $10.00, while retaining a Sector Perform designation. The firm pointed to what it characterized as early signs of durable acceleration and continued margin execution as the rationale for the change.
Analyst price targets for Fastly span a range from $7.00 to $14.00, a dispersion that the market currently contrasts with Fastly’s trading level of $9.31. RBC’s note emphasized that the company posted a quarter in which revenue exceeded consensus expectations by 6.9%.
Fastly’s reported results show several improvement metrics highlighted by RBC. Revenue for the last twelve months rose 9.45%. All business segments accelerated for the fourth straight quarter, top-ten customer revenue expanded 28% year-over-year, and last-twelve-months net revenue retention climbed to 110% from 106% quarter-over-quarter. The company also recorded a fourth consecutive quarter of positive free cash flow.
Management’s forward-looking targets also drew attention. Fastly’s guidance for the first quarter and for full-year 2026 on revenue and profitability came in meaningfully above consensus, a development that coincided with a roughly 25% increase in the company’s share price during after-hours trading following the report.
The corporate update follows an earnings release for Q4 2025 in which Fastly reported diluted earnings per share of $0.12, double the projected $0.06. Quarterly revenue was $172.6 million, outpacing a forecast of $161.36 million and representing 23% year-over-year growth.
Market responses included moves by other sell-side firms. William Blair upgraded the stock from Market Perform to Outperform, citing the company’s potential related to AI traffic. Piper Sandler raised its price target to $14.00 from $11.00 while keeping a Neutral rating, pointing to strong performance and market share gains. Both firms noted Fastly’s notable achievements and its positioning in AI-related network traffic.
Taken together, the combination of stronger-than-expected quarterly results, improved customer retention and elevated guidance has prompted several analysts to reassess valuation and ratings. RBC’s target increase to $12.00 reflects that reassessment while maintaining a measured Sector Perform view.
Clear summary
RBC Capital raised Fastly’s price target to $12.00 from $10.00 while keeping a Sector Perform rating, citing accelerating revenue, margin execution and guidance that surpassed consensus. The quarter beat revenue expectations by 6.9%, and other analysts responded with upgrades and higher targets. Fastly reported strong Q4 2025 results, including EPS of $0.12 and revenue of $172.6 million.
Key points
- RBC increased its price target to $12.00 from $10.00 while maintaining Sector Perform.
- Fastly beat revenue consensus by 6.9% and posted 9.45% revenue growth over the last twelve months; top-ten customer revenue grew 28% year-over-year.
- Guidance for Q1 and full-year 2026 arrived meaningfully above consensus, and the stock jumped about 25% in after-hours trading.
Risks and uncertainties
- Analyst estimates vary widely - price targets span from $7.00 to $14.00, reflecting divergent views on valuation and execution, which can lead to volatility in the technology and cloud infrastructure sectors.
- While guidance exceeded consensus, the sustainability of the recent acceleration and margin improvement remains a key uncertainty for investors assessing future revenue and profitability.
- Market reactions to upgraded guidance and analyst actions can be sharp; the after-hours 25% share move underscores price sensitivity to forward-looking disclosures.