Fastly (FSLY) stock delivered a remarkable 241.5% return in the twelve months leading up to October 9, 2026, significantly outperforming the S&P 500's 17.0% gain. This surge appears to be fueled by a discernible shift in the company's fundamental business: accelerating sales growth and shrinking losses. Investors who entered the market today are banking on the continuation of this positive trajectory, while those who missed the rally may be questioning whether Fastly provided early indicators of its impending success. How soon did Fastly's sales turnaround become apparent?

Fastly Gave A First Sign In February 2025

The initial signal emerged on February 12, 2025, approximately eight months before the significant stock run began. During a quarterly earnings call, Fastly's management unveiled a revamped go-to-market strategy. This new approach focused on presenting customers with the company's comprehensive suite of products, encompassing security solutions and advanced bot protection.

Management acknowledged on that call that demand had softened among a few of its largest clients. However, revenue from customers outside its top ten accounts demonstrated robust growth, increasing by 16% year over year. Despite this positive trend in smaller accounts, overall revenue growth was a modest 2.0% in the fourth quarter of 2024, which somewhat obscured the underlying health of these emerging customer segments. Consequently, investors who purchased stock following this announcement were essentially investing in a turnaround plan rather than a fully realized success.

Fastly’s Next Two Filings Backed The Plan

The efficacy of this strategic shift began to materialize in Fastly's subsequent two quarterly reports, both released before the stock's notable upward trajectory. On May 7, 2025, Fastly reported revenue growth of 8.2% for the quarter ending March 2025. This positive momentum continued, with top-line growth accelerating to 12.3% in the second quarter of 2025, as detailed in a report filed on August 6, 2025.

Certain investors quickly recognized this initial acceleration. A news report from early Friday, May 9, 2025, indicated that Fastly stock had appreciated by approximately 30% for the week. By August 6, 2025, the company's regulatory filings clearly depicted faster sales growth, a full two months prior to the commencement of the twelve-month period that ultimately yielded the impressive 241.5% gain.

It is crucial to note that neither of these filings provided definitive proof of profitability. Fastly's operating loss remained substantial, standing at 24.6% of revenue in the second quarter of 2025. Investors holding out for evidence that revenue growth would translate directly into profit had not yet received it.

Are Fastly’s Sales Still Picking Up?

The sales momentum has persisted through the most recently reported quarter. During the earnings call on August 5, 2026, management announced that revenue had surged by 23% to $183.3 million in the second quarter of 2026. Security revenue, in particular, saw a significant 43% increase, directly aligning with the strategic focus outlined in February 2025. The company's operating loss over the past twelve months has also narrowed considerably, now representing 12.0% of revenue, a marked improvement from the 24% recorded a year prior. Fastly's overall stock performance substantially outpaced that of its peer Cloudflare, which returned 64.1% over the same twelve-month period.

However, the reported 23% total revenue growth masks a significant internal shift in growth drivers. Revenue from Fastly's ten largest customers experienced a substantial 48% increase in the second quarter of 2026, while revenue from all other customers grew by 12%. This represents a notable reversal from the situation discussed on the February 2025 call, when revenue from accounts outside the top ten grew by 16% and demand had weakened among some of the largest clients. Management also noted that a couple of live sporting events contributed to revenue in the latest quarter, classifying these as episodic contributions.

Looking ahead, management provided third-quarter revenue guidance during the August call, projecting between $184 million and $190 million, implying an estimated growth of 18% at the midpoint. This projected pace is slower than the 23% growth Fastly just reported. The third quarter has since concluded, with the company scheduled to release its results on November 4, 2026. Revenue exceeding $190 million, the upper end of the guidance range, would represent a beat, while revenue below $184 million would indicate a miss.

Does This Mean You Should Act On FSLY?

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