Fastly is positioning its edge cloud platform for a rapidly expanding machine-driven internet, with company research finding that AI traffic is growing 6.5 times faster than human traffic this year as Fastly builds infrastructure for AI agents and low-latency AI workloads.
The research highlights a broader transition in internet traffic toward machines and AI systems, creating new requirements around identifying, securing and managing automated traffic. Fastly said organizations will need new strategies to address the shift.
Fastly is also partnering with Skyfire to bring trusted AI agent commerce to the edge. The partnership is designed to allow enterprises to securely identify, verify and transact with AI agents in real time and at global scale without having to re-architect their existing infrastructure.
The company separately released a C++ SDK for Fastly Compute, enabling enterprises to secure, scale and accelerate C++ AI workloads along with gaming features and other applications requiring low latency.
The AI initiatives are arriving alongside accelerating business metrics. Q2 revenue increased 23% year-over-year to a record $183.3 million. Security revenue surged 43% to $41.7 million, Network Services revenue increased 17% to $133.9 million and Other revenue, which includes Compute and Observability, jumped 69% to $7.7 million.
Remaining performance obligations increased 38% to $341 million from $247 million. Last 12-month net retention increased to 117% from 113% sequentially, reaching its highest level in more than three years.
Fastly also moved into non-GAAP profitability, reporting $26.2 million of non-GAAP net income compared with a $5 million loss a year earlier. GAAP gross margin expanded to 63.3% from 54.5%, while non-GAAP gross margin reached 65.8%.
For full-year 2026, Fastly expects revenue of $732 million to $746 million and non-GAAP operating income of $88 million to $96 million.
KEY QUOTE:
“Record second quarter results reflect strong execution and the deep trust customers place in our technology and our teams. Our platform strategy is driving business momentum, giving us the confidence to raise our full-year outlook.”
Kip Compton, CEO Of Fastly
