Fastly Shares Plunge 41% Despite Record Q3 Revenue
Fastly shares dropped 41% in one month following a Q3 report that showed record revenue but highlighted rising customer concentration and an executive retirement.
Shares of Fastly fell 41% over the past month, including a 27% decline following the release of its Q3 2026 earnings report on November 4. The company reported record quarterly revenue of $190.2 million, a 20.2% increase year-over-year, and beat adjusted earnings per share estimates with $0.17 compared to the $0.12 consensus. Despite these figures and an increased full-year revenue outlook of $744 million to $748 million, the company posted a GAAP net loss of $11.3 million.
Investors reacted negatively to rising customer concentration, as the company's top 10 customers now account for 39% of total revenue. CEO Kip Compton identified expanding beyond these largest customers as "our biggest near-term opportunity and a clear execution priority."
Adding to the volatility, Scott Lovett, president of go-to-market, announced his plan to retire in 2027, triggering a search for a new chief revenue officer. On the operational side, Fastly is expanding its AI-focused products and integrating software into the Xfinity network to support streaming and edge AI.
