Fastly FSLY has been steadily scaling its Security segment, which is emerging as a key contributor to the company’s broader edge platform strategy. The segment reported revenues of $26.4 million in the first quarter of 2025, up 7% year over year and accounting for 18% of Fastly’s total revenues. The improving performance reflects the growing relevance of its security platform as enterprises increasingly prioritize real-time protection at the edge.
Fastly’s Security portfolio has been built to deliver low-latency, automated protection across modern web and API environments. It includes solutions like Client-Side Protection, API shielding, DDoS detection and bot mitigation. These solutions are embedded at the edge to help enterprise customers manage threats while maintaining compliance and low latency. Designed for performance-sensitive environments, the security offerings aim to simplify operations and support scale.
Momentum in the Security portfolio is being driven by ongoing product additions and upgrades, which are acting as key catalysts. Client-Side Protection has been developed to flag unauthorized browser-side activity and support PCI-DSS requirements. Fastly also launched Attack Insights to provide real-time visibility into blocked DDoS traffic and enable test-mode simulations. Bot Detection has been upgraded with dynamic challenge capabilities to better defend against evolving attack patterns.
The additions and enhancements are gaining traction among infrastructure and platform teams as security becomes a priority. Fastly’s focus on performance and developer usability is driving adoption, positioning the Security segment as a long-term growth driver within its edge platform.
Fastly Faces Competitive Pressure
Fastly’s expanding Security stack is facing competition from the likes of Fortinet FTNT and Cloudflare NET, both of which are scaling their solutions to support performance-driven, secure digital infrastructure.
Fortinet is building momentum through FortiWeb and FortiDDoS, offering advanced capabilities in bot protection, API security and automated threat response. Its tools are designed for enterprise environments that demand low latency, high precision and strong compliance. These strengths make Fortinet a key competitor in Fastly’s core markets.
Cloudflare continues to expand its security platform with advanced DDoS protection, bot management and threat intelligence. Its automation and real-time enforcement features are designed for developers and infrastructure teams managing complex workloads. Traction in Cloudfare’s regulated and performance-sensitive sectors puts it in direct competition with Fastly’s growing Security portfolio.
FSLY’s Share Price Performance, Valuation and Estimates
FSLY’s shares have declined 25.5% year to date, while the broader Zacks Computer & Technology sector has increased 7% and the Zacks Internet Software industry has appreciated 14.4%.
FSLY Performance
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Fastly shares are currently trading with a forward 12-month price-to-sales (P/S) of 1.63X compared with the industry’s 5.74X. FSLY has a Value Score of F.
FSLY Valuation
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The Zacks Consensus Estimate for second-quarter loss is pegged at 5 cents per share, unchanged over the past 30 days. This implies an improvement of 28.57% from the year-ago quarter.
Fastly, Inc. Price and Consensus
Fastly, Inc. Price and Consensus Fastly, Inc. price-consensus-chart | Fastly, Inc. Quote
The consensus mark for FSLY’s 2025 loss is pegged at 9 cents per share, which has improved by a penny over the past 30 days. The figure indicates a 25% improvement year over year.
FSLY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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