Fastly's Cross-Sell Strategy Pays Off: More Wallet Share Ahead?

Fastly, Inc. FSLY is increasingly demonstrating that its cross-selling strategy is becoming a meaningful growth driver as the company expands customer adoption across its network, security and compute portfolio. The first quarter of 2026 showed that FSLY is not only adding products to its platform but also turning customer relationships into broader multi-product deployments.The trend became particularly visible in the first quarter as Fastly’s broader security stack gained traction alongside its core web application firewall business. Security revenues jumped 47% year over year to $38.8 million and accounted for 22% of total revenues. The growth was supported by new customer wins as well as expansion within the existing customer base.Fastly is now seeing enterprises adopt multiple security products simultaneously rather than entering through a single offering. Demand expanded beyond the company’s flagship Next-Gen WAF into newer products such as DDoS Protection, Bot Management and API Discovery and Inventory. Almost half of the security product instances sold to new customers during the quarter came from these newer offerings.The strategy is also translating into larger deal sizes and broader deployments. A leading digital payment conglomerate expanded its relationship with Fastly by adding 10 new products and services, while a global social media corporation selected Fastly in a cross-sell security win tied to securing global API traffic.Customer expansion trends continued to strengthen. Fastly’s trailing 12-month net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader range of customers. The latest quarter indicates that Fastly’s broader platform is helping deepen customer adoption, with security cross-sell, multi-product deployments and improved net retention pointing to stronger wallet-share capture across its customer base.What Do the Latest Metrics Say About Fastly?Fastly, which competes with Akamai Technologies, Inc. AKAM and Cloudflare, Inc. NET, has seen its shares rally 120.7% over the past year against the industry’s decline of 12.4%. Shares of Akamai Technologies and Cloudflare have gained 89% and 33.6%, respectively, in the aforementioned period.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Fastly's forward 12-month price-to-sales ratio stands at 3.4, lower than the industry’s 3.81. The company is trading at a discount to AKAM (with a forward 12-month P/S ratio of 4.57) as well as NET (24.44). Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Fastly’s current fiscal-year sales and earnings per share implies year-over-year growth of 15.2% and 146.2%, respectively. Fastly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks