Fastly, Akamai Poised For Security, Compute Growth, Says Analyst

Keybanc analyst Jackson Ader upgraded both Fastly, Inc. (NASDAQ:FSLY) and Akamai Technologies, Inc. (NASDAQ:AKAM).

For Akami, the analyst went from Underweight to Overweight, raising the price target from $66 to $115. Faslty was Sector Weight and got an upgrade to Overweight; the price target remained at $14.

• Fastly stock is among today’s top performers. Why are FSLY shares rallying?

Analyst View

Ader writes that Akamai and Fastly have long sought to diversify beyond content delivery, with Akamai leading the effort, expanding into security and compute to offset the cyclical nature of its core business.

The analyst believes that both companies are well-positioned to outperform software peers in 2026, driven primarily by growth in security and compute offerings.

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Akamai’s Cloud Compute An Opportunity

The analyst says that during the initiation, they identified several potential catalysts for outperformance, including faster-than-expected growth in Compute, fueled by rising demand for edge compute to support AI workloads.

While overall Compute revenue has not yet fully reaccelerated, early indications suggest a pickup beginning in the fourth quarter, led by strong growth in Cloud Infrastructure Services (CIS), adds the analyst.

Ader expects continued CIS expansion, supported by the recently announced AI Inference Cloud platform, to be a tailwind for Akamai shares in 2026.

Overall, the analyst projects Akamai to accelerate revenue growth next year, supported by improved CDN pricing and rising cloud computing demand.

Fastly’s Security A Growth Driver

Ader notes that Fastly has rebounded strongly after a challenging 2024, with revenue now forecasted to grow 12.6%, marking a 540-basis-point acceleration from FY24.

The analyst says that the turnaround is well underway, and they are confident that the largely new executive team can continue driving top-line growth and margin expansion.

CEO Kip Compton has expanded Fastly's Security business from one to five products, reflecting management's confidence in the company's ability to compete and win business, particularly following its go-to-market transformation, notes the analyst.

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