Can Fastly (FSLY) turn identity-backed AI agents into a persistent edge revenue advantage?

• On June 10, 2026, Skyfire announced a partnership with Fastly to integrate identity and payment-backed credentials into Fastly’s programmable edge cloud, enabling secure real-time validation of AI agents and agenttic commerce at global scale without major infrastructure changes for enterprises.
• By combining Skyfire’s protocol-level identity and payment rails with Fastly’s AI-focused bot management and edge network, this partnership directly targets the emerging need to transform AI agent traffic from a security risk to a responsible revenue-generating channel.
• Next, we consider how Fastly’s move to identity-backed AI agent commerce at the edge could impact existing AI and security-driven investment stories.

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Fastly Investment Story Summary

To own Fastly, you must believe that its edge cloud and security platform can carve out a differentiated role despite tough CDN competition and continued losses. Our partnership with Skyfire fits this theory by extending Fastly’s AI and security story to identity-backed agent commerce at the edge. In the short term, the key drivers for the 2026 earnings outlook remain viable, while sustained unprofitability and pricing pressures in commoditized markets remain the central risks. The Skyfire news does not significantly change short-term priorities.

The most relevant related announcement is the December 2024 launch of the Fastly AI Accelerator and its Azure AI Foundry integration, which will further propel Fastly into AI-driven workloads. Combined with Skyfire’s identity and payment rails, it helps flesh out a more complete AI-centric edge offering that could be important to Fastly’s security and compute expansion themes. It’s also against the backdrop of continued net losses and significant investment needs that shareholders need to keep an eye on.

However, investors should be aware that under the AI ​​agent opportunity, Fastly remains at risk due to its concentrated customers and unprofitable model.

Read the full story on Fastly (it’s free!)

The Fastly story projects revenue of $897.5 million and revenue of $70.1 million by 2029. This would require an 11.2% annual revenue increase and an increase in revenue of $173.2 million from the current -$103.1 million.

We reveal how Fastly’s forecast creates a fair value of $24.11, 35% higher than the current price.

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Some of the lowest-ranked analysts were much more cautious, assuming annual sales growth of about 11% and a continued loss. This is in sharp contrast to the recent news about AI agents and the idea that rising demand for security and edge could steadily improve margins. As shareholders, we need to be aware of how large the differences of opinion are and consider how a new partnership may ultimately change these more pessimistic expectations.

Check out 5 other fair value estimates on Fastly – find out why the stock is worth 35% more than its current price.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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