5 Best Performing Stocks of Q1 2026 to Watch for Q2

4. Fastly, Inc. (NASDAQ:FSLY)

Q1 2026 Performance: 185.18%

Fastly, Inc. (NASDAQ:FSLY) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 2, Fastly, Inc. (NASDAQ:FSLY) presented at the 47th Annual Raymond James Institutional Investor Conference, where it shared details about a strategic shift that has helped the company through significant financial and operational improvements.

Supported by a revamped go-to-market strategy and a focus on high-performance edge solutions, the company achieved record gross margins and steady profitability in 2025. Fastly, Inc. (NASDAQ:FSLY) reported gross margins of 64% and said it was profitable throughout 2025. It also generated positive free cash flow in all of 2025. In the fourth quarter of 2025, revenue growth re-accelerated to 23%, supported by its security, compute, and observability businesses.

Looking ahead, the company aims to raise its remaining performance obligation (RPO) commitments to about 70% to 80% of revenue. Fastly, Inc. (NASDAQ:FSLY) also sees short-term monetization opportunities from AI traffic and is looking at security mechanisms to manage agentic traffic. Managing AI traffic is becoming a key focus, and the company is developing tools like Bot Mitigation.

Additionally, Fastly, Inc. (NASDAQ:FSLY) has more than $350 million in cash on its balance sheet and is open to strategic mergers and acquisitions.

Fastly, Inc. (NASDAQ:FSLY) operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers.