Akamai Technologies (NASDAQ:AKAM – Get Free Report) issued its quarterly earnings results on Thursday. The technology infrastructure company reported $1.59 EPS for the quarter, topping analysts’ consensus estimates of $1.57 by $0.02, FiscalAI reports. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.09 billion. Akamai Technologies had a net margin of 10.20% and a return on equity of 12.96%. The company’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.73 earnings per share. Akamai Technologies updated its Q3 2026 guidance to 1.600-1.800 EPS and its FY 2026 guidance to 6.400-7.050 EPS.
Here are the key takeaways from Akamai Technologies’ conference call:
- Cloud infrastructure momentum accelerated: Akamai announced a new four-year, more than $600 million GPU-services contract, bringing 2026 multi-year CIS commitments above $2.8 billion. Management expects overall revenue growth to accelerate to the low teens in 2027, with major contracts beginning to contribute more meaningfully in Q4 2026 and 2027.
- Security remained a growth driver: Q2 security revenue rose 10% year over year to $604 million, led by API Security, Guardicore Segmentation, and Web Application Firewall demand. The CrowdStrike win and the completed $205 million LayerX acquisition further expand Akamai’s enterprise and AI-security positioning, although LayerX is expected to reduce 2026 non-GAAP EPS by approximately $0.12.
- Profitability and cash investment are under pressure: Q2 non-GAAP EPS fell 8% year over year to $1.59, while management expects operating margins to remain in the mid-20% range as it invests in cloud infrastructure. Q3 CapEx is projected at $475 million–$525 million, and the company has temporarily paused share repurchases to redirect capital toward GPU expansion.
- Business mix is shifting: CIS revenue grew 39% year over year to $99 million and is expected to grow at least 50% in constant currency for 2026, while delivery and other cloud applications revenue declined 6% to $396 million. Full-year revenue guidance remains $4.445 billion–$4.53 billion, representing 6%–8% reported growth.
Akamai Technologies Stock Down 6.8%
Shares of NASDAQ:AKAM traded down $8.01 during trading on Friday, hitting $110.54. The company’s stock had a trading volume of 7,996,850 shares, compared to its average volume of 4,727,098. Akamai Technologies has a fifty-two week low of $69.78 and a fifty-two week high of $165.45. The stock’s 50-day moving average price is $125.55 and its two-hundred day moving average price is $115.83. The company has a debt-to-equity ratio of 0.84, a quick ratio of 2.06 and a current ratio of 2.06. The company has a market capitalization of $16.07 billion, a PE ratio of 37.22, a PEG ratio of 5.19 and a beta of 0.63.
More Akamai Technologies News
- Positive Sentiment: Akamai reported second-quarter revenue of approximately $1.10 billion, up 5.4% year over year and above estimates, while adjusted EPS of $1.59 also topped consensus. Demand remained strong across cloud infrastructure and cybersecurity services. Akamai beats quarterly estimates on cloud infrastructure demand
- Positive Sentiment: The company announced a cloud infrastructure services contract valued at more than $600 million, supporting AI and robotics workloads. The agreement reinforces Akamai’s positioning in the expanding AI infrastructure market. Akamai Stock Is Solidly Part of the AI Trade After Earnings
- Positive Sentiment: Third-quarter EPS guidance of $1.60–$1.80 exceeded the $1.56 consensus, and full-year EPS guidance of $6.40–$7.05 was above the $6.15 analyst estimate, indicating management remains confident in profitability.
- Positive Sentiment: Guggenheim raised its price target from $181 to $190 and maintained a “buy” rating, citing substantial potential from Akamai’s AI-led growth. Benzinga analyst action
- Neutral Sentiment: Analyst sentiment was mixed after the report. Piper Sandler lowered its target to $140 and adopted a “neutral” rating, while RBC cut its target to $135 and rated the stock “sector perform.” Both targets remain above the current trading level. Akamai analyst price target changes
- Negative Sentiment: Investors appear concerned that the AI buildout will require substantial capital expenditures and could pressure margins, leverage and near-term cash flow. Second-quarter EPS also declined from $1.73 a year earlier despite revenue growth.
- Negative Sentiment: Full-year revenue guidance of $4.4–$4.5 billion was roughly in line with, but slightly below, the $4.5 billion consensus, while quarterly revenue guidance offered limited upside. The muted outlook may be outweighing the earnings beat.
Insider Activity at Akamai Technologies
In related news, CTO Robert Blumofe sold 243 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $129.41, for a total value of $31,446.63. Following the sale, the chief technology officer directly owned 31,006 shares of the company’s stock, valued at $4,012,486.46. This represents a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kim Salem-Jackson sold 2,300 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $135.57, for a total transaction of $311,811.00. Following the transaction, the executive vice president owned 59,210 shares in the company, valued at $8,027,099.70. This trade represents a 3.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.30% of the stock is owned by insiders.
Institutional Investors Weigh In On Akamai Technologies
A number of institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC bought a new stake in Akamai Technologies in the second quarter valued at about $32,000. Align Financial LLC acquired a new position in shares of Akamai Technologies in the 4th quarter worth approximately $34,000. MUFG Securities EMEA plc acquired a new position in shares of Akamai Technologies in the 2nd quarter worth approximately $35,000. Sfam LLC bought a new stake in shares of Akamai Technologies in the 4th quarter valued at approximately $38,000. Finally, BOKF NA raised its position in shares of Akamai Technologies by 438.0% during the 3rd quarter. BOKF NA now owns 538 shares of the technology infrastructure company’s stock valued at $41,000 after acquiring an additional 438 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of analysts have issued reports on AKAM shares. Morgan Stanley raised their price target on Akamai Technologies from $120.00 to $165.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Piper Sandler cut their price objective on Akamai Technologies from $156.00 to $140.00 and set a “neutral” rating on the stock in a report on Friday. Scotiabank lifted their price target on shares of Akamai Technologies from $120.00 to $180.00 and gave the company a “sector outperform” rating in a research report on Friday, May 8th. TD Cowen increased their price target on Akamai Technologies from $135.00 to $140.00 and gave the company a “hold” rating in a report on Friday. Finally, Evercore assumed coverage on Akamai Technologies in a research note on Tuesday, April 14th. They issued an “outperform” rating and a $130.00 target price for the company. Twelve investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $146.14.
Read Our Latest Analysis on AKAM
About Akamai Technologies
Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.
The company’s core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.
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