Akamai Technologies (NASDAQ:AKAM – Get Free Report) posted its quarterly earnings results on Thursday. The technology infrastructure company reported $1.77 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.10, FiscalAI reports. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The firm had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the prior year, the company posted $1.86 earnings per share. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. Akamai Technologies updated its FY 2026 guidance to 6.470-6.680 EPS and its Q4 2026 guidance to 1.500-1.700 EPS.
Here are the key takeaways from Akamai Technologies’ conference call:
- Akamai reported more than $14 billion in multi-year Cloud Infrastructure Services commitments this year, including an $11.6 billion Anthropic deal. Management expects CIS revenue to more than double to $1.1 billion–$1.3 billion in 2027, helping drive company revenue growth of 17%–22% in constant currency; it expects revenue to exceed $7 billion in 2028.
- Supply-chain and third-party data-center delays are shifting about $30 million of revenue from Q4 into 2027, though management says the delays are resolved and do not reduce contract value. Q3 revenue grew 6%, but non-GAAP EPS fell 5% year over year, and Q4 EPS guidance is $1.50–$1.70.
- Management projects the large CIS contracts will generate about 75% adjusted EBITDA margins and 30% non-GAAP operating margins when fully ramped, with a 13% after-tax IRR and 15% average annual adjusted return on invested capital. However, Q4 CapEx is expected to reach $2.445 billion–$2.645 billion, including a planned $1.7 billion purchase of critical components, while build-out costs are expected to pressure margins in the near term.
- Security revenue grew 10% in constant currency, led by API Security and Guardicore, while delivery and other cloud applications declined 3%. Management described delivery as stabilizing but expects a mid-single-digit decline for full-year 2026; it expects continued security growth but did not provide longer-term segment guidance.
Akamai Technologies Stock Up 6.7%
Akamai Technologies stock opened at $83.09 on Friday. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.64 and a quick ratio of 1.64. The firm has a market capitalization of $11.94 billion, a PE ratio of 32.21, a P/E/G ratio of 4.08 and a beta of 0.65. The company’s 50-day moving average is $101.55 and its 200-day moving average is $112.24. Akamai Technologies has a fifty-two week low of $76.75 and a fifty-two week high of $165.45.
Key Stories Impacting Akamai Technologies
Here are the key news stories impacting Akamai Technologies this week:
- Positive Sentiment: Third-quarter adjusted earnings of $1.77 per share topped the $1.67 consensus, while revenue rose 6.4% year over year to $1.12 billion, in line with expectations. Growth in cybersecurity and cloud services supported results. Article
- Positive Sentiment: Investors also have a longer-term growth narrative: Akamai highlighted AI-cloud business, including an Anthropic deal, and expects 2027 cloud infrastructure services revenue of $1.1 billion–$1.3 billion. Article
- Neutral Sentiment: Analyst views remain positive but targets were reduced: DA Davidson cut its target to $125 and KeyCorp to $175, both retaining favorable ratings; Susquehanna lowered its target to $90 while keeping a positive rating.
- Negative Sentiment: Near-term guidance may temper optimism. Fourth-quarter revenue guidance of $1.1 billion–$1.2 billion tops out below the $1.2 billion consensus, and the EPS range includes outcomes below the $1.63 estimate. Akamai also cited higher infrastructure costs and a shift in the timing of some Anthropic-related revenue; quarterly EPS declined from $1.86 a year ago. Article
Wall Street Analysts Forecast Growth
Several analysts have weighed in on AKAM shares. Citigroup dropped their price target on Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating on the stock in a research note on Friday, September 4th. Royal Bank Of Canada decreased their target price on shares of Akamai Technologies from $135.00 to $85.00 and set a “sector perform” rating on the stock in a research report on Friday. KeyCorp cut their price objective on Akamai Technologies from $195.00 to $175.00 and set an “overweight” rating on the stock in a research report on Friday. Scotiabank dropped their target price on shares of Akamai Technologies from $180.00 to $120.00 and set a “sector outperform” rating on the stock in a research report on Friday. Finally, Guggenheim reaffirmed a “buy” rating on shares of Akamai Technologies in a report on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Akamai Technologies has an average rating of “Moderate Buy” and an average price target of $138.64.
Read Our Latest Research Report on Akamai Technologies
Insiders Place Their Bets
In related news, EVP Paul C. Joseph sold 3,100 shares of Akamai Technologies stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total value of $327,453.00. Following the transaction, the executive vice president owned 28,472 shares in the company, valued at $3,007,497.36. This trade represents a 9.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mani Sundaram sold 7,022 shares of the business’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $125.62, for a total transaction of $882,103.64. Following the sale, the executive vice president owned 14,625 shares of the company’s stock, valued at approximately $1,837,192.50. This represents a 32.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 12,135 shares of company stock worth $1,467,221. Company insiders own 2.30% of the company’s stock.
About Akamai Technologies
Akamai Technologies, Inc provides cloud, cybersecurity and content-delivery services that help organizations operate and protect applications, websites and digital media over the internet. Its distributed edge platform is designed to deliver online content closer to end users while improving performance, availability and resilience.
The company’s services include content delivery and application performance solutions, cloud computing capabilities, web and application security, distributed denial-of-service protection, bot management and zero-trust security tools.
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