Akamai Technologies (NASDAQ:AKAM) Posts Earnings Results, Beats Estimates By $0.10 EPS

Akamai Technologies (NASDAQ:AKAM) released its earnings results on Thursday. The technology infrastructure company reported $1.77 earnings per share for the quarter, topping analysts’ consensus estimates of $1.67 by $0.10, FiscalAI reports. The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.12 billion. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The business’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.86 earnings per share. 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 Down 9.4%

Shares of NASDAQ:AKAM traded down $8.09 during trading on Thursday, hitting $77.84. 9,610,177 shares of the company were exchanged, compared to its average volume of 4,970,038. The stock has a market capitalization of $11.19 billion, a P/E ratio of 28.00, a PEG ratio of 4.05 and a beta of 0.65. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.64 and a quick ratio of 1.64. Akamai Technologies has a 12-month low of $71.93 and a 12-month high of $165.45. The firm’s 50 day moving average price is $102.11 and its 200-day moving average price is $112.27.

More Akamai Technologies News

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Third-quarter EPS was $1.77, above the $1.67 analyst consensus. Full-year 2026 EPS guidance of $6.47–$6.68 also exceeds the $6.03 consensus. Akamai Q3 Earnings and Revenues
• Negative Sentiment: Fourth-quarter EPS guidance of $1.50–$1.70 has a midpoint below the $1.63 consensus. The $1.1–$1.2 billion revenue range also has a midpoint below analysts’ $1.2 billion estimate, raising concerns about near-term performance. Akamai quarterly results and guidance
• Negative Sentiment: Full-year revenue guidance of $4.4–$4.5 billion reaches, but does not exceed, the $4.5 billion consensus at its high end. Third-quarter EPS was also below the $1.86 reported a year earlier, despite beating estimates. Akamai Q3 key metrics

Insider Activity

In related news, EVP Kim Salem-Jackson sold 2,013 shares of the stock in a transaction on Friday, September 25th. The shares were sold at an average price of $128.00, for a total value of $257,664.00. Following the transaction, the executive vice president directly owned 57,197 shares of the company’s stock, valued at $7,321,216. This trade represents a 3.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 Akamai Technologies stock in a transaction on Friday, September 25th. The stock was 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 in the company, valued at $1,837,192.50. This represents a 32.44% 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. In the last quarter, insiders sold 12,135 shares of company stock worth $1,467,221. Corporate insiders own 2.30% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on AKAM shares. Wall Street Zen raised shares of Akamai Technologies from a “sell” rating to a “hold” rating in a research report on Saturday, October 17th. DA Davidson decreased their price objective on shares of Akamai Technologies from $185.00 to $150.00 and set a “buy” rating for the company in a research report on Monday, September 28th. UBS Group lowered their target price on shares of Akamai Technologies from $148.00 to $100.00 and set a “neutral” rating for the company in a research note on Thursday, October 22nd. President Capital raised their price target on Akamai Technologies from $150.00 to $168.00 and gave the company a “buy” rating in a research note on Wednesday, September 30th. Finally, Weiss Ratings cut Akamai Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, October 19th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Akamai Technologies currently has an average rating of “Moderate Buy” and a consensus price target of $145.24.

Akamai Technologies Company Profile

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.