Akamai Technologies (NASDAQ:AKAM) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Akamai Technologies (NASDAQ:AKAM) released its quarterly earnings data on Thursday. The technology infrastructure company reported $1.59 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.02, FiscalAI reports. Akamai Technologies had a net margin of 10.20% and a return on equity of 12.96%. The business had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.09 billion. During the same quarter last year, the company earned $1.73 EPS. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. 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 Trading Down 3.0%

Shares of NASDAQ:AKAM traded down $3.72 during mid-day trading on Thursday, hitting $118.55. The stock had a trading volume of 5,461,138 shares, compared to its average volume of 3,313,002. The company’s 50 day moving average is $125.55 and its 200-day moving average is $115.83. Akamai Technologies has a 12-month low of $69.78 and a 12-month high of $165.45. 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 cap of $17.23 billion, a PE ratio of 39.92, a P/E/G ratio of 5.19 and a beta of 0.63.

Insider Buying and Selling at Akamai Technologies

In related news, CTO Robert Blumofe sold 243 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $129.41, for a total value of $31,446.63. Following the completion of the sale, the chief technology officer directly owned 31,006 shares of the company’s stock, valued at approximately $4,012,486.46. This represents a 0.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 that occurred on Wednesday, June 10th. The stock was sold at an average price of $135.57, for a total transaction of $311,811.00. Following the completion of the sale, the executive vice president directly owned 59,210 shares of the company’s stock, valued at $8,027,099.70. This trade represents a 3.74% 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. 2.30% of the stock is owned by insiders.

Institutional Trading of Akamai Technologies

Institutional investors have recently bought and sold shares of the company. CYBER HORNET ETFs LLC purchased a new position in Akamai Technologies in the second quarter valued at about $32,000. Align Financial LLC acquired a new stake in shares of Akamai Technologies during the 4th quarter valued at about $34,000. MUFG Securities EMEA plc acquired a new stake in shares of Akamai Technologies during the 2nd quarter valued at about $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 increased its holdings in Akamai Technologies by 438.0% in the third quarter. BOKF NA now owns 538 shares of the technology infrastructure company’s stock worth $41,000 after buying an additional 438 shares during the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Key Akamai Technologies News

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

• Positive Sentiment: Q2 earnings and revenue beat estimates: Akamai reported adjusted earnings of $1.59 per share versus the $1.57–$1.58 consensus range, while revenue rose 5.4% year over year to approximately $1.10 billion, ahead of the roughly $1.09 billion forecast. Demand for cloud infrastructure and security services supported the results. Akamai beats quarterly estimates on cloud infrastructure demand
• Positive Sentiment: Guidance exceeded EPS expectations: Akamai projected third-quarter 2026 EPS of $1.60–$1.80, above the $1.56 consensus estimate, and raised or maintained full-year EPS guidance at $6.40–$7.05 versus the $6.15 consensus. Revenue guidance was broadly in line with expectations at $4.4–$4.5 billion for the year. Akamai Technologies beats Q2 earnings and revenue estimates
• Positive Sentiment: Security product momentum: New research on “shadow AI” risks and the expansion of Akamai Workforce Protector reinforce the company’s positioning in enterprise cybersecurity as businesses adopt artificial intelligence. Akamai Research on shadow AI
• Neutral Sentiment: Mixed underlying comparisons: Although revenue grew, quarterly EPS declined from $1.73 a year earlier, highlighting pressure on profitability despite the earnings beat. Akamai Q2 key metrics
• Negative Sentiment: AI investment and balance-sheet concerns remain: Akamai’s large AI infrastructure commitment requires elevated capital expenditures and additional borrowing, potentially weighing on free cash flow, leverage and returns before the investment generates meaningful benefits.
• Negative Sentiment: Insider selling may weigh on sentiment: Reported insider activity showed 21 sales and no purchases over the past six months, including transactions by several senior executives.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on AKAM shares. Weiss Ratings restated a “hold (c)” rating on shares of Akamai Technologies in a research note on Wednesday, June 24th. Susquehanna raised their target price on shares of Akamai Technologies from $120.00 to $175.00 and gave the stock a “positive” rating in a report on Monday, May 11th. Raymond James Financial upped their price target on Akamai Technologies from $140.00 to $170.00 in a report on Monday, May 11th. UBS Group increased their price objective on Akamai Technologies from $110.00 to $160.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. Finally, Evercore started coverage on Akamai Technologies in a report on Tuesday, April 14th. They issued an “outperform” rating and a $130.00 target price on the stock. Twelve analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $145.29.

Akamai Technologies Company Profile

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.