Akamai Technologies (NASDAQ:AKAM) Announces Quarterly Earnings Results

Akamai Technologies (NASDAQ:AKAM) issued its quarterly earnings data 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. Akamai Technologies had a return on equity of 11.32% and a net margin of 9.51%. The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period last year, the company earned $1.86 EPS. The business’s quarterly revenue was up 6.4% compared to the same quarter last year. 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 Price Performance

NASDAQ AKAM traded up $6.66 during trading on Friday, hitting $84.50. 5,049,590 shares of the stock traded hands, compared to its average volume of 4,714,523. The company has a market capitalization of $12.14 billion, a P/E ratio of 30.36, a price-to-earnings-growth ratio of 4.05 and a beta of 0.65. The firm has a 50-day simple moving average of $102.11 and a 200-day simple moving average of $112.27. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 1.23. Akamai Technologies has a 12-month low of $76.75 and a 12-month high of $165.45.

Insider Transactions at Akamai Technologies

In other news, EVP Paul C. Joseph sold 3,100 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $105.63, for a total transaction of $327,453.00. Following the transaction, the executive vice president owned 28,472 shares of the company’s stock, valued at approximately $3,007,497.36. The trade was a 9.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the executive vice president owned 57,197 shares in the company, valued at $7,321,216. The trade was a 3.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,135 shares of company stock valued at $1,467,221 in the last ninety days. Corporate insiders own 2.30% of the company’s stock.

Key Stories Impacting Akamai Technologies

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

• Positive Sentiment: Akamai highlighted an $11.6 billion Anthropic AI cloud deal and expects rapid growth through 2028, supporting its longer-term cloud and AI growth case. Article: AKAM Q3 Earnings Call Highlights AI Cloud Deals and 2027 Outlook
• Positive Sentiment: Third-quarter EPS of $1.77 beat the $1.67 consensus, while revenue of $1.12 billion was in line and rose 6.4% year over year. The company’s 2026 EPS guidance of $6.47–$6.68 also exceeds the $6.03 analyst consensus. Article: Akamai Q3 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: KeyCorp and Susquehanna lowered their price targets, to $175 and $90 respectively, but maintained “overweight” and “positive” ratings. The target reductions temper the bullish ratings. Susquehanna rating
• Negative Sentiment: Q4 guidance is weaker than expected: EPS of $1.50–$1.70 compares with a $1.63 consensus, and revenue guidance of $1.1–$1.2 billion falls short of the $1.2 billion estimate at the midpoint. The Anthropic deal’s timing shifts about $30 million of expected revenue into 2027; deployment delays and rising infrastructure costs add near-term pressure. Article: Akamai anticipates CIS revenue of $1.1B-$1.3B in 2027

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Zacks Research upgraded shares of Akamai Technologies from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. President Capital increased their price target on shares of Akamai Technologies from $150.00 to $168.00 and gave the stock a “buy” rating in a research note on Wednesday, September 30th. Citigroup lowered their price target on shares of Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating for the company in a research report on Friday, September 4th. Raymond James Financial raised shares of Akamai Technologies from an “outperform” rating to a “strong-buy” rating and set a $170.00 price objective on the stock in a research note on Tuesday, October 20th. Finally, Wall Street Zen upgraded shares of Akamai Technologies from a “sell” rating to a “hold” rating in a report on Saturday, October 17th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $143.57.

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.