Akamai Technologies (NASDAQ:AKAM) Posts Earnings Results

Akamai Technologies (NASDAQ:AKAM) issued its quarterly earnings results on Thursday. The technology infrastructure company reported $1.61 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.61, FiscalAI reports. Akamai Technologies had a return on equity of 13.09% and a net margin of 10.20%.The company had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter in the prior year, the company posted $1.70 EPS. The business’s revenue for the quarter was up 5.8% compared to the same quarter last year. Akamai Technologies updated its FY 2026 guidance to 6.400-7.150 EPS and its Q2 2026 guidance to 1.450-1.650 EPS.

Here are the key takeaways from Akamai Technologies’ conference call:

• Akamai announced a landmark seven?year, $1.8 billion commitment for Cloud Infrastructure Services — the largest customer deal in company history — with revenue beginning to ramp in Q4 (management expects ~$20–25M in Q4).
• Cloud Infrastructure Services (CIS) showed strong traction: Q1 CIS revenue was $95M (up ~40% YoY), and Akamai raised its CIS outlook to at least 50% YoY growth in constant currency for 2026, saying CIS will drive double?digit company revenue growth in 2027.
• Security remains a growth engine — Q1 security revenue was $590M (up 11% YoY), led by WAF, API Security and Guardicore — and management says AI?driven threats are increasing enterprise demand for Akamai’s distributed security platform.
• Management will invest ahead of revenue, raising capital spending and operating expenses: Q2 CapEx is guided to $433–453M (~40–41% of revenue) and full?year CapEx ~40–42% of revenue, with non?GAAP operating margin expected to remain ~26% in 2026.
• Delivery and other cloud applications declined (Q1 revenue $389M, down ~7% YoY) and the company still expects mid?single?digit declines in delivery revenue for 2026, partly reflecting the Edgio transaction impact.

Akamai Technologies Stock Performance

Akamai Technologies stock opened at $147.71 on Friday. The company has a market cap of $21.42 billion, a price-to-earnings ratio of 49.73, a price-to-earnings-growth ratio of 4.01 and a beta of 0.45. Akamai Technologies has a 12 month low of $69.78 and a 12 month high of $149.76. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.36 and a quick ratio of 2.36. The stock’s 50-day moving average is $105.43 and its 200-day moving average is $94.85.

Insider Buying and Selling at Akamai Technologies

In related news, EVP Mani Sundaram sold 1,722 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $98.58, for a total value of $169,754.76. Following the transaction, the executive vice president owned 21,647 shares in the company, valued at approximately $2,133,961.26. This trade represents a 7.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Laura Howell sold 11,273 shares of Akamai Technologies stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $100.14, for a total transaction of $1,128,878.22. Following the transaction, the chief accounting officer directly owned 12,559 shares in the company, valued at approximately $1,257,658.26. This trade represents a 47.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 57,454 shares of company stock worth $5,889,371. Company insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Akamai Technologies

Hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC increased its holdings in Akamai Technologies by 522.8% in the 3rd quarter. AQR Capital Management LLC now owns 2,020,346 shares of the technology infrastructure company’s stock valued at $153,061,000 after purchasing an additional 1,695,937 shares in the last quarter. Alyeska Investment Group L.P. lifted its stake in shares of Akamai Technologies by 570.0% during the third quarter. Alyeska Investment Group L.P. now owns 1,634,040 shares of the technology infrastructure company’s stock worth $123,795,000 after purchasing an additional 1,390,167 shares in the last quarter. Rubric Capital Management LP acquired a new position in shares of Akamai Technologies during the fourth quarter worth about $104,700,000. First Trust Advisors LP boosted its position in shares of Akamai Technologies by 16.5% in the fourth quarter. First Trust Advisors LP now owns 6,752,000 shares of the technology infrastructure company’s stock worth $589,112,000 after buying an additional 957,345 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in shares of Akamai Technologies by 33.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,115,342 shares of the technology infrastructure company’s stock worth $271,820,000 after buying an additional 784,009 shares during the period. Institutional investors and hedge funds own 94.28% of the company’s stock.

Analyst Ratings Changes

Several research firms recently commented on AKAM. UBS Group upped their target price on Akamai Technologies from $110.00 to $160.00 and gave the company a “neutral” rating in a research note on Friday. Evercore started coverage on Akamai Technologies in a report on Tuesday, April 14th. They issued an “outperform” rating and a $130.00 price target for the company. Piper Sandler reaffirmed a “neutral” rating and set a $156.00 price objective (up from $114.00) on shares of Akamai Technologies in a research note on Friday. Susquehanna upped their price objective on shares of Akamai Technologies from $105.00 to $120.00 and gave the company a “positive” rating in a research note on Friday, February 20th. Finally, Craig Hallum upgraded shares of Akamai Technologies from a “hold” rating to a “buy” rating and set a $190.00 price objective on the stock in a report on Friday. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Akamai Technologies has an average rating of “Hold” and a consensus price target of $130.40.

Trending Headlines about Akamai Technologies

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

• Positive Sentiment: Akamai reported first-quarter revenue of $1.074 billion, up 6% year over year, and non-GAAP EPS of $1.61, matching Wall Street estimates while showing solid demand in security and cloud infrastructure. Akamai Reports First Quarter 2026 Financial Results
• Positive Sentiment: The company said a leading frontier-model provider committed $1.8 billion over seven years for Akamai’s cloud infrastructure services, giving investors a clear signal that its AI-related business could become a much larger growth driver. Akamai Reports First Quarter 2026 Financial Results
• Positive Sentiment: Analysts turned more constructive after the report, with price targets lifted by RBC, UBS, Guggenheim, and Craig Hallum, reflecting improved expectations for Akamai’s growth outlook. Analyst updates
• Neutral Sentiment: Akamai’s second-quarter and full-year guidance was mixed versus expectations: FY 2026 EPS guidance was raised, but Q2 profit and revenue outlooks were below some Wall Street estimates, suggesting near-term margin pressure from higher infrastructure costs and cautious enterprise spending. Akamai forecasts quarterly results below expectations
• Neutral Sentiment: Unusually heavy call-option buying also points to traders positioning for more upside, but that activity is more of a momentum signal than a fundamental catalyst. Why Akamai Shares Are Trading Higher By 26%

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.