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

Akamai Technologies (NASDAQ:AKAM) posted its quarterly earnings data 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. The business had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.12 billion. Akamai Technologies had a return on equity of 11.32% and a net margin of 9.51%. The business’s revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the business 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 Price Performance

Shares of Akamai Technologies stock traded down $8.09 during trading hours on Thursday, reaching $77.84. 9,610,177 shares of the company’s stock were exchanged, compared to its average volume of 4,970,038. Akamai Technologies has a 1 year low of $71.93 and a 1 year high of $165.45. The company has a market capitalization of $11.19 billion, a P/E ratio of 28.00, a price-to-earnings-growth ratio of 4.05 and a beta of 0.65. The business has a fifty day moving average of $102.11 and a two-hundred day 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.

Insider Activity

In related news, EVP Mani Sundaram sold 7,022 shares of the company’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $125.62, for a total transaction of $882,103.64. Following the completion of 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul C. Joseph sold 3,100 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total transaction of $327,453.00. Following the sale, the executive vice president directly owned 28,472 shares of the company’s stock, valued at approximately $3,007,497.36. This represents a 9.82% decrease in their position. 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. Insiders sold 12,135 shares of company stock worth $1,467,221 over the last three months. Insiders own 2.30% of the company’s stock.

Akamai Technologies News Roundup

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

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on AKAM shares. JPMorgan Chase & Co. increased their price objective on shares of Akamai Technologies from $158.00 to $167.00 and gave the company a “neutral” rating in a report on Friday, September 25th. Citigroup dropped their target price on shares of Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating on the stock in a research report on Friday, September 4th. DA Davidson cut their target price on shares of Akamai Technologies from $185.00 to $150.00 and set a “buy” rating for the company in a research note on Monday, September 28th. Royal Bank Of Canada restated a “sector perform” rating and set a $135.00 price target on shares of Akamai Technologies in a research report on Friday, September 25th. Finally, Wall Street Zen raised shares of Akamai Technologies from a “sell” rating to a “hold” rating in a research note on Saturday, October 17th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Akamai Technologies has a consensus rating of “Moderate Buy” and a consensus price target of $145.24.

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.