Akamai Technologies (NASDAQ:AKAM) Announces Quarterly Earnings Results

Akamai Technologies (NASDAQ:AKAM) issued its quarterly earnings data on Thursday. The technology infrastructure company reported $1.84 EPS for the quarter, beating analysts’ consensus estimates of $1.75 by $0.09, FiscalAI reports. The firm had revenue of $1.09 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Akamai Technologies had a net margin of 10.74% and a return on equity of 14.15%. The firm’s revenue was up 7.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.66 EPS. Akamai Technologies updated its FY 2026 guidance to 6.200-7.200 EPS and its Q1 2026 guidance to 1.500-1.670 EPS.

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

• Akamai’s cloud infrastructure services (CIS) accelerated to 45% YoY growth in Q4 and the company signed a four‑year, $200M commitment for its Akamai Inference Cloud, with management forecasting CIS growth of 45–50% in 2026.
• Security remains a strong growth engine — overall security revenue rose ~11% YoY while API security grew >100% and now has a run rate >$100M, supported by multiple large multi‑year contracts and cross‑sell wins.
• Capital intensity is rising — management plans ~$250M of additional CapEx to scale Inference Cloud, raised 2026 CapEx expectations due to ~$200M of memory/server price inflation, and expects full‑year non‑GAAP operating margin to modestly compress to ~26–28%.
• Near‑term guidance and timing risks — Q1 revenue is guided to $1.06B–$1.085B and EPS $1.50–$1.67, full‑year revenue $4.4B–$4.5B and EPS $6.20–$7.20, with management noting seasonality, FX volatility, and that major CIS contract revenue will begin ramping in Q4 2026.

Akamai Technologies Stock Performance

Shares of AKAM stock opened at $94.17 on Friday. Akamai Technologies has a one year low of $67.51 and a one year high of $113.50. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.28 and a current ratio of 2.28. The company has a 50 day moving average price of $93.66 and a 200 day moving average price of $84.04. The firm has a market capitalization of $13.55 billion, a price-to-earnings ratio of 30.57, a price-to-earnings-growth ratio of 3.38 and a beta of 0.70.

More Akamai Technologies News

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

• Positive Sentiment: Q4 beat and revenue growth — Akamai reported Q4 EPS $1.84 vs. $1.75 expected and revenue of ~$1.095B (up ~7% YoY), driven by security and cloud sales; non‑GAAP EPS and full‑year revenue growth were highlighted in the release. Akamai Reports Fourth Quarter 2025 and Full-Year 2025 Financial Results
• Positive Sentiment: AI/Cloud momentum in core CIS business — Management signaled strong traction in AI Inference Cloud and sees Cloud Infrastructure Services (CIS) growth accelerating (Seeking Alpha reports management projecting 45%–50% CIS growth in 2026), which underpins longer‑term upside if execution continues. Akamai projects 45%-50% CIS revenue growth in 2026 as AI Inference Cloud momentum accelerates
• Positive Sentiment: Analyst target upgrades — Multiple firms raised price targets (Morgan Stanley, KeyCorp, Scotiabank, Susquehanna, etc.), reflecting optimism on the company’s AI/cloud runway despite near‑term noise. Analyst price target adjustments
• Neutral Sentiment: FY26 revenue guide above estimates but EPS range broad — Akamai guided FY26 revenue to $4.4B–$4.6B (above some Street estimates) and EPS to $6.20–$7.20; investors are parsing the wide EPS range versus consensus. Akamai forecasts annual revenue above estimates on cloud infrastructure momentum
• Neutral Sentiment: Q1 guidance roughly in line — Akamai set Q1 EPS guidance of $1.50–$1.67, near consensus, leaving the immediate outlook neither clearly beat nor miss. Akamai Q4 press release / guidance
• Negative Sentiment: Guidance/near‑term concerns sparked a selloff — Despite the beat, several outlets and traders focused on the lower‑end EPS guidance, raising concerns and triggering heavy selling pressure intraday/after‑hours. Akamai Tumbles 11% Despite Q4 Beat As 2026 Outlook Disappoints
• Negative Sentiment: Operational headwinds cited — Management noted a memory shortage that could pressure near‑term margins/visibility (covered in commentary/video), adding to investor caution. Akamai outlook dragged by memory shortage, Blue Owl under pressure
• Negative Sentiment: Mixed analyst views remain — while many raised targets, at least one major firm (Goldman) remains on the sell side with a low target, keeping bearish conviction in some desks. Goldman Sachs maintains sell rating

Insider Buying and Selling

In other news, EVP Paul C. Joseph sold 5,000 shares of the company’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $90.17, for a total transaction of $450,850.00. Following the completion of the sale, the executive vice president directly owned 17,513 shares in the company, valued at $1,579,147.21. This represents a 22.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, COO Adam Karon sold 3,320 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $87.30, for a total value of $289,836.00. Following the completion of the transaction, the chief operating officer directly owned 7,785 shares in the company, valued at $679,630.50. This trade represents a 29.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 32,318 shares of company stock worth $2,967,254 over the last 90 days. Company insiders own 2.00% of the company’s stock.

Institutional Trading of Akamai Technologies

A number of institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Akamai Technologies by 101.4% in the fourth quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company’s stock valued at $384,000 after buying an additional 2,022 shares during the period. Jones Financial Companies Lllp increased its position in shares of Akamai Technologies by 35.2% in the first quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company’s stock worth $88,000 after acquiring an additional 283 shares in the last quarter. United Services Automobile Association purchased a new position in shares of Akamai Technologies in the 1st quarter valued at $266,000. Empowered Funds LLC lifted its holdings in shares of Akamai Technologies by 73.0% during the 1st quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company’s stock valued at $574,000 after acquiring an additional 3,010 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Akamai Technologies by 152.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,163 shares of the technology infrastructure company’s stock valued at $93,000 after acquiring an additional 703 shares in the last quarter. Hedge funds and other institutional investors own 94.28% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Morgan Stanley lifted their price objective on Akamai Technologies from $115.00 to $120.00 and gave the stock an “overweight” rating in a research report on Friday. Wall Street Zen cut Akamai Technologies from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Piper Sandler upped their price objective on Akamai Technologies from $86.00 to $89.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. President Capital lifted their price objective on Akamai Technologies from $104.00 to $116.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Finally, UBS Group upped their target price on shares of Akamai Technologies from $90.00 to $110.00 and gave the company a “neutral” rating in a report on Friday. Ten equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $107.53.

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.