Akamai Technologies posted revenue of $1.074 billion, up 6% year-over-year, matching Wall Street estimates. Growth was driven by a 40% surge in Cloud Infrastructure Services to $95 million, fueled by strong AI workload demand, and an 11% increase in Security revenue to $590 million, which successfully offset a 7% decline in the legacy Delivery segment. GAAP net income fell 14% to $106 million ($0.71 per diluted share), while non-GAAP EPS landed at $1.61, down 5% year-over-year due to heavy infrastructure investments and increased headcount, just missing the analyst consensus of $1.63. Alongside the results, Akamai announced the largest contract in its history, a seven-year, $1.8 billion cloud infrastructure commitment with a leading AI frontier model company.
Akamai continues to expand its cloud computing capabilities following its acquisition of Linode and the launch of its AI-optimized cloud infrastructure platform. The company is positioning its distributed edge network as a platform for running AI inference workloads closer to end users, which can reduce latency and improve performance for generative AI applications. Management has also accelerated capital expenditures to build additional compute capacity and expand data center infrastructure to support growing demand for AI and cloud workloads.
Akamai Technologies projects full-year 2026 revenue of $4.445 billion to $4.55 billion, an operating margin of roughly 26%, and non-GAAP EPS of $6.40 to $7.15. Backed by accelerating AI demand and NVIDIA GPU integrations, full-year cloud infrastructure growth expectations were raised to at least 50%. This guidance incorporates front-loaded capital expenditures to scale its landmark $1.8 billion cloud contract, which management anticipates will fuel double-digit annual revenue growth by fiscal 2027.
For Q2 2026, Akamai expects revenue of $1.075 billion to $1.1 billion, an operating margin of 25% to 26%, and non-GAAP EPS of $1.45 to $1.65.
Akamai has been increasingly doubling down on the cloud computing space in recent quarters, taking on the likes of Amazon, Alphabet, and Microsoft. Akamai could see an upside if it executes well in the computing market which is sizeable and lucrative. Akamai has a network of 350,000 edge servers, across 4,300 locations, which are located away from metropolitan centers, giving the company considerable geographic scale.
Akamai Technologies is a global content delivery network and cloud services provider, focused on improving the speed, reliability, and security of online content and applications. The company is estimated to deliver between 15-30% of the global web traffic. Many popular websites use Akamai for content delivery, which means that some of the content you view when visiting these sites is delivered from a nearby Akamai server, rather than the company's servers.
Below are key drivers of Akamai's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Akamai at the top of the page.
Security services account for the largest share of Akamai’s value due to their growth profile and strong margins.
Akamai has built a large installed base of enterprise customers using its application security, DDoS protection, and bot management tools. Its global edge network enables the company to detect and mitigate cyber threats in real time, creating a strong competitive moat in web application and API protection.
Akamai operates one of the largest distributed edge networks in the world, with thousands of servers deployed across numerous countries. This infrastructure provides performance advantages for content delivery and low latency computing, positioning the company well as applications increasingly require real time processing.
Most of Akamai’s services are delivered through recurring enterprise subscriptions and multi-year contracts. This provides stable revenue visibility and helps smooth demand cycles while supporting consistent cash flow generation.
Akamai's value proposition has evolved beyond being the fastest content delivery network. As competitors grow increasingly capable of fast content delivery at similar prices, Akamai has positioned itself as a full-service provider - touting its ability to offer multiple value-added services, such as the delivery of targeted advertising and cloud-based security for its customers.
The rise of artificial intelligence applications and latency sensitive services is driving demand for computing resources closer to users. Akamai’s strategy focuses on expanding its edge cloud infrastructure to support AI inference workloads and distributed computing use cases.
While Akamai remains a major player in the content delivery network market, pricing pressure and competition from hyperscale cloud providers continue to affect the legacy Delivery segment. The company is increasingly relying on growth in security and cloud services to offset this structural decline.
Akamai has historically charged premium prices to its customers for fast and secure delivery of its web content. However, the company is increasingly competitive on pricing, particularly on video content, to attract more customers and traffic to its network. In several deals, it has even outbid its competitors on price. This is likely to win more customers for Akamai but may put pressure on margins.
