AKAM
Akamai Technologies, Inc.87.74
+1.21+1.4%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
AI pipeline sold out, verticals expand
Q&A unpacked the $200 million AI Inference Cloud deal as additive spend from an existing non-top-tier customer, with initial 20-city capacity already sold out from beta users alone. Pipeline spans new verticals like life sciences, robotics, and gaming, plus partners like NVIDIA, confirming CIS growth as truly incremental to delivery. CapEx returns hold near $1-for-$1 despite memory inflation; GPU rentals promise higher yields. Delivery traffic steady amid competition, security resilient to AI risks. Management dodged no questions. Tone bullish on 45-50% CIS acceleration. Watch ramps and vertical penetration.
Key Stats
Market Cap
12.62BP/E (TTM)
25.73Basic EPS (TTM)
3.41Dividend Yield
0%Recent Filings
10-K
FY2025 results
Akamai delivered FY2025 revenue of $4.2B, up 5% y/y, driven by 10% security growth to $2.2B and 12% cloud computing expansion to $708M, offsetting 5% delivery declines to $1.3B from pricing pressure and traffic optimization. Q4 momentum sustained these trends, with security and cloud fueling gains amid delivery headwinds from macro pressures and customer DIY shifts. Operating income held steady at 13% margins despite $58M restructuring and rising compute investments; non-GAAP EPS hit $7.12. Year-end liquidity stood strong at $1.9B cash equivalents, bolstered by $1.5B operating cash flow, while repurchasing $800M in shares. No 2026 guidance disclosed. Delivery pricing erosion threatens quarterly momentum.
8-K
Akamai Q4 revenue up 7%
Akamai reported Q4 revenue of $1.095B, up 7% year-over-year, driven by 45% Cloud Infrastructure Services growth to $94M and 11% Security to $592M, yet hit by $55M restructuring charge that slashed GAAP EPS 36% to $0.58. Non-GAAP EPS climbed 11% to $1.84. Growth products surged. Guides 2026 revenue $4.4-4.55B.
8-K
Exec comp tied to 2026 goals
Akamai's board adopted 2026 compensation for CEO Leighton ($1 base, $1.5M target bonus), CFO McGowan ($535K base, 85% target bonus), and three other execs, tying bonuses to revenue and adjusted operating income goals with ESG modifiers up to ±10%. RSUs worth $15.99M total at target vest over three years based on corporate performance and TSR vs. S&P 500. Equity payouts align execs with shareholders.
10-Q
Q3 FY2025 results
Akamai's Q3 revenue hit $1.1B, up 5% y/y, fueled by 10% security growth to $568M and 8% cloud computing gains, yet delivery dipped 4% on pricing pressure. Operating income soared to $166M from $71M y/y, thanks to a tiny restructuring benefit versus last year's $82M charge; diluted EPS climbed to $0.97 from $0.38, confirmed against 145K diluted shares. Cash swelled to $928M with $1.2B YTD operating cash flow; free cash flow not disclosed in the 10-Q. Issued $1.7B convertible notes due 2033 while repaying $1.2B maturing debt, leaving $4.1B total. Competition squeezes delivery pricing.
8-K
Q3 revenue up 5%, Cloud soars 39%
Akamai posted Q3 revenue of $1.055B, up 5% year-over-year, with security up 10% to $568M and Cloud Infrastructure Services surging 39% to $81M. GAAP EPS rocketed 155% to $0.97, absent last year's $82M restructuring hit; margins expanded sharply. Akamai Inference Cloud launched with NVIDIA tech for edge AI. Q4 revenue guided $1.065B-$1.085B.
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