Akamai Technologies, Inc.

What they do

Akamai runs a massively distributed infrastructure of more than 4,300 edge points-of-presence across over 130 countries and roughly 1,200 network partners as of December 31, 2025. It sells three core offerings — security, cloud computing and delivery — plus supporting services. Security spans two platforms, Application Protection and Zero Trust Network Security, covering WAF, bot management, DDoS and DNS security plus API security and network segmentation. Cloud offerings include Akamai Cloud and compute-to-edge solutions, and the company markets AI infrastructure for low-latency, AI-powered applications.

Revenue drivers

• Security — Largest revenue contributor and the company's stated growth anchor; Q2 2026 revenue was $604 million, up 10% year-over-year and up 9% adjusted for foreign exchange.
• Delivery and other cloud applications — Legacy content delivery and related cloud application services; Q2 2026 revenue was $396 million, down 6% year-over-year and down 5% adjusted for foreign exchange.
• Cloud Infrastructure Services (CIS) — Smallest but fastest-growing line, including Akamai Cloud and compute-to-edge; Q2 2026 revenue was $99 million, up 39% year-over-year and when adjusted for foreign exchange.
• Geography mix — Q2 2026 U.S. revenue was $550 million, up 4% year-over-year, and international revenue was $549 million, up 6% (up 7% adjusted for foreign exchange), roughly an even split.

Recent performance

Second quarter 2026 revenue was $1.100 billion, up 5% over Q2 2025 revenue of $1.043 billion and up 5% adjusted for foreign exchange. Security grew 10% to $604 million and Cloud Infrastructure Services grew 39% to $99 million, while delivery and other cloud applications fell 6% to $396 million. GAAP income from operations was $80 million, down 47% year-over-year, with a 7% GAAP operating margin, down 8 points; non-GAAP operating income was $271 million at a 25% margin, down 5 points. GAAP net income was $79 million and GAAP diluted EPS was $0.52, down 27%; non-GAAP diluted EPS was $1.59, down 8%. Cash from operations was $326 million, and the company repurchased 3 million shares for $410 million at a weighted average price of $134.54.

Strategy

Management positions Akamai around security, compute, delivery and AI infrastructure services, with AI framed as a central enterprise demand driver. The CIS portfolio is the stated growth priority: year-to-date the company says it signed numerous multi-year CIS contracts collectively worth over $2.8 billion, including a new U.S.-based technology customer worth more than $600 million over four years. Security remains the largest revenue base, and the company continues to build out API security, network segmentation and AI-driven threat detection. Akamai also returns capital, spending $410 million on buybacks in the second quarter of 2026.

Risks

• Slowing revenue growth — The 10-K states overall revenue growth may not continue and could decline, which would negatively impact profitability and stock price.
• Delivery revenue decline — The 10-K says Akamai has continued to experience revenue declines in delivery solutions from competition, pricing pressure, content traffic shifts and customer DIY or multi-provider sourcing; Q2 2026 delivery and other cloud applications revenue fell 6%.
• Security competition — The 10-K says security revenue depends on navigating a highly competitive market where larger providers increasingly offer broader security platforms, and competition and pricing pressure have affected certain security revenue.
• Cost and supply chain pressure — The 10-Q risk disclosure cites supply chain disruptions and significant increases in server, memory and co-location costs due to market dynamics.

Outlook

For the third quarter of 2026, Akamai guides revenue of $1.105 billion to $1.130 billion, non-GAAP operating margin of 24% to 26%, and non-GAAP diluted EPS of $1.60 to $1.80. For the full year 2026, the company guides revenue of $4.445 billion to $4.530 billion, non-GAAP operating margin of 25% to 26%, non-GAAP diluted EPS of $6.40 to $7.05, and a 19% non-GAAP tax rate. Guidance assumes roughly 150 million shares for non-GAAP diluted per-share calculations.