Companies /Technology

Akamai Technologies Inc

NASDAQ: AKAM Software - Infrastructure
$106.46
▼ $2.16 (−1.99%) today
Markets closed · 3:06am ET

Q1 2025 Earnings

Reported May 8, 2025, 4:04pm ET · SEC source
$1.70
Beat +8.58%
EPS · est. $1.57
$1.0B
Beat +0.40%
Revenue · est. $1.0B
−4.0%
Trailing market
AKAM vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0May 8May 9report 4:04pm ETearnings−0.1%−14.5%
−15%−10%−5%0May 8May 9earnings−0.1%−14.5%
AKAM −14.5%S&P 500 −0.1%
−15%−10%−5%0May 8May 9report 4:04pm ETearnings−0.2%−14.5%
−15%−10%−5%0May 8May 9earnings−0.2%−14.5%
AKAM −14.5%NASDAQ −0.2%
−10%−5%0+5%May 7May 16report 4:04pm ETearnings+5.2%−8.2%
−10%−5%0+5%May 7May 16earnings+5.2%−8.2%
AKAM −8.2%S&P 500 +5.2%
−12%−6%0+6%May 7May 16report 4:04pm ETearnings+6.8%−8.2%
−12%−6%0+6%May 7May 16earnings+6.8%−8.2%
AKAM −8.2%NASDAQ +6.8%
−10.76%
Day of report
+3.33%
Next session
+2.33%
One week
+2.54%
30 days

S&P 500 over the same 30 days: +6.56%.

Did AKAM Beat Earnings? Q1 2025 Results

Akamai Technologies delivered a clean beat to open 2025, posting first-quarter revenue of $1.02 billion, up 2.9% year-over-year, and non-GAAP EPS of $1.70, which cleared the $1.57 consensus estimate by 8.58%, as the company's ongoing pivot away from its legacy delivery business continued to reshape its financial profile. The clearest driver behind the earnings strength was momentum in security and cloud computing, which together now account for 69% of total revenue and grew 10% combined year-over-year; security revenue reached $530.70 million, up 8%, while cloud computing climbed 14% to $165.46 million, more than offsetting a 9% structural decline in the legacy delivery segment. The company also completed the migration of customers acquired from bankrupt CDN firm Edgio, securing a $16 million commitment from those accounts over the next three years, adding a modest but tangible tailwind. Capital expenditures rose sharply to 22% of revenue as cloud infrastructure investment accelerated. Looking ahead, Akamai guided Q2 revenue of $1.01 billion to $1.03 billion and full-year 2025 revenue of $4.05 billion to $4.20 billion, with full-year non-GAAP EPS of $6.10 to $6.40.

Key Takeaways
  • Security and cloud computing revenue combined grew 10% YoY, representing 69% of total revenue
  • Strong momentum in segmentation, API security, and cloud solutions
  • Cloud computing grew 14% YoY (15% constant currency)
  • Security grew 8% YoY (10% constant currency)

“Akamai delivered a solid start to the year with our results meeting or exceeding expectations. We were particularly pleased with the continued momentum of our fast-growing segmentation, API security and cloud solutions. Looking ahead, we remain focused on driving profitable growth that powers our transformation into a leading cybersecurity and cloud computing company.”

Akamai CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Akamai expects revenue of $1.012 billion to $1.032 billion, non-GAAP operating margin of 28%, non-GAAP EPS of $1.52 to $1.58, and capex as a percentage of revenue of 22%-23%. For full year 2025, the company expects revenue of $4.050 billion to $4.200 billion, non-GAAP operating margin of 28%, non-GAAP EPS of $6.10 to $6.40, and capex as a percentage of revenue of 19%-20%. Non-GAAP tax rate is expected to be 19%-20% for both periods.

AKAM YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$300.0M$600.0M$900.0M$987.0M$1.0BRevenue$166.7M$154.6MOperating Income$175.4M$123.2MNet Income
$0$300.0M$600.0M$900.0MRevenueOperating IncomeNet Income

AKAM Revenue by Segment

Security$530.7M+8.0%
Delivery$319.0M−9.0%
Cloud Computing$165.5M+14.0%
Cloud Infrastructure Services

AKAM Revenue by Geography

United States$528.7M+3.0%
Rest of World$486.4M+2.0%

Figures from SEC filings and company reports. Not investment advice.