Akamai Technologies Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did AKAM Beat Earnings? Q2 2025 Results
Akamai Technologies delivered a strong second quarter, posting non-GAAP EPS of $1.73 against a consensus estimate of $1.53, a beat of 13.18%, while revenue of $1.04 billion topped expectations by 2.23% and grew 6.5% year over year. The standout driver was the company's ongoing pivot away from its legacy delivery business, with Security solutions climbing 11% to $551.91 million and Cloud Infrastructure Services surging 30% to $71.00 million, a growth rate management expects to accelerate through the rest of 2025. GAAP net income fell 21% to $103.62 million, pressured by higher stock-based compensation, amortization, and a rising tax rate, though non-GAAP operating margin still expanded one point to 30%. The quarter also featured aggressive capital allocation, with $300 million in share repurchases alongside a significant convertible note refinancing that lifted total convertible debt to $4.10 billion. Akamai raised its full-year revenue outlook to $4.13 billion to $4.21 billion and non-GAAP EPS guidance to $6.60 to $6.80, with management pointing to AI-driven demand as a meaningful tailwind heading into the back half of the year.
- Security solutions revenue grew 11% YoY to $552 million
- Cloud Infrastructure Services grew 30% YoY to $71 million
- Cloud computing revenue grew 13% YoY to $171 million
- Non-GAAP operating margin expanded to 30%, up 1 percentage point YoY
- International revenue grew 10% YoY to $516 million
“Akamai reported excellent results in the second quarter, highlighted by outperformance in both revenue and profitability. Building on our solid momentum from the first two quarters, we are increasing our guidance for revenue and earnings for the remainder of the year, while continuing to invest in key growth areas of security and cloud computing. These investments are paying off — our Cloud Infrastructure Services grew 30% year-over-year — and we expect that rate to accelerate through the remainder of the year.”
Akamai CEO, on the earnings call
Forward Guidance & Outlook
Akamai raised its full-year 2025 guidance, now expecting revenue of $4.135 billion to $4.205 billion and non-GAAP EPS of $6.60 to $6.80, with non-GAAP operating margin of 29% and a non-GAAP tax rate of 19%. For Q3 2025, the company guided revenue of $1.035 billion to $1.050 billion, non-GAAP operating margin of 28%, and non-GAAP EPS of $1.62 to $1.66. Management expects Cloud Infrastructure Services growth to accelerate through the remainder of 2025. Capex as a percentage of revenue is expected at 22% in Q3 and 20% for the full year.
AKAM YoY Financials
AKAM Revenue by Segment
AKAM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.