Akamai Technologies Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did AKAM Beat Earnings? Q3 2025 Results
Akamai Technologies delivered a convincing beat in Q3 2025, posting non-GAAP EPS of $1.86 against a consensus estimate of $1.64, a 13.71% positive surprise, as revenue climbed 5% year-over-year to $1.05 billion, edging past the $1.04 billion analyst estimate. The headline driver was the company's Cloud Infrastructure Services segment, which surged 39% year-over-year to $81 million, anchoring broader cloud computing revenue of $179.70 million and reinforcing Akamai's strategic push beyond its legacy delivery business. Security solutions remained the largest contributor at $568.44 million, up 10% year-over-year, while the Delivery segment continued its structural decline, falling 4% to $306.50 million. Non-GAAP operating margin expanded 2 percentage points to 31%, reflecting improved operating leverage as the company scales its cloud platform. Akamai shares gained over 4% in trading following the results, a contrast to the kind of <a href="https://247wallst.com/investing/2025/10/27/amkor-stock-down-4-4-after-earnings/">post-earnings pressure</a> seen elsewhere in the tech sector. Looking ahead, management guided Q4 revenue of $1.06 billion to $1.08 billion with non-GAAP EPS of $1.65 to $1.85, and full-year 2025 revenue of $4.18 billion to $4.20 billion.
- Continued success of high-growth security products
- Cloud Infrastructure Services revenue growth accelerated to 39% year-over-year
- Non-GAAP operating margin expanded 2 percentage points year-over-year to 31%
- International revenue grew 9% year-over-year, outpacing U.S. growth
- Absence of $82 million restructuring charge from Q3 2024 significantly boosted GAAP income comparisons
“Akamai delivered a strong quarter, with solid top-line performance and excellent bottom-line results – highlighted by outperformance on margins and significant year-over-year EPS growth. We were particularly pleased by the continued success of our high-growth security products and the momentum in Cloud Infrastructure Services, where revenue growth accelerated to 39% year-over-year.”
Akamai CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Akamai guided revenue of $1.065 billion to $1.085 billion, non-GAAP operating margin of 28%-30%, non-GAAP EPS of $1.65 to $1.85, non-GAAP tax rate of 18%-19%, and capex as a percentage of revenue of 16%. For full-year 2025, the company guided revenue of $4.178 billion to $4.198 billion, non-GAAP operating margin of 29%-30%, non-GAAP EPS of $6.93 to $7.13, non-GAAP tax rate of 19%, and capex as a percentage of revenue of 20%.
AKAM YoY Financials
AKAM Revenue by Segment
AKAM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.