Akamai Technologies (NASDAQ:AKAM) Issues Earnings Results, Beats Estimates By $0.09 EPS

Akamai Technologies (NASDAQ:AKAM) released its quarterly earnings results on Thursday. The technology infrastructure company reported $1.84 EPS for the quarter, topping the consensus estimate of $1.75 by $0.09, FiscalAI reports. Akamai Technologies had a return on equity of 14.16% and a net margin of 12.26%.The company had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter in the previous year, the company posted $1.66 earnings per share. The firm’s revenue was up 7.4% compared to the same quarter last year. Akamai Technologies updated its FY 2026 guidance to 6.200-7.200 EPS and its Q1 2026 guidance to 1.500-1.670 EPS.

Here are the key takeaways from Akamai Technologies’ conference call:

• Akamai’s cloud infrastructure services (CIS) accelerated to 45% YoY growth in Q4 and the company signed a four‑year, $200M commitment for its Akamai Inference Cloud, with management forecasting CIS growth of 45–50% in 2026.
• Security remains a strong growth engine — overall security revenue rose ~11% YoY while API security grew >100% and now has a run rate >$100M, supported by multiple large multi‑year contracts and cross‑sell wins.
• Capital intensity is rising — management plans ~$250M of additional CapEx to scale Inference Cloud, raised 2026 CapEx expectations due to ~$200M of memory/server price inflation, and expects full‑year non‑GAAP operating margin to modestly compress to ~26–28%.
• Near‑term guidance and timing risks — Q1 revenue is guided to $1.06B–$1.085B and EPS $1.50–$1.67, full‑year revenue $4.4B–$4.5B and EPS $6.20–$7.20, with management noting seasonality, FX volatility, and that major CIS contract revenue will begin ramping in Q4 2026.

Akamai Technologies Stock Performance

NASDAQ:AKAM traded down $10.85 during mid-day trading on Friday, reaching $98.74. The stock had a trading volume of 5,007,249 shares, compared to its average volume of 3,894,664. Akamai Technologies has a twelve month low of $67.51 and a twelve month high of $113.50. The business has a 50 day simple moving average of $93.50 and a 200 day simple moving average of $83.91. The firm has a market capitalization of $14.21 billion, a price-to-earnings ratio of 28.96, a PEG ratio of 3.37 and a beta of 0.70. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.28 and a current ratio of 2.28.

Insider Activity at Akamai Technologies

In other news, CFO Edward J. Mcgowan sold 6,560 shares of the stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $88.03, for a total transaction of $577,476.80. Following the completion of the transaction, the chief financial officer directly owned 16,442 shares of the company’s stock, valued at approximately $1,447,389.26. This represents a 28.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Paul C. Joseph sold 5,000 shares of Akamai Technologies stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $90.17, for a total value of $450,850.00. Following the completion of the sale, the executive vice president owned 17,513 shares in the company, valued at approximately $1,579,147.21. This trade represents a 22.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 32,318 shares of company stock worth $2,967,254 in the last three months. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Akamai Technologies

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC lifted its position in shares of Akamai Technologies by 101.4% in the fourth quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company’s stock valued at $384,000 after acquiring an additional 2,022 shares in the last quarter. Garton & Associates Financial Advisors LLC acquired a new position in Akamai Technologies in the 4th quarter valued at about $99,000. EverSource Wealth Advisors LLC lifted its holdings in Akamai Technologies by 152.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,163 shares of the technology infrastructure company’s stock valued at $93,000 after purchasing an additional 703 shares in the last quarter. Jones Financial Companies Lllp boosted its stake in shares of Akamai Technologies by 35.2% during the 1st quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company’s stock worth $88,000 after purchasing an additional 283 shares during the last quarter. Finally, CIBC Private Wealth Group LLC boosted its stake in shares of Akamai Technologies by 91.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,049 shares of the technology infrastructure company’s stock worth $79,000 after purchasing an additional 500 shares during the last quarter. Hedge funds and other institutional investors own 94.28% of the company’s stock.

More Akamai Technologies News

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Q4 beat — Akamai reported non-GAAP EPS $1.84 vs. $1.75 consensus and revenue $1.095B vs. ~$1.08B, showing 7% YoY revenue growth and margin improvement. MarketBeat Q4 Summary
• Positive Sentiment: Raised guidance — Akamai issued Q1 EPS guidance $1.50–$1.67 (vs. $1.49 consensus) and FY26 EPS $6.20–$7.20 (vs. $6.23 consensus); revenue guide of $4.4B–$4.6B tops street estimates. This underpins the near-term outlook. Reuters: Forecast Above Estimates
• Positive Sentiment: Analyst upgrades/targets — KeyCorp raised its PT to $120 and kept an overweight rating; Susquehanna raised its PT to $120 with a positive rating — both imply ~9.5% upside from the recent quote. These upgrades add buying interest. Benzinga: Analyst Moves
• Positive Sentiment: Cloud momentum — Cloud Infrastructure Services revenue jumped ~45% YoY in Q4 (full-year +36%), and security revenue also grew ~11% YoY, indicating product mix driving higher-growth areas. GlobeNewswire: Q4 & FY Results
• Neutral Sentiment: Deeper analysis/transcript available — Full earnings call transcript and analyst write‑ups provide detail for models and management commentary. Useful for investors evaluating sustainability of growth. Seeking Alpha: Q4 Transcript
• Neutral Sentiment: Analyst & thematic coverage — Zacks and Investing.com pieces review metrics, estimates and questions about an AI pivot — good context but not new catalysts by themselves. Zacks Analysis
• Negative Sentiment: GAAP profit drop — GAAP net income per diluted share fell materially in Q4 (‑36% YoY) and full‑year GAAP EPS declined ~6% YoY, highlighting one-time items or non-cash impacts that make non‑GAAP beats less straightforward. Investors should monitor margins and GAAP reconciliation details. GlobeNewswire: Q4 & FY Results
• Neutral Sentiment: Short-interest data appears inconsistent in filings (reported as zero/NaN) and shouldn’t be relied on until corrected; current days-to-cover metrics are meaningless.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. KeyCorp increased their price target on shares of Akamai Technologies from $115.00 to $120.00 and gave the stock an “overweight” rating in a research note on Friday. DA Davidson upped their target price on shares of Akamai Technologies from $115.00 to $125.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Piper Sandler raised their price target on Akamai Technologies from $86.00 to $89.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Royal Bank Of Canada upped their price objective on Akamai Technologies from $90.00 to $100.00 and gave the company a “sector perform” rating in a research note on Friday. Finally, Oppenheimer increased their price objective on Akamai Technologies from $100.00 to $115.00 and gave the stock an “outperform” rating in a research report on Thursday, February 5th. Ten analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Akamai Technologies currently has an average rating of “Hold” and an average price target of $104.75.

About Akamai Technologies

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company’s core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.