AKAMAI TECHNOLOGIES INC (AKAM): Results of Operations and Financial Condition
AKAMAI TECHNOLOGIES INC (AKAM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Contacts: Johanna Schmitt Mark Stoutenberg Media Relations Investor Relations Akamai Technologies Akamai Technologies AkamaiPR@akamai.com mstouten@akamai.com AKAMAI REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS Second quarter revenue of $1.1 bil
How this was made
The 30-second read
Why it matters
Traders can update models using the disclosed Q2 datapoints (revenue, margins, EPS, cash) and the explicit guidance ranges for Q3 and FY 2026, plus the disclosed multi-year CIS contract value.
Market read
The filing provides fresh, decision-relevant numbers: Q2 results, margin and EPS changes, a large CIS contract disclosure, and forward guidance ranges for revenue and non-GAAP EPS.
What to watch
Share repurchases ($410M in Q2) and cash generation (cash from operations $326M) could partially offset earnings softness, but the filing does not provide a GAAP-to-non-GAAP reconciliation detail beyond the non-GAAP guidance caveats.
Second quarter revenue of $1.1 billion, up 5% year-over-year and when adjusted for foreign exchange
Revenue, Security revenue and Cloud Infrastructure Services revenue grew year-over-year, but GAAP and non-GAAP operating income, net income, EPS and Adjusted EBITDA declined, while operating margins contracted.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1.100 billion | – | 5% |
| Cost of revenueGAAP | $ 485,932 (in thousands) | – | – |
| Research and developmentGAAP | $ 148,821 (in thousands) | – | – |
| Sales and marketingGAAP | $ 170,045 (in thousands) | – | – |
| General and administrativeGAAP | $ 187,686 (in thousands) | – | – |
| Amortization of acquired intangible assetsGAAP | $ 25,089 (in thousands) | – | – |
| Restructuring chargeGAAP | $ 1,825 (in thousands) | – | – |
| Total costs and operating expensesGAAP | $ 1,019,398 (in thousands) | – | – |
| Income from operationsGAAP | $80 million | – | 47% decrease |
| Operating marginGAAP | 7% | – | down 8 percentage points |
| Income from operationsnon-GAAP | $271 million | – | 12% decrease |
| Operating marginnon-GAAP | 25% | – | down 5 percentage points |
| Interest and marketable securities income, netGAAP | $ 31,672 (in thousands) | – | – |
| Interest expenseGAAP | $ (9,078) (in thousands) | – | – |
| Other (expense) income, netGAAP | $ (2,851) (in thousands) | – | – |
| Income before provision for income taxesGAAP | $ 100,027 (in thousands) | – | – |
| Provision for income taxesGAAP | $ 20,623 (in thousands) | – | – |
| Net incomeGAAP | $79 million | – | 23% decrease |
| Net incomenon-GAAP | $236 million | – | down 6% |
| Net income per diluted shareGAAP | $0.52 | – | 27% decrease |
| Net income per diluted sharenon-GAAP | $1.59 | – | 8% decrease |
| Net income per basic shareGAAP | $ 0.55 | – | – |
| Adjusted EBITDAnon-GAAP | $416 million | – | 6% decrease |
| Cash from operationsGAAP | $326 million | – | – |
| Cash from operations as a percentage of revenueGAAP | 30% of revenue | – | – |
| Purchases of property and equipment and capitalization of internal-use software development costsGAAP | $ (225,753) (in thousands) | – | – |
| Shares used in diluted per share calculationsGAAP | 153,686 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SecurityNot separately disclosed. | $604 million | – | up 10% year-over-year |
| Delivery and other cloud applicationsNot separately disclosed. | $396 million | – | down 6% year-over-year |
| Cloud infrastructure servicesYear-to-date, Akamai signed numerous customers to multi-year CIS contracts, collectively worth over $2.8 billion. | $99 million | – | up 39% year-over-year |
| U.S. revenueNot separately disclosed. | $550 million | – | up 4% year-over-year |
| International revenueNot separately disclosed. | $549 million | – | up 6% year-over-year |
Three Months Ending September 30, 2026; Year Ending December 31, 2026 outlook
- Revenue$ 1,105 million to $ 1,130 million; $ 4,445 million to $ 4,530 million
- Tax rate19%; 19%
- NoteNon-GAAP operating margin: 24% to 26%; 25% to 26%
- NoteNon-GAAP net income per diluted share: $ 1.60 to $ 1.80; $ 6.40 to $ 7.05
- NoteShares used in non-GAAP per diluted share calculations: 150 million; 150 million
Capital returns
- The Company spent $410 million in the second quarter of 2026 to repurchase 3 million shares of common stock at a weighted average price of $134.54 per share.
- The Company had 144 million shares of common stock outstanding as of June 30, 2026.
What drove it
- Security revenue was $604 million, up 10% year-over-year and up 9% when adjusted for foreign exchange.
- Cloud infrastructure services revenue was $99 million, up 39% year-over-year and when adjusted for foreign exchange.
- Akamai cited numerous year-to-date multi-year CIS contracts collectively worth over $2.8 billion.
- The company cited a new U.S.-based technology customer contract worth more than $600 million over four years to power robotics development.
Concerns
- Delivery and other cloud applications revenue was $396 million, down 6% year-over-year and down 5% when adjusted for foreign exchange.
- GAAP operating margin was 7%, down 8 percentage points from the same period last year.
- Non-GAAP operating margin was 25%, down 5 percentage points from the same period last year.
- GAAP net income per diluted share was $0.52, a 27% decrease from second quarter 2025.
- Non-GAAP net income per diluted share was $1.59, an 8% decrease from second quarter 2025.
What to watch
- Execution against third-quarter revenue guidance of $ 1,105 million to $ 1,130 million.
- Cloud Infrastructure Services customer-contract conversion, including the contract worth more than $600 million over four years.
- Whether Security revenue growth and Cloud Infrastructure Services growth offset the decline in Delivery and other cloud applications revenue.
- Non-GAAP operating margin guidance of 24% to 26% for the three months ending September 30, 2026.
- The pace of share repurchases following $410 million spent in the second quarter of 2026.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities was $4.616 billion as of June 30, 2026.
- Cash and cash equivalents: $ 1,480,257 (in thousands) as of June 30, 2026; $ 930,231 (in thousands) as of December 31, 2025.
- Marketable securities: $ 1,875,130 (in thousands) current and $ 1,260,918 (in thousands) non-current as of June 30, 2026.
- Convertible senior notes: $ 1,705,576 (in thousands) current and $ 5,857,252 (in thousands) non-current as of June 30, 2026.
- Net cash provided by operating activities: $ 326,266 (in thousands).
- Purchases of property and equipment and capitalization of internal-use software development costs: $ (225,753) (in thousands).
Analysis
Akamai reported second-quarter revenue of $1.100 billion, up 5% year-over-year and up 5% when adjusted for foreign exchange. Security revenue of $604 million grew 10% year-over-year, while Cloud Infrastructure Services revenue of $99 million grew 39%. Those gains were partly offset by Delivery and other cloud applications revenue of $396 million, down 6% year-over-year. U.S. revenue was $550 million, up 4%, and international revenue was $549 million, up 6% year-over-year.
The earnings profile weakened despite revenue growth. GAAP income from operations was $80 million, down 47% year-over-year, and GAAP operating margin was 7%, down 8 percentage points. Non-GAAP income from operations was $271 million, down 12%, and non-GAAP operating margin was 25%, down 5 percentage points. GAAP net income was $79 million, down 23%, while non-GAAP net income was $236 million, down 6%. GAAP diluted EPS was $0.52, down 27%, and non-GAAP diluted EPS was $1.59, down 8%.
CIS is the principal stated demand catalyst. Management said that year-to-date it signed numerous customers to multi-year CIS contracts collectively worth over $2.8 billion, including a new U.S.-based technology customer contract worth more than $600 million over four years. Cash from operations was $326 million, or 30% of revenue. The company spent $410 million to repurchase 3 million shares at a weighted average price of $134.54 per share, while cash, cash equivalents and marketable securities were $4.616 billion as of June 30, 2026.
For the third quarter, Akamai guided revenue to $ 1,105 million to $ 1,130 million, non-GAAP operating margin to 24% to 26%, and non-GAAP diluted EPS to $ 1.60 to $ 1.80. Full-year guidance calls for revenue of $ 4,445 million to $ 4,530 million, non-GAAP operating margin of 25% to 26%, and non-GAAP diluted EPS of $ 6.40 to $ 7.05. The key reported tension is the contrast between CIS and Security growth and the decline in Delivery and other cloud applications revenue, alongside lower profitability and margin levels.
Management, verbatim
Akamai delivered a strong second quarter, highlighted by sustained momentum across our security and Cloud Infrastructure Services (CIS) portfolios.
Dr. Tom Leighton, Chief Executive Officer
These major contract wins validate Akamai's growing position as a key AI infrastructure provider.
Dr. Tom Leighton, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Gross margin was not reported.
- Free cash flow was not reported.
- A GAAP reconciliation for the non-GAAP guidance was not provided because the company stated it could not be reconciled without unreasonable effort.
- GAAP revenue guidance, GAAP operating-margin guidance, GAAP EPS guidance and GAAP tax-rate guidance were not provided.
- Dividend information was not reported.
- A total debt figure was not reported as a separate line item.
- The filing text is truncated during the investing cash flow statement, and financing cash flow results were not available in the provided document text.
- Prior-year and prior-quarter values for non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, Adjusted EBITDA and operating margins were not printed on their own line items.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 reporting Akamai’s Q2 2026 financial results and providing Q3 and full-year 2026 guidance.
Ticker impact
Akamai reported Q2 2026 results and issued Q3 and full-year 2026 guidance, including revenue and non-GAAP EPS ranges.
Near-term volatility likely around the guidance ranges and margin trajectory, with upside bias if investors focus on CIS momentum and contract value.
The filing contains concrete quarterly results, explicit Q3 and FY guidance ranges, and a disclosed $600M+ four-year CIS contract, which are direct inputs to valuation and positioning.
Market effects
Cybersecurity and cloud infrastructure peers may see read-across on demand durability and margin normalization given CIS growth and security resilience.
U.S. revenue grew while international also rose, suggesting broad-based demand rather than a single-region driver.
AI infrastructure and security spending signals could influence broader enterprise IT capex sentiment.
Counterpoint
Investors may discount CIS growth if the absolute CIS revenue base remains small ($99M in Q2) and if GAAP margins continue to compress.
Key entities
- public_companyAkamai Technologies, Inc.
Cybersecurity and cloud computing company reporting Q2 2026 results and issuing Q3 and FY 2026 guidance.
- business_segmentCloud Infrastructure Services (CIS) portfolio
Akamai segment highlighted for rapid growth and multi-year contract wins, including a $600M+ four-year commitment.
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