Akamai posts Q3 beat but issues weak Q4 guidance, prompting multiple analyst price‑target cuts
Akamai Technologies reported Q3 2026 revenue of $1.12 billion and adjusted EPS of $1.77, both in line with or above estimates. The company, however, lowered its Q4 2026 revenue guidance to $1.16 billion and adjusted EPS guidance to $6.57 at the midpoint, below consensus expectations. The weaker outlook, driven by supply‑chain delays and compute‑capacity constraints, led several analysts to reduce their price targets, while Guggenheim reiterated a Buy rating with a $225 target citing a large AI deal with Anthropic.
Why it matters
The reduced guidance and multiple price‑target cuts suggest near‑term earnings pressure, which could keep the stock near its 52‑week low and limit upside for investors. Guggenheim’s higher target highlights a divergent view tied to the $11.6 billion AI contract, indicating potential upside if that deal materialises as expected.
Key facts
- 1Q3 2026 revenue was $1.12 billion, matching estimates. finance.yahoo.com
- 2Adjusted EPS for Q3 2026 was $1.77, beating estimates. finance.yahoo.com
- 3Q4 2026 revenue guidance was $1.16 billion, below consensus. finance.yahoo.com
- 4Q4 2026 adjusted EPS guidance midpoint was $6.57, below expectations. finance.yahoo.com
- 5Operating margin fell to 9.7% from 15.7% YoY. finance.yahoo.com
- 6Free cash flow was negative $172.1 million. finance.yahoo.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.