Akamai Earnings Beat Drives 45% Cloud Growth but 2026 Guidance Falls Short
Akamai reported Q4 adjusted EPS of $1.84 on $1.09 billion revenue, topping estimates by $0.09 and $20 million respectively, with security revenue up 11% and cloud infrastructure surging 45%. The company forecasted fiscal 2026 EPS of $6.20–7.20 below the $7.31 consensus and sees Q1 EPS of $1.50–1.67, sending shares down 11%.
1. Q4 Earnings and Revenue Beat
Akamai reported adjusted EPS of $1.84 for Q4, outperforming the $1.75 consensus by $0.09. Revenue reached $1.09 billion, exceeding the $1.07 billion estimate by $20 million, driven by strength in security and cloud business lines.
2. Segment Performance
Security revenue climbed 11% year-over-year to $592 million, while Guardicore Segmentation and API Security revenue jumped 36% to $90 million. Cloud Infrastructure Services revenue surged 45% to $94 million, offsetting a 2% decline in delivery revenue to $311 million.
3. Guidance and Outlook
For fiscal 2026, Akamai expects adjusted EPS of $6.20–7.20 versus the $7.31 consensus and revenue of $4.40–4.55 billion versus $4.41 billion. First-quarter guidance calls for $1.50–1.67 EPS and $1.06–1.08 billion revenue against estimates of $1.75 and $1.06 billion, respectively.
4. Analyst Reactions and Price Targets
The consensus rating remains Outperform with a $106.61 price target. RBC, Evercore ISI, Susquehanna and KeyBanc all raised their targets, ranging from $100 to $120, while shares fell roughly 11% on the weaker outlook.