Akamai's Q1 Revenue Up 6%; Cloud Infrastructure Surges 40%, Secures $1.8B CIS Deal
Akamai's Q1 revenue grew 6% to $1.074B, driven by Cloud Infrastructure Services up 40% and Security revenue up 11%, though GAAP EPS fell 13% to $0.71. A frontier model provider committed $1.8B over seven years to its CIS platform, reinforcing its AI-cloud infrastructure positioning.
1. Q1 Financial Results
Akamai reported first quarter revenue of $1.074 billion, a 6% year-over-year increase (4% FX-adjusted). Security revenue rose 11% to $590 million, Delivery and other cloud applications revenue declined 7% to $389 million, and Cloud Infrastructure Services revenue jumped 40% to $95 million.
2. Profitability and Margins
GAAP net income per diluted share declined 13% to $0.71 and GAAP operating margin fell to 11%, down 4 percentage points. On a non-GAAP basis, diluted EPS dropped 5% to $1.61 with operating margin at 26%, also down 4 points from the prior year.
3. $1.8B CIS Contract Win
A leading U.S.-based frontier model provider committed $1.8 billion over seven years for Akamai’s Cloud Infrastructure Services, validating the company’s role as a critical infrastructure partner in the evolving AI economy.
4. Balance Sheet and Share Repurchases
At quarter end, cash and marketable securities totaled $1.733 billion. Akamai repurchased 2 million shares for $206 million during Q1, reflecting continued focus on returning capital to shareholders.