Revenue
Revenue grew to $1.043 billion, up 7% year-over-year as reported and up 6% in constant currency. The growth was driven by stabilization of revenue from the delivery product line and solid growth in security and compute product lines.
Non-GAAP Operating Margin
Non-GAAP operating margin was 30%. This was supported by higher-than-expected revenue and lower-than-expected bandwidth costs.
Non-GAAP Earnings Per Share (EPS)
Non-GAAP EPS came in at $1.73, up 9% year-over-year as reported and in constant currency. This was $0.15 above the high end of the guidance range, driven by higher revenue, lower bandwidth costs, higher interest income, and lower share count due to stock buybacks.
Cloud Infrastructure Services (CIS) Revenue
CIS revenue in Q2 was $71 million, growing at 30% year-over-year as reported and 29% in constant currency. Growth was driven by customer demand for improved scalability, performance, and cost reduction, particularly for AI applications.
Compute Revenue
Compute revenue was $171 million, up 13% year-over-year as reported and in constant currency. Growth was driven by strength in cloud infrastructure services.
Security Revenue
Security revenue was $552 million, up 11% year-over-year as reported and 10% in constant currency. Growth was driven by strong demand for Guardicore Segmentation and API security solutions.
Delivery Revenue
Delivery revenue was $320 million, down 3% year-over-year as reported and down 4% in constant currency. Despite the decline, performance was above expectations due to improvements in pricing and traffic growth.
International Revenue
International revenue was $516 million, up 10% year-over-year or 8% in constant currency. This represented 49% of total revenue in Q2.
Non-GAAP Net Income
Non-GAAP net income was $251 million, driven by higher-than-expected revenue, lower bandwidth costs, and other factors.
CapEx
Q2 CapEx was $214 million, representing 21% of revenue.
AKAM
$87.25+Infinity%1D
Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AKAM is 94.58 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast AKAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AKAM is 94.58 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
7 Hold
2 Sell
Moderate Buy
Current: 85.880
Low
80.00
Averages
94.58
High
115.00
Current: 85.880
Low
80.00
Averages
94.58
High
115.00
KeyBanc
Underweight -> Overweight
upgrade
$66 -> $115
2025-12-15
New
Reason
KeyBanc
Price Target
$66 -> $115
2025-12-15
New
upgrade
Underweight -> Overweight
Reason
KeyBanc double upgraded Akamai to Overweight from Underweight with a price target of $115, up from $66. The firm adjusted ratings in the enterprise software as part of its 2026 outlook. It has has a preference for small- and mid-cap software over large-caps heading into next year. KeyBanc admits to being wrong on Akamai. The company's revenue has the opportunity to accelerate as more of the business shifts toward compute, the analyst tells investors in a research note.
Oppenheimer
Outperform
initiated
$100
2025-11-17
Reason
Oppenheimer
Price Target
$100
2025-11-17
initiated
Outperform
Reason
As previously reported, Oppenheimer initiated coverage of Akamai with an Outperform rating and $100 price target. While remaining cautious on the investment thesis that consolidation in the industry will improve CDN pricing, the firm sees an outsized opportunity for Akamai in its Security and Compute Infrastructure portfolio, which could accelerate top-line growth to high single-digits. As Akamai continues its transformation, Oppenheimer believes the company will capitalize on newer technology trends such as AI inferencing within cloud computing and API security within cybersecurity, adding to its growth profile.
Oppenheimer
NULL -> Outperform
initiated
$100
2025-11-17
Reason
Oppenheimer
Price Target
$100
2025-11-17
initiated
NULL -> Outperform
Reason
Oppenheimer initiated coverage of Akamai with an Outperform rating and $100 price target.
TD Cowen
Michael Elias
Hold
maintain
$98 -> $104
2025-11-13
Reason
TD Cowen
Michael Elias
Price Target
$98 -> $104
2025-11-13
maintain
Hold
Reason
TD Cowen analyst Michael Elias raised the firm's price target on Akamai to $104 from $98 and keeps a Hold rating on the shares. The firm said they reported upside 3Q results, provided upside 4Q guidance, and raised 2025 revenue/Non-GAAP EPS guidance, while maintaining 2025 Security growth guidance of 10% and lowering Compute guidance to "a touch under 15%."
About AKAM
Akamai Technologies, Inc. is a cybersecurity and cloud computing company. The Company develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. Its content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. It also specializes in serverless WebAssembly function-as-a-service (FaaS) technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
