Revenue Performance - Total revenue for the three months ended September 30, 2025, was $1,004,679,000, a decrease of 5% compared to $1,054,630,000 in the same period of 2024[95] - Security solutions revenue increased by 10% to $568,437,000 for the three months ended September 30, 2025, compared to $518,670,000 in 2024[95] - Cloud computing revenue grew by 8% to $179,698,000 for the three months ended September 30, 2025, compared to $166,877,000 in 2024[95] - Delivery solutions revenue decreased by 4% to $306,495,000 for the three months ended September 30, 2025, compared to $319,132,000 in 2024[95] - Total revenue for the three months ended September 30, 2025, was $1,054,630, a 5% increase from $1,004,679 in 2024; for the nine months, revenue was $3,113,263, a 5% increase from $2,971,229 in 2024[100] - International revenue for the three months ended September 30, 2025, was $524,652, a 9% increase from $480,068 in 2024; for the nine months, it was $1,526,939, a 7% increase from $1,425,575 in 2024[100] Profitability and Expenses - Net income for the three months ended September 30, 2025, was 13% of revenue, up from 6% in the same period of 2024[94] - Total costs and operating expenses as a percentage of revenue decreased to 84% for the three months ended September 30, 2025, from 93% in 2024[94] - Cost of revenue for the three months ended September 30, 2025, was $429,532, a 5% increase from $408,806 in 2024; for the nine months, it was $1,275,012, a 6% increase from $1,206,437 in 2024[101] - Research and development expenses for the three months ended September 30, 2025, were $124,720, a 4% increase from $120,347 in 2024; for the nine months, they were $374,107, a 7% increase from $350,631 in 2024[105] - Sales and marketing expenses for the three months ended September 30, 2025, were $144,867, a 5% increase from $138,551 in 2024; for the nine months, they were $425,237, a 3% increase from $412,160 in 2024[109] - General and administrative expenses for the three months ended September 30, 2025, were $161,719, a 1% increase from $159,957 in 2024; for the nine months, they were $480,249, a 3% increase from $466,241 in 2024[111] Strategic Investments and Future Outlook - The company plans to continue investing in higher growth security products and cloud infrastructure services to advance its product portfolios[90] - The company expects an increase in cost of revenue, particularly in co-location fees and depreciation of network equipment, due to investments in network growth[103] - Research and development costs are expected to increase in 2025, particularly payroll and related costs, to support faster-growing security and cloud computing solutions[108] - The company plans to reinvest in headcount and resources to support faster-growing security and cloud computing solutions as part of its go-to-market transformation initiative[110] - The company expects to continue evaluating strategic investments to strengthen its business and maintain financial stability[137] Non-Operating Income and Taxation - Non-operating income from interest and marketable securities for Q3 2025 was $18.9 million, an 18% decrease from $23.1 million in Q3 2024, and for the nine months ended September 30, 2025, it was $52.6 million, down 32% from $77.5 million in the same period of 2024[116] - The provision for income taxes for Q3 2025 was $(33.0) million, a 108% increase from $(15.9) million in Q3 2024, and for the nine months ended September 30, 2025, it was $(131.5) million, up 106% from $(63.9) million in the same period of 2024[119] - The effective income tax rate for Q3 2025 was (19)%, compared to (22)% in Q3 2024, while for the nine months ended September 30, 2025, it was (26)%, up from (15)% in the same period of 2024[120] Cash Flow and Financing Activities - Cash, cash equivalents, and marketable securities totaled $1.8 billion as of September 30, 2025, providing significant liquidity for operations[135] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,152,181 thousand, a decrease from $1,175,383 thousand in 2024 due to timing of customer collections and higher tax payments[139] - Cash used in investing activities decreased to $174,351 thousand for the nine months ended September 30, 2025, compared to $554,493 thousand in 2024, primarily due to reduced cash paid for business acquisitions[140] - The company held $416.4 million in cash and cash equivalents outside the U.S. as of September 30, 2025, with minimal expected impact on liquidity from these holdings[138] - The company expects its current cash, cash equivalents, and marketable securities to meet foreseeable cash needs for at least the next 12 months, including capital expenditures and potential strategic acquisitions[151] - The company entered into a $150.0 million uncommitted revolving credit agreement in January 2025, with no outstanding borrowings as of September 30, 2025[146] - The 2022 Credit Agreement was amended in May 2025 to increase revolving commitments from $500.0 million to $1.0 billion, with no outstanding borrowings as of September 30, 2025[147] Share Repurchase and Debt Management - In the nine months ended September 30, 2025, the company repurchased 10.0 million shares of common stock at a weighted average price of $79.77 per share, totaling $800.0 million, with $1.2 billion remaining for future repurchases[143] - The company issued $1,725.0 million in convertible senior notes in May 2025 and repaid $1,150.0 million in convertible senior notes due in May 2025[144] - As of September 30, 2025, the company had $4,140.0 million in convertible senior notes outstanding, maturing between September 2027 and May 2033[145] - The increase in cash used in financing activities for the nine months ended September 30, 2025, was primarily due to an increase in stock repurchases, totaling $586.3 million compared to $538.8 million in the same period of 2024[142] Risk and Credit Exposure - A hypothetical 100 basis points increase in interest rates could lead to a decline of approximately $12.9 million in the fair value of the company's available-for-sale portfolio[155] - The company has no significant changes in operating lease obligations as of September 30, 2025, as it continues to execute its expansion plans[149] - The company has limited credit risk exposure, with no customer accounting for 10% or more of accounts receivable as of September 30, 2025[163]

Core Insights - Akamai Technologies Inc. reported better-than-expected third-quarter results, leading to a 10% increase in share price during intra-day trading [1] - The company raised its full-year outlook, indicating strong growth potential [3] Financial Performance - Adjusted earnings per share for the third quarter were $1.86, exceeding analyst estimates of $1.64 [1] - Revenue for the quarter reached $1.055 billion, surpassing expectations of $1.04 billion, representing a 5% year-over-year increase or 4% on a constant-currency basis [1] - For 2025, Akamai raised its revenue outlook to between $4.178 billion and $4.198 billion, and adjusted EPS guidance to $6.93–$7.13, both exceeding consensus projections [3] Business Segments - The security business drove growth with revenue up 10% year-over-year to $568 million [2] - Cloud Infrastructure Services revenue surged 39% to $81 million [2] - Content delivery revenue fell 4% to $306 million [2] Future Guidance - The company forecasts fourth-quarter revenue between $1.065 billion and $1.085 billion, with adjusted earnings per share expected in the range of $1.65–$1.85, both at or above market expectations [2]

Core Insights - Akamai Technologies Inc. reported strong third-quarter 2025 results, with both revenue and net income exceeding expectations, driven by robust demand across various markets [1][3][9] Financial Performance - GAAP net income rose to $140.2 million or 97 cents per share, up from $57.9 million or 38 cents per share year-over-year, aided by high revenues and lower operating expenses [2] - Non-GAAP net income increased to $268.9 million or $1.86 per share, compared to $243.5 million or $1.59 per share a year ago, beating the Zacks Consensus Estimate by 22 cents [2] Revenue Breakdown - Quarterly net sales reached $1.05 billion, a 5% increase from $1 billion in the same quarter last year, driven by strong performance in the Security and Compute verticals [3][9] - Security Technology Group revenues were $568.4 million, up 10% year-over-year, primarily due to demand for Guardicore Segmentation Solution and API security solutions [4] - The Delivery segment generated $306.5 million, down from $319.1 million year-over-year, but exceeded estimates [5] - Cloud Computing segment revenues increased to $179.7 million from $166.9 million, although it missed estimates [5] - U.S. net sales were $530 million, a 1% increase year-over-year, while international revenues rose to $524.6 million from $480.1 million [6] Operating Expenses and Margins - Total operating expenses decreased to $888.6 million from $934 million year-over-year, with non-GAAP income from operations improving to $322 million [7] - Adjusted EBITDA rose to $458.4 million from $426.3 million in the previous year [7] Cash Flow and Liquidity - Akamai generated $441.8 million in cash from operating activities, up from $392.5 million in the prior-year quarter [8] - As of September 30, 2025, the company had $927.9 million in cash and cash equivalents [8] Future Outlook - For Q4 2025, Akamai expects revenues between $1.065 billion and $1.085 billion, with non-GAAP EPS projected between $1.65 and $1.85 [10] - For the full year 2025, revenues are expected to be in the range of $4.178 billion to $4.198 billion, with non-GAAP earnings projected between $6.93 and $7.13 per share [11]

Core Insights - Akamai Technologies (AKAM) is currently viewed as a better value opportunity compared to Shopify (SHOP) based on various financial metrics [1][7] Valuation Metrics - AKAM has a forward P/E ratio of 10.88, significantly lower than SHOP's forward P/E of 107.01 [5] - The PEG ratio for AKAM is 2.22, while SHOP's PEG ratio stands at 4.33, indicating that AKAM is more reasonably priced relative to its expected earnings growth [5] - AKAM's P/B ratio is 2.39, compared to SHOP's P/B of 16.21, further suggesting that AKAM is undervalued [6] Earnings Outlook - AKAM is currently exhibiting an improving earnings outlook, which is a positive indicator in the Zacks Rank model [3][7] - The Zacks Rank for AKAM is 2 (Buy), while SHOP holds a Zacks Rank of 3 (Hold), reflecting a more favorable earnings estimate revision trend for AKAM [3]

Group 1: Affirm Holdings (AFRM) - Affirm Holdings reported an EPS of 23 cents, beating estimates by 12 cents [1][7] - Revenue reached $933.34 million, a 33.6% year-over-year increase, surpassing estimates by $49.98 million [1][7] - The company raised its gross merchandise volume (GMV) guidance to $47.5 billion from $46 billion and increased the adjusted operating margin outlook to 27.1% from 26.1% [1][7] Group 2: Expedia Group (EXPE) - Expedia Group's shares rose by about 17%, or $37.47 per share, driven by strong earnings [2] - The company raised its 2025 revenue growth forecast to between 6% and 7%, up from earlier estimates of 3% to 5% [2] - Bookings in the B2B segment increased by 26% to $9.38 billion during the third quarter [2] Group 3: Globus Medical (GMED) - Globus Medical's shares increased by about 29%, or $18 per share, following strong earnings [3] - The company reported an EPS of $1.18, beating estimates by 41 cents [3] - Revenue was $769 million, a 23% increase year-over-year, exceeding estimates by $34.33 million [3][4] Group 4: Akamai Technologies (AKAM) - Akamai Technologies' shares rose by about 10%, or $7.26 per share, due to strong earnings [5] - The company reported an EPS of $1.86, beating estimates by 22 cents [5] - Revenue was $1.05 billion, a 5% year-over-year increase, surpassing estimates by $10 million [5][6]

智通财经APP获悉，周五，阿克迈(AKAM.US)盘前涨逾5%，报76.96美元。消息面上，阿克迈公布的第 三季度非GAAP每股收益为1.86美元(同比增长17%)，超出市场预期0.22美元，而营收为10.55亿美元，同 比增长5%，超出预期1000万美元。公司上调了全年收入指引至41.78亿至41.98亿美元，并将2025年非 GAAP每股收益指引提高至6.93至7.13美元，高于市场预期的6.72美元。非GAAP营业利润率同比扩大 2%至31%。 ...

周五，阿克迈(AKAM.US)盘前涨逾5%，报76.96美元。消息面上，阿克迈公布的第三季度非GAAP每股 收益为1.86美元(同比增长17%)，超出市场预期0.22美元，而营收为10.55亿美元，同比增长5%，超出预 期1000万美元。公司上调了全年收入指引至41.78亿至41.98亿美元，并将2025年非GAAP每股收益指引 提高至6.93至7.13美元，高于市场预期的6.72美元。非GAAP营业利润率同比扩大2%至31%。 ...

Core Insights - Akamai Technologies, Inc. shares increased by 6.92% in after-hours trading to $78.06 following the release of its third-quarter financial results [1] - The company reported a quarterly revenue of $1.055 billion, reflecting a 5% increase from $1.005 billion in the same quarter last year [2] - Non-GAAP net income per diluted share rose 17% year over year to $1.86 [2] Revenue Breakdown - Security segment revenue reached $568 million, showing a 10% year-over-year growth [2] - Cloud Infrastructure Services generated $81 million in revenue, marking a significant 39% growth compared to the previous year [2] Margin and New Initiatives - Non-GAAP operating margin improved to 31%, up 2 percentage points from the same period last year [3] - The company launched Akamai Inference Cloud, leveraging NVIDIA AI infrastructure for secure, low-latency AI performance at the edge [3] Future Guidance - Akamai projects fourth-quarter revenue between $1.065 billion and $1.085 billion, with non-GAAP operating margins expected to range from 28% to 30% [4] Stock Performance - Year-to-date, Akamai shares have decreased by 23.50% [5] - The stock has traded between $67.60 and $104.99 over the past year, with a current market capitalization of $10.47 billion [5]

Core Insights - Akamai Technologies (AKAM) reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, and up from $1.59 per share a year ago, representing an earnings surprise of +13.41% [1] - The company achieved revenues of $1.05 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.23%, compared to $1 billion in the same quarter last year [2] - Akamai Technologies has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +11.61%, with actual earnings of $1.73 per share compared to an expected $1.55 per share [1] - The company has shown a favorable trend in estimate revisions leading up to the earnings release, contributing to a Zacks Rank 2 (Buy) for the stock [6] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $1.07 billion, and for the current fiscal year, it is $6.71 on revenues of $4.17 billion [7] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - The Internet - Services industry, to which Akamai belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Akamai reported Q3 2025 revenue of $1.055 billion, representing a 5% year-over-year increase as reported and a 4% increase in constant currency [4][20] - Non-GAAP operating margins improved to 31%, and non-GAAP earnings per share was $1.86, up 17% year-over-year as reported and in constant currency [4][20] - Non-GAAP net income for Q3 was $269 million, with a non-GAAP EPS of $1.86, exceeding guidance by $0.20 [21][24] Business Line Data and Key Metrics Changes - Cloud Infrastructure Services (CIS) revenue was $81 million, up 39% year-over-year as reported and in constant currency, accelerating from a 30% growth rate in Q2 [6][19] - Security revenue reached $568 million, up 10% year-over-year as reported and 9% in constant currency, with high-growth security products generating $77 million, an increase of 35% year-over-year [20][14] - Delivery revenue was $306 million, down 4% year-over-year as reported and in constant currency, but showing improved trends [20] Market Data and Key Metrics Changes - International revenue was $525 million, up 9% year-over-year, representing 50% of total revenue in Q3 [20] - Foreign exchange fluctuations positively impacted revenue by $4 million sequentially and $8 million year-over-year [20] Company Strategy and Development Direction - Akamai is transitioning from a CDN pioneer to a leader in cloud security and distributed cloud computing, with a focus on AI inference capabilities [5][10] - The launch of Akamai Inference Cloud aims to support the growing demand for AI inference on the internet, positioning the company to leverage its distributed architecture [7][11] - The company emphasizes the importance of reliability, aiming for five nines of uptime, which is critical for attracting major clients like banks [75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of CIS and high-growth security solutions, anticipating continued strong demand for AI-related services [20][24] - The company expects Q4 revenue to be in the range of $1.065 billion to $1.085 billion, reflecting a 4%-6% increase as reported [23] - Management noted that the AI inference market is at a transition point, with significant growth expected as AI systems are adopted at scale [10][12] Other Important Information - Akamai's CapEx for Q3 was $224 million, representing 21% of revenue, as the company continues to invest in its CIS business [21] - The company has not repurchased any shares in Q3 but has spent $800 million year-to-date on share buybacks, marking the largest annual buyback in its history [21][22] Q&A Session Summary Question: Guidance on security and compute growth - Management reiterated security growth at about 10% and compute growth slightly under 15% for the year, with momentum in CIS [28] Question: Insights on Akamai Inference Cloud - Management indicated strong interest and demand for AI applications, with many customers looking to adopt inference capabilities [30][32] Question: Hiring strategy for sales reps - The company is continuing to hire sales reps to support new business sales in security and compute, with a transformation expected to be largely complete by Q2 next year [36][37] Question: Confidence in benefiting from capacity constraints at hyperscalers - Management highlighted Akamai's unique platform and extensive points of presence, which allow it to provide faster services compared to hyperscalers [41][42] Question: Opportunities in API Security - Management confirmed ongoing efforts to extend API security into new agentic protocols, with strong interest from customers [44] Question: CapEx requirements for inference - Management noted that CapEx will closely follow revenue and demand, with expectations for similar gross margins to current compute margins [46][47] Question: Traffic mix and future trends - Management indicated that video delivery currently dominates traffic, but AI applications are expected to increase traffic significantly in the future [68][70]