Cloud technology company Akamai Technologies (NASDAQ:AKAM) reported Q3 CY2025 results exceeding the market’s revenue expectations , with sales up 5% year on year to $1.05 billion. The company expects next quarter’s revenue to be around $1.08 billion, close to analysts’ estimates. Its non-GAAP profit of $1.86 per share was 13.7% above analysts’ consensus estimates. Is now the time to buy Akamai Technologies? Find out in our full research report. Akamai Technologies (AKAM) Q3 CY2025 Highlights: Revenue: $ ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contacts: Johanna Schmitt Mark Stoutenberg Media Relations Investor Relations Akamai Technologies Akamai Technologies Revenue: Revenue was $1.055 billion, a 5% increase over third quarter 2024 revenue of $1.005 billion and a 4% increase when adjusted for foreign exchange.* Revenue by solution: Cloud Infrastructure Services** revenue of $81 million, up 39% year-over-year and when adjusted for foreign exchange* GAAP net income per diluted share of $0.97, up 155% year-over-ye ...

Core Insights - Akamai Technologies reported a strong performance in Q3 2025, with revenue reaching $1.055 billion, a 5% increase year-over-year, and a 4% increase when adjusted for foreign exchange [1][2] - The company experienced significant growth in its Cloud Infrastructure Services, with revenue of $81 million, marking a 39% year-over-year increase [1][9] - GAAP net income per diluted share was $0.97, reflecting a 155% increase year-over-year, while non-GAAP net income per diluted share was $1.86, up 17% year-over-year [1][5] Financial Performance - Revenue for Q3 2025 was $1.055 billion, up from $1.005 billion in Q3 2024, with a 5% increase year-over-year [2][15] - GAAP income from operations was $166 million, a 135% increase from Q3 2024, with an operating margin of 16%, up 9 percentage points [4][20] - Non-GAAP income from operations was $322 million, a 9% increase from Q3 2024, with a non-GAAP operating margin of 31%, up 2 percentage points [4][20] Income and Earnings - GAAP net income was $140 million, a 142% increase from Q3 2024, while non-GAAP net income was $269 million, up 10% [5][20] - Adjusted EBITDA for Q3 2025 was $458 million, an 8% increase from Q3 2024 [5][20] - Cash from operations was $442 million, representing 42% of revenue [6] Shareholder Actions - The company did not repurchase shares in Q3 2025 but spent $800 million to repurchase 10 million shares at an average price of $79.77 per share during the first nine months of 2025 [7] Revenue Breakdown - Security revenue was $568 million, up 10% year-over-year, while delivery revenue was $306 million, down 4% [9][15] - Cloud computing revenue reached $180 million, an 8% increase year-over-year [9][15] - U.S. revenue was $530 million, up 1% year-over-year, while international revenue was $525 million, up 9% [9][16] Financial Guidance - For Q4 2025, Akamai expects revenue between $1.065 billion and $1.085 billion, and for the full year, revenue is projected between $4.178 billion and $4.198 billion [8]

Core Insights - Akamai is experiencing a surge in demand for its Inference Cloud platform, indicating a shift from experimentation to execution in AI applications across various industries [2][3] - The platform is designed to operationalize AI in real-world environments, facilitating use cases in video, personalization, customer support, and consumer products [3][4] Company Overview - Akamai is a cybersecurity and cloud computing company that provides solutions to power and protect businesses online [2][6] - The company leverages its expertise in globally distributed architectures and NVIDIA Blackwell AI infrastructure to enhance AI processing capabilities [4][6] Product Features - Akamai Inference Cloud enables low-latency, real-time edge AI processing, which is crucial for applications like live sports production and personalized video streaming [4][5] - The platform supports advanced functionalities such as transcoding 8K multi-camera feeds and generating AI-powered play summaries in real-time [4][5] Use Cases - Current applications of Akamai Inference Cloud include live sports production, personalized live streams, recommendation engines, assistive agents, AI-powered fit rooms, and AI-powered toys [5] - Companies like Monks and Harmonic are utilizing the platform to enhance video content delivery and user experiences [4][5]

Core Insights - Akamai Technologies (AKAM) is expected to report quarterly earnings of $1.64 per share, a 3.1% increase year-over-year, with revenues projected at $1.04 billion, reflecting a 3.7% year-over-year growth [1] Earnings Projections - Analysts emphasize the importance of revisions to earnings projections prior to earnings releases, as these revisions are critical indicators of potential investor behavior [2] - The consensus EPS estimate for Akamai has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1] Revenue Estimates - Analysts predict 'Revenue- Security' will reach $569.75 million, showing a year-over-year increase of 9.9% [4] - 'Revenue- Compute' is expected to be $188.02 million, reflecting a 12.7% increase from the prior-year quarter [4] - 'Revenue- Delivery' is forecasted to be $285.18 million, indicating a decline of 10.6% from the prior-year quarter [4] Stock Performance - Akamai shares have returned -5% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [5] - With a Zacks Rank 2 (Buy), Akamai is anticipated to outperform the overall market in the near future [5]

Core Insights - The report highlights a significant increase in AI bot traffic, which surged by 300% over the past year, now accounting for nearly 1% of total bot traffic on Akamai's platform [2][3]. Industry Impact - The publishing industry is particularly affected, with 63% of AI bot triggers originating from this sector, leading to corrupted analytics and declining ad revenues [7]. - The commerce industry leads in AI bot activity, with over 25 billion bot requests recorded in a two-month period [7]. Security Threats - AI bots are primarily used for content scraping, which undermines traditional web-based business models and distorts digital operations [3][4]. - The rise of AI-enabled tools has facilitated impersonation attacks, social engineering, phishing campaigns, and identity fraud, utilizing AI-generated fake documents and images [4]. Recommendations - Organizations are encouraged to develop security capabilities aligned with the OWASP Top 10 frameworks for web applications, APIs, and large language models (LLMs) to better manage fraud risks [4]. - Business leaders are urged to prioritize secure AI adoption and risk management to protect digital operations [5].

Core Insights - Akamai Technologies has launched Akamai Inference Cloud, a platform designed to enhance AI inference capabilities by moving processing closer to users and devices, thereby reducing latency and improving performance [1][2][4] Company Overview - Akamai Inference Cloud leverages Akamai's global edge network, which consists of over 4,200 locations, and NVIDIA's advanced AI infrastructure to provide scalable, low-latency AI processing [4][5] - The platform aims to support the next generation of AI applications, including personalized digital experiences and real-time decision systems, by enabling intelligent, agentic AI inference at the edge [2][3] Technological Advancements - The platform integrates NVIDIA RTX PRO Servers and BlueField DPUs, enhancing the ability to process AI workloads efficiently from core to edge [4][5] - Akamai Inference Cloud is designed to facilitate streaming inference and agentic AI workflows, allowing for near-instantaneous responses and improved user engagement [5][9] Market Positioning - The launch targets 20 initial locations globally, with plans for further expansion, positioning Akamai as a leader in edge AI processing [6] - The collaboration with NVIDIA aims to redefine AI inference by decentralizing data processing and routing requests to optimal models, enhancing the capabilities of smart commerce agents and financial decision-making [5][9]

Core Insights - The rise of generative AI is reshaping industries, presenting unprecedented opportunities for technological innovation, process automation, and customer interaction experiences [1] - A report by Akamai Technologies and IDC indicates that 79% of surveyed enterprises believe generative AI will have a disruptive impact on their business within the next 18 months, with 37% already deploying it in production environments and 61% in testing and proof-of-concept stages [1] Group 1: Edge Services vs. Traditional Cloud Services - By 2027, 80% of CIOs are expected to adopt edge services to replace traditional cloud services, driven by the need for real-time performance and faster response times in AI applications [2] - Edge services, a distributed computing model, move computing, storage, and networking functions closer to the user, reducing data transmission distances and latency [2] - In scenarios like smart driving, edge services ensure quick data processing and response, enhancing safety by handling large volumes of sensor data in real-time [2] Group 2: Opportunities and Challenges in China - Key edge applications driving generative AI deployment include generative AI itself, predictive AI for business forecasting, and video editing/processing [4] - Chinese enterprises face unique opportunities with edge computing, enabling them to provide competitive AI applications globally, leveraging local innovation capabilities [4] - Challenges include compliance and data privacy issues, particularly with generative AI involving personal data, necessitating adherence to local laws and regulations [5] Group 3: Global Competitive Advantage through Edge Services - Among Chinese enterprises adopting generative AI, 96% utilize public cloud IaaS for training and inference workloads, surpassing the average in the Asia-Pacific region [7] - Edge computing supports Chinese companies in enhancing their global competitiveness by providing low-latency, high-reliability services in overseas markets [7] - The complexity of managing multi-cloud environments poses a challenge for 49% of enterprises, particularly in the context of rapid generative AI development [6][8] Group 4: Strategic Necessity of Edge Services - The rapid development of generative AI is transforming edge services from an auxiliary option to a strategic necessity for enterprises [8] - Companies must focus on achieving seamless data transfer and network connectivity across multi-cloud environments to leverage the benefits of generative AI and edge computing [8] - The goal for Chinese enterprises in their global expansion is shifting from merely cost advantages to establishing competitive barriers in intelligent experiences and service real-time capabilities [8]

With a market cap of $11.7 billion, Akamai Technologies, Inc. (AKAM) is a prominent cloud and cybersecurity company headquartered in Cambridge, Massachusetts. Founded in 1998, Akamai operates one of the world’s largest distributed computing platforms, known for powering a significant share of global internet traffic. AKAM is slated to announce its fiscal Q3 2025 earnings results after the market closes on Thursday, Nov. 6. Ahead of this event, analysts expect the company to report a profit of $1.02 per sh ...

Core Viewpoint - Akamai is undergoing a transformative shift from traditional content delivery to expanding sectors like security and cloud infrastructure, which may present opportunities for patient investors despite a 20% stock decline this year compared to the S&P 500's 15% increase [1] Group 1: Current Challenges - The immediate concern for Akamai is the lack of growth, with disappointing revenue forecasts for 2025 indicating that new ventures have not yet compensated for declines in the CDN sector [3] - Akamai is perceived as a "show-me" stock, with the market waiting for evidence that new services in cybersecurity and edge computing can drive significant revenue growth [4] - Weak guidance has made investors hesitant, although the valuation has tightened, with shares trading significantly below their 52-week peak [6] Group 2: Financial Health - Akamai maintains a robust financial standing, generating healthy cash flow with operating margins exceeding 15% and free cash flow margins above 30% [7] - The company has modest annual revenue growth of around 4 to 5%, but its balance sheet is strong, with approximately $5.3 billion in debt against an $11 billion market cap and nearly $1 billion in cash [7] Group 3: Market Position and Outlook - Competition from major cloud providers like Amazon and Google has negatively impacted Akamai's CDN operations but has also expanded the cybersecurity market that Akamai is pursuing [6] - For short-term traders, the outlook is uninspiring due to subdued growth during the transition, while long-term investors may find a brighter scenario as Akamai trades at a discount to the S&P 500 with a price-to-sales ratio of about 2.7 compared to 3.3 for the index [9]