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]

Core Insights - Akamai Technologies reported Q3 CY2025 results that exceeded market revenue expectations, with sales reaching $1.05 billion, reflecting a 5% year-on-year growth [1][7] - The company anticipates Q4 revenue to be around $1.08 billion, aligning closely with analysts' estimates [1][7] - Non-GAAP profit per share was $1.86, surpassing analysts' consensus by 13.7% [1][7] Company Performance - Akamai delivered strong quarterly results, showcasing solid top-line performance and excellent bottom-line results, with significant year-over-year EPS growth and improved margins [3] - The company experienced a 39% year-on-year revenue growth in its Cloud Infrastructure Services segment, indicating strong momentum in this area [3] Revenue Growth Analysis - Over the past five years, Akamai's sales grew at a compounded annual growth rate of 5.8%, which is below the benchmark for the software sector [5] - The annualized revenue growth of 5.1% over the last two years aligns with the five-year trend, suggesting consistently weak demand [6] Financial Metrics - Q3 revenue was $1.05 billion, beating analyst estimates of $1.04 billion by 1% [7] - Adjusted EPS of $1.86 exceeded analyst estimates of $1.64 by 13.7% [7] - Adjusted Operating Income was $322 million, with a margin of 30.5%, surpassing estimates of $291.1 million [7] - Management raised full-year Adjusted EPS guidance to $7.03, reflecting a 4.9% increase [7] - Operating Margin improved to 15.7%, up from 7% in the same quarter last year [7] - Free Cash Flow Margin increased to 31.2%, up from 22.6% in the previous quarter [7] - Market Capitalization stands at $10.46 billion [7]

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]

Core Insights - Akamai Technologies, Inc. (AKAM) has a market capitalization of $11.7 billion and is a significant player in the cloud and cybersecurity sectors, operating one of the largest distributed computing platforms globally [1] Financial Performance - Akamai is expected to announce its fiscal Q3 2025 earnings on November 6, with analysts predicting a profit of $1.02 per share, reflecting a 2.9% decrease from $1.05 per share in the same quarter last year [2] - For fiscal 2025, the anticipated EPS is $4.27, down 6% from $4.54 in fiscal 2024, but a rebound is expected in 2026 with a projected annual increase of 2.3% to $4.37 [3] Stock Performance - Over the past 52 weeks, Akamai's shares have declined by 16%, underperforming the S&P 500 Index, which rose by 14.5%, and the Technology Select Sector SPDR Fund, which gained 7.6% [4] Recent Developments - On October 2, Akamai's shares increased by 2.9% following the announcement of an expanded partnership with Apiiro, enhancing its application and API security solutions [5] Analyst Ratings - The consensus rating for Akamai Technologies stock is cautious, with a "Hold" rating overall. Among 21 analysts, there are seven "Strong Buy," one "Moderate Buy," nine "Holds," one "Moderate Sell," and three "Strong Sell" recommendations. The mean price target is $92.26, indicating a potential upside of 23.7% from current market prices [6]