Akamai Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

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]