Akamai Technologies (NasdaqGS:AKAM) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsAidan Daniels - Equity Research AssociateArti Vula - Equity Research AssociateEd McGowan - CFOFatima Boolani - Co-Head of US Software Equity Research and Managing DirectorMark Stoutenberg - Head of Investor RelationsRishi Jaluria - Managing Director of Software Equity ResearchRoger Boyd - Executive DirectorSanjit Singh - Executive DirectorTom Leighton - CEOVijay Homan - Equity Research AssociateConfer ...

Akamai Technologies (NasdaqGS:AKAM) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsAidan Daniels - Equity Research AssociateArti Vula - Equity Research AssociateEd McGowan - CFOFatima Boolani - Co-Head of US Software Equity Research and Managing DirectorMark Stoutenberg - Head of Investor RelationsRishi Jaluria - Managing Director of Software Equity ResearchRoger Boyd - Executive DirectorSanjit Singh - Executive DirectorTom Leighton - CEOVijay Homan - Equity Research AssociateConfer ...

Akamai Technologies (NasdaqGS:AKAM) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Speaker8Good day, and welcome to the Q4 2025 Akamai Technologies Inc earnings conference call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone ...

Fourth quarter highlights Revenue of $1.095 billion, up 7% year-over-year and up 6% when adjusted for foreign exchange*Cloud Infrastructure Services** revenue of $94 million, up 45% year-over-year and up 44% when adjusted for foreign exchange*Security revenue of $592 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*; Guardicore Segmentation and API Security revenue of $90 million, up 36% year-over-year and up 34% when adjusted for foreign exchange*GAAP net income per diluted share ...

Key Takeaways AKAM is set to report Q4 results on Feb. 19, with revenues seen rising to $1.07B from $1.02B a year ago.Akamai expanded Apiiro ties and launched Inference Cloud solution powered by NVIDIA Blackwell GPUs.AKAM's ISV Catalyst program aims to grow its cloud ecosystem and expand its client base.Akamai Technologies, Inc. (AKAM) is scheduled to release fourth-quarter 2025 results on Feb. 19, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 13.41%. It ...

Core Insights - The fourth-quarter 2025 earnings for Internet stocks were significantly influenced by the acceleration of artificial intelligence (AI) adoption and substantial infrastructure investments, with major tech companies increasing capital expenditures, notably Meta's spending nearly doubling to $115-$135 billion for 2026 to support AI initiatives [1][4] - AI-driven demand led to strong revenue growth, particularly benefiting software analytics companies and cloud computing providers, while social media platforms saw revenue boosts from strong advertising demand and improved AI-powered recommendation algorithms [1][4] Company Performance - Meta Platforms (META) experienced a strong fourth-quarter performance, benefiting from increased AI integration across its services, which reach over 3.58 billion users daily, and an improved recommendation system that enhances user engagement [2] - Spotify Technology is expected to report fourth-quarter revenues of €4.5 billion, reflecting a 13% year-over-year growth, with significant user engagement driven by AI-driven personalization and a 54% surge in video podcast consumption [12] - Fastly anticipates fourth-quarter revenues between $159-$163 million, with a non-GAAP EPS of 4-8 cents, supported by accelerating security revenue and successful cross-sell initiatives [14] - Akamai Technologies is projected to benefit from robust growth in Cloud Infrastructure Services, with annual recurring revenue growth of 40-45%, driven by major contract wins and AI-driven demand [16] - Five9 expects sequential revenue growth towards a guided $297.7 million midpoint, fueled by strong backlog conversion and a 41% year-over-year surge in enterprise AI revenue [18] Market Dynamics - The digital advertising market showed resilience, benefiting from improved targeting technologies that enhanced return on investment for advertisers, while cloud infrastructure demand continued to expand as enterprises accelerated digital transformation initiatives [5] - The Federal Reserve's monetary easing cycle has supported growth-oriented Internet stocks, creating a more favorable financial environment, alongside seasonal market patterns that historically boost fourth-quarter performance [6] - Despite these positive dynamics, tariff-related uncertainties and economic deceleration concerns pose challenges, particularly for advertising-dependent business models and traditional software application companies [7][8]

Akamai Technologies FY Conference Summary Company Overview - **Company**: Akamai Technologies (NasdaqGS:AKAM) - **Focus**: Cloud Infrastructure Services, particularly GPU inference and security solutions Key Industry Insights - **IT Spending Environment**: The IT spending environment in 2025 has been characterized by increased focus on security due to rising attack rates, particularly with the advent of Generative AI (GenAI) which has created new vulnerabilities [5] - **AI Adoption**: Rapid adoption of AI technologies is seen as a significant tailwind for Akamai, with enterprises increasingly interested in new applications enabled by AI [5] Core Business Developments - **Akamai Inference Cloud**: The launch of the Akamai Inference Cloud has generated significant investor excitement. The partnership with NVIDIA is pivotal, as it allows Akamai to leverage GPU capabilities for edge computing, enhancing application performance [6][7] - **Market Positioning**: Akamai aims to differentiate itself in the GPU inference market by focusing on distributed computing, which is essential for low-latency applications [10][11] Financial Metrics and Projections - **Unit Economics**: The current economics for Akamai's inference workloads are described as $1 CapEx equating to $1 revenue, indicating a strong return on investment [15] - **CapEx Strategy**: Akamai builds out CapEx based on anticipated demand, with a focus on long-term contracts for data center deals [20] Growth and Expansion Plans - **Geographic Expansion**: Akamai plans to expand its GPU-equipped data centers, particularly in India and Southeast Asia, with larger footprints in key cities [21] - **Pricing Model**: The pricing for inference services is flexible, including consumption-based models and long-term commitments [22] Security Business Insights - **Revenue Contribution**: The security segment generates over $2 billion in revenue but has seen growth dip below 10%. Akamai aims to maintain security as a key investment area alongside cloud infrastructure services [38][39] - **M&A Strategy**: Akamai is actively seeking M&A opportunities to enhance its security offerings, particularly in the rapidly evolving AI landscape [41] Challenges and Competitive Landscape - **Legacy Business**: Akamai's non-CIS compute revenue is seen as a drag on overall growth, with plans to focus on more profitable segments [34][36] - **Delivery Business**: The delivery segment has faced challenges but is showing signs of stabilization post-consolidation in the industry. Revenue is expected to decline in the low- to mid-single digits [48][49] Future Outlook - **2026 Priorities**: Akamai's focus for 2026 includes accelerating growth in cloud infrastructure services, particularly the Inference Cloud, and expanding its customer base through cross-selling and new customer acquisition strategies [44][45] Conclusion Akamai Technologies is strategically positioned to capitalize on the growing demand for AI-driven applications and cloud infrastructure services while navigating challenges in its legacy business segments. The company's focus on security and innovative cloud solutions will be critical for sustaining growth in the coming years.

Core Viewpoint - Akamai Technologies has acquired Fermyon, a serverless WebAssembly company, to enhance its edge computing capabilities and improve application performance while reducing costs compared to traditional cloud-native applications [1][2]. Group 1: Acquisition Details - The acquisition of Fermyon will allow Akamai to integrate Fermyon's cloud-native WebAssembly function-as-a-service with its globally distributed platform, enabling enterprises to build edge-native applications [1][2]. - Fermyon is recognized for its leadership in serverless functions and WebAssembly, and it actively participates in the open-source community, which Akamai plans to continue supporting [2]. Group 2: Strategic Implications - Akamai aims to deepen the integration between its edge functions platform and its performance and security products, facilitating faster and easier application development, deployment, and security at the edge [3]. - The acquisition is expected to provide developers with a broad range of cloud-native and serverless options, enhancing innovation and execution of lightweight code at the edge [2]. Group 3: Financial Impact - Akamai anticipates no material impact on its financial guidance for 2025 as a result of the Fermyon acquisition [4].

Group 1 - Akamai Technologies, Inc. has been recognized as one of the best cloud stocks to buy, with a Buy rating initiated by Oppenheimer and a price target of $100 [1] - The stock's positive outlook is supported by a fiscal Q3 2025 earnings beat, with revenue growing 4.97% year-over-year to $1.05 billion, exceeding estimates by $10.74 million [2] - The company's EPS for Q3 2025 was $1.86, surpassing estimates by $0.22, driven by a 10% increase in Security Service revenue and an 8% increase in Cloud Computing revenue [2] Group 2 - Akamai's Cloud Infrastructure revenue saw significant growth of 39% year-over-year, reaching $81 million [2] - CEO Dr. Tom Leighton noted increased interest in the newly launched Akamai Inference Cloud, which utilizes NVIDIA AI infrastructure [3] - Management projects Q4 2025 revenue to be between $1.065 billion and $1.085 billion [3]

Core Insights - The article discusses the potential of AI and the cloud computing sector, highlighting the transformative nature of AI while cautioning about the possibility of an AI bubble, drawing parallels to the dotcom era [2][3] - A list of the 13 best cloud stocks to buy is provided, based on a methodology that includes analysis of hedge fund sentiment and market capitalization [5][7] AI Market Insights - Kim Posnett from Goldman Sachs emphasizes that it is too early to determine if there is an AI bubble, noting that 75% of major technology innovations over the last 175 years led to equity price bubbles [2] - Despite similarities to previous bubbles, current research indicates that there is not yet an AI bubble [2] Cloud Stocks Methodology - The list of cloud stocks was curated from the top holdings of three ETFs, sorted by market capitalization, and focused on pureplay cloud computing stocks with positive analyst upside potential [5] - Hedge fund sentiment was also considered, as research shows that imitating top hedge fund stock picks can lead to market outperformance [7] Akamai Technologies, Inc. (NASDAQ:AKAM) - Akamai has a market capitalization of $12.57 billion and an analyst upside potential of 3.00% with 42 hedge fund holders [8][9] - The company reported Q3 2025 earnings with a revenue increase of 4.97% year-over-year to $1.05 billion, exceeding estimates by $10.74 million [10] - Cloud Infrastructure revenue grew 39% year-over-year to $81 million, and management anticipates Q4 2025 revenue between $1.065 billion and $1.085 billion [10][11] Nutanix, Inc. (NASDAQ:NTNX) - Nutanix has a market capitalization of $15.87 billion and an analyst upside potential of 51.90% with 58 hedge fund holders [12] - The company is positioned to attract dissatisfied VMware customers and has received bullish ratings from analysts ahead of its fiscal Q1 2026 results [12][13] - Management expects revenue for Q1 2026 to be in the range of $670 million to $690 million, with a non-GAAP operating margin of 19.5% to 20.5% [14][15]