Akamai Technologies (AKAM) investor relations material

Executive summary

• Q2 2026 revenue reached $1.1 billion, up 5% year-over-year, driven by strong growth in security and cloud infrastructure services, partially offset by declines in delivery and other cloud applications due to pricing pressure and customer optimization.

• Security revenue rose 10% year-over-year to $604 million, led by API Security, Guardicore Segmentation, and Web Application Firewall (WAF) solutions.

• Cloud infrastructure services revenue surged 39% year-over-year to $99 million, reflecting strong demand and multi-year commitments, including a $600 million deal with a major U.S. technology company for robotics development.

• Completed the $205 million acquisition of LayerX Security Ltd. (now Akamai Workforce Protector) to enhance enterprise AI security and zero-trust capabilities.

• Signed over $2.8 billion in multi-year cloud infrastructure contracts year-to-date.

Financial highlights

• Q2 2026 revenue: $1.1 billion (up 5% year-over-year); security revenue: $604 million (up 10%); CIS revenue: $99 million (up 39%); delivery and other cloud applications revenue: $396 million (down 6%).

• GAAP net income: $79 million (down 23% year-over-year); non-GAAP net income: $236 million (down 6%).

• GAAP EPS: $0.52 (down 27%); non-GAAP EPS: $1.59 (down 8%).

• Non-GAAP operating margin: 25%; GAAP operating margin: 7%.

• Adjusted EBITDA: $416 million (38% margin); CapEx: $347 million (32% of revenue).

Outlook and guidance

• Q3 2026 revenue projected at $1.105–$1.13 billion; full-year 2026 guidance: $4.445–$4.53 billion.

• Non-GAAP EPS guidance: $1.60–$1.80 for Q3; $6.40–$7.05 for full year.

• Non-GAAP operating margin expected at 24–26% for Q3 and 25–26% for the full year; CapEx expected at ~40% of revenue.

• Security revenue growth expected in high single digits for 2026; CIS revenue growth expected at least 50% year-over-year.

• Revenue growth expected to accelerate into the low teens in 2027, driven by multi-year CIS commitments.