Akamai Technologies (AKAM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.074 billion, up 6% year-over-year, driven by security and Cloud Infrastructure Services (CIS), while delivery and other cloud applications declined.

• Security revenue grew 11% year-over-year, led by Web Application Firewall, API Security, and Guardicore Segmentation.

• CIS revenue surged 40% year-over-year, with a record $1.8 billion, seven-year deal and a $200 million deal earlier in the year.

• Net income declined to $106 million GAAP and $239 million non-GAAP, reflecting higher costs from investments in AI infrastructure and payroll.

• Positioned as a key AI infrastructure provider, leveraging distributed architecture and NVIDIA AI Grid integration.

Financial highlights

• Q1 2026 total revenue: $1.074 billion, up 6% year-over-year; CIS revenue: $95 million, up 40%; Security revenue: $590 million, up 11%; Delivery and other cloud applications: $389 million, down 7%.

• GAAP net income: $106 million, down 14%; non-GAAP net income: $239 million, down 5–7%.

• GAAP EPS: $0.71, down 13%; non-GAAP EPS: $1.61, down 5%.

• Non-GAAP operating margin: 26%; GAAP operating margin: 11%.

• Adjusted EBITDA: $427 million, 40% margin.

• Q1 CapEx: $206 million (19% of revenue).

Outlook and guidance

• 2026 revenue guidance: $4.445–$4.55 billion, up 6–8%; Q2 2026: $1.075–$1.100 billion.

• CIS revenue growth expected at least 50% year-over-year in constant currency.

• Security revenue growth expected in high single digits; delivery and other cloud apps expected to decline mid-single digits.

• 2026 non-GAAP operating margin estimated at 25–26%; non-GAAP EPS: $6.40–$7.15.

• 2026 CapEx expected at 40–42% of revenue, including $700 million for the $1.8 billion contract.

• Double-digit annual revenue growth expected in 2027.