Akamai Technologies (AKAM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $1.055 billion, up 5% year-over-year as reported and 4% in constant currency, driven by strong growth in security and cloud infrastructure, partially offset by delivery declines.

• Non-GAAP operating margin improved to 31%, and non-GAAP EPS was $1.86, up 17% year-over-year; GAAP EPS was $0.97, up 155%.

• Net income for Q3 2025 was $140 million, up from $57.9 million in Q3 2024, reflecting improved profitability and lower restructuring charges.

• Launched Akamai Inference Cloud, leveraging NVIDIA AI infrastructure for distributed AI inference at the edge, with initial deployments in 17 global locations.

• All three major U.S. cloud providers now use CIS, with one signing an expanded multi-year renewal in Q3.

Financial highlights

• Compute/cloud computing revenue was $180 million, up 8% year-over-year; CIS revenue was $81 million, up 39%; security revenue reached $568 million, up 10%; delivery revenue was $306 million, down 4%.

• High-growth security products (API Security and Zero Trust) generated $77 million, up 35% year-over-year.

• International revenue was $525 million, up 9% year-over-year, representing 50% of total revenue.

• Non-GAAP net income was $269 million; GAAP net income was $140 million; CapEx was $224 million (21% of revenue).

• Adjusted EBITDA margin for Q3 2025 was 43%.

Outlook and guidance

• Q4 2025 revenue projected at $1.065–$1.085 billion; full-year 2025 revenue expected at $4.178–$4.198 billion, up 4%–5% in constant currency.

• Non-GAAP operating margin guidance: 28%–30% for Q4, 29%–30% for full year; non-GAAP EPS guidance: $1.65–$1.85 for Q4, $6.93–$7.13 for full year.

• Q4 EBITDA margin expected at 42%–43%; CapEx projected at $171–$181 million (16% of revenue).

• Security ARR growth expected at 30%–35%; CIS ARR growth at 40%–45% for 2025.

• Cost of revenue and R&D expenses expected to increase due to network investments and headcount growth.