Akamai Technologies (AKAM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 5% year-over-year to $1.1 billion, driven by strong growth in security (up 10%) and cloud infrastructure services (up 39%), while delivery and other cloud applications declined 6% due to pricing pressure and customer optimization.

• Multi-year cloud infrastructure commitments exceeded $2.8 billion YTD, including a $600 million deal with a major U.S. technology company, supporting strong revenue visibility and positioning for accelerated growth in 2027.

• Security portfolio expansion, highlighted by the $205 million acquisition of LayerX (now Workforce Protector), strengthens zero-trust and AI usage control capabilities.

• Net income for Q2 2026 was $79 million (GAAP), down 23% year-over-year, reflecting higher operating expenses and increased investment in growth areas.

• AI adoption is fueling both cloud and security business momentum, with notable customer wins and major partnerships in AI security.

Financial highlights

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

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

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

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

• Cash, cash equivalents, and marketable securities totaled $4.6 billion at quarter-end.

Outlook and guidance

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

• Q3 non-GAAP EPS expected at $1.60–$1.80; full-year non-GAAP EPS: $6.40–$7.05.

• Non-GAAP operating margin expected at 24–26% for Q3 and 25–26% for the full year.

• CapEx for Q3 expected at $475–$525 million (43–46% of revenue); full-year CapEx ~40% of revenue.

• Management expects continued investment in cloud infrastructure and AI capabilities, with higher co-location, bandwidth, and depreciation costs anticipated.