Akamai Technologies (AKAM) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.122B, up 6% YoY reported and 7% in constant currency; Security and CIS growth offset weaker Delivery and other cloud applications.

• More than $14B of multi-year CIS commitments were signed in 2026, including an $11.6B, seven-year Anthropic commitment; two of the first three major deals were already generating revenue.

• CIS growth is expected to accelerate, supporting 17%-22% total revenue growth in 2027 and revenue above $7B in 2028.

Financial highlights

• Q3 GAAP net income was $117.1M vs. $140.2M; diluted EPS was $0.77 vs. $0.97. Non-GAAP net income was $262M and diluted EPS was $1.77.

• Q3 GAAP operating income was $108.7M vs. $166.0M; non-GAAP operating income was $286M, down 11% YoY.

• Adjusted EBITDA was $435.3M, with a 39% margin, vs. $458.4M and 43% a year earlier; Q3 operating cash flow was $433M.

• Q3 CapEx was $464M, or 41% of revenue, slightly below guidance due mainly to equipment delivery timing.

• Cash, cash equivalents and marketable securities totaled $4.239B at September 30; nine-month operating cash flow was $1.072B.

Outlook and guidance

• Q4 revenue guidance is $1.145B-$1.170B; non-GAAP EPS is $1.50-$1.70, non-GAAP operating margin ~24%, adjusted EBITDA margin ~38%, and cash gross margin ~70%.

• FY2026 revenue guidance is $4.440B-$4.465B; non-GAAP EPS is $6.47-$6.68 and non-GAAP operating margin ~25%.

• FY2027 CIS revenue is projected at $1.1B-$1.3B, with total revenue growth of 17%-22% in constant currency; FY2028 revenue is expected to exceed $7B, excluding Anthropic option revenue.

• CIS revenue is expected to ramp 25%-30% in H1 2027 and 70%-75% in H2; ~$30M shifts from Q4 2026 into 2027, with no change to contract-period revenue.

• Q4 CapEx guidance is $2.445B-$2.645B, including ~$1.7B for critical components; FY2026 CapEx guidance is $3.462B-$3.662B.