Akamai Technologies : May 7th – Akamai Reports First Quarter 2026 Financial Results

Published: 2026-05-07 16:17:34 ET AKAM

Published on 05/07/2026 at 04:17 pm EDT

Johanna Schmitt Mark Stoutenberg

Media Relations Investor Relations

Akamai Technologies Akamai Technologies

"Akamai delivered a strong start to 2026, highlighted by a 40% year-over-year increase in Cloud Infrastructure Services (CIS) revenue and security growth of 11%," said Dr. Tom Leighton, Akamai's Chief Executive Officer. "And, today, we are very pleased to announce that a leading frontier model provider has committed to $1.8 billion over seven years for CIS, further validating our position as a key infrastructure provider in the AI economy. Our security portfolio is also uniquely positioned to benefit from the rapid evolution of AI, with our enterprise customers needing our security products and expertise more than ever before."

Akamai delivered the following results for the first quarter ended March 31, 2026:

Revenue by solution:

Security revenue was $590 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*

Delivery and other cloud applications revenue was $389 million, down 7% year-over-year and down 8% when adjusted for foreign exchange*

Cloud Infrastructure Services revenue was $95 million, up 40% year-over-year and up 39% when adjusted for foreign exchange*

Revenue by geography:

U.S. revenue was $543 million, up 3% year-over-year

International revenue was $530 million, up 9% year-over-year and up 5% when adjusted for foreign exchange*

Non-GAAP income from operations* was $283 million, an 8% decrease from first quarter 2025. Non-GAAP operating margin* for the first quarter was 26%, down 4 percentage points from the same period last year.

Three Months Ending June 30, 2026

Year Ending December 31, 2026

Low End

High End

Low End

High End

Revenue (in millions)

$ 1,075

$ 1,100

$ 4,445

$ 4,550

Non-GAAP operating margin *

25 %

26 %

Non-GAAP net income per diluted share *

$ 1.45

$ 1.65

$ 6.40

$ 7.15

Non-GAAP tax rate*

18.5 %

Shares used in non-GAAP per diluted share calculations * (in millions)

146

147

The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai's performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

* See Use of Non-GAAP Financial Measures below for definitions

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies call. A live webcast of the call may be accessed at https://www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-855-669-9658 (or 1-412-317-0088 for international calls) and using passcode 8699709. The archived webcast of this event may be accessed through the Akamai website.

Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

(in thousands)

March 31,

2026

December 31,

2025

ASSETS

Current assets:

Cash and cash equivalents

$ 622,383

$ 930,231

Marketable securities

308,062

256,302

Accounts receivable, net

881,076

793,666

Prepaid expenses and other current assets

319,102

306,481

Total current assets

2,130,623

2,286,680

Marketable securities

802,670

733,228

Property and equipment, net

2,411,721

2,333,462

Operating lease right-of-use assets

1,665,915

1,469,700

Acquired intangible assets, net

589,355

614,542

Goodwill

3,202,906

3,206,525

Deferred income tax assets

627,603

622,776

Other assets

214,959

212,730

Total assets

$ 11,645,752

$ 11,479,643

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 151,439

$ 125,054

Accrued expenses

286,427

319,622

Deferred revenue

203,681

151,186

Operating lease liabilities

369,110

336,613

Other current liabilities

25,130

35,043

Total current liabilities

1,035,787

967,518

Deferred revenue

19,929

17,088

Deferred income tax liabilities

34,840

31,089

Convertible senior notes

4,107,607

4,105,355

Operating lease liabilities

1,390,988

1,233,420

Other liabilities

147,776

147,802

Total liabilities

6,736,927

6,502,272

Total stockholders' equity

4,908,825

4,977,371

Total liabilities and stockholders' equity

$ 11,645,752

$ 11,479,643

‌AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

(in thousands, except per share data)

March 31,

2026

December 31,

2025

March 31,

2025

Revenue

$ 1,073,610 $ 1,094,912

$ 1,015,139

Costs and operating expenses:

Cost of revenue (1) (2)

471,299 452,501

418,945

Research and development (1)

141,576 139,453

123,549

Sales and marketing (1)

157,062 149,065

134,131

General and administrative (1) (2)

163,809 176,490

155,933

Amortization of acquired intangible assets

25,187 27,925

27,637

Restructuring charge

183 54,602

361

Total costs and operating expenses

959,116 1,000,036

860,556

Income from operations

114,494 94,876

154,583

Interest and marketable securities income, net

17,547 18,256

19,530

Interest expense

(8,257) (7,893)

(6,750)

Other (expense) income, net

(1,786) (1,320)

6,020

Income before provision for income taxes

121,998 103,919

173,383

Provision for income taxes

15,679 18,847

50,212

Net income

$ 106,319 $ 85,072

$ 123,171

Net income per share:

Basic

$ 0.73

$ 0.59

$ 0.83

Diluted

$ 0.71

$ 0.58

$ 0.82

Shares used in per share calculations:

Basic

145,270

144,224

149,052

Diluted

150,022

146,970

151,064

Includes stock-based compensation (see supplemental table for figures)

Includes depreciation and amortization (see supplemental table for figures)

‌AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

(in thousands)

March 31,

2026

December 31,

2025

March 31,

2025

Cash flows from operating activities:

Net income

$ 106,319

$ 85,072

$ 123,171

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

183,751

182,505

174,022

Stock-based compensation

128,681

119,225

111,978

(Benefit) provision for deferred income taxes

(1,749)

2,307

31,383

Amortization of debt issuance costs

2,148

1,877

1,605

Gain on investments

(57)

(9,313)

Other non-cash reconciling items, net

2,709

42,121

2,142

Changes in operating assets and liabilities, net of effects of acquisitions:

Accounts receivable

(94,272)

(34,871)

(25,677)

Prepaid expenses and other current assets

(10,096)

(25,648)

(37,129)

Accounts payable and accrued expenses

(42,035)

13,917

(109,906)

Deferred revenue

56,281

(16,811)

14,948

Other current liabilities

(10,353)

25,527

(20,276)

Other non-current assets and liabilities

(8,876)

(28,580)

(5,748)

Net cash provided by operating activities

312,508

366,584

251,200

Cash flows from investing activities:

Cash paid for business acquisition, net of cash acquired

(55,902)

Cash paid for asset acquisition

(29,930)

Purchases of property and equipment and capitalization of internal-use software development costs

(191,847)

(204,695)

(196,008)

Purchases of short- and long-term marketable securities

(161,455)

(113,325)

(7,080)

Proceeds from sales, maturities and redemptions of short- and long-term marketable securities

35,606

7,459

1,112,955

Other, net

(1,798)

(3,091)

Net cash (used in) provided by investing activities

(319,494)

(366,392)

876,846

Cash flows from financing activities:

Payments from the issuance of convertible senior notes, net of issuance costs

(594)

Proceeds from the issuance of common stock under stock plans

21,619

13,553

20,182

Employee taxes paid related to net share settlement of stock-based awards

(106,574)

(13,789)

(72,063)

Repurchases of common stock

(205,886)

(499,963)

Other, net

(868)

(872)

(406)

Net cash used in financing activities

(291,709)

(1,702)

(552,250)

Effects of exchange rate changes on cash, cash equivalents and restricted cash

(5,672)

1,496

5,431

Net (decrease) increase in cash, cash equivalents and restricted cash

(304,367)

(14)

581,227

Cash, cash equivalents and restricted cash at beginning of period

931,308

931,322

519,084

Cash, cash equivalents and restricted cash at end of period

$ 626,941

$ 931,308

$ 1,100,311

‌AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA - REVENUE BY SOLUTION (1)

Three Months Ended

(in thousands)

March 31,

2026

December 31,

2025

March 31,

2025

Security

$ 589,790 $ 592,358 $ 530,695

Delivery and other cloud applications

389,208 408,888 416,843

Cloud Infrastructure Services

94,612 93,666 67,601

Total revenue

$ 1,073,610 $ 1,094,912 $ 1,015,139

Revenue growth rates year-over-year:

Security

11 % 11 % 8 %

Delivery and other cloud applications

(7) (3) (6)

Cloud Infrastructure Services

40 45 30

Total revenue

6 % 7 % 3 %

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (2):

Security

9 % 9 % 10 %

Delivery and other cloud applications

(8) (3) (5)

Cloud Infrastructure Services

39 44 31

Total revenue

4 % 6 % 4 %

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA - REVENUE BY GEOGRAPHY

Three Months Ended

(in thousands)

March 31, December 31, March 31,

2026 2025 2025

U.S.

$ 543,147

$ 552,849

$ 528,739

International

530,463

542,063

486,400

Total revenue

$ 1,073,610

$ 1,094,912

$ 1,015,139

Revenue growth rates year-over-year:

U.S.

3 %

4 %

3 %

International

Total revenue

6 %

7 %

3 %

Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (2):

U.S.

3 %

4 %

3 %

International

Total revenue

4 %

6 %

4 %

Beginning with the first quarter of 2026, the Company began reporting its revenue in three solution categories: security, delivery and other cloud applications and Cloud Infrastructure Services. Recognizing Cloud Infrastructure Services as a primary growth area and a significant focus of investment in the Company's cloud computing portfolio, the Company began reporting its revenue separately. Prior period amounts reported in the table for revenue by solution category have been recast to reflect this change.

See Use of Non-GAAP Financial Measures below for a definition

(in thousands, except end of period statistics)

March 31,

2026

Three Months Ended December 31,

2025

March 31,

2025

Stock-based compensation:

Cost of revenue $ 21,677 $ 19,196 $ 18,928

Research and development 48,857 44,918 42,268

Sales and marketing 24,981 23,082 22,440

General and administrative 33,166 32,029 28,342

Total stock-based compensation $ 128,681 $ 119,225 $ 111,978

Depreciation and amortization:

Network-related depreciation

$ 84,048 $ 85,827

$ 78,325

Capitalized internal-use software development amortization

42,568 39,383

40,095

Other depreciation and amortization

17,251 16,313

15,884

Non-GAAP depreciation and amortization (1)

143,867 141,523

134,304

Capitalized stock-based compensation amortization (2)

14,538 12,919

11,963

Capitalized interest expense amortization (2)

159 138

118

Amortization of acquired intangible assets

25,187 27,925

27,637

Total depreciation and amortization

$ 183,751 $ 182,505

$ 174,022

Capital expenditures (1) (3):

Purchases of property and equipment

$ 118,915 $ 80,474

$ 147,990

Capitalized internal-use software development costs

87,422 73,270

77,910

Total capital expenditures

$ 206,337 $ 153,744

$ 225,900

Capex as a percentage of revenue (1)

19 % 14 %

22 %

Number of employees 11,419 11,382 10,811

See Use of Non-GAAP Financial Measures below for a definition

Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).

Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Three Months Ended

(in thousands)

March 31,

2026

December 31,

2025

March 31,

2025

Income from operations

$ 114,494

$ 94,876

$ 154,583

GAAP operating margin

11 %

9 %

15 %

Amortization of acquired intangible assets

25,187

27,925

27,637

Stock-based compensation

128,681

119,225

111,978

Amortization of capitalized stock-based compensation and capitalized interest expense

15,016

13,490

12,359

Restructuring charge

183

54,602

361

Acquisition-related (benefit) costs

(759)

1,861

Legal settlements

4,000

Operating adjustments

168,308

221,103

152,430

Non-GAAP income from operations

$ 282,802

$ 315,979

$ 307,013

Non-GAAP operating margin

26 %

29 %

30 %

Net income

$ 106,319

$ 85,072

$ 123,171

Operating adjustments (from above)

168,308

221,103

152,430

Amortization of debt issuance costs

2,148

1,877

1,605

Gain on cost method investments, net

(57)

(9,313)

Income tax effect of above non-GAAP adjustments and certain discrete tax items

(37,515)

(37,929)

(11,797)

Non-GAAP net income

$ 239,260 $ 270,066

256,096

GAAP tax rate

13 %

18 %

29 %

Income tax effect of non-GAAP adjustments and certain discrete tax items

(1)

(10)

Non-GAAP tax rate 18 % 17 % 19 %

Three Months Ended

March 31,

December 31,

March 31,

(in thousands, except per share data)

2026

2025

GAAP net income per diluted share

$ 0.71

$ 0.58

$ 0.82

Adjustments to net income:

Amortization of acquired intangible assets

0.17

0.19

0.18

Stock-based compensation

0.86

0.81

0.74

Amortization of capitalized stock-based compensation and capitalized interest expense

0.10

0.09

0.08

Restructuring charge

0.37

Acquisition-related (benefit) costs

(0.01)

0.01

Legal settlements

0.03

Amortization of debt issuance costs

0.01

Gain on cost method investments, net

(0.06)

Income tax effect of above non-GAAP adjustments and certain discrete tax items

(0.25)

(0.26)

(0.08)

Adjustment for shares (1)

0.02

Non-GAAP net income per diluted share

$ 1.61

$ 1.84

$ 1.70

Shares used in GAAP per diluted share calculations

150,022

146,970

151,064

Impact of benefit from note hedge transactions (1)

(1,338)

Shares used in non-GAAP per diluted share calculations (1) 148,684 146,970 151,064

Shares used in non-GAAP per diluted share calculations have been adjusted for the three months ended March 31, 2026 for the benefit of Akamai's note hedge transactions. During this period, Akamai's average stock price was in excess of $93.01, which is the initial conversion price of Akamai's convertible senior notes due in May 2033. See Use of Non-GAAP Financial Measures below for further definition.

Three Months Ended

(in thousands)

March 31,

2026

December 31,

2025

March 31,

2025

Net income

$ 106,319

$ 85,072

$ 123,171

Net income margin

10 %

8 %

12 %

Interest and marketable securities income, net

(17,547)

(18,256)

(19,530)

Provision for income taxes

15,679

18,847

50,212

Depreciation and amortization

143,867

141,523

134,304

Amortization of capitalized stock-based compensation and capitalized interest expense

15,016

13,490

12,359

Amortization of acquired intangible assets

25,187

27,925

27,637

Stock-based compensation

128,681

119,225

111,978

Restructuring charge

183

54,602

361

Acquisition-related (benefit) costs

(759)

1,861

Legal settlements

4,000

Interest expense

8,257

7,893

6,750

Gain on cost method investments, net

(57)

(9,313)

Other expense, net

1,786

1,377

3,293

Adjusted EBITDA

$ 426,669

$ 457,502

$ 441,317

Adjusted EBITDA margin

40 %

42 %

43 %

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financial measures). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes, to measure executive compensation and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures, non-GAAP depreciation and amortization, capex as a percentage of revenue and impact of foreign currency exchange rates, as discussed below.

Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparison of financial results across accounting periods and to those of our peer companies. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai's operating results and future prospects in the same manner as management. These non-GAAP financial measures may exclude expenses and gains that may be unusual in nature, infrequent or not reflective of Akamai's ongoing operating results.

The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial measures and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of non-GAAP financial measures used in its financial reporting and investor presentations to the most directly comparable GAAP financial measures. This reconciliation can be found in the "Supplemental Financial Information" on the Investor Relations section of Akamai's website.

The non-GAAP adjustments, and Akamai's basis for excluding them from non-GAAP financial measures, are outlined below:

Akamai's definitions of its non-GAAP financial measures are outlined below:

$116.18 and $95.10, respectively, the initial conversion prices, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.

cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. The dollar impact of changes in foreign currency exchange rates presented is calculated by translating current period results using monthly average foreign currency exchange rates from the comparative period and comparing them to the reported amount. The percentage change at constant currency presented is calculated by comparing the prior period amounts as reported and the current period amounts translated using the same monthly average foreign currency exchange rates from the comparative period.

This release and related management commentary on our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai, including our outlook, guidance, growth objectives, statements about the anticipated benefits, timing, revenue and capital expenditure associated with customer commitments, including the commitment by a leading, U.S. based frontier model provider for Cloud Infrastructure Services, statements about expected levels of capital expenditure and infrastructure deployment and statements about our products, including Akamai Inference Cloud, and their anticipated capabilities, scalability and performance. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "committed,""positioned," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; changes in customer or user preferences or demands; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, fluctuating interest rates, foreign currency exchange rate and monetary supply fluctuations, international tensions and volatility in capital markets; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the U.S.-Israel military conflict with Iran and related hostilities in the Middle East; continuing supply chain and logistics costs, constraints, changes or disruptions; risks associated with large customer commitments, including the customer's ability to fulfill its purchase obligations, our ability to deploy the infrastructure necessary to service such commitments on anticipated timelines and our ability to procure sufficient hardware and memory at anticipated costs and on anticipated delivery schedules; our ability to achieve projected levels of capital expenditure and the anticipated returns therefrom; defects or disruptions in our products or IT systems, including outages, cyber-attacks, data breaches or malware; difficulties in integrating our acquisitions and investments; failure to realize the expected benefits of any of our acquisitions, reorganizations or investments; changes to economic, political and regulatory conditions in the United States and internationally, including changes in government policies, regulations and resources; our ability to attract and retain key personnel; delay in developing or failure to develop new products, service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.

In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.

Disclaimer

Akamai Technologies Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 20:16 UTC.