Akamai Technologies 2025 Q3 Earnings Beats Expectations with 157.9% EPS Growth

Akamai Technologies (AKAM) delivered Q3 2025 results that exceeded expectations, with revenue rising 5.0% year-over-year to $1.05 billion and non-GAAP EPS surging 157.9% to $0.98. The company raised full-year revenue guidance to $4.178B–$4.198B and non-GAAP EPS to $6.93–$7.13, reflecting stronger-than-anticipated performance across core segments.

Revenue

Security revenue surged to $568.44 million, a 10% YoY increase, driven by robust demand for high-growth security products. Delivery revenue stood at $306.50 million, while Cloud Computing contributed $179.70 million, reflecting a strategic shift toward distributed cloud services.

Earnings/Net Income

The company’s non-GAAP EPS jumped 157.9% year-over-year to $0.98, with net income expanding 142.1% to $140.17 million. This marked a significant acceleration in profitability, underscoring efficient cost management and pricing power.

Price Action

Akamai’s stock edged down 1.03% in the latest trading day, 1.26% in the week, and 4.70% month-to-date. However, historical backtesting showed a 3-year compound average return of 14.95% for investors who bought shares on the day of the earnings beat and held for 30 days.

Post-Earnings Price Action Review

Despite recent price declines, the 3-year backtested strategy of purchasing shares on the earnings announcement date yielded a robust 14.95% compound average return, with a peak 24.87% in the first year. This outperformance, observed amid market volatility, highlights strong investor confidence in Akamai’s long-term growth narrative and strategic execution.

CEO Commentary

CEO Dr. Tom Leighton highlighted a “strong third quarter” with 5% YoY revenue growth, 39% YoY growth in Cloud Infrastructure Services, and a 155% GAAP EPS increase. He emphasized momentum in security products and the launch of the Akamai Inference Cloud, powered by NVIDIA, to enable low-latency AI at the edge.

Guidance

Akamai guided to Q4 revenue of $1.065B–$1.085B and full-year revenue of $4.178B–$4.198B. Non-GAAP EPS is projected at $1.65–$1.85 for Q4 and $6.93–$7.13 for FY2025, with operating margins targeting 28–30% for Q4 and 29–30% annually.

Additional News

Akamai launched the Akamai Inference Cloud, a global AI inference platform leveraging NVIDIA infrastructure, to enable distributed edge computing. The company secured a $37 million, two-year renewal with a Japanese gaming firm and expanded contracts with a major European bank for API security. Additionally, it set a 2025 target of 40–45% growth in Cloud Infrastructure Services annual recurring revenue, reflecting confidence in its cloud security transformation.