Akamai Technologies 2025 Q3 Earnings Beats Expectations with 142.1% Net Income Surge

Akamai Technologies (AKAM) delivered fiscal 2025 Q3 results exceeding Wall Street estimates, with revenue rising 5% to $1.05 billion and net income surging 142.1% year-over-year. The company raised full-year revenue guidance to $4.178B–$4.198B and announced the launch of its NVIDIA-powered Inference Cloud platform.

Revenue

Akamai’s total revenue grew 5.0% to $1.05 billion in 2025 Q3, driven by robust performance in high-margin segments. Security revenue led the charge at $568.44 million, reflecting strong demand for cybersecurity solutions. Cloud computing saw a 39% year-over-year increase, contributing $179.70 million, while Delivery revenue declined 4% to $306.50 million. The company’s strategic shift toward cloud infrastructure and security positioned it to capitalize on AI-driven growth opportunities.

Earnings/Net Income

Earnings per share (EPS) surged 157.9% to $0.98 in 2025 Q3, compared to $0.38 in 2024 Q3. Non-GAAP EPS reached $1.86, exceeding the $1.64 analyst consensus. Net income jumped to $140.17 million, a 142.1% increase from $57.91 million a year earlier, underscoring improved operational efficiency and margin expansion.

Post-Earnings Price Action Review

The strategy of buying AKAM shares on earnings beat announcements and holding for 30 days has shown a 20.5% return over three years, outperforming the SPY ETF’s 13.5%. Akamai’s consistent earnings beats—four in four quarters—highlight its operational strength. The stock typically rises 10.5% in the 30 days post-beat, though risks like macroeconomic volatility and reliance on large contracts persist. Guidance upgrades and the NVIDIA Inference Cloud launch suggest continued momentum, though investors must weigh sector-specific risks.

CEO Commentary

Dr. Tom Leighton, CEO, emphasized “strong top-line performance and excellent bottom-line results,” citing 5% revenue growth and 155% EPS growth. He highlighted momentum in high-growth security products and Cloud Infrastructure Services (39% growth) and expressed optimism about the NVIDIA AI-powered Inference Cloud, which aims to enable “secure, low-latency performance for AI at the edge.”

Guidance

Akamai provided Q4 2025 revenue guidance of $1.065B–$1.085B and non-GAAP EPS of $1.65–$1.85. Full-year guidance includes revenue of $4.178B–$4.198B and non-GAAP EPS of $6.93–$7.13. The company expects non-GAAP operating margins of 28–30% and a tax rate of 18–19%.

Additional News

Akamai’s strategic partnership with NVIDIA to launch the Inference Cloud platform has positioned it to capture AI-driven workloads, leveraging its edge-computing infrastructure. Analysts estimate the stock is undervalued at $95.20, given its potential in cloud, AI, and cybersecurity. However, challenges include declining delivery revenue and dependency on large contracts. The company’s recent AI Gateway and Firewall for AI offerings further strengthen its competitive edge in securing AI applications.