Akamai Technologies: Piper Sandler Maintains Neutral, PT Down to $83 from $88.

Akamai Technologies: Piper Sandler Maintains Neutral, PT Down to $83 from $88.

Akamai Technologies Inc. (AKAM) reported its second-quarter 2025 financial results, showcasing robust revenue growth but a decline in GAAP earnings per share (EPS). The company's revenue reached $1.043 billion, surpassing analyst estimates of $1.021 billion, marking a 7% year-over-year increase [1]. However, the GAAP EPS was $0.71, falling short of the estimated $0.75, indicating a 17% decrease from the previous year [1].

Akamai's performance was driven by strong growth in its Cloud Infrastructure Services, which saw a 30% year-over-year increase, reaching $71 million [1]. The company also reported a non-GAAP EPS of $1.73, up 9% year-over-year, highlighting its profitability despite the GAAP EPS decline [1].

Piper Sandler, a leading financial research firm, maintained a neutral rating on Akamai Technologies Inc. stock, lowering its price target from $88 to $83. The firm noted that while the company's revenue growth was impressive, the decline in GAAP EPS raised concerns about cost management and foreign exchange impacts [2].

Akamai's strong cash flow from operations, totaling $459 million and representing 44% of total revenue, underscores its financial stability [1]. The company also conducted significant share repurchases, buying back 3.9 million shares for $300 million, indicating confidence in its long-term value creation [1].

Looking ahead, Akamai Technologies Inc. raised its full-year 2025 revenue guidance to between $4.135 billion and $4.205 billion, with non-GAAP EPS projected to be between $6.60 and $6.80 [1]. The company's strategic focus on expanding its cloud and security offerings positions it well to capitalize on the growing demand for these services.

References:
[1] https://www.gurufocus.com/news/3046105/akamai-technologies-inc-akam-q2-2025-earnings-revenue-surpasses-estimates-at-1043-billion-gaap-eps-falls-short-at-071
[2] https://www.stocktitan.net/news/AKAM/akamai-reports-second-quarter-2025-financial-bvlcd0z89aaa.html