Akamai Technologies Surpasses Q2 Earnings Expectations with Robust Growth, Despite Challenges in Delivery Segment and Legacy Compute Products.

Akamai Technologies reported Q2 earnings with revenue of $1.043 billion, up 7% YoY, and non-GAAP earnings per share of $1.73, up 9% YoY. Cloud infrastructure services revenue grew 30% YoY, while security revenue increased 11% YoY. However, delivery revenue declined 3% YoY, and legacy compute products revenue rose 4% YoY. The company expects increased costs to impact gross margins and provided guidance for Q3 and FY22.

Akamai Technologies, Inc. (NASDAQ: AKAM) reported strong financial results for the second quarter ended June 30, 2025, with revenue up 7% year-over-year (YoY) to $1.043 billion. The company's non-GAAP earnings per share (EPS) rose 9% YoY to $1.73. Dr. Tom Leighton, the company's Chief Executive Officer, highlighted the growth in cloud infrastructure services, which increased 30% YoY, and security revenue, which grew 11% YoY. However, delivery revenue declined 3% YoY, and legacy compute products revenue rose 4% YoY.

Akamai's GAAP income from operations was $151 million, a 2% increase from the same period last year, with a GAAP operating margin of 15%. Non-GAAP income from operations was $309 million, a 10% increase from the previous year, and the non-GAAP operating margin was 30%, up 1 percentage point from the same period last year. GAAP net income was $104 million, down 21% YoY, while non-GAAP net income was $251 million, up 4% YoY. Adjusted EBITDA was $444 million, a 9% increase from the previous year.

The company expects increased costs to impact gross margins and provided guidance for the third quarter and full year 2025. Revenue is expected to be between $1,035 million and $4,205 million for the third quarter and between $4,135 million and $4,205 million for the full year, with non-GAAP operating margins ranging from 28% to 29%. Non-GAAP net income per diluted share is expected to range from $1.62 to $6.80 for the third quarter and from $6.60 to $6.80 for the full year.

Akamai's stock repurchased 3.9 million shares of its common stock for $300 million in the second quarter, reducing the number of outstanding shares to 143 million. The company has $1.558 billion in cash, cash equivalents, and marketable securities as of June 30, 2025.

Akamai will host a conference call today at 4:30 p.m. ET to discuss the results further. The call 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 www.akamai.com in the Investor Relations section, and a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode 6719927. The archived webcast of this event may be accessed through the Akamai website.

[1] https://www.akamai.com/newsroom/press-release/akamai-reports-second-quarter-2025-financial-results