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What were the key takeaways from Akamai Technologies’s earnings call?

- **CIS Explosion**: 39% YoY growth to $81M, with hyperscalers and enterprise customers signing multiyear deals. 2025 ARR growth 40%-45%.
- **AI Edge Leader**: Akamai Inference Cloud launched with 17 locations, targeting $50M+ deals with hyperscalers for low-latency AI inference.
- **Security Dominance**: API Security on track for $100M run rate, Zero Trust up 35% YoY. 74% of customers use both security & delivery services.
- **Q4 Guidance**: Revenue $1.065B-$1.085B, EPS $1.65-$1.85. CapEx $171M-$181M for AI expansion.

**【CEO Summary Section】**
- **Q3 Revenue Growth**: $1.055 billion, up 5% YoY (4% in constant currency), driven by 39% YoY growth in Cloud Infrastructure Services (CIS) to $81 million.
- **Akamai Inference Cloud Launch**: 17 global locations with partnerships like NVIDIA, targeting low-latency AI inference at the edge. Early wins include a European sports tech company and a media giant.
- **Security Momentum**: High-growth security products (API & Zero Trust) grew 35% YoY to $77 million, with API Security on track for $100 million run rate by year-end.
- **Hyperscaler Expansion**: All three major cloud providers now use Akamai's distributed compute, with one signing a multiyear renewal for managed container services.

**【CFO Financial Commentary】**
- **Q3 Financial Highlights**: Non-GAAP EPS of $1.86 (17% YoY), GAAP net income $269 million. Compute revenue ($180M) up 8% YoY, Security ($568M) up 10% YoY.
- **Q4 Guidance**: Revenue $1.065B-$1.085B (4%-6% YoY), non-GAAP EPS $1.65-$1.85. CapEx $171M-$181M (16% of revenue) for AI Inference Cloud expansion.
- **Full Year 2025**: Revenue +4% to +5% (constant currency), non-GAAP EPS $6.93-$7.13.

**【Q&A Highlights】**
- **CIS Growth**: Accelerating to 40%-45% ARR growth in 2025, with multi-million dollar deals from hyperscalers and enterprise customers.
- **Inference Cloud Demand**: Early pipeline shows $50M-$100M+ deals, with CapEx tightly aligned to customer demand. Margins expected to improve as scale builds.
- **Security Synergy**: API Security and AI Firewall adoption accelerating, with 74% of customers using both security and delivery services.
- **Delivery Stabilization**: Q3 down 4% YoY but better than expected, with stabilization driven by media traffic and pricing discipline.

Akamai Technologies, Inc. (AKAM) Q3 2025 Earnings Call Transcript

Revenue

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AKAM

AKAM fundamentals

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