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Companies · AKAM

AKAM Reported this cycle

Akamai Technologies

Cambridge, MA Founded 1998 Cybersecurity

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Latest analysis

Updated Aug 7, 2026

Akamai Q2 2026: Security and cloud infrastructure drive 5% revenue growth as GAAP margins compress 800bps on surging platform investment costs

Akamai's Q2 2026 results reveal a company in structural transition: security revenue grew 10% YoY and cloud infrastructure services surged 39% YoY, but these gains are being absorbed by accelerating cost inflation — co-location up 14%, network build-out up 28%, and stock-based compensation up 27% in cost of revenue — compressing GAAP operating margin from 15% to 7% and non-GAAP operating margin from 30% to 25%. The company issued $3.5 billion in convertible notes in May 2026, explicitly to fund accelerated capital expenditure for cloud infrastructure buildout, signaling that management has committed to a multi-year infrastructure bet that will sustain margin pressure. Delivery revenue continued its structural decline, falling 6% YoY, with no indication of stabilization.

Tone: mixed

Revenue

$4.2B

AKAM 10-K · FY 2025

Employees

11,000

Revenue FY2024

$4B

EBITDA margin

39%

Profile

AKAM 10-K Item 1 · Feb 20, 2026

Akamai Technologies develops and delivers security, cloud computing and content delivery solutions for global enterprises via a massively distributed global infrastructure spanning over 130 countries. The company operates across three core product areas — security, cloud computing and delivery — and increasingly positions its platform around AI-powered applications and edge inference. Founded in 1998, Akamai serves a broad enterprise customer base including Fortune 500 companies and U.S. federal government agencies.

Read filing description ↓

Since 1998, Akamai has developed and provided solutions for global enterprises to build, secure and accelerate their applications and digital experiences. As of December 31, 2025, our massively distributed global infrastructure was comprised of core and distributed compute sites, more than 4,300 edge points-of-presence in over 130 countries and approximately 700 cities, and our underlying global network integrated with roughly 1,200 network partners. With this scale and distribution, Akamai has visibility and insight into traffic volumes, congestion, attack patterns, vulnerabilities and other activities across the internet's complex intersections of networks and systems. Leveraging these insights, Akamai offers solutions designed to protect our customers from threats and attacks, along with full-stack compute solutions to build and deliver high-performance, low-latency applications across our uniquely distributed architecture and edge network. Today, billions of people go online to work, learn, shop, bank, communicate and more. We firmly believe that the internet's role in transforming the way we exchange ideas and information and conduct business is more vital than ever, especially as those interactions are increasingly driven by AI. Our strategy is to help continue to power and protect business online by offering security, compute, delivery and AI infrastructure services with the industry-leading reliability, scale and expertise our customers need to grow their business with confidence.

Primary products

  • Web Application Firewall (WAF)
  • Bot Management
  • DDoS Protection
  • DNS Security
  • API Security
  • Network Segmentation

Business segments

Security Cloud Computing Delivery

End markets

Financial Services Media and Entertainment Gaming Retail and eCommerce Healthcare Manufacturing Government

Geographies

Americas Europe, the Middle East Asia-Pacific

Named customers

adidas Adobe Aflac Airbnb Asus Autodesk Bank of Montreal Carnival Corporation

No customer accounted for 10% or more of total revenue for any of the years ended December 31, 2025, 2024 and 2023.

Named competitors

Hyperscalers (unnamed) Established cloud computing incumbents (unnamed) Emerging AI infrastructure and inference providers (unnamed)
“We believe that we compete favorably with other companies in our industry through our global scale, reliability and expertise, which we believe provides the most effective means of meeting the needs of enterprise customers and is unique to us.” Competitive position, as stated in the filing

Revenue commentary · FY 2025

Revenue grew from $3.99 billion in 2024 to $4.21 billion in 2025, driven by increased sales of security and cloud computing solutions, partly offset by ongoing pricing pressure and traffic optimization in delivery.

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Analysis, signals, diligence answers, M&A activity and every quote, each citing the filing it came from.

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