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Akamai Tops Q3, Raises EPS Outlook as Security and Cloud Propel Growth

Margin expansion coupled with a new NVIDIA‑powered inference offering fueled a post‑market rebound.

Overview

  • Akamai posted Q3 revenue of about $1.05 billion, up roughly 5% year over year and above estimates, with adjusted EPS of $1.86 beating consensus.
  • Management lifted full‑year adjusted EPS guidance to a $7.03 midpoint and guided Q4 revenue to $1.065–$1.085 billion.
  • Security revenue grew 10% year over year, while Cloud Infrastructure Services accelerated to 39% growth, according to CEO Tom Leighton.
  • Operating metrics improved, with GAAP operating margin rising to 15.7% from 7% a year ago, adjusted operating income reaching $322 million, and free‑cash‑flow margin at 31.2%.
  • The company introduced Akamai Inference Cloud using NVIDIA AI infrastructure for low‑latency edge workloads, and shares rose about 6.9% after hours to $78.06, placing market cap near $10.47 billion.