AKAM stock forecast, quote, news & analysis
Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly... Show more
Akamai Technologies (AKAM) Q4 2025 Earnings Recap: Beats Estimates Despite Stock Slide
Key Takeaways
- Akamai reported Q4 2025 revenue of $1.095 billion, up 7% year-over-year, beating consensus estimates of $1.08 billion.
- Non-GAAP EPS came in at $1.84, surpassing expectations of $1.75 and up 11% from the prior year.
- Security segment revenue reached $592 million, growing 11% YoY, while Cloud Infrastructure Services surged 45% to $94 million.
- Full-year 2025 revenue totaled $4.208 billion, up 5% YoY; non-GAAP EPS of $7.12, up 10%.
- 2026 guidance projects revenue of $4.4-$4.55 billion and non-GAAP EPS of $6.20-$7.20, below some analyst forecasts.
- Shares dropped about 8% in after-hours trading due to cautious full-year outlook.
Earnings Context and Why It Matters
Akamai Technologies, a leader in cybersecurity and cloud computing, released its Q4 2025 results on February 19, 2026, capping a year of transition toward high-growth areas like security and compute. This report is pivotal as investors assess the company's pivot from legacy content delivery to AI-driven cloud services amid intensifying competition from hyperscalers. Strong segment growth underscores demand for Akamai's edge platform, but GAAP profitability pressures highlight restructuring costs. For shareholders, these figures signal execution on strategic shifts, influencing valuation in a sector where cloud security and inference computing are key battlegrounds.
Earnings Expectations or Reported Results
Akamai delivered Q4 2025 revenue of $1.095 billion, exceeding the $1.08 billion consensus and rising 7% from $1.020 billion a year earlier (6% in constant currency). Non-GAAP EPS of $1.84 topped the $1.75 estimate, up 11% YoY from $1.66, with non-GAAP operating income at $316 million (29% margin). GAAP net income fell to $85 million ($0.58 per share) from prior year levels due to a $55 million restructuring charge.
Segments shone: Security at $592 million (+11% YoY), driven by Guardicore and API security (+36%); Compute at $191 million (+14%), with Cloud Networking up 45% to $94 million. Delivery dipped 2% to $311 million. Full-year revenue hit $4.208 billion (+5% YoY), non-GAAP EPS $7.12 (+10%). Q1 2026 guidance: $1.06-$1.085 billion revenue; full-year 2026: $4.4-$4.55 billion revenue, non-GAAP EPS $6.20-$7.20, operating margin 26-28%.
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Market Reaction and Investor Sentiment
Despite beating Q4 estimates, Akamai's stock tumbled around 8% in after-hours trading on February 19, 2026, closing the day down further amid high volume.+Releases+Q4+2025+Earnings) Investors fixated on 2026 guidance falling short of consensus EPS expectations ($7.34 midpoint vs. company's $6.70), signaling caution around capex for AI infrastructure (23-26% of revenue) and restructuring. Sentiment reflects optimism on security/cloud momentum but concern over delivery weakness and margin pressures in a competitive landscape.
Forward Outlook and Key Factors to Monitor
Akamai's 2026 guidance implies modest revenue growth at the midpoint ($4.475 billion, ~6% YoY), with non-GAAP EPS range reflecting investments in AI inference and cloud expansion. Investors should track cloud infrastructure services, projected to sustain triple-digit growth early in the year, and security's momentum amid rising cyber threats. Delivery stabilization remains critical, as does margin trajectory amid 23-26% capex for edge compute capacity.
Upcoming catalysts include Q1 results in May, detailing new reporting for cloud infrastructure as a standalone segment, and progress on AI partnerships. Restructuring cash outflows in Q1 could pressure free cash flow, but $1.92 billion in cash supports buybacks ($800 million executed in 2025). Broader dynamics: hyperscaler competition, AI demand signals via compute utilization, and forex impacts. Seasonality may temper Q1 revenue due to fewer days and license timing. Monitor customer wins in API security and Guardicore, plus operating leverage as non-GAAP margins aim for 26-28%.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
AKAM's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for AKAM moved out of overbought territory on June 04, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 instances where the indicator moved out of the overbought zone. In of the 32 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AKAM as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AKAM turned negative on June 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AKAM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for AKAM crossed bullishly above the 50-day moving average on May 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AKAM advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
AKAM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 252 cases where AKAM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AKAM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.954) is normal, around the industry mean (16.272). P/E Ratio (45.101) is within average values for comparable stocks, (69.167). Projected Growth (PEG Ratio) (1.581) is also within normal values, averaging (1.783). AKAM has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (4.591) is also within normal values, averaging (144.771).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AKAM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
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General Information
a provider of cloud services for delivering, optimizing and securing online content and business applications
Industry ComputerCommunications