Akamai Technologies shares surge 26% on $1.8 billion AI infrastructure deal with frontier model provider

Akamai shares surge 26% on $1.8B AI infrastructure deal as Q1 results meet estimates - SiliconANGLE

Akamai shares surge 26% on $1.8B AI infrastructure deal as Q1 results meet estimates Shares in Akamai Technologies Inc. surged more than 26% in late trading today after the cybersecurity and cloud computing company reported in-line first-quarter results and disclosed a $1.8 billion, seven-year commitment from a leading U.S.-based frontier model provider for its cloud infrastructure services. For its fiscal 2026 first quarter that ended on March 31, Akamai reported adjusted earnings per share of $1.61, down from $1.70 in the same quarter of last year, on revenue of $1.07 billion, up 6% year-over-year. The results were precisely what analysts were expecting - $1.61 per share on revenue of $1.07 billion. The undisclosed frontier model customer was the standout news, with Akamai saying the seven-year deal validates its position as a key infrastructure provider in the artificial intelligence economy. Revenue from the commitment is expected to begin ramping up in the fourth quarter, contributing about $20 million to $25 million to fourth-quarter revenue. Cloud Infrastructure Services revenue, the segment that benefits most directly from the new commitment, rose 40% year-over-year to $95 million. The company in the quarter began breaking out the unit as a separate reporting category, splitting it from what it previously reported as compute revenue, citing it as a primary growth area and a focus of investment. Security revenue was up 11% year-over-year to $590 million, while delivery and other cloud applications revenue, which covers Akamai's content delivery network, fell 7% to $389 million, part of a multiyear decline in the legacy business. Net income came in at $106 million, down 14% year-over-year, with non-adjusted earnings of 71 cents per diluted share. Adjusted earnings were $427 million, down 3% from the same quarter last year. Cash from operations was $313 million, or 29% of revenue. International revenue rose 9%, to $530 million, outpacing U.S. revenue, which rose 3% to $543 million. Akamai spent $206 million in the quarter to repurchase 2 million shares at a weighted average price of $105.47. "Akamai delivered a strong start to 2026, highlighted by a 40% year-over-year increase in Cloud Infrastructure Services revenue and security growth of 11%," Chief Executive Officer Tom Leighton said in the company's earnings release. "Our security portfolio is also uniquely positioned to benefit from the rapid evolution of AI, with our enterprise customers needing our security products and expertise more than ever before." For its fiscal 2026 second quarter, Akamai expects adjusted earnings of $1.45 to $1.65 per share on revenue of $1.075 billion to $1.1 billion. The midpoint of both was roughly in line with analysts' expectations. For the full year, the company is forecasting adjusted earnings of $6.40 to $7.15 per share on revenue of $4.45 billion to $4.55 billion. The revenue midpoint of $4.5 billion is slightly above the $4.48 billion expected by analysts.

Why Are Akamai Shares Trading Higher On Wednesday? - Akamai Technologies (NASDAQ:AKAM)

* Akamai Technologies stock is at critical resistance. Why is AKAM stock breaking out? Earnings Snapshot Akamai reported first-quarter revenue of $1.074 billion for the period ended March 31, beating the analyst estimate by 0.17%. It was up 6% year-over-year. The company reported earnings per share of $1.61, surpassing estimates by 8.78%. Akamai has now exceeded EPS expectations for six straight quarters. For the second quarter, Akamai expected revenue of $1.075 billion-$1.100 billion, along with adjusted EPS of $1.45 to $1.65. For full-year 2026, the company projected revenue of $4.445 billion to $4.550 billion, with non-GAAP EPS in the range of $6.40 to $7.15. Rating Upgrade & Forecast Boost Today, BofA Securities analyst Tal Liani upgraded the stock from Neutral to Buy and raised the price target from $130 to $175. The analyst wrote that the company's story shifted from a traditional content delivery network to a credible AI infrastructure platform. This was supported by meaningful cloud wins, including a $1.8 billion, seven-year contract, which underscored real demand for distributed AI beyond narrative-driven expectations. The analyst said Cloud Infrastructure Services (CIS) was becoming a core growth driver, rising 40% year-over-year, fueled by AI workloads and edge inference demand. Brooks expected the new deal to add $20 million-$25 million per quarter starting in the fourth quarter, creating more recurring, capacity-based revenue. The analyst expected growth to re-accelerate from 7% in 2026 to 11% in 2027. Also, EPS was expected to rise from $6.93 in 2026 to $9.03 in 2028, remaining ahead of consensus across the period. Also, AI demand would be driving elevated capex of $800-$825 million over the next 12 months (~40% of second quarter revenue), temporarily weighing on 2026 free cash flow, added the analyst. AKAM Price Action: Akamai Technologies shares were up 4.95% at $156.97 at the time of publication on Wednesday, according to Benzinga Pro. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Akamai Technologies (AKAM) Stock Pops Over 29% Overnight: Why Is The Cloud Computer Company Trending - Ak

Akamai Technologies Inc. (NASDAQ:AKAM) shares are trending on Friday. AKAM shares jumped 29.62% to $151.25 after the bell on Thursday after the cybersecurity and cloud computing company announced first-quarter financial results topping analyst estimates in both revenue and earnings per share. What You Need To Know? Akamai reported first-quarter revenue of $1.074 billion for the period ended Mar. 31, beating the analyst estimate by 0.17%. It was up 6% year-over-year. The company reported earnings per share of $1.61, surpassing estimates by 8.78%. Akamai has now exceeded EPS expectations for six straight quarters. The headline mover was a seven-year, $1.8 billion commitment from a leading frontier model provider for Akamai's Cloud Infrastructure Services. CEO Dr. Tom Leighton called it validation of Akamai's role as "a key infrastructure provider in the AI economy." Akamai 's CIS revenue increased 40% year-over-year to $95 million, while security revenue grew 11% to $590 million. What's Next For the second quarter, Akamai expects revenue between $1.075 billion and $1.100 billion, along with non-GAAP earnings per share of $1.45 to $1.65. For full-year 2026, the company projects revenue of $4.445 billion to $4.550 billion, with non-GAAP EPS in the range of $6.40 to $7.15. Trading Metrics, Technical Analysis Akamai has a market capitalization of $17.18 billion, with a 52-week high of $122.24 and a 52-week low of $69.79. The Relative Strength Index (RSI) of AKAM stands at 63.08. The mid-cap stock has gained 36.58% over the past 12 months. Currently, the stock of the technology company is positioned at about 89% of its 52-week range, meaning it is trading close to its annual high. Price Action: Akamai closed the regular session down 4.34% at $116.69, according to Benzinga Pro. Benzinga's Edge Stock Rankings indicate that AKAM stock is experiencing a positive price trend across all time frames. Photo Courtesy: Piotr Swat on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.