AKAMAI TECHNOLOGIES (AKAM) Company Report

Akamai’s Act Three extends beyond delivery and its $2+ B security portfolio into public cloud and edge AI, evidenced by the launch of Akamai Inference Cloud in late 2025.
In the Cloud Infrastructure Services (Linode) business, Akamai hit a $400 M run rate with hundreds of customers (spanning $0.2 M–$2 M monthly), driven by egress-fee advantages and multi-cloud performance— including usage by all three hyperscalers.
The Inference Cloud initially covers 20 existing locations, backed by a $200 M four-year CapEx contract with a leading AI customer, and plans to expand to 20–40 sites (with ~100 locations feasible) to meet low-latency demands for use cases like robotics and autonomous driving.
Strong GPU unit economics: a 1,000-GPU cluster generates $12–15 M of annual revenue at ~70% gross margin (with ~$20 M CapEx over six years and ~$2–6 M annual colocation), yielding ~60–40% operating margin.
Post-Edgio integration, delivery sees improved pricing with first-ever price increases on renewals, while security maintains high-single-digit growth and API Security surpasses a $100 M run rate at >100% growth.

Mar 5, 2026, 6:45 PM

Transcript

Akamai outlines Act III cloud and AI strategy at Morgan Stanley TMT 2026

AKAM

Product Launch

Revenue Acceleration/Inflection

Public cloud infrastructure (Linode) business has reached a $400 million run rate, serving hundreds of customers with accelerating demand in observability and media workflows.
Introduced Akamai Inference Cloud for GPU-accelerated edge AI, initially deployed in 20 locations and anchored by a $200 million four-year contract with a leading tech customer.
Strong GPU unit economics: 1,000 GPUs (~1 MW power, $20 million CapEx) at ~$2.50/hr rental rates supports 60%+ operating margins and 70%+ gross margins at scale.
Security revenue grew 9% in constant currency, with API Security surpassing a $100 million run rate (100%+ growth) and Guardicore expanding >30%, while the CDN business begins raising prices following Edgio integration.

Mar 5, 2026, 6:45 PM

Transcript

Akamai expands cloud compute and AI inference services

AKAM

Product Launch

New Projects/Investments

Cloud infrastructure services (CIS) via Linode reached a $400 M run rate, supported by a broad base of hundreds of customers across industries rather than a few large accounts.
Akamai Inference Cloud, launched in late 2025 with NVIDIA collaboration, is live in 20 global sites, secured a $200 M 4-year commitment, and is set to expand to 20–40 locations driven by customer demand.
Inference unit economics: a 1,000-GPU cluster (~1 MW) incurs $2–4 M in annual colocation plus $3.5 M depreciation, enabling 60–70% operating margins at a $2.50/hr rate.
Security business grew ~9% in constant currency; API Security exceeded $100 M run rate at >100% growth, and Guardicore rose >30%, with both offerings under-penetrated in the install base.
Delivery networking pricing environment improved post-Edgio integration, prompting Akamai’s first-ever price increases on renewals to offset rising CapEx and colocation costs.

Mar 5, 2026, 6:45 PM

Transcript

Akamai signs $200M AI compute service deal

AKAM

New Projects/Investments

Akamai agreed to a four-year, $200 million service contract with a major U.S. tech company for high-performance AI compute on its distributed cloud platform.
The customer will deploy a multi-thousand NVIDIA® Blackwell GPU cluster in a high-density power data center, plus additional cloud infrastructure services.
This deployment is among the world’s largest NVIDIA Blackwell RTX PRO 6000 Server Edition clusters, powered by AI-optimized Ethernet networking and NVMe-over-Fabric storage for scalable AI/HPC workloads.
The deal highlights strong enterprise demand for Akamai’s integrated AI development and deployment platform, following its expansion to 41 IaaS datacenters and acquisition of thousands of NVIDIA GPUs.

Mar 5, 2026, 11:30 AM

Press Release

Akamai highlights security growth and launches Inference Cloud

AKAM

Product Launch

New Projects/Investments

Share Buyback

Akamai’s security business grew ~10% Y/Y, with Q4 security revenue of $90 m (+35% Y/Y), led by Web App Firewall, DDoS protection, Bot Management, API security, and Guardicore segmentation.
Cloud Infrastructure Services delivered $94 m in Q4 (+45% Y/Y) and are expected to grow 45–50% in fiscal 2026, supported by hyperscaler validation.
The Inference Cloud (edge AI compute) launch includes a $250 m investment in Blackwell 6000 GPUs, 1st tranche deployed in 20 cities (GA end-Q2 ‘26) with revenue expected late 2026 and meaningful contribution in 2027.
Delivery/CDN revenue is guided to a mid-single-digit decline due to pricing pressures offset by traffic growth; AI-driven, low-latency use cases command premium pricing.
Capital allocation remains focused on ~1% annual share repurchases (including $800 m in FY 2025), disciplined M&A in security/compute, and continued capex for edge infrastructure.

Mar 4, 2026, 1:05 PM

Transcript

Akamai highlights Compute and Security growth, launches Inference Cloud

AKAM

Product Launch

New Projects/Investments

Share Buyback

Akamai’s Security business grew by about 10%, with Q4 Security revenue of $90 million, up 35% year-over-year, while Cloud Infrastructure Services (Compute) reached $94 million in Q4, up 45% and is expected to grow 45–50% this year.
The company is investing $250 million to deploy its new Inference Cloud, with an initial tranche of Blackwell 6000 GPUs in 20 cities going GA end of Q2 (already sold out to beta customers) and further deployments planned, with revenue anticipated late 2026 and a larger impact in 2027.
The Delivery (CDN) business is guided to a mid-single-digit revenue decline in 2026 due to unit-price pressure, though traffic trends remain positive and AI-driven video workloads may support premium pricing.
Rising memory costs will add $200 million of operating expense in 2026; Akamai plans to extend the service life of existing servers and pass through cost increases via price adjustments.
Capital allocation priorities include opportunistic share buybacks (approximately 1% of shares outstanding annually, with $800 million repurchased in 2025) and targeted M&A in Security and Compute adjacencies.

Mar 4, 2026, 1:05 PM

Transcript

Akamai previews rapid cloud growth and AI inference rollout

AKAM

New Projects/Investments

Guidance Update

Share Buyback

Q4 revenue: Security products generated $90 M (35% y/y growth) and Cloud Infrastructure Services delivered $94 M (45% y/y); company forecasts 45–50% growth in cloud infra for 2026.
Inference Cloud: Investing $250 M in Blackwell 6000 GPUs; initial 20-city deployment goes GA end of Q1 and is sold out to beta customers; next tranche backed by a 4-year, ~$200 M commitment, with first revenue expected late 2026 and material impact in 2027.
CDN delivery: 2026 revenue is guided to a mid-single-digit decline as traffic growth partly offsets ongoing per-unit price declines; Akamai maintains premium pricing due to superior performance and reliability.
Cost headwind: Soaring memory prices will add $200 M of incremental operating costs in 2026, which will be mitigated by passing through price increases and extending server lifecycles.
Capital allocation: Continues opportunistic share buybacks (~1% of equity annually; $800 M repurchased in 2025) and targets M&A in security and compute adjacencies.

Mar 4, 2026, 1:05 PM

Transcript

Akamai to Deploy Thousands of NVIDIA Blackwell GPUs

AKAM

Product Launch

New Projects/Investments

Akamai announced the acquisition of thousands of NVIDIA Blackwell GPUs to bolster its global distributed cloud infrastructure, creating a unified platform for AI R&D, fine-tuning, and post-training optimization across its network.
The deployment is designed to reduce AI inference latency and data egress issues by treating the globe as a single, low-latency backplane, addressing the 56% of organizations that cite latency as their primary barrier to AI at scale.
Key capabilities include predictable, high-performance inference, localized fine-tuning for data privacy and regional compliance, and post-model training on proprietary data to improve task-specific accuracy.
This initiative builds on the October 2025 launch of Akamai Inference Cloud, which delivered up to 2.5× latency reduction and 86% cost savings on AI inference with NVIDIA infrastructure.

Mar 3, 2026, 11:30 AM

Press Release

Akamai reports Q4 2025 results

AKAM

Earnings

Product Launch

Guidance Update

In Q4 2025, revenue was $1.095 billion, up 7% year-over-year (6% in constant currency), with non-GAAP EPS of $1.84, up 11% Y/Y.
Cloud infrastructure services (CIS) revenue grew 45% Y/Y to $94 million, contributing to total compute revenue of $191 million, up 14% Y/Y amid AI inference demand.
Security revenue reached $592 million, up 11% Y/Y, with API Security and Zero Trust combining for $90 million, up 36% Y/Y and API Security run-rate exceeding $100 million.
Akamai launched Akamai Inference Cloud, securing a four-year, $200 million commitment from a major U.S. tech company and planning further capacity investments.
For 2026, Akamai forecasts revenue of $4.4 billion–$4.5 billion (up 5%–8% Y/Y), CIS growth of 45%–50%, non-GAAP operating margin of 26%–28%, and CapEx at 23%–26% of revenue.

Feb 19, 2026, 9:30 PM

Transcript

Akamai announces Q4 2025 results

AKAM

Earnings

Guidance Update

New Projects/Investments

Akamai delivered Q4 revenue of $1.095 billion, up 7% year-over-year, and non-GAAP EPS of $1.84, up 11%.
Cloud Infrastructure Services (CIS) revenue was $94 million, up 45% YoY; launched Inference Cloud and secured a $200 million, 4-year CIS commitment with a major U.S. tech customer.
Security revenue reached $592 million, up 11% YoY; API & Zero Trust revenue was $90 million, up 36% YoY, with API security exiting the year at a >$100 million run rate.
Q4 CapEx totaled $154 million (14% of revenue); 2026 CapEx is guided at 23–26% of revenue, including ~$250 million for AI Inference Cloud expansion.
2026 guidance: revenue of $4.4–4.5 billion (+5–8% YoY), CIS growth of 45–50%, and Q1 EPS of $1.50–1.67.

Feb 19, 2026, 9:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for AKAMAI TECHNOLOGIES.

Q4 2025

Feb 19, 2026

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Q3 2025

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Q2 2025

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AKAMAI TECHNOLOGIES (AKAM)

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