Akamai Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Akamai Technologies Inc. AKAM reported strong third-quarter 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate.The company reported a top-line expansion year over year, driven by healthy demand trends in multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver.Net IncomeGAAP net income increased to $140.2 million or 97 cents per share from $57.9 million or 38 cents per share in the year-ago quarter. High revenues and lower operating expenses boosted the net income.Non-GAAP net income was $268.9 million or $1.86 per share compared with $243.5 million or $1.59 per share a year ago. The bottom line beat the Zacks Consensus Estimate by 22 cents.Akamai Technologies, Inc. Price, Consensus and EPS Surprise Akamai Technologies, Inc. price-consensus-eps-surprise-chart | Akamai Technologies, Inc. QuoteRevenuesQuarterly net sales were $1.05 billion compared with $1 billion reported in the year-ago quarter. The 5% year-over-year uptick was driven by strong momentum in the Security and Compute verticals. Revenues surpassed the Zacks Consensus Estimate of $1.04 billion.By product groups, revenues from the Security Technology Group were $568.4 million compared with $518.7 million in the year-ago quarter. The 10% year-over-year growth was primarily backed by growing demand for Guardicore Segmentation Solution. The company is experiencing healthy traction for its API security solutions in various end markets, including financial services, retail, electric vehicles and more. However, net sales missed our estimate of $579.2 million.The Delivery segment contributed $306.5 million, down from $319.1 million in the year-ago quarter. However, the segment’s revenues surpassed our estimate of $268.4 million.The Cloud Computing segment registered $179.7 million in revenues, up from $166.9 million in the prior-year quarter. The growth was driven by healthy demand for cloud infrastructure services. The segment’s revenues missed our estimate of $192 million.Region-wise, net sales from the United States came in at $530 million, up 1% year over year. International revenues totaled $524.6 million, up from $480.1 million in the year-earlier quarter.Other DetailsIn the September quarter, total operating expenses fell to $888.6 million from $934 million reported in the prior-year period. Non-GAAP income from operations improved to $322 million from $295.7 million, with margins of 31% and 29%, respectively. Adjusted EBITDA was $458.4 million, up from $426.3 million in the year-ago quarter.Cash Flow & LiquidityIn the third quarter of 2025, Akamai generated $441.8 million in cash from operating activities compared with $392.5 million in the prior-year quarter. As of Sept. 30, 2025, the company had $927.9 million in cash and cash equivalents, with $281.3 million of operating lease liabilities.OutlookFor the fourth quarter of 2025, Akamai expects revenues in the range of $1.065 billion to $1.085 billion. Non-GAAP operating margin is projected to be 28-30%. Non-GAAP operating expense is projected to be higher than in the third quarter. EBITDA margin is forecasted at 42-43%. Non-GAAP earnings are forecasted to be in the range of $1.65-$1.85 per share. For 2025, Akamai expects revenues in the range of $4.178 billion to $4.198 billion. It expects a non-GAAP operating margin of 29-30%. Non-GAAP earnings are now projected to be in the range of $6.93-$7.13 per share.Zacks RankAkamai currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesKeysight Technologies, Inc. KEYS is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting a growth of 10.9% from the year-ago reported figure.Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.AST SpaceMobile, Inc. ASTS is set to release third-quarter 2025 earnings on Nov. 10. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, implying a growth of 25% from the year-ago reported figure.AST SpaceMobile has a long-term earnings growth expectation of 28.3%. The Zacks Consensus Estimate for revenues is pegged at $20.74 million, implying a growth of 1,785.4% from the year-ago reported figure.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Workday, Inc. (WDAY): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks