Akamai Technologies, Inc. reported fourth‑quarter 2025 results that surpassed expectations, with total revenue of $1.095 billion, a 7% year‑over‑year increase, and a non‑GAAP earnings per share of $1.84, beating the consensus estimate of $1.75 by $0.09 or 5.1%. The revenue beat of $15 million, or 1.4%, reflects stronger demand across the company’s high‑margin security and cloud infrastructure segments.
The company’s Guardicore segmentation and API security products grew 36% year‑over‑year, while Cloud Infrastructure Services (CIS) expanded 45%. Security revenue reached $592 million and CIS revenue was $94 million, underscoring the shift toward higher‑margin offerings. Operating margin rose to 29% from 24% in the same quarter a year earlier, driven by the favorable mix shift and operational leverage that offset modest cost increases.
Compared with Q4 2024, revenue was $1.02 billion and the GAAP operating margin was 9%. The jump to 29% in Q4 2025 demonstrates significant margin expansion, largely attributable to the higher contribution of security and CIS products, which carry higher gross margins and lower variable costs than legacy CDN services.
Management reiterated 2026 guidance, forecasting total revenue of $4.4 billion to $4.55 billion and non‑GAAP EPS of $6.20 to $7.20. The EPS guidance is below the consensus range of $7.29 to $7.34, reflecting anticipated margin pressure from increased capital expenditures—projected at 23% to 26% of revenue—to support AI infrastructure and the new Akamai Inference Cloud. The company also disclosed a $55 million restructuring charge that impacted GAAP figures but not non‑GAAP earnings.
"Akamai delivered strong fourth quarter results as we continue to make major progress in positioning Akamai for the future," said CEO Dr. Tom Leighton. "We were particularly pleased to achieve 36% year‑over‑year revenue growth in Q4 across our Guardicore Segmentation and API Security products, and 45% year‑over‑year revenue growth for Cloud Infrastructure Services (CIS)." CFO Ed McGowan added, "We delivered excellent fourth quarter results with total revenue of $1.095 billion, up 7% year‑over‑year. The better‑than‑expected performance was primarily driven by higher‑than‑expected top‑line revenue."
The results highlight Akamai’s successful transition from a legacy CDN provider to a distributed cloud and cybersecurity leader. Strong demand for AI‑enabled edge services and the launch of the Akamai Inference Cloud are driving CIS growth, while Guardicore and API security products continue to capture market share in the security space. However, the company faces headwinds from hardware inflation—particularly memory chip costs—and the need for significant capital investment to sustain AI infrastructure, which are expected to compress margins in 2026. Despite these challenges, management remains confident that the company’s high‑margin mix and strategic investments will support continued revenue growth and profitability over the long term.
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