Akamai: Fiscal 2Q26 Financial Results

Summary:

Second quarter revenue of $1.1 billion, up 5% YoY and when adjusted for foreign exchange
Cloud Infrastructure Services revenue of $99 million, up 39% YoY and when adjusted for foreign exchange
Security revenue of $604 million, up 10% YoY and up 9% when adjusted for foreign exchange
GAAP net income per diluted share of $0.52, down 27% YoY and down 22% when adjusted for foreign exchange, and non-GAAP net income per diluted share of $1.59, down 8% YoY and down 6% when adjusted for foreign exchange
US-based technology company commits to more than $600 million over four years for Cloud Infrastructure Services to power robotics development

Akamai Technologies, Inc., a cybersecurity and cloud computing company that powers and protects business online, reported financial results for the second quarter ended June 30, 2026.“Akamai delivered a strong second quarter, highlighted by sustained momentum across our security and Cloud Infrastructure Services (CIS) portfolios,” said Dr. Tom Leighton, CEO, Akamai. “We are especially excited by the rapid growth of our CIS portfolio. Year-to-date, we have signed numerous customers to multi-year CIS contracts, collectively worth over $2.8 billion. This includes a contract with a US-based technology company, which is also a new customer, worth more than $600 million over four years. These major contract wins validate Akamai’s growing position as a key AI infrastructure provider.”

Akamai delivered the following results for the second quarter ended June 30, 2026:

Revenue: Revenue was $1.100 billion, a 5% increase over second quarter 2025 revenue of $1.043 billion and a 5% increase when adjusted for foreign exchange.

Revenue by solution:

Security revenue was $604 million, up 10% YoY and up 9% when adjusted for foreign exchange
Delivery and other cloud applications revenue was $396 million, down 6% YoY and down 5% when adjusted for foreign exchange
Cloud infrastructure services revenue was $99 million, up 39% YoY and when adjusted for foreign exchange

Revenue by geography:

US revenue was $550 million, up 4% YoY
International revenue was $549 million, up 6% YoY and up 7% when adjusted for foreign exchange

Income from operations: GAAP income from operations was $80 million, a 47% decrease from second quarter 2025. GAAP operating margin for the second quarter was 7%, down 8 percentage points from the same period last year.

Non-GAAP income from operations was $271 million, a 12% decrease from second quarter 2025. Non-GAAP operating margin for the second quarter was 25%, down 5 percentage points from the same period last year.

Net income: GAAP net income was $79 million, a 23% decrease from second quarter 2025. Non-GAAP net income was $236 million, down 6% from second quarter 2025.

EPS: GAAP net income per diluted share was $0.52, a 27% decrease from second quarter 2025 and a 22% decrease when adjusted for foreign exchange. Non-GAAP net income per diluted share was $1.59, an 8% decrease from second quarter 2025 and a 6% decrease when adjusted for foreign exchange.

Adjusted EBITDA: Adjusted EBITDA was $416 million, a 6% decrease from second quarter 2025.

Supplemental cash information: Cash from operations for the second quarter of 2026 was $326 million, or 30% of revenue. Cash, cash equivalents and marketable securities was $4.616 billion as of June 30, 2026.

Share repurchases: The company spent $410 million in the second quarter of 2026 to repurchase 3 million shares of common stock at a weighted average price of $134.54 per share. The company had 144 million shares of common stock outstanding as of June 30, 2026.

Financial guidance: The company reports the following financial guidance for the third quarter and full year 2026:

Click to enlarge