Akamai Technologies Q3 2025 Earnings Call Highlights

Akamai Technologies ((AKAM)) has held its Q3 earnings call. Read on for the main highlights of the call.

Akamai Technologies’ recent earnings call for Q3 2025 painted a picture of robust growth and strategic advancements, despite some challenges in specific segments. The overall sentiment was positive, driven by strong financial results and promising developments in cloud and security services. However, the delivery segment’s revenue decline remains a concern.

Strong Third Quarter Financial Performance

Akamai reported impressive financial results for the third quarter of 2025, with revenue reaching $1.055 billion, marking a 5% increase year-over-year. The company also saw an improvement in non-GAAP operating margins, which rose to 31%. Additionally, non-GAAP earnings per share increased by 17% year-over-year to $1.86, reflecting the company’s effective cost management and operational efficiency.

Cloud Infrastructure Services Growth

The Cloud Infrastructure Services segment demonstrated remarkable growth, with revenue climbing to $81 million, a 39% increase compared to the previous year. This acceleration from the 30% growth rate in Q2 highlights Akamai’s successful expansion efforts in this area, positioning it as a key driver of the company’s overall growth strategy.

High-Growth Security Products

Akamai’s security products, particularly in high-growth areas like API security and Zero Trust Enterprise Security, saw a 35% increase in revenue year-over-year. This growth underscores the rising demand for robust security solutions in an increasingly digital world, further solidifying Akamai’s position as a leader in the cybersecurity space.

Launch of Akamai Inference Cloud

Akamai introduced the Akamai Inference Cloud, designed to support AI inference at the edge. This launch has garnered strong initial customer interest and includes strategic partnerships with NVIDIA, enhancing Akamai’s capabilities in AI and machine learning applications.

Significant Customer Wins

The company achieved notable customer wins, including a $37 million renewal with a multinational gaming company and a $31 million commitment from a major European bank. These contracts reflect Akamai’s ability to secure and expand its customer base, contributing to its sustained revenue growth.

Delivery Revenue Decline

Despite overall positive results, Akamai faced a 4% year-over-year decline in delivery revenue. Although this segment performed slightly better than expected, it remains a challenge that the company needs to address to ensure balanced growth across all areas.

Compute Revenue Challenges

While compute revenue is on the rise, it fell slightly short of expectations due to the timing of larger contracts ramping up later in the year. This indicates potential future growth, but also highlights the need for strategic timing and execution in contract management.

Forward-Looking Guidance

Looking ahead, Akamai provided optimistic guidance for the fiscal year. The company expects revenue for the fourth quarter to range between $1.065 billion and $1.085 billion, reflecting a 4% to 6% increase. Non-GAAP operating margins are anticipated to be around 28% to 30%, with EPS projected between $1.65 and $1.85. Akamai emphasized its strategic shift towards cloud security and distributed cloud computing, with the Akamai Inference Cloud and partnerships with NVIDIA playing pivotal roles in this transition.

In summary, Akamai Technologies’ Q3 2025 earnings call highlighted strong financial performance and strategic advancements in cloud and security services. While challenges persist in the delivery segment, the company’s forward-looking guidance and strategic initiatives suggest a promising future. Investors and stakeholders can look forward to continued growth and innovation from Akamai as it navigates the evolving digital landscape.