Akamai (AKAM) AI Stock Analysis

Company Guidance

Akamai guided Q3 revenue of $1.105–$1.130B (up 5–7% reported, 5–8% constant currency) with a Q3 FX headwind of ~$2M (and a Y/Y Q3 FX impact of ~$8M); it expects Q3 cash gross margin ~70%, non‑GAAP operating expenses $347–359M, EBITDA margin ~38–40%, non‑GAAP depreciation $153–155M, non‑GAAP operating margin 24–26% and non‑GAAP EPS $1.60–1.80 (assumes ~19% non‑GAAP tax rate, ~$0.55–$2M taxes, ~150M diluted shares). Q3 CapEx was guided to $475–525M (~43–46% of revenue) and full‑year CapEx is expected to be ~40% of revenue. For full‑year 2026 the company expects revenue of $4.445–4.530B (up 6–8% reported, 5–7% cc), cloud infrastructure services growth of at least 50% cc, security revenue growth in the high single digits cc, delivery/other cloud apps down mid single digits cc, a full‑year non‑GAAP operating margin of ~25–26% and non‑GAAP EPS of $6.40–7.05 (19% tax rate, ~150M shares). Management also called out second‑half FX headwinds of ~ $9M, Q2 CapEx of $347M (32% of revenue), cash of ~ $4.6B, $3.5B raised via zero‑coupon convertible debt, a temporary pause to buybacks after repurchasing ~5M shares YTD (~$616M, ~$565M remaining authorization), and up to $500M of planned GPU investment (about $60M in 2026, remainder in early 2027) to replenish sold‑out GPU capacity.