$AKAM · AKAMAI TECHNOLOGIES INC
Akamai filed its 10-Q for the quarter ended September 30, 2026. Revenue grew 6.4% YoY to $1.122B, while net income fell to $117.1M from $140.2M a year earlier. GAAP diluted EPS was $0.77 (down from $0.97) and adjusted EPS was $1.77. Operating income dropped 34.5% to $108.7M as cost of revenue, R&D, and sales/marketing all rose double digits.
- Revenue $1.122B, up 6.4% YoY from $1.0546B.
- Net income fell to $117.1M from $140.2M a year earlier.
- Income from operations dropped 34.5% to $108.7M.
- GAAP diluted EPS $0.77 vs $0.97; adjusted EPS $1.77.
- Issued $3.45B net convertible senior notes; total convertible notes now $7.57B.
Stock closed up 6.74% to $83.09, with extended-hours last trade at $83.36 (+0.32% vs close). The gain suggests investors focused on the revenue beat and adjusted EPS rather than the margin compression.
Akamai's top-line growth is being offset by sharply higher costs and heavy capex, squeezing profitability even as the stock rallies.
Akamai's heavy capex ($761.5M in nine months, up from $376.1M) and rising cost of revenue reflect its push into cloud computing and security, a capital-intensive shift from its legacy CDN business.
Rising cost of revenue (up 17.5% YoY) and a 34.5% drop in operating income signal margin pressure. Total convertible senior notes jumped to $7.57B, adding leverage and potential dilution.