$AKAM · AKAMAI TECHNOLOGIES INC
Akamai filed an 8-K (Item 2.02) reporting Q3 FY2026 results for the quarter ended September 30, 2026. Revenue was $1.122B, up 6% YoY (7% FX-adjusted), with Security at $622M (+9%), Delivery/other cloud at $391M (-3%), and Cloud Infrastructure Services at $109M (+34%). GAAP diluted EPS was $0.77 (down 21% YoY) and non-GAAP diluted EPS was $1.77 (down 5% YoY). The company guided Q4 2026 revenue of $1.145B-$1.170B and FY2026 revenue of $4.440B-$4.465B, plus 2027 total revenue growth of 17-22% and 2028 revenue above $7.0B.
- Q3 revenue $1.122B, up 6% YoY (7% FX-adjusted).
- Cloud Infrastructure Services revenue $109M, up 34% YoY.
- GAAP diluted EPS $0.77, down 21% YoY; non-GAAP EPS $1.77, down 5%.
- 2027 total revenue growth guided at 17-22% FX-adjusted; 2028 revenue above $7.0B.
- No share repurchases in Q3; $616M spent on 5M shares in nine months at $123.19 avg.
Regular session closed down 9.41% to $77.84, but extended-hours last trade of $81.02 (+4.09% vs close) suggests a positive after-hours reaction to the 2027/2028 growth guidance.
Akamai's 2027-2028 acceleration guidance (17-22% growth, >$7B revenue) marks a major strategic inflection driven by $14B+ in multi-year cloud commitments.
Akamai's pivot toward Cloud Infrastructure Services (34% growth) and AI-optimized cloud positions it against hyperscalers, with the 2027 acceleration guidance signaling a strategic shift from its legacy delivery business.
GAAP operating margin fell 6 points to 10% and non-GAAP operating margin fell 6 points to 25%, reflecting heavy investment in cloud infrastructure (capex of $605M in Q3). Delivery/other cloud revenue continues to decline (-3% YoY).