Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Akamai's second fiscal quarter of 2026 was characterized by a shift toward higher-growth security and cloud infrastructure services, with cloud infrastructure revenue surging 39% and security revenue rising 10%. However, delivery revenue declined 6% due to pricing pressures and customer cost optimization, and total revenue growth was a modest 5%. Rising co-location, bandwidth, and headcount costs pushed cost of revenue up 14%, leading to a 47% drop in operating income and a 23% decline in net income. The company's ability to sustain growth in its newer segments while managing infrastructure cost inflation will be key to restoring margin expansion.
Cost of Revenue
$485.93M
+13.93% YoY
EPS (Diluted)
$0.52
-26.76% YoY
Operating Income
$80.28M
-46.99% YoY
Source: SEC XBRL
Akamai Technologies (AKAM) reported Q2 FY2026 revenue of $485.93M, up 13.9% year over year. AKAM's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.59 | 1.61 | Miss -0.9% |
| Mar 2026 | 1.61 | 1.63 | Miss -1.4% |
| Dec 2025 | 1.84 | 1.79 | Beat +2.8% |
| Sep 2025 | 1.86 | 1.67 | Beat +11.3% |
Adjusted (non-GAAP) EPS of $1.59 versus the $1.61 analyst consensus — a -0.9% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.52.
Compiled by AI from 10-Q Item 2 of this filing
Security solutions revenue increased 10% year-over-year, led by API security, web application, and Guardicore segmentation products. Cloud infrastructure services revenue surged 39%, driven by compute solutions and partner programs. Delivery revenue declined 6% due to continued pricing pressure and traffic optimization by customers.
Source: 10-Q Item 2 MD&A
Cost of revenue rose 14% year-over-year, with network build-out and supporting services up 28%, co-location costs up 14%, and bandwidth fees up 17%. Management expects further cost increases in the remainder of 2026 due to hyperscaler-driven price hikes for servers, memory, and co-location.
Source: 10-Q Item 2 MD&A
Stock-based compensation expense increased across all functions, partly due to a new retirement benefit that reduced the service period for eligible employees, and from achievement of performance-based compensation targets.
Source: 10-Q Item 2 MD&A
Interest and marketable securities income more than doubled to $31.7 million, primarily from marketable securities purchased with proceeds from the issuance of convertible senior notes due 2032 and 2030.
Source: 10-Q Item 2 MD&A
The effective tax rate fell to 21% from 32% a year ago, driven by excess tax benefits related to stock-based compensation and lower profitability, partially offset by lower foreign income taxed at lower rates.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Revenue from delivery and other cloud applications continues to decline due to intense competition, customer DIY initiatives, and traffic optimization, which may further pressure pricing and reduce network traffic volumes.
Source: 10-Q Item 1A
Global economic conditions, including inflation, tariffs, trade restrictions, and armed conflicts (such as the U.S.-Iran conflict), could disrupt operations, increase costs, and reduce customer spending. Physical attacks on data centers in conflict zones pose a direct risk to infrastructure.
Source: 10-Q Item 1A
Larger competitors like hyperscalers have greater resources, priority access to co-location and hardware, and ability to bundle services, which could erode Akamai's market share and pricing power, particularly in cloud infrastructure services.
Source: 10-Q Item 1A
Evolving cyber threats, including AI-powered attacks, could breach defenses, lead to service disruptions, data loss, and reputational damage. The company's security solutions themselves may be targeted or bypassed by sophisticated adversaries.
Source: 10-Q Item 1A
Significant investments in AI capabilities and cloud infrastructure may not yield expected returns, could introduce operational bugs or failures, and may not attract sufficient customer adoption, potentially harming financial performance.
Source: 10-Q Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $M | 485.93 $M | 426.54 $M | +13.93% |
Operating Income $M | 80.28 $M | 151.46 $M | -46.99% |
Net Income $M | 79.40 $M | 103.62 $M | -23.37% |
EPS (Basic) $ | 0.55 $ | 0.72 $ | -23.61% |
EPS (Diluted) $ | 0.52 $ | 0.71 $ | -26.76% |
R&D Expense $M | 148.82 $M | 125.84 $M | +18.26% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Akamai Technologies reported Q1 2026 results with operating income declining 25.9% YoY to $114.5M and net income falling 13.7% to $106.3M, pressured by rising costs, while operating cash flow improved 24.4% to $312.5M.
Akamai Technologies delivered modest operating income growth of 6.3% in FY2025, but net income fell 10.5% to $452M as higher costs and increased debt weighed on profitability, while operating cash flow remained essentially flat at $1.52B.
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