Key Highlights

● Revenue was $1.100 billion, up 5% from $1.043 billion.

● Security revenue grew 10% and Cloud Infrastructure Services revenue grew 39%.

● Capital expenditure was $347 million, or 32% of revenue.

● Non-GAAP earnings per share were $1.59, down 8%.

Akamai Technologies, Inc. (NASDAQ:AKAM) reported second-quarter 2026 results on 6 August 2026. Revenue was $1.100 billion, up 5% from $1.043 billion a year earlier. Security revenue grew 10% and Cloud Infrastructure Services revenue grew 39%, while the delivery and other cloud applications category declined 6%. Profit measures fell as the company stepped up capital spending on its cloud infrastructure business.

Business and Sector

Akamai began as a content delivery network and now sells security, delivery and cloud computing services. Security protects websites, applications and interfaces against attacks. Delivery distributes web content and video. Cloud Infrastructure Services, the segment the company has been expanding, offers cloud computing capacity, and the company's disclosed contracts include work for robotics development.

The sector is shifting as customers move to security-led platforms and as demand for computing capacity changes the economics of delivery. Akamai therefore depends on growth in newer lines to offset a maturing delivery business.

Latest Results

Security revenue was $604 million, delivery and other cloud applications was $396 million, and Cloud Infrastructure Services was $99 million. International revenue of $549 million was up 6%, while United States revenue of $550 million was up 4%.

GAAP income from operations fell 47% to $80 million, a 7% margin. Non-GAAP income from operations was $271 million, down 12%, at a 25% margin compared with 30% a year earlier. GAAP earnings per share were $0.52, down 27%, and non-GAAP earnings per share were $1.59, down 8%. Adjusted EBITDA was $416 million, a 38% margin. GAAP net income was $79 million, a 23% decline.

Akamai said it has signed multiple multi-year Cloud Infrastructure Services contracts worth more than $2.8 billion in total this year, including a commitment from a new United States technology customer of more than $600 million over four years to support robotics development.

Financial Performance and Industry Context

Capital expenditure was $347 million, or 32% of revenue, compared with $214 million, or 21%, in the second quarter of 2025. Operating cash flow was $326 million. At 30 June 2026 cash, cash equivalents and marketable securities totalled $4.616 billion, and Akamai repurchased 3 million shares for $410 million at an average price of $134.54.

For the third quarter, Akamai guided to revenue of $1,105 million to $1,130 million, a non-GAAP operating margin of 24% to 26% and non-GAAP earnings per share of $1.60 to $1.80. For 2026 it guided to revenue of $4,445 million to $4,530 million and non-GAAP earnings per share of $6.40 to $7.05.

Risks and Uncertainties

The company is investing ahead of revenue. Capital expenditure rose sharply while margins fell, and returns depend on turning large multi-year commitments into delivered services on schedule. A concentration of value in a small number of large contracts would increase exposure to any customer delay or change in plans.

The delivery category continues to decline, so overall growth relies on security and cloud infrastructure expanding quickly enough to offset it. Competition from hyperscale cloud providers and specialist security vendors is intense, and shifts in artificial intelligence demand could change the market for cloud infrastructure.

Technical complexity in operating cloud infrastructure is a further factor. Currency had little effect on second-quarter revenue growth, which was 5% both as reported and adjusted for foreign exchange, although it may matter in other periods.

Cloud commitments and capital intensity

Akamai's quarter shows a business reshaping its revenue base, with security and cloud infrastructure growing while delivery shrinks and margins narrow. Developments to watch include third-quarter results against the guided ranges, the conversion of contracted cloud commitments into revenue, trends in capital intensity, and any further large multi-year agreements, share repurchases and the company's stated cash position of more than $4.6 billion.