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Akamai: Akamai's Q4 2025 Earnings: A Strong Finish with Growth Across Key Segments

Akamai's financial performance in Q4 2025 was robust, with revenue reaching $1.095 billion, up 7% year-over-year as reported and 6% in constant currency. The non-GAAP operating margin stood at 29%, while non-GAAP earnings per share (EPS) was $1.84, exceeding estimates of $1.75 and marking an 11% year-over-year increase. The company's Cloud Infrastructure Services (CIS) segment saw significant growth, with Q4 revenue of $94 million, up 45% year-over-year as reported. Security solutions also performed well, driven by strong demand for API security and Guardicore Segmentation solutions, with revenue from these high-growth security products growing 36% year-over-year.

AKAM

USD 94.17

-14.07%

A-Score: 4.1/10

Publication date: February 19, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth: Q4 2025 revenue reached $1.095 billion, up 7% YoY, with non-GAAP EPS at $1.84 (11% YoY growth).
  • CIS Expansion: Cloud Infrastructure Services revenue hit $94 million (+45% YoY), driven by a $200 million 4-year contract with a major U.S. AI-focused tech firm.
  • Security Solutions Momentum: High-growth security products (API security, Guardicore) grew revenue 36% YoY, reflecting strong demand for AI-era cybersecurity.
  • 2026 Guidance: Full-year revenue projected at $4.4–4.55 billion (+5–8% YoY), with CIS growth accelerating to 45–50% and Security revenue rising in high single digits.
  • Inference Cloud Investment: $250 million allocated to expand GPU capacity by 10x, adding 40–50 locations by 2026, targeting AI inference, transcoding, and generative media workloads.

Segment Performance and Growth Drivers

The CIS segment's strong performance was underpinned by new and expanded contracts, including a significant 4-year, $200 million commitment with a major U.S. tech company. This deal, along with others, contributed to the CIS revenue growth and underscores the growing demand for Akamai's cloud infrastructure services, particularly in the AI space. As Ed McGowan noted, the capital intensity is increasing due to significant demand for CIS, indicating a positive outlook for this segment.

Guidance and Outlook for 2026

For 2026, Akamai expects revenue to range from $4.4 billion to $4.55 billion, representing a 5% to 8% increase as reported and 4% to 7% in constant currency. The company projects Security revenue to grow in the high single digits on a constant currency basis, while CIS is expected to accelerate to 45% to 50% year-over-year growth. Non-GAAP EPS is anticipated to be in the range of $6.20 to $7.20. The guidance suggests a continued strong performance across key segments, driven by the growing demand for cloud infrastructure and security services.

Valuation and Growth Expectations

Analysts estimate next year's revenue growth at 7.1%, which is slightly above the company's guided range. With a current P/E Ratio of 30.05 and an EV/EBITDA of 13.72, the market appears to be pricing in a certain level of growth and profitability. The ROE of 9.64% and ROIC of 4.32% indicate a reasonable return on equity and invested capital, respectively. As Akamai continues to expand its CIS and security offerings, the company's ability to deliver on its growth projections will be closely watched.

Akamai's A-Score