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AKAM US S&P 500Russell 1000 Earnings call

Akamai Technologies (AKAM) · Q2 2026 results and valuation

Share price: $86.68 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter

Net income down 25.3% on the previous quarter. Tone in line with last period.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−25.3%

Net income vs Q1 2026

Outlook given

Net income 79.4M vs 106.3M

Revenue +2.4%

Against the same quarter last year (Q2 2025) it is −23.4%, so it is not just seasonal.

2 · How management spoke

Unchanged

Language tone vs last period

Language: typical — about as upbeat as in Q1 2026.

3 · What stood out

Guidance

LRx is expected to dilute non-GAAP EPS by roughly $0.02 in 2026, split evenly across Q3 and Q4.

Valuation

Is Akamai Technologies undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 5.2% growth a year (3-year revenue growth), the model's fair value is $88.80 a share — the stock trades 2% below it. Today's price assumes 4.9% growth a year.

Current price

$86.68

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+4.9% for 10 yrs

Fair value / share

$88.80

Buy below

$66.60

Price vs fair value

Undervalued 2%

Price vs buy-below price

Overvalued 30%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Deal validates the platform and locks in years of future revenue, though 2026 will see no meaningful impact before revenue fully ramps.

    Source quote
    “Beyond providing great multiyear revenue visibility, it also underscores the scale of our cloud infrastructure services business. A huge validation of our platform. For this new customer, we do not expect any material revenue impact for 2026 but we do expect revenue to fully ramp throughout 2027.”
  2. Guidance

    Of these commitments, and the exceptionally strong pipeline Akamai Technologies is seeing, it now anticipates that Akamai's overall revenue growth will accelerate into the low teens…

  3. Figure

    The addition of this new customer brings the total volume of the multiyear commitments signed so far this year for Akamai Technologies' cloud...

  4. Dropped

    Akamai expanded GPU infrastructure to dozens of cities with new 6000-series processors, shifting focus from efficiency messaging to distributed AI compute capacity.

    Source quote
    “The goal is to have all this orchestrated so that when an application or an agent needs to be run... We have full IaaS capabilities in several dozen cities, and a couple dozen of those are equipped with the new 6000-series GPUs. Our orchestration layer is designed to make that possible, aligned with the AI grid vision from NVIDIA—think of AI like an electrical grid, and that is what Akamai Technologies, Inc.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Typical (was typical)

Typical — about as upbeat as in Q1 2026.

Sentences that drove the tone
“However, given the strong market demand for CIS, we are temporarily pausing share repurchases to reallocate capital to support our high growth CIS pipeline.”
“Security growth was led once again by strong demand for our market leading web app firewall API security, and Guardicore segmentation solutions.”
“Therefore, driven by the $600 million new customer win we announced today and a very robust pipeline, we expect to invest up to $500 million in CapEx to replenish and...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 1.10B 1.07B +2.4% 1.04B +5.4%
Operating income 80.3M 114.5M −29.9% 151.5M −47.0%
Net income 79.4M 106.3M −25.3% 103.6M −23.4%
EPS 0.52 0.71 −26.8% 0.71 −26.8%
P/E today 39.1 42.8 38.8 +4.0 28.2 +14.6

Topics

Most discussed now

  • As mentioned on Akamai Technologies' last call, GPU demand remains exceptionally strong.
  • At these revenue levels, Akamai Technologies expects cash gross margin of approximately 70%, as a reminder, gross margin is impacted by...
  • For this new customer, Akamai Technologies does not expect...
  • Security revenue maintained strong momentum with revenue of $4 million, up 10% year over year as reported and 9% in...

Faded since Q1 2026

  • Dropped Akamai Technologies has its managed container service running in well over 100 cities and can run in all 700 cities; it...
  • Fading The factors include, but are not limited to, any impact from macroeconomic trends, the integration of any acquisition, geopolitical…
  • Fading Because of Akamai Technologies' proven ability to manage and scale complex distributed systems, its ability to get the necessary data…
  • Fading You can imagine most of the world's major banks rely on us for security, and they are looking at a...

Latest announcements

Official filings, newest first.

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