Akamai Technologies (AKAM) reported net income of $117.1 million in the third quarter of 2026, down 16% from the same period of the previous year. Diluted earnings per share (EPS) were $0.77, down 21%. Revenue totaled $1.122 billion, up 6% from $1.055 billion in 3Q25 (up 7% excluding the effect of foreign exchange).
Operating income was $108.7 million, down 35%, with an operating margin of 10%, 6 percentage points below the previous year. On an adjusted basis (non-GAAP, which excludes items the company considers non-recurring), operating income was $285.7 million, down 11%, with a 25% margin. Adjusted net income was $262.1 million, down 3%, and adjusted EPS came in at $1.77, down 5%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with other adjustments) was $435.3 million, down 5%.
By segment, security revenue was $622 million, up 9%. Cloud infrastructure services revenue was $109 million, up 34%. Delivery and other cloud applications revenue was $391 million, down 3%. In the US, revenue was $559 million (up 5%), and internationally, $563 million (up 7%).
Cash generated from operations was $433 million, or 39% of revenue. Cash, cash equivalents and marketable securities totaled $4.239 billion as of September 30, 2026. The company did not repurchase shares in the quarter. In the nine months, it spent $616 million to repurchase 5 million shares at an average price of $123.19. According to CEO Tom Leighton, more than $14 billion in multiyear cloud infrastructure commitments have been signed this year.
For the fourth quarter of 2026, Akamai projects revenue of $1.145 billion to $1.170 billion and adjusted EPS of $1.50 to $1.70. For the year, the projection is revenue of $4.44 billion to $4.465 billion and adjusted EPS of $6.47 to $6.68. For 2027, the company expects cloud infrastructure revenue of $1.1 billion to $1.3 billion and total revenue growth of 17% to 22% excluding the effect of foreign exchange. For 2028, it projects total revenue above $7.0 billion.
