Akamai Q2 FY2026: revenue up 5.4%, profit down sharply
Akamai's second quarter was a revenue-in-line, profit-under-pressure story: $1.10 billion of sales, up 5.4%, but GAAP operating income fell 47.0% to $80.3 million and gross margin slid to 55.8%. Read the scorecard top-down, because the growth engines are working while the cost line and the shrinking delivery business drag profit. Profit quality, not headline growth, is the issue this quarter.
1 · Expected vs. Actual
Free preview belowGAAP EPS fell 26.8% to $0.52 from $0.71, and non-GAAP EPS fell 8.1% to $1.59 from $1.73, about a cent below the $1.6057 consensus. Almost the entire gap between the two EPS lines is stock-based compensation of $146.3 million plus intangible amortization, not restructuring or one-off charges. With GAAP operating income down 47.0%, the pressure is clearly in the cost lines rather than the revenue line.
Revenue was $1.0997 billion, up 5.4% from $1.0435 billion a year earlier and about $12 million above the $1.0875 billion midpoint Akamai guided to last quarter. Security did the heavy lifting at $604.4 million, up 9.5%, and cloud infrastructure grew 39.0% but is still only $99.3 million. Delivery and other cloud applications, the legacy content-delivery business, shrank 5.8% to $395.9 million.
For the third quarter Akamai guided to $1.105–$1.130 billion of revenue, a $1.1175 billion midpoint, and $1.60–$1.80 of non-GAAP EPS; the full-year guide is $4.445–$4.530 billion of revenue and $6.40–$7.05 of non-GAAP EPS. The third-quarter revenue midpoint sits roughly 6.0% above the $1.0546 billion reported in the quarter ended September 30, 2025, so management expects growth to hold rather than accelerate. None of the guidance can be reconciled to GAAP, per the company.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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