Akamai Q3 FY2026: revenue up 6%, margins and free cash flow slip
Akamai's top line grew 6% to $1.122 billion and non-GAAP EPS of $1.77 beat the $1.705 consensus, yet gross margin fell to 55.0% and free cash flow turned negative at -$81.9 million. Read the quarter as a growth story paying for itself with heavy capex: Cloud Infrastructure Services rose 34% while Delivery fell 3%. Q4 revenue guidance of $1.145–$1.170 billion sits below the $1.2228 billion consensus.
1 · Expected vs. Actual
Free preview belowNon-GAAP EPS of $1.77 landed $0.065 above the $1.705 consensus, but it was still down 5% from the $1.86 reported a year ago. GAAP EPS fell 21% to $0.77, and most of the $1.00 gap between the two lines is $131.9 million of stock-based compensation. Diluted shares rose to 151.2 million from 144.8 million, which drags on per-share figures.
Revenue of $1.122 billion rose 6% from $1.055 billion a year ago, or 7% after currency effects. Security supplied $621.9 million, or 55.4% of the total, on 9% growth, while Cloud Infrastructure Services grew 34% to $108.8 million. Delivery and other cloud applications shrank 3% to $391.3 million, so the mix keeps tilting toward the fastest-growing but smallest piece.
Q4 revenue guidance of $1.145–$1.170 billion gives a $1.1575 billion midpoint that trails the $1.2228 billion consensus by roughly $65 million. Full-year 2026 revenue is guided to $4.440–$4.465 billion with non-GAAP EPS of $6.47–$6.68. The Q4 non-GAAP EPS midpoint of $1.60 is meaningfully below the $1.77 just delivered.
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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 2026-11-06
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