AI deal and growth in security lift Akamai (NASDAQ: AKAM) Q1 2026

Rhea-AI Filing Summary

Akamai Technologies reported first quarter 2026 revenue of $1.074 billion, up 6% year-over-year, driven by strong growth in security and cloud infrastructure. Security revenue reached $590 million, up 11%, while Cloud Infrastructure Services rose to $95 million, up 40%.

GAAP net income was $106 million with diluted EPS of $0.71, down 13% versus a year earlier. Non-GAAP diluted EPS was $1.61, down 5%. The company highlighted a major AI-related win, as a leading U.S.-based frontier model provider committed $1.8 billion over seven years for Cloud Infrastructure Services.

Cash from operations was $313 million, or 29% of revenue. Akamai repurchased 2 million shares for $206 million, and ended March 31, 2026 with $1.733 billion in cash, cash equivalents and marketable securities. For 2026, it guided revenue to $4.445–$4.55 billion and non-GAAP EPS to $6.40–$7.15.

Positive

• AI infrastructure commitment: A leading U.S.-based frontier model provider committed $1.8 billion over seven years for Cloud Infrastructure Services, validating Akamai’s role as a key infrastructure provider in the AI economy.
• Growth in strategic segments: Q1 2026 Cloud Infrastructure Services revenue rose to $95 million, up 40% year-over-year, while security revenue increased to $590 million, up 11% year-over-year.
• Healthy cash generation and liquidity: Cash from operations was $313 million, or 29% of revenue, and Akamai held $1.733 billion in cash, cash equivalents and marketable securities as of March 31, 2026.

Negative

• Margin and earnings pressure: GAAP income from operations fell 26% year-over-year with GAAP operating margin at 11% versus 15%, and GAAP net income declined 14% while non-GAAP EPS fell 5% to $1.61.
• High investment intensity: Q1 2026 capital expenditures were $206 million, equal to 19% of revenue, contributing to a $304 million decrease in cash, cash equivalents and restricted cash during the quarter.
• Weakness in legacy delivery segment: Q1 2026 delivery and other cloud applications revenue was $389 million, down 7% year-over-year and down 8% when adjusted for foreign exchange.

Insights

Equity research analyst

Solid top-line growth and a large AI cloud commitment offset margin pressure.

Akamai delivered Q1 2026 revenue of $1.074 billion, up 6% year-over-year, with standout Cloud Infrastructure Services growth of 40% and security up 11%. This shows continued mix shift toward higher-growth, strategic businesses.

Profitability softened: GAAP operating margin was 11% versus 15% a year ago, and non-GAAP operating margin fell to 26%. GAAP EPS declined 13% to $0.71, while non-GAAP EPS dipped 5% to $1.61, reflecting higher costs and investment.

A leading frontier model provider’s $1.8 billion commitment over seven years for Cloud Infrastructure Services is strategically important, signaling traction in AI infrastructure. Guidance for Q2 2026 revenue of $1.075–$1.10 billion and full-year non-GAAP EPS of $6.40–$7.15 frames expectations for upcoming quarters.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 revenue: $1.074 billion Cloud Infrastructure Services revenue: $95 million Security revenue: $590 million +5 more

8 metrics

Q1 2026 revenue $1.074 billion Up 6% year-over-year versus $1.015 billion in Q1 2025

Cloud Infrastructure Services revenue $95 million Q1 2026, up 40% year-over-year

Security revenue $590 million Q1 2026, up 11% year-over-year

GAAP diluted EPS $0.71 per share Q1 2026, down 13% from Q1 2025

Non-GAAP diluted EPS $1.61 per share Q1 2026, down 5% from Q1 2025

AI cloud commitment $1.8 billion Committed over seven years for Cloud Infrastructure Services

Cash from operations $313 million Q1 2026, equal to 29% of revenue

Share repurchases $206 million Q1 2026, 2 million shares at $105.47 average price

Key Terms

Adjusted EBITDA, non-GAAP operating margin, Cloud Infrastructure Services, note hedge transactions, +1 more

5 terms

Adjusted EBITDA financial

"Adjusted EBITDA* was $427 million, a 3% decrease from first quarter 2025."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP operating margin financial

"Non-GAAP operating margin* for the first quarter was 26%, down 4 percentage points from the same period last year."

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

Cloud Infrastructure Services financial

"Cloud Infrastructure Services revenue was $95 million, up 40% year-over-year and up 39% when adjusted for foreign exchange*"

Cloud infrastructure services are remotely hosted computing resources — such as virtual servers, data storage, network capacity and basic management tools — delivered over the internet by third-party providers. Like renting a fully fitted office and utilities instead of buying and running a building, they let businesses scale capacity up or down, reduce upfront hardware costs, and often create steady, recurring revenue and margin profiles that investors watch for growth, efficiency and customer stickiness.

note hedge transactions financial

"Shares used in non-GAAP per diluted share calculations have been adjusted ... for the benefit of Akamai's note hedge transactions."

convertible senior notes financial

"Payments from the issuance of convertible senior notes, net of issuance costs"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

Earnings Snapshot

Revenue: $1.074 billion · Guidance included

Q1 2026

Revenue $1.074 billion +6% year-over-year

GAAP diluted EPS $0.71 -13% year-over-year

Non-GAAP diluted EPS $1.61 -5% year-over-year

Security revenue $590 million +11% year-over-year

Cloud Infrastructure Services revenue $95 million +40% year-over-year

Guidance

For 2026, Akamai guides revenue to $4.445–$4.55 billion and non-GAAP diluted EPS to $6.40–$7.15, with a non-GAAP operating margin of about 26%.

Understanding 8-K Material Events →

0001086222false00010862222026-05-072026-05-07

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report: May 7, 2026

(Date of earliest event reported)

AKAMAI TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

000-27275

04-3432319

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

145 Broadway

Cambridge, Massachusetts 02142

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (617) 444-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $.01 par value			AKAM			Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On May 7, 2026, Akamai Technologies, Inc. announced its financial results for the fiscal quarter ended March 31, 2026. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information provided under this Form 8-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

Exhibit No.						Description
99.1						Press release dated May 7, 2026
104						Cover page interactive data file (the cover page XBRL tags are embedded within the inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:			May 7, 2026						AKAMAI TECHNOLOGIES, INC.
									/s/ Edward McGowan
									Edward McGowan
									Executive Vice President, Chief Financial Officer and Treasurer

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contacts:
Johanna Schmitt						Mark Stoutenberg
Media Relations						Investor Relations
Akamai Technologies						Akamai Technologies
AkamaiPR@akamai.com						mstouten@akamai.com

AKAMAI REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS

First quarter revenue of $1.074 billion, up 6% year-over-year and up 4% when adjusted for foreign exchange*

Cloud Infrastructure Services revenue of $95 million, up 40% year-over-year and up 39% when adjusted for foreign exchange*

Security revenue of $590 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*

GAAP net income per diluted share of $0.71, down 13% year-over-year and down 14% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $1.61, down 5% year-over-year and when adjusted for foreign exchange*

Leading, U.S. based frontier model provider commits $1.8 billion over seven years for Cloud Infrastructure Services

CAMBRIDGE, Mass. – May 7, 2026 – Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the first quarter ended March 31, 2026.

“Akamai delivered a strong start to 2026, highlighted by a 40% year-over-year increase in Cloud Infrastructure Services (CIS) revenue and security growth of 11%,” said Dr. Tom Leighton, Akamai's Chief Executive Officer. “And, today, we are very pleased to announce that a leading frontier model provider has committed to $1.8 billion over seven years for CIS, further validating our position as a key infrastructure provider in the AI economy. Our security portfolio is also uniquely positioned to benefit from the rapid evolution of AI, with our enterprise customers needing our security products and expertise more than ever before.”

Akamai delivered the following results for the first quarter ended March 31, 2026:

Revenue: Revenue was $1.074 billion, a 6% increase over first quarter 2025 revenue of $1.015 billion and a 4% increase when adjusted for foreign exchange.*

Revenue by solution:

•Security revenue was $590 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*

•Delivery and other cloud applications revenue was $389 million, down 7% year-over-year and down 8% when adjusted for foreign exchange*

•Cloud Infrastructure Services revenue was $95 million, up 40% year-over-year and up 39% when adjusted for foreign exchange*

Revenue by geography:

•U.S. revenue was $543 million, up 3% year-over-year

•International revenue was $530 million, up 9% year-over-year and up 5% when adjusted for foreign exchange*

1

Income from operations: GAAP income from operations was $114 million, a 26% decrease from first quarter 2025. GAAP operating margin for the first quarter was 11%, down 4 percentage points from the same period last year.

Non-GAAP income from operations* was $283 million, an 8% decrease from first quarter 2025. Non-GAAP operating margin* for the first quarter was 26%, down 4 percentage points from the same period last year.

Net income: GAAP net income was $106 million, a 14% decrease from first quarter 2025. Non-GAAP net income* was $239 million, down 7% from first quarter 2025.

EPS: GAAP net income per diluted share was $0.71, a 13% decrease from first quarter 2025 and a 14% decrease when adjusted for foreign exchange.* Non-GAAP net income per diluted share* was $1.61, a 5% decrease from first quarter 2025 and when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* was $427 million, a 3% decrease from first quarter 2025.

Supplemental cash information: Cash from operations for the first quarter of 2026 was $313 million, or 29% of revenue. Cash, cash equivalents and marketable securities was $1.733 billion as of March 31, 2026.

Share repurchases: The Company spent $206 million in the first quarter of 2026 to repurchase 2 million shares of common stock at a weighted average price of $105.47 per share. The Company had 146 million shares of common stock outstanding as of March 31, 2026.

Financial guidance: The Company reports the following financial guidance for the second quarter and full year 2026:

			Three Months Ending June 30, 2026												Year Ending December 31, 2026
			Low End						High End						Low End						High End
Revenue (in millions)			$	1,075					$	1,100					$	4,445					$	4,550
Non-GAAP operating margin *			25		%				26		%				26		%				26		%
Non-GAAP net income per diluted share *			$	1.45					$	1.65					$	6.40					$	7.15
Non-GAAP tax rate*			18.5		%				18.5		%				18.5		%				18.5		%
Shares used in non-GAAP per diluted share calculations * (in millions)			146						146						147						147

The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

* See Use of Non-GAAP Financial Measures below for definitions

2

Quarterly Conference Call

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-855-669-9658 (or 1-412-317-0088 for international calls) and using passcode 8699709. The archived webcast of this event may be accessed through the Akamai website.

About Akamai

Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

3

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)			March 31, 2026						December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents			$	622,383					$	930,231
Marketable securities			308,062						256,302
Accounts receivable, net			881,076						793,666
Prepaid expenses and other current assets			319,102						306,481
Total current assets			2,130,623						2,286,680
Marketable securities			802,670						733,228
Property and equipment, net			2,411,721						2,333,462
Operating lease right-of-use assets			1,665,915						1,469,700
Acquired intangible assets, net			589,355						614,542
Goodwill			3,202,906						3,206,525
Deferred income tax assets			627,603						622,776
Other assets			214,959						212,730
Total assets			$	11,645,752					$	11,479,643
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	151,439					$	125,054
Accrued expenses			286,427						319,622
Deferred revenue			203,681						151,186
Operating lease liabilities			369,110						336,613
Other current liabilities			25,130						35,043
Total current liabilities			1,035,787						967,518
Deferred revenue			19,929						17,088
Deferred income tax liabilities			34,840						31,089
Convertible senior notes			4,107,607						4,105,355
Operating lease liabilities			1,390,988						1,233,420
Other liabilities			147,776						147,802
Total liabilities			6,736,927						6,502,272
Total stockholders’ equity			4,908,825						4,977,371
Total liabilities and stockholders’ equity			$	11,645,752					$	11,479,643

4

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

			Three Months Ended
(in thousands, except per share data)			March 31, 2026						December 31, 2025						March 31, 2025
Revenue			$	1,073,610					$	1,094,912					$	1,015,139
Costs and operating expenses:
Cost of revenue (1) (2)			471,299						452,501						418,945
Research and development (1)			141,576						139,453						123,549
Sales and marketing (1)			157,062						149,065						134,131
General and administrative (1) (2)			163,809						176,490						155,933
Amortization of acquired intangible assets			25,187						27,925						27,637
Restructuring charge			183						54,602						361
Total costs and operating expenses			959,116						1,000,036						860,556
Income from operations			114,494						94,876						154,583
Interest and marketable securities income, net			17,547						18,256						19,530
Interest expense			(8,257)						(7,893)						(6,750)
Other (expense) income, net			(1,786)						(1,320)						6,020
Income before provision for income taxes			121,998						103,919						173,383
Provision for income taxes			15,679						18,847						50,212
Net income			$	106,319					$	85,072					$	123,171
Net income per share:
Basic			$	0.73					$	0.59					$	0.83
Diluted			$	0.71					$	0.58					$	0.82
Shares used in per share calculations:
Basic			145,270						144,224						149,052
Diluted			150,022						146,970						151,064

(1)    Includes stock-based compensation (see supplemental table for figures)

(2)     Includes depreciation and amortization (see supplemental table for figures)

5

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

			Three Months Ended
(in thousands)			March 31, 2026						December 31, 2025						March 31, 2025
Cash flows from operating activities:
Net income			$	106,319					$	85,072					$	123,171
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			183,751						182,505						174,022
Stock-based compensation			128,681						119,225						111,978
(Benefit) provision for deferred income taxes			(1,749)						2,307						31,383
Amortization of debt issuance costs			2,148						1,877						1,605
Gain on investments			—						(57)						(9,313)
Other non-cash reconciling items, net			2,709						42,121						2,142
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable			(94,272)						(34,871)						(25,677)
Prepaid expenses and other current assets			(10,096)						(25,648)						(37,129)
Accounts payable and accrued expenses			(42,035)						13,917						(109,906)
Deferred revenue			56,281						(16,811)						14,948
Other current liabilities			(10,353)						25,527						(20,276)
Other non-current assets and liabilities			(8,876)						(28,580)						(5,748)
Net cash provided by operating activities			312,508						366,584						251,200
Cash flows from investing activities:
Cash paid for business acquisition, net of cash acquired			—						(55,902)						—
Cash paid for asset acquisition			—						—						(29,930)
Purchases of property and equipment and capitalization of internal-use software development costs			(191,847)						(204,695)						(196,008)
Purchases of short- and long-term marketable securities			(161,455)						(113,325)						(7,080)
Proceeds from sales, maturities and redemptions of short- and long-term marketable securities			35,606						7,459						1,112,955
Other, net			(1,798)						71						(3,091)
Net cash (used in) provided by investing activities			(319,494)						(366,392)						876,846
Cash flows from financing activities:
Payments from the issuance of convertible senior notes, net of issuance costs			—						(594)						—
Proceeds from the issuance of common stock under stock plans			21,619						13,553						20,182
Employee taxes paid related to net share settlement of stock-based awards			(106,574)						(13,789)						(72,063)
Repurchases of common stock			(205,886)						—						(499,963)
Other, net			(868)						(872)						(406)
Net cash used in financing activities			(291,709)						(1,702)						(552,250)
Effects of exchange rate changes on cash, cash equivalents and restricted cash			(5,672)						1,496						5,431
Net (decrease) increase in cash, cash equivalents and restricted cash			(304,367)						(14)						581,227
Cash, cash equivalents and restricted cash at beginning of period			931,308						931,322						519,084
Cash, cash equivalents and restricted cash at end of period			$	626,941					$	931,308					$	1,100,311

6

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY SOLUTION (1)

			Three Months Ended
(in thousands)			March 31, 2026						December 31, 2025						March 31, 2025
Security			$	589,790					$	592,358					$	530,695
Delivery and other cloud applications			389,208						408,888						416,843
Cloud Infrastructure Services			94,612						93,666						67,601
Total revenue			$	1,073,610					$	1,094,912					$	1,015,139
Revenue growth rates year-over-year:
Security			11		%				11		%				8		%
Delivery and other cloud applications			(7)						(3)						(6)
Cloud Infrastructure Services			40						45						30
Total revenue			6		%				7		%				3		%
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (2):
Security			9		%				9		%				10		%
Delivery and other cloud applications			(8)						(3)						(5)
Cloud Infrastructure Services			39						44						31
Total revenue			4		%				6		%				4		%

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY GEOGRAPHY

			Three Months Ended
(in thousands)			March 31, 2026						December 31, 2025						March 31, 2025
U.S.			$	543,147					$	552,849					$	528,739
International			530,463						542,063						486,400
Total revenue			$	1,073,610					$	1,094,912					$	1,015,139
Revenue growth rates year-over-year:
U.S.			3		%				4		%				3		%
International			9						11						2
Total revenue			6		%				7		%				3		%
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (2):
U.S.			3		%				4		%				3		%
International			5						8						5
Total revenue			4		%				6		%				4		%

(1) Beginning with the first quarter of 2026, the Company began reporting its revenue in three solution categories: security, delivery and other cloud applications and Cloud Infrastructure Services. Recognizing Cloud Infrastructure Services as a primary growth area and a significant focus of investment in the Company's cloud computing portfolio, the Company began reporting its revenue separately. Prior period amounts reported in the table for revenue by solution category have been recast to reflect this change.

(2) See Use of Non-GAAP Financial Measures below for a definition

7

AKAMAI TECHNOLOGIES, INC.

OTHER SUPPLEMENTAL DATA

			Three Months Ended
(in thousands, except end of period statistics)			March 31, 2026						December 31, 2025						March 31, 2025
Stock-based compensation:
Cost of revenue			$	21,677					$	19,196					$	18,928
Research and development			48,857						44,918						42,268
Sales and marketing			24,981						23,082						22,440
General and administrative			33,166						32,029						28,342
Total stock-based compensation			$	128,681					$	119,225					$	111,978
Depreciation and amortization:
Network-related depreciation			$	84,048					$	85,827					$	78,325
Capitalized internal-use software development amortization			42,568						39,383						40,095
Other depreciation and amortization			17,251						16,313						15,884
Non-GAAP depreciation and amortization (1)			143,867						141,523						134,304
Capitalized stock-based compensation amortization (2)			14,538						12,919						11,963
Capitalized interest expense amortization (2)			159						138						118
Amortization of acquired intangible assets			25,187						27,925						27,637
Total depreciation and amortization			$	183,751					$	182,505					$	174,022
Capital expenditures (1) (3):
Purchases of property and equipment			$	118,915					$	80,474					$	147,990
Capitalized internal-use software development costs			87,422						73,270						77,910
Total capital expenditures			$	206,337					$	153,744					$	225,900
Capex as a percentage of revenue (1)			19		%				14		%				22		%
End of period statistics:
Number of employees			11,419						11,382						10,811

(1) See Use of Non-GAAP Financial Measures below for a definition

(2) Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).

(3) Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

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AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND TAX RATE

			Three Months Ended
(in thousands)			March 31, 2026						December 31, 2025						March 31, 2025
Income from operations			$	114,494					$	94,876					$	154,583
GAAP operating margin			11		%				9		%				15		%
Amortization of acquired intangible assets			25,187						27,925						27,637
Stock-based compensation			128,681						119,225						111,978
Amortization of capitalized stock-based compensation and capitalized interest expense			15,016						13,490						12,359
Restructuring charge			183						54,602						361
Acquisition-related (benefit) costs			(759)						1,861						95
Legal settlements			—						4,000						—
Operating adjustments			168,308						221,103						152,430
Non-GAAP income from operations			$	282,802					$	315,979					$	307,013
Non-GAAP operating margin			26		%				29		%				30		%
Net income			$	106,319					$	85,072					$	123,171
Operating adjustments (from above)			168,308						221,103						152,430
Amortization of debt issuance costs			2,148						1,877						1,605
Gain on cost method investments, net			—						(57)						(9,313)
Income tax effect of above non-GAAP adjustments and certain discrete tax items			(37,515)						(37,929)						(11,797)
Non-GAAP net income			$	239,260					$	270,066					$	256,096
GAAP tax rate			13		%				18		%				29		%
Income tax effect of non-GAAP adjustments and certain discrete tax items			5						(1)						(10)
Non-GAAP tax rate			18		%				17		%				19		%

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AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE

			Three Months Ended
(in thousands, except per share data)			March 31, 2026						December 31, 2025						March 31, 2025
GAAP net income per diluted share			$	0.71					$	0.58					$	0.82
Adjustments to net income:
Amortization of acquired intangible assets			0.17						0.19						0.18
Stock-based compensation			0.86						0.81						0.74
Amortization of capitalized stock-based compensation and capitalized interest expense			0.10						0.09						0.08
Restructuring charge			—						0.37						—
Acquisition-related (benefit) costs			(0.01)						0.01						—
Legal settlements			—						0.03						—
Amortization of debt issuance costs			0.01						0.01						0.01
Gain on cost method investments, net			—						—						(0.06)
Income tax effect of above non-GAAP adjustments and certain discrete tax items			(0.25)						(0.26)						(0.08)
Adjustment for shares (1)			0.02						—						—
Non-GAAP net income per diluted share			$	1.61					$	1.84					$	1.70
Shares used in GAAP per diluted share calculations			150,022						146,970						151,064
Impact of benefit from note hedge transactions (1)			(1,338)						—						—
Shares used in non-GAAP per diluted share calculations (1)			148,684						146,970						151,064

(1) Shares used in non-GAAP per diluted share calculations have been adjusted for the three months ended March 31, 2026 for the benefit of Akamai's note hedge transactions. During this period, Akamai's average stock price was in excess of $93.01, which is the initial conversion price of Akamai's convertible senior notes due in May 2033. See Use of Non-GAAP Financial Measures below for further definition.

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AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

			Three Months Ended
(in thousands)			March 31, 2026						December 31, 2025						March 31, 2025
Net income			$	106,319					$	85,072					$	123,171
Net income margin			10		%				8		%				12		%
Interest and marketable securities income, net			(17,547)						(18,256)						(19,530)
Provision for income taxes			15,679						18,847						50,212
Depreciation and amortization			143,867						141,523						134,304
Amortization of capitalized stock-based compensation and capitalized interest expense			15,016						13,490						12,359
Amortization of acquired intangible assets			25,187						27,925						27,637
Stock-based compensation			128,681						119,225						111,978
Restructuring charge			183						54,602						361
Acquisition-related (benefit) costs			(759)						1,861						95
Legal settlements			—						4,000						—
Interest expense			8,257						7,893						6,750
Gain on cost method investments, net			—						(57)						(9,313)
Other expense, net			1,786						1,377						3,293
Adjusted EBITDA			$	426,669					$	457,502					$	441,317
Adjusted EBITDA margin			40		%				42		%				43		%

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Use of Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financial measures). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes, to measure executive compensation and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures, non-GAAP depreciation and amortization, capex as a percentage of revenue and impact of foreign currency exchange rates, as discussed below.

Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparison of financial results across accounting periods and to those of our peer companies. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai's operating results and future prospects in the same manner as management. These non-GAAP financial measures may exclude expenses and gains that may be unusual in nature, infrequent or not reflective of Akamai's ongoing operating results.

The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial measures and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of non-GAAP financial measures used in its financial reporting and investor presentations to the most directly comparable GAAP financial measures. This reconciliation can be found in the “Supplemental Financial Information” on the Investor Relations section of Akamai's website.

The non-GAAP adjustments, and Akamai's basis for excluding them from non-GAAP financial measures, are outlined below:

•Amortization of acquired intangible assets – Akamai has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Akamai has made. The amount of an acquisition's purchase price allocated to intangible assets and term of its related amortization can vary significantly and is unique to each acquisition; therefore, Akamai excludes amortization of acquired intangible assets from its non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.

•Stock-based compensation and amortization of capitalized stock-based compensation – Stock-based compensation is an important aspect of the compensation paid to Akamai's employees which includes long-term incentive plans to encourage retention, performance-based plans to encourage achievement of specified financial targets, short-term incentive awards with a one year vest and shares issued as part of a retirement savings program. The grant date fair value of the stock-based compensation awards varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of Akamai's current financial results to previous and future periods difficult to interpret; therefore, Akamai believes it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from its non-GAAP financial measures in order to highlight the performance of Akamai's core business and to be consistent with the way many investors evaluate its performance and compare its operating results to peer companies.

•Acquisition-related costs – Acquisition-related costs include transaction fees, advisory fees, due diligence costs and other direct costs associated with strategic activities. Acquisition-related costs are impacted by the timing and size of the acquisitions, and Akamai excludes acquisition-related costs from its non-GAAP financial measures to provide a useful comparison of operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the acquisition transactions and do not reflect Akamai's core operations.

•Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that business is conducted. These charges include severance and related expenses for workforce reductions, impairments of long-lived assets that will no longer be used in operations (including acquired intangible assets, right-of-use assets, other facility-related property and equipment and internal-use software) and termination fees for any contracts cancelled as part of these programs. Akamai excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

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•Amortization of debt issuance costs and capitalized interest expense – The issuance costs of Akamai's convertible senior notes are amortized to interest expense and are excluded from Akamai's non-GAAP results because management believes the non-cash amortization expense is not representative of ongoing operating performance.

•Gains and losses on cost method investments – Akamai has recorded gains and losses from the disposition, changes to fair value and impairment of cost method investments. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to these gains and losses are not representative of Akamai's core business operations and ongoing operating performance.

•Legal settlements – Akamai has incurred losses related to the settlement of legal matters. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of Akamai's core business operations.

•Income tax effect of non-GAAP adjustments and certain discrete tax items – The non-GAAP adjustments described above are reported on a pre-tax basis. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments) and excludes certain discrete tax items (such as the impact of intercompany sales of intellectual property related to acquisitions), if any. Akamai believes that applying the non-GAAP adjustments and their related income tax effect allows Akamai to highlight income attributable to its core operations.

Akamai's definitions of its non-GAAP financial measures are outlined below:

Non-GAAP income from operations – GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; acquisition-related costs; restructuring charges; legal settlements; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP operating margin – Non-GAAP income from operations stated as a percentage of revenue.

Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; amortization of debt issuance costs; amortization of capitalized interest expense; gains and losses on cost method investments; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transactions entered into in connection with the issuances of Akamai's convertible senior notes. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, Akamai would receive a benefit from the note hedge transactions and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of operating performance. With respect to the convertible senior notes due in each of 2033, 2029 and 2027, and those that matured in 2025, unless Akamai's weighted average stock price is greater than $93.01, $126.31, $116.18 and $95.10, respectively, the initial conversion prices, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.

Adjusted EBITDA – GAAP net income excluding the following items: interest and marketable securities income and losses; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; foreign exchange gains and losses; interest expense; amortization of capitalized interest expense; gains and losses on cost method investments; and other non-recurring or unusual items that may arise from time to time.

Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue.

Non-GAAP tax rate – GAAP tax rate excluding the tax effect of non-GAAP adjustments and certain discrete tax items.

Capital expenditures, or capex – Purchases of property and equipment and capitalization of internal-use software development costs presented on an accrual basis, which differs from the cash-basis presentation included in the statements of

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cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Capex as a percentage of revenue – Capital expenditures, or capex, stated as a percentage of revenue.

Non-GAAP depreciation and amortization – GAAP depreciation and amortization (which consists of depreciation and amortization of property and equipment, capitalized stock-based compensation, capitalized interest expense and acquired intangible assets), less depreciation and amortization excluded from non-GAAP results (which consists of depreciation and amortization of capitalized stock-based compensation, capitalized interest expense and acquired intangible assets).

Impact of foreign currency exchange rates – Revenue and earnings from international operations have historically been an important contributor to Akamai's financial results. Consequently, Akamai's financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of our international subsidiaries weaken, generally its consolidated results stated in U.S. dollars are negatively impacted.

Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. The dollar impact of changes in foreign currency exchange rates presented is calculated by translating current period results using monthly average foreign currency exchange rates from the comparative period and comparing them to the reported amount. The percentage change at constant currency presented is calculated by comparing the prior period amounts as reported and the current period amounts translated using the same monthly average foreign currency exchange rates from the comparative period.

Akamai Statement Under the Private Securities Litigation Reform Act

This release and related management commentary on our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai, including our outlook, guidance, growth objectives, statements about the anticipated benefits, timing, revenue and capital expenditure associated with customer commitments, including the commitment by a leading, U.S. based frontier model provider for Cloud Infrastructure Services, statements about expected levels of capital expenditure and infrastructure deployment and statements about our products, including Akamai Inference Cloud, and their anticipated capabilities, scalability and performance. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “committed,”“positioned,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; changes in customer or user preferences or demands; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, fluctuating interest rates, foreign currency exchange rate and monetary supply fluctuations, international tensions and volatility in capital markets; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the U.S.-Israel military conflict with Iran and related hostilities in the Middle East; continuing supply chain and logistics costs, constraints, changes or disruptions; risks associated with large customer commitments, including the customer’s ability to fulfill its purchase obligations, our ability to deploy the infrastructure necessary to service such commitments on anticipated timelines and our ability to procure sufficient hardware and memory at anticipated costs and on anticipated delivery schedules; our ability to achieve projected levels of capital expenditure and the anticipated returns therefrom; defects or disruptions in our products or IT systems, including outages, cyber-attacks, data breaches or malware; difficulties in integrating our acquisitions and investments; failure to realize the expected benefits of any of our acquisitions, reorganizations or investments; changes to economic, political and regulatory conditions in the United States and internationally, including changes in government policies, regulations and resources; our ability to attract and retain key personnel; delay in developing or failure to develop new products, service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.

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In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.

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FAQ

How did Akamai (AKAM) perform financially in Q1 2026?

Akamai generated $1.074 billion in Q1 2026 revenue, up 6% year-over-year. GAAP net income was $106 million with diluted EPS of $0.71, while non-GAAP diluted EPS was $1.61, down 5% from Q1 2025 as margins tightened.

What were Akamai’s key growth drivers in Q1 2026?

Growth was led by Cloud Infrastructure Services, where revenue reached $95 million, up 40% year-over-year. Security revenue was another driver at $590 million, up 11%. Overall revenue increased 6% to $1.074 billion compared with Q1 2025.

What is the significance of Akamai’s $1.8 billion AI cloud commitment?

A leading U.S.-based frontier model provider committed $1.8 billion over seven years for Akamai’s Cloud Infrastructure Services. This long-term agreement underscores Akamai’s role as an infrastructure provider in the AI economy and supports future demand for its cloud computing platform.

How profitable was Akamai’s business in Q1 2026?

Akamai reported GAAP operating income of $114 million and an 11% GAAP operating margin. Non-GAAP income from operations was $283 million with a 26% non-GAAP operating margin. Adjusted EBITDA was $427 million, representing a 40% margin on revenue.

What guidance did Akamai provide for Q2 and full-year 2026?

For Q2 2026, Akamai guided revenue to $1.075–$1.10 billion and non-GAAP EPS to $1.45–$1.65. For full-year 2026, it expects revenue of $4.445–$4.55 billion and non-GAAP EPS of $6.40–$7.15, with a non-GAAP tax rate of 18.5%.

How strong is Akamai’s cash flow and balance sheet after Q1 2026?

In Q1 2026, Akamai generated $313 million of cash from operations, equal to 29% of revenue. It ended March 31, 2026 with $1.733 billion in cash, cash equivalents and marketable securities and total assets of $11.646 billion.

Did Akamai repurchase shares during Q1 2026 and at what price?

Yes. Akamai repurchased 2 million shares of common stock in Q1 2026 for $206 million. The weighted average repurchase price was $105.47 per share, and the company had 146 million shares outstanding as of March 31, 2026.

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