AKAM shares rebound after reporting $1.1B Q2 revenue and a $600M cloud infrastructure win in robotics despite trimmed guidance.
Akamai Technologies (NASDAQ:AKAM) posted second-quarter revenue of $1.1 billion, a 5% year-over-year increase, with non-GAAP earnings per share at $1.59, exceeding estimates. GAAP EPS stood at $0.52 due to higher investment costs. Security revenue rose 10% to $604 million, while cloud infrastructure surged 39% to $99 million, offsetting a 6% decline in legacy delivery revenue to $396 million.
The company’s pivot to cloud and cybersecurity drove growth, highlighted by a $600 million multi-year robotics cloud deal. Despite a mixed outlook—with current-quarter guidance trimmed and full-year forecasts slightly lowered—investors focused on the strategic win, pushing shares higher after an initial dip.
AKAM stock, up over 35% year-to-date, recovered from post-earnings losses as the robotics contract underscored its transition from content delivery to higher-margin cloud services.