Akamai Signs $600 Million Four-Year Cloud Contract

The Tip Desk · August 7, 2026 · 3 min read

Cloud Infrastructure Services revenue was $99 million, up 39% year-over-year, as year-to-date multi-year CIS contracts exceeded $2.8 billion.

Akamai Technologies, Inc. (AKAM), the cybersecurity and cloud computing company, reported second-quarter revenue of $1.100 billion, a 5% increase from a year earlier. That growth rate slowed from 6% in the first quarter and 7% in the fourth quarter of 2025.

The mix of the business continued to shift toward cloud. Cloud Infrastructure Services revenue was $99 million, up 39% year-over-year and when adjusted for foreign exchange. That pace eased from 40% in the first quarter and 45% in the fourth quarter of 2025. Security revenue was $604 million, up 10% year-over-year and 9% when adjusted for foreign exchange. Delivery and other cloud applications revenue was $396 million, down 6% year-over-year and 5% when adjusted for foreign exchange. U.S. revenue was $550 million, up 4% year-over-year; international revenue was $549 million, up 6% year-over-year and 7% when adjusted for foreign exchange.

Chief Executive Officer Dr. Tom Leighton said the company delivered a strong second quarter highlighted by sustained momentum across security and CIS. Year-to-date, Akamai had signed numerous customers to multi-year CIS contracts collectively worth more than $2.8 billion, including a contract with a U.S.-based technology company that is also a new customer, worth more than $600 million over four years to power robotics development. Those wins followed a $1.8 billion seven-year CIS commitment from a leading U.S. frontier model provider announced with first-quarter results. Leighton said the major contract wins validate Akamai’s growing position as a key AI infrastructure provider.

Profitability compressed. GAAP income from operations was $80 million, a 47% decrease from the second quarter of 2025, and GAAP operating margin was 7%, down 8 percentage points from the same period last year. Non-GAAP income from operations was $271 million, a 12% decrease, and non-GAAP operating margin was 25%, down 5 percentage points. GAAP net income was $79 million, a 23% decrease. Non-GAAP net income was $236 million, down 6%. GAAP net income per diluted share was $0.52, down 27% year-over-year and 22% when adjusted for foreign exchange. Non-GAAP net income per diluted share was $1.59, down 8% year-over-year and 6% when adjusted for foreign exchange. Adjusted EBITDA was $416 million, a 6% decrease.

Capital spending stepped up. Accrual-basis capital expenditures were $347 million, or 32% of revenue, compared with 19% in the first quarter. Cash from operations was $326 million, or 30% of revenue. Cash, cash equivalents and marketable securities were $4.616 billion as of June 30, 2026, after a convertible notes raise and related warrant and hedge activity in the quarter. The company spent $410 million to repurchase 3 million shares at a weighted average price of $134.54 a share; 144 million shares were outstanding at quarter-end.

For the three months ending September 30, 2026, Akamai guides revenue of $1.105 billion to $1.130 billion, non-GAAP operating margin of 24% to 26%, and non-GAAP net income of $1.60 to $1.80 a share, using a 19% tax rate and 150 million shares. For the year ending December 31, 2026, it guides revenue of $4.445 billion to $4.530 billion, non-GAAP operating margin of 25% to 26%, and non-GAAP net income of $6.40 to $7.05 a share.