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{\"0\":\"Akamai\'s Q2 revenues rose 7% Y/Y to $1.04B, topping estimates on security and compute momentum.\",\"1\":\"Security Technology Group sales grew 11% to $551.9M, fueled by Guardicore and API security demand.\",\"2\":\"Delivery segment revenues fell to $320M from $329.4M, down 3% year over year.\"}
Akamai Technologies, Inc. (AKAM - Free Report) reported strong second-quarter 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate.
The company reported a top-line expansion year over year, driven by healthy demand trends in multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver.
Net Income
GAAP net income declined to $103.6 million or 71 cents per share from $131.7 million or 86 cents per share in the year-ago quarter. High operating expenses affected the net income.
Non-GAAP net income was $251.4 million or $1.73 per share compared with $242.6 million or $1.58 per share a year ago. The bottom line beat the Zacks Consensus Estimate by 18 cents.
Akamai Technologies, Inc. Price, Consensus and EPS Surprise
Quarterly net sales were $1.04 billion compared with $979.6 million reported in the year-ago quarter. The 7% year-over-year uptick was driven by strong momentum in the Security and Compute verticals. Revenues surpassed the Zacks Consensus Estimate of $1.02 billion.
By product groups, revenues from the Security Technology Group were $551.9 million compared with $498.7 million in the year-ago quarter. The 11% year-over-year growth was primarily backed by growing demand for Guardicore Segmentation Solution. The company is experiencing healthy traction for its API security solutions in various end markets, including financial services, retail, electric vehicles and more. However, net sales missed our estimate of $553 million.
The Delivery segment contributed $320 million, down from $329.4 million in the year-ago quarter. However, the segment’s revenues surpassed our estimate of $301.6 million.
The Compute segment registered $171.4 million in revenues, up from $151.5 million in the prior-year quarter. The growth was driven by healthy demand for cloud infrastructure services. The segment’s revenues beat our estimate of $165.7 million.
Region-wise, net sales from the United States came in at $527.6 million, up 4% year over year. International revenues totaled $515.9 million, up from $470.8 million in the year-earlier quarter.
Other Details
In the June quarter, total operating expenses rose to $892 million from $831.6 million reported in the prior-year period. Non-GAAP income from operations improved to $308.6 million from $281.5 million, with margins of 30% and 29%, respectively. Adjusted EBITDA was $444.4 million, up from $408.9 million in the year-ago quarter.
Cash Flow & Liquidity
In the second quarter of 2025, Akamai generated $459.1 million in cash from operating activities compared with $430.9 million in the prior-year quarter. As of June 30, 2025, the company had $850.3 in cash and cash equivalents, with $898.6 million of operating lease liabilities. During the quarter, it repurchased approximately 3.9 million shares for around $300 million.
Outlook
For the third quarter of 2025, Akamai expects revenues in the range of $1.03 billion to $1.05 billion. Non-GAAP operating margin is projected to be 28%. Non-GAAP operating expense is projected to be in the range of $327-$332 million. EBITDA margin is forecasted at 41%. Non-GAAP earnings are forecasted to be in the range of $1.62-$1.66 per share.
For 2025, Akamai expects revenues in the range of $4.135 billion to $4.2 billion. It expects a non-GAAP operating margin of 29%. Non-GAAP earnings are now projected to be in the range of $6.60-$6.80 per share.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Jabil, Inc. (JBL - Free Report) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
Motorola Solutions, Inc. (MSI - Free Report) currently carries a Zacks Rank 2. The company delivered an earnings surprise of 6.8% in the trailing four quarters.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. MSI intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
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Akamai Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Akamai Technologies, Inc. (AKAM - Free Report) reported strong second-quarter 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate.
The company reported a top-line expansion year over year, driven by healthy demand trends in multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver.
Net Income
GAAP net income declined to $103.6 million or 71 cents per share from $131.7 million or 86 cents per share in the year-ago quarter. High operating expenses affected the net income.
Non-GAAP net income was $251.4 million or $1.73 per share compared with $242.6 million or $1.58 per share a year ago. The bottom line beat the Zacks Consensus Estimate by 18 cents.
Akamai Technologies, Inc. Price, Consensus and EPS Surprise
Akamai Technologies, Inc. price-consensus-eps-surprise-chart | Akamai Technologies, Inc. Quote
Revenues
Quarterly net sales were $1.04 billion compared with $979.6 million reported in the year-ago quarter. The 7% year-over-year uptick was driven by strong momentum in the Security and Compute verticals. Revenues surpassed the Zacks Consensus Estimate of $1.02 billion.
By product groups, revenues from the Security Technology Group were $551.9 million compared with $498.7 million in the year-ago quarter. The 11% year-over-year growth was primarily backed by growing demand for Guardicore Segmentation Solution. The company is experiencing healthy traction for its API security solutions in various end markets, including financial services, retail, electric vehicles and more. However, net sales missed our estimate of $553 million.
The Delivery segment contributed $320 million, down from $329.4 million in the year-ago quarter. However, the segment’s revenues surpassed our estimate of $301.6 million.
The Compute segment registered $171.4 million in revenues, up from $151.5 million in the prior-year quarter. The growth was driven by healthy demand for cloud infrastructure services. The segment’s revenues beat our estimate of $165.7 million.
Region-wise, net sales from the United States came in at $527.6 million, up 4% year over year. International revenues totaled $515.9 million, up from $470.8 million in the year-earlier quarter.
Other Details
In the June quarter, total operating expenses rose to $892 million from $831.6 million reported in the prior-year period. Non-GAAP income from operations improved to $308.6 million from $281.5 million, with margins of 30% and 29%, respectively. Adjusted EBITDA was $444.4 million, up from $408.9 million in the year-ago quarter.
Cash Flow & Liquidity
In the second quarter of 2025, Akamai generated $459.1 million in cash from operating activities compared with $430.9 million in the prior-year quarter. As of June 30, 2025, the company had $850.3 in cash and cash equivalents, with $898.6 million of operating lease liabilities. During the quarter, it repurchased approximately 3.9 million shares for around $300 million.
Outlook
For the third quarter of 2025, Akamai expects revenues in the range of $1.03 billion to $1.05 billion. Non-GAAP operating margin is projected to be 28%. Non-GAAP operating expense is projected to be in the range of $327-$332 million. EBITDA margin is forecasted at 41%. Non-GAAP earnings are forecasted to be in the range of $1.62-$1.66 per share.
For 2025, Akamai expects revenues in the range of $4.135 billion to $4.2 billion. It expects a non-GAAP operating margin of 29%. Non-GAAP earnings are now projected to be in the range of $6.60-$6.80 per share.
Zacks Rank & Stocks to Consider
Akamai currently has a Zacks Rank #4 (Sell).
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Jabil, Inc. (JBL - Free Report) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
Motorola Solutions, Inc. (MSI - Free Report) currently carries a Zacks Rank 2. The company delivered an earnings surprise of 6.8% in the trailing four quarters.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. MSI intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.