Akamai Delivers Record GAAP EPS Growth and Surging Cloud Infrastructure Revenue in Q3 2025
Margin Expansion and EPS Outperformance Drive the Quarter’s Strength
Akamai’s third quarter 2025 results weren’t just solid—they delivered headline-making numbers where it counts: earnings and margins. GAAP net income per diluted share leaped 155% year-over-year to $0.97, with non-GAAP EPS up 17% to $1.86. These gains came alongside a significant jump in margins. The company posted a GAAP operating margin of 16% (up from 7% in Q3 2024), and a robust non-GAAP operating margin of 31%, signaling more efficient operations and improved profitability.
It’s clear Akamai is benefiting from more than just incremental sales growth—bottom line improvements are accelerating faster than top line, suggesting a fundamental shift in business quality and operational discipline.
Cloud Infrastructure Revenue Surges 39%—A Growth Engine Ignited
If investors wanted to spot where Akamai’s growth narrative is changing, look no further than its cloud infrastructure services. That segment delivered $81 million in revenue for the quarter, a staggering 39% jump from a year ago. Cloud computing as a whole also rose 8% to $180 million. While security remains the biggest contributor ($568 million, up 10%), it’s this cloud expansion—especially at these rates—that could reshape how investors value Akamai’s future potential.
| Segment | Q3 2025 Revenue ($M) | Y/Y Growth (%) |
|---|---|---|
| Cloud Infrastructure Services | 81 | 39 |
| Cloud Computing | 180 | 8 |
| Security | 568 | 10 |
| Delivery | 306 | -4 |
AI at the Edge: Launch of Akamai Inference Cloud Opens New Frontier
A major strategic highlight this quarter was the launch of the Akamai Inference Cloud, powered by NVIDIA AI infrastructure. The company aims to move AI inference from the core to the edge, promising ultra-low-latency and secure AI application delivery for real-time use cases. This push not only diversifies Akamai’s cloud offering, but also signals an aggressive move into next-generation workloads that many tech investors have been watching for. While still early, interest is reportedly strong—a factor worth monitoring in the quarters ahead.
Strong Cash Generation and Healthy Balance Sheet Underpin Flexibility
With $442 million in operating cash flow (42% of revenue) and $1.813 billion in cash, equivalents, and marketable securities at quarter’s end, Akamai is in a comfortable position to keep investing in growth. While no stock was repurchased this quarter, year-to-date buybacks hit $800 million at an average price of $79.77 per share, helping support shareholder value even as strategic bets are being made in cloud and AI.
| Metric | Q3 2025 Value |
|---|---|
| Cash from Operations | $442M |
| Adjusted EBITDA | $458M |
| Adjusted EBITDA Margin | 43% |
| Cash, Equivalents, Securities | $1.813B |
Looking Ahead: Guidance Stays Positive, with Focus on Execution
Akamai projects Q4 revenue in the $1.065B–$1.085B range and a non-GAAP EPS of $1.65–$1.85, in line with a continued push for strong margins and stable growth. Full-year 2025 guidance puts revenue at $4.178B–$4.198B, non-GAAP operating margins at 29%–30%, and capex steady at 20% of revenue, showing management’s confidence in sustaining both innovation and efficiency.
| Q4 2025 Guidance (Low-High) | Full Year 2025 Guidance (Low-High) |
|---|---|
| Revenue: $1,065M–$1,085M | Revenue: $4,178M–$4,198M |
| Non-GAAP Op Margin: 28%–30% | Non-GAAP Op Margin: 29%–30% |
| Non-GAAP EPS: $1.65–$1.85 | Non-GAAP EPS: $6.93–$7.13 |
| Capex as % of Revenue: 16% | Capex as % of Revenue: 20% |
Bottom Line: EPS Outperformance and Cloud Acceleration Are the Stories to Watch
Akamai’s Q3 2025 report delivers two main takeaways: margins and EPS are climbing even faster than revenue, and cloud infrastructure—particularly AI-focused—could be the lever for the next phase of growth. With robust cash flows and operational efficiency now pairing with genuine innovation in cloud and AI, investors may want to pay close attention to whether these trends accelerate further in upcoming quarters.
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