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CAMBRIDGE, Mass. - Akamai Technologies, Inc. (NASDAQ:AKAM) reported fourth quarter earnings that beat analyst estimates, but shares fell sharply, by 5.6%, in after-hours trading Thursday as the company’s guidance came in below expectations.
The cybersecurity and cloud computing company posted adjusted earnings per share of $1.66, surpassing the consensus estimate of $1.52. Revenue for the quarter was $1.02 billion, slightly above analysts’ projections of $1.01 billion and up 3% YoY.
However, Akamai’s outlook for the first quarter and full year 2025 disappointed investors. The company forecast Q1 EPS of $1.54-$1.59, below the $1.61 consensus. Q1 revenue guidance of $1-1.02 billion also fell short of the $1.04 billion analysts expected.
For the full year 2025, Akamai projects EPS of $6.00-$6.40, well below the $6.82 consensus estimate. The company sees 2025 revenue of $4-4.2 billion, compared to analysts’ expectations of $4.25 billion.
"Akamai delivered a solid fourth quarter, demonstrating robust profitability and sustained momentum across our security and cloud computing solutions," said CEO Dr. Tom Leighton.
The company’s security revenue grew 14% YoY to $535 million in Q4, while compute revenue rose 24% to $167 million. However, delivery revenue declined 18% to $318 million.
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