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CAMBRIDGE, Mass. - Akamai Technologies, Inc. (NASDAQ:AKAM) shares gained 4% after the cybersecurity and cloud computing company reported third-quarter earnings that exceeded analyst expectations and provided an optimistic outlook for the remainder of the year.
The company posted adjusted earnings of $1.86 per share, significantly beating the analyst consensus of $1.64. Revenue reached $1.055 billion, surpassing estimates of $1.04 billion and representing a 5% increase YoY, or 4% when adjusted for foreign exchange rates.
Akamai’s security business continued to drive growth, with revenue increasing 10% YoY to $568 million. Cloud Infrastructure Services showed particularly strong momentum, surging 39% YoY to $81 million. However, delivery revenue declined 4% YoY to $306 million.
"Akamai delivered a strong quarter, with solid top-line performance and excellent bottom-line results, highlighted by outperformance on margins and significant year-over-year EPS growth," said Dr. Tom Leighton, Akamai’s Chief Executive Officer.
The company’s shares climbed 4% following the announcement as investors responded positively to both the quarterly performance and forward guidance. For the fourth quarter, Akamai expects revenue between $1.065 billion and $1.085 billion, with adjusted EPS ranging from $1.65 to $1.85. Both projections align with or exceed analyst expectations.
For the full year 2025, the company raised its outlook, projecting revenue of $4.178-4.198 billion and adjusted EPS of $6.93-7.13, above the consensus estimates of $4.175 billion and $6.72, respectively.
The company also highlighted the recent launch of its Akamai Inference Cloud, powered by NVIDIA AI infrastructure, designed to enable AI at the edge.
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