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Akamai Technologies, Inc. (NASDAQ:AKAM), a technology company with a market capitalization of $11.4 billion, reported through an 8-K filing that during its annual meeting on May 14, 2025, shareholders approved an increase of 8 million shares to its stock incentive plan. The amendment, which was previously adopted by the Board of Directors, was contingent on shareholder approval. According to InvestingPro data, management has been actively buying back shares, demonstrating alignment with shareholder interests. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis.
The annual meeting also saw the election of directors for terms expiring at the next annual meeting in 2026. The board members elected include Sharon Bowen, Marianne Brown, Monte Ford, Dan Hesse, Tom Killalea, Tom Leighton, Jonathan Miller, Madhu Ranganathan, and Ben Verwaayen. The company maintains a strong financial position with a healthy current ratio of 1.18 and has demonstrated consistent profitability, as highlighted in InvestingPro’s comprehensive analysis.
In addition to the board elections, shareholders approved several other proposals. Notably, amendments to the company’s Amended and Restated Certificate of Incorporation were passed, which eliminate the existing supermajority voting requirements. These changes pertain to Articles Tenth, Eleventh, and Twelfth, dealing with board provisions, prohibition of stockholder action by written consent, and who can call special meetings of stockholders, respectively.
The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified as well.
Furthermore, a non-binding advisory proposal on the compensation of Akamai’s named executive officers received approval. The company also addressed the approval of a shareholder advisory proposal to give shareholders the ability to call a special shareholder meeting.
The Certificate of Amendment to the Amended and Restated Certificate of Incorporation, which includes the approved changes, became effective upon filing with the Secretary of State of the State of Delaware on the date of the annual meeting.
This report is based on information contained in an 8-K filing with the Securities and Exchange Commission. Looking ahead, 12 analysts have recently revised their earnings expectations upward for the upcoming period, suggesting positive momentum. For deeper insights into Akamai’s financial health and growth prospects, investors can access detailed analysis through InvestingPro, which offers exclusive ProTips and comprehensive financial metrics.
In other recent news, Akamai Technologies reported its Q1 2025 earnings, surpassing Wall Street expectations with a non-GAAP earnings per share (EPS) of $1.70, compared to the forecasted $1.57. Revenue reached $1.02 billion, slightly above the anticipated $1.01 billion. Akamai also announced plans for a $1.35 billion convertible notes offering, with proceeds allocated for repaying existing borrowings and repurchasing common stock. The company highlighted strong growth in cloud infrastructure services, with annual recurring revenue growth projected at 40-45%.
Akamai’s revenue grew by 3% year-over-year, driven by security and compute services, which now constitute 69% of total revenue. The company launched new products, including Firewall for AI and Managed Container Service, indicating continued innovation in the tech landscape. Despite the positive earnings performance, Akamai’s stock fell in after-hours trading. Analyst firms have not provided any new ratings updates in the recent articles.
Akamai’s ongoing transformation from a CDN pioneer into a cybersecurity and cloud computing entity is underscored by new contracts and expanded services. The company projects full-year 2025 revenue between $4.05 billion and $4.20 billion, with security revenue expected to grow by 10% in constant currency. Additionally, Akamai plans to maintain a non-GAAP EPS guidance between $6.10 and $6.40 for the year.
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