Akamai Technologies Prepares for Q1 2025 Earnings Announcement

With a market cap of $10.8 billion, Akamai Technologies, Inc. (AKAM) stands as a global leader in content delivery networks and cloud infrastructure services. Headquartered in Cambridge, Massachusetts, Akamai delivers solutions that enhance the speed, security, and scalability of web applications. Its wide array of services includes security, performance optimization, and media delivery for businesses worldwide.

Upcoming Earnings Report

Akamai is set to announce its fiscal Q1 2025 earnings after the market closes on Thursday, May 8. Analysts anticipate a profit of $1.05 per share, reflecting a 7.9% decrease from $1.14 per share in the same quarter last year. Notably, during the past four quarters, the company has either surpassed or met Wall Street’s earnings expectations in two instances, while falling short in two others.

Fiscal Year Expectations

For fiscal 2025, analysts predict the cloud services provider will report EPS of $4.10, marking a 9.7% decline from $4.54 in fiscal 2024. However, EPS is expected to rebound with a growth of 8.1% year-over-year, reaching $4.43 in fiscal 2026.

Stock Performance Overview

Shares of Akamai Technologies have declined 21.6% over the past 52 weeks, lagging behind the broader S&P 500 Index’s ($SPX) 9.4% rise and the Technology Select Sector SPDR Fund’s (XLK) 4.2% gain in the same timeframe.

Recent Challenges

Despite reporting stronger-than-expected Q4 2024 adjusted EPS of $1.66 and revenue of $1.02 billion on February 20, Akamai’s shares fell 21.7% the following day. The company’s Q1 EPS guidance of $1.54 to $1.59, along with its expected revenue range of $1 billion to $1.02 billion, both disappointing analysts’ forecasts. For fiscal year 2025, Akamai projects EPS between $6 and $6.40, with revenue expected between $4 billion and $4.20 billion, also falling short of Wall Street’s expectations.

Additionally, Akamai forecasted that political challenges facing one of its largest customers could impact its revenue by 1% to 2% over the upcoming years.

Analysts’ Outlook

Analysts hold a cautiously optimistic consensus view on Akamai Technologies Stock, rating it as a “Moderate Buy.” Among 20 analysts covering the Stock, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” nine advise “Holds,” and one assigns a “Strong Sell.” Currently, AKAM is trading below the average analyst price target of $102.37.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.