Akamai Technologies Set to Release Q1 2025 Earnings on May 8

Akamai Technologies, Inc. (AKAM) is set to announce its first-quarter 2025 results on May 8, after the market closes. In the previous quarter, the company achieved an earnings surprise of 9.21%. Over the last four quarters, Akamai posted an average earnings surprise of 3.42%. This upcoming report is expected to show higher year-over-year revenues, driven by strong demand in the security and compute sectors. Moreover, management’s emphasis on expanding its product offerings is adding to the favorable outlook.

Recent Developments

In the March quarter, Akamai secured a multiyear strategic partnership with one of the largest technology firms globally. This agreement will utilize Akamai’s complete cloud computing capabilities to enhance infrastructure services, which should positively impact future earnings.

Additionally, Akamai launched the Akamai Cloud Inference, a cutting-edge distributed edge platform aimed at optimizing AI development. This platform integrates Kubernetes orchestration with the Akamai App Platform, allowing organizations to swiftly deploy open-source Kubernetes infrastructure and efficiently run AI models for inference.

Also in this quarter, Akamai introduced a Managed Container Service, enabling businesses to operate workloads closer to users. Utilizing its global network that spans over 700 cities and 4,300 points of presence, this service is tailored for data-intensive, low-latency applications while ensuring predictable performance and cost through Akamai’s full-stack cloud infrastructure. These innovations are likely to bolster revenues for the upcoming report.

In collaboration with VAST Data, an AI data platform company, Akamai aims to enhance the efficiency of data-intensive AI inferencing. This aligns with Akamai’s vision of creating a distributed cloud model that facilitates low-latency, AI-driven applications and seamless data access across both edge and cloud environments. Furthermore, Smartbig USA Inc., the American arm of the Korean gaming company Smartbig, has chosen Akamai’s Connected Cloud to support its global gaming infrastructure. These initiatives are expected to contribute positively to revenue growth in the upcoming quarter.

Revenue Projections

We estimate that revenues from the security segment will reach approximately $522.8 million, reflecting a 6.5% increase year-over-year. Meanwhile, expected revenues from the compute vertical are estimated at $162.9 million, a rise of 12.7% year-over-year. The delivery segment is projected to generate $318.6 million in revenues. (Find the latest EPS estimates and surprises on Zacks earnings Calendar.)

For the first quarter of 2025, the Zacks Consensus Estimate for total revenues stands at $1.01 billion, up from $986.97 million last year. The consensus estimate for adjusted earnings per share is projected at $1.58, indicating a decrease from the $1.64 reported in the previous year.

Earnings Expectations

According to our analysis, Akamai’s current outlook suggests a potential earnings beat. A positive earnings ESP combined with a Zacks rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) strengthens this outlook. Currently, Akamai maintains a Zacks Rank: 3.

Earnings ESP: The earnings ESP, reflecting the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.07%. This metric can help uncover top stocks to consider before their earnings reports.

Akamai Technologies, Inc. Price and EPS Surprise

Akamai Technologies, Inc. price-eps-surprise | Akamai Technologies, Inc. Quote

Other Noteworthy Stocks

The earnings ESP for TELUS Corporation (TU) is currently +6.06% with a Zacks Rank of 3. This company will also report results on May 8. The earnings ESP for Advanced Micro Devices (AMD) is +0.74%, maintaining a Zacks Rank of 3 and set to report on May 6. Fortinet (FTNT) will announce its quarterly results on May 7, carrying an earnings ESP of +3.77% and a Zacks Rank of 3.