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Akamai shares swing after cloud and robotics win counters mixed outlook
Second-quarter revenue rose 5% year over year to $1.1 billion, and cloud infrastructure revenue jumped 39% to $99 million alongside a $600 million-plus multi-year robotics-related customer commitment.
Akamai Technologies Inc. stock swung after the company delivered in-line results, a trimmed current-quarter outlook, and a small adjustment to its full-year forecast, according to coverage by Yahoo Finance.
On the quarter, Akamai reported second-quarter revenue of $1.1 billion, up 5% year over year, and non-GAAP diluted earnings per share of $1.59, which beat consensus estimates. GAAP diluted earnings per share came in at $0.52 due to rising investment expenses.
Segment trends highlighted the shift in the business, with security revenue climbing 10% to $604 million and cloud infrastructure services surging 39% to $99 million. Legacy delivery revenue contracted 6% to $396 million.
The earnings focus also centered on a multi-year customer commitment valued over $600 million for cloud infrastructure powering robotic workloads. The company said graphics processing unit capacity remains fully sold out, total multi-year cloud commitments signed year to date surpassed $2.8 billion, and full-year revenue guidance was set between $4.445 billion and $4.530 billion, with capital expenditures running at roughly 40% of revenue as infrastructure scales.