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Akamai Reports Q1 In Line, Issues Q2 and Full-Year Guidance

A long-term AI contract underscores its push into cloud infrastructure.

Overview

  • The cloud services company posted $106.3 million in profit on $1.07 billion in revenue, with adjusted earnings of $1.61 per share that matched the Zacks consensus.
  • For the second quarter, Akamai projected revenue of $1.08 billion to $1.10 billion with adjusted earnings of $1.45 to $1.65 per share.
  • Full-year guidance calls for $4.45 billion to $4.55 billion in revenue and $6.40 to $7.15 in earnings per share.
  • Shares jumped about 30% in after-hours trading to $151.25, according to Benzinga, following the results.
  • Benzinga reported a seven-year, $1.8 billion commitment from a leading frontier AI model customer for Akamai’s Cloud Infrastructure Services, and said that unit’s revenue rose 40% to $95 million as security revenue grew 11% to $590 million.