Overview
- Akamai shares jumped more than 20% in premarket trading Friday after it disclosed a seven‑year, $1.8 billion commitment from a leading frontier model provider for its cloud infrastructure services.
- Akamai reported first‑quarter adjusted earnings of $1.61 per share on about $1.07 billion in revenue, which was roughly in line with Wall Street forecasts.
- For the June quarter, the company guided to $1.075 billion to $1.10 billion in revenue and non‑GAAP EPS of $1.45 to $1.65, with midpoints that analysts noted were below FactSet estimates.
- Cloud Infrastructure Services revenue rose 40% to $95 million as Akamai sells computing, storage, and tools to run AI applications closer to users, while security revenue grew 11% to $590 million and delivery revenue fell 7% to $389 million.
- The buyer was not named, described only as a leading AI lab, underscoring both the competitive scramble for AI customers and Akamai’s push to reposition itself in a market where tech giants are lifting data‑center spending.