Overview

* Akamai ( AKAM ) Q3 revenue grows 5% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting strong performance

* Company launches Akamai Inference Cloud during the qtr, focusing on AI at the edge

Outlook

* Company expects Q4 revenue between $1.065 bln and $1.085 bln

* Akamai ( AKAM ) projects full-year revenue between $4.178 bln and $4.198 bln

* Company anticipates Q4 non-GAAP EPS between $1.65 and $1.85

* Akamai ( AKAM ) expects full-year non-GAAP EPS between $6.93 and $7.13

Result Drivers

* CLOUD INFRASTRUCTURE SERVICES - Revenue from Cloud Infrastructure Services grew 39% yr/yr, driven by demand for compute and storage solutions

* SECURITY PRODUCTS - Security revenue increased 10% yr/yr, reflecting continued success of high-growth security offerings

* AKAMAI INFERENCE CLOUD - Launched Akamai Inference Cloud to enable AI at the edge, powered by NVIDIA AI infrastructure

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $1.05 $1.04

Revenue Beat* bln bln (20

Analysts

)

Q3 Beat $1.86 $1.64

Adjusted (20

EPS Analysts

)

Q3 EPS $0.97

Q3 Beat $269 mln $238.27

Adjusted mln (18

Net Analysts

Income )

Q3 Net $140.17

Income mln

Q3 Beat $458 mln $430.86

Adjusted mln (20

EBITDA Analysts

)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Akamai Technologies Inc ( AKAM ) is $90.00, about 18.9% above its November 5 closing price of $72.98

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)