AKAM Set to Report Q3 Results: Will Top-Line Growth Boost Earnings?

Akamai Technologies, Inc. AKAM is scheduled to release third-quarter 2025 results on Nov. 6, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 11.61%. It pulled off a trailing four-quarter earnings surprise of 7.1%, on average. The company is expected to report higher revenues year over year, backed by healthy demand in security and compute verticals across multiple end markets. Management’s focus on expanding its product portfolio to cater to advanced use cases is a tailwind.

Factors at Play

During the quarter, Akamai formed a strategic collaboration with Aqua Security. With this partnership, the companies aim to work on developing an integrated solution to ensure comprehensive protection for AI applications.

It has also teamed up with LevelBlue to enhance web application and API (application programming interface) security with the launch of LevelBlue’s Managed Web Application and API Protection service. The new service delivers adaptive, always-on protection aimed at reducing risk and operational overhead, powered by Akamai’s App & API Protector technology. These factors are expected to have a favourable impact on the security segment.

In the to be reported quarter, Akamai joined forces with Aptum, a leading managed hybrid cloud services provider. Aptum offers tailored infrastructure design and implementation, consulting and managed services that help organizations to solve critical IT challenges. The partnership of AKAM and Aptum will primarily focus on mitigating complexities in cloud transition processes, expediting cloud-based application development and ensuring cost efficiency. Such strategic collaboration will likely boost prospects in the Compute vertical.

Overall Expectations

Our estimate for revenues from the security segment is pegged at $579.2 million, suggesting 11.7% year-over-year growth. Our revenue estimate for the compute vertical is pegged at $192 million, indicating a 15.1% improvement year over year. Revenues from the delivery segment are projected to be $268.4 million.

For the third quarter of 2025, the Zacks Consensus Estimate for revenues is pegged at $1.04 billion, indicating year-over-year growth from $1 billion. The consensus estimate for adjusted earnings per share stands at $1.64, suggesting growth from $1.59 reported a year ago.

Earnings Whispers

Our proven model does not conclusively predict a earnings beat for Akamai this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Akamai Technologies, Inc. Price and EPS Surprise

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

Zacks Rank: Akamai currently has a Zacks Rank #2.

Other Stocks with Favorable Combination

Advanced Micro Devices, Inc. AMD is set to release quarterly numbers on Nov. 4. It has an Earnings ESP of +0.18% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Workday Inc. WDAY is +2.94% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 25.

The Earnings ESP for Qualcomm Incorporated QCOM is +1.43% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 5.

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This article originally published on Zacks Investment Research (zacks.com).

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