Akamai Tumbles 11% Despite Q4 Beat As 2026 Outlook Disappoints

Akamai Technologies, Inc. (NASDAQ:AKAM) shares are trading lower Friday after the company reported fourth-quarter financial results and issued fiscal-year 2026 adjusted earnings per share guidance below estimates. Also, the company issued first-quarter adjusted earnings per share guidance below estimates.

• Akami stock is showing downward bias. Where is AKAM stock headed?

Double Beat Overshadowed By Soft Fiscal-Year Outlook

Akamai reported adjusted earnings per share of $1.84, beating the consensus estimate of $1.75. In addition, it reported revenue of $1.09 billion, beating the consensus estimate of $1.07 billion.

Security revenue increased 11% year-over-year to $592 million, while Guardicore Segmentation and API Security revenue rose 36% to $90 million. Cloud Infrastructure Services revenue climbed 45% to $94 million. Delivery revenue declined 2% to $311 million.

Cash from operations totaled $367 million in the quarter. Cash, cash equivalents and marketable securities stood at $1.920 billion as of Dec. 31, 2025.

Looking ahead, the company sees fiscal-year adjusted earnings per share of $6.20 to $7.20, versus the consensus estimate of $7.31. Furthermore, Akamai anticipates revenue of $4.40 billion to $4.55 billion, versus the consensus estimate of $4.41 billion.

For the first-quarter the company expects adjusted earnings per share of $1.50 to $1.67, versus the consensus estimate of $1.75. It expects revenue from $1.06 billion to $1.08 billion, versus the consensus estimate of $1.06 billion.

Consensus Ratings And Analyst Action

The company has a consensus rating of Outperform and a consensus price target of $106.61. Recent analyst action include:

• RBC Capital analyst Rishi Jaluria maintained a Sector Perform rating on Akamai and raised the price target from $90to $100.
• Evercore ISI Group analyst Amit Daryanani maintained an Outperform rating on Akamai and raised the price target from $105 to $115.
• Susquehanna analyst Aaron Samuels maintained a Positive rating on Akamai and raised the price target from $105 to $120.
• Keybanc analyst Jackson Ader maintained an Overweight rating on Akamai and raised the price target from $115 to $120.

Akami Stock Falls Lower

AKAM Price Action: At the time of writing, Akami shares are trading 9.03% lower at $97.32, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.