Akamai Technologies (NASDAQ: AKAM) reported fourth-quarter results that exceeded Wall Street expectations, but shares fell roughly 10% intra-day Thursday as investors focused on weaker-than-anticipated guidance for the year ahead.
The cybersecurity and cloud services provider posted non-GAAP earnings of $1.84 per share, topping the consensus estimate of $1.75. Revenue increased 7% year over year to $1.095 billion, slightly ahead of analyst projections of $1.08 billion.
Growth was fueled by higher-margin security and cloud offerings. Security revenue advanced 11% to $592 million, while Guardicore Segmentation and API Security revenue surged 36% to $90 million. Cloud Infrastructure Services revenue climbed 45% to $94 million. In contrast, Delivery revenue declined 2% to $311 million.
GAAP net income per diluted share dropped 36% to $0.58, primarily due to a $55 million restructuring charge related to severance expenses and certain intangible asset impairments as the company aligned investments with long-term growth initiatives. Non-GAAP net income rose 6% to $270 million, and adjusted EBITDA increased 7% to $458 million, representing a margin of 42%.
For the full year, revenue rose 5% to $4.21 billion. Non-GAAP EPS grew 10% to $7.12, while GAAP EPS declined 6% to $3.07.
Looking ahead, Akamai forecast fiscal 2026 non-GAAP EPS between $6.20 and $7.20, below the consensus estimate of $7.34. The company projected revenue of $4.4 billion to $4.55 billion and a non-GAAP operating margin of 26% to 28%, guidance that appeared to weigh on investor sentiment despite the quarterly beat.
