Categories AlphaGraphs, Earnings, Technology
Akamai Technologies stock gains after Q4 results top expectations
Shares of Akamai Technologies (AKAM) gained about 2% Tuesday after the cloud services provider reported stronger than expected earnings and revenues for the December quarter, reflecting broad-based demand growth led by the cloud security solutions segment.

During the quarter, revenue moved up 8% to a record high of $713 million, reflecting a 36% growth in the Cloud Security Solutions unit. Analysts had forecast slower growth. Contributing to the impressive top-line performance, Web Division revenue grew 9%, while the Media and Carrier Division registered an 8% gain. Meanwhile, revenues from Internet Platform Customers dropped 14%, continuing the recent trend.
Adjusted earnings climbed 51% to $1.07 per share and surpassed Wall Street estimates. Reported profit was $94.02 million or $0.57 per share, compared to $27.52 million or $0.16 per share in the fourth quarter of 2017. The results also came in above the management’s outlook.
Contributing to the impressive top-line performance, Web Division revenue grew 9%, while the Media and Carrier Division registered an 8% gain
“We achieved our fifth consecutive quarter of non-GAAP operating margin improvement, and we are well on our way to achieving our 30% margin goal in 2020, while continuing to invest in innovation and new products to drive future growth,” said CEO Tom Leighton.
During the three-month period, the management repurchased around 1.9 million shares at an average price of $67.05 per share, spending a total of $124 million.
Akamai also announced the appointment of Ed McGowan as its new chief financial officer and executive vice-president, to succeed Jim Benson who will be retiring later this year. McGowan will assume his new responsibilities on March 1, 2019.
Related: Akamai Technologies Q4 2018 Earnings Conference Call Transcript
In a separate report, the Cambridge, Massachusetts-based company said it entered into a partnership with Mitsubishi UFJ Financial Group (MUFG) to set up a joint venture that will offer a new blockchain-based online payment network enabling next-generation transaction security and scale.
Akamai shares closed Tuesday’s regular session higher and moved up further in the after-hours trading following the earnings report. The stock has gained more than 19% so far this year.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips
Most Popular
Important takeaways from Conagra Brands’ Q4 2025 report
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported weaker-than-expected sales and adjusted earnings for its fourth quarter, reflecting ongoing economic uncertainty and muted consumer spending.
Delta Air Lines (DAL) gains on strong Q2 2025 performance
Shares of Delta Air Lines (NYSE: DAL) rose 12% on Thursday after the company delivered strong results for the second quarter of 2025 and restored its guidance for the full
CAG Earnings: Conagra Brands Q4 adj. profit drops, misses estimates
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported lower sales and adjusted earnings for the fourth quarter of 2025. Results missed analysts' estimates. Net sales