Akamai Projects Lower-Than-Expected 2025 Revenue
Akamai Technologies has announced its financial outlook for 2025, projecting annual revenue below market estimates due to subdued demand for cloud and content delivery services.
The company cites macroeconomic uncertainties and inflation as factors impacting customer spending, leading to a slowdown in demand. Akamai's annual revenue guidance falls between $4.00 billion and $4.20 billion, lower than the analyst consensus of $4.26 billion.
Furthermore, Akamai faces increased competition from larger rivals such as Palo Alto Networks and CrowdStrike, who are investing heavily in artificial intelligence (AI) to offer comprehensive cybersecurity platforms.
Akamai's stock price declined by 6% in after-hours trading. The company also provides cloud platforms and content delivery services, serving clients such as Adobe, eBay, Electronic Arts, and government agencies.
In its fourth quarter, Akamai reported revenue of $1.02 billion, meeting expectations. For the first quarter, it anticipates revenue between $1 billion and $1.02 billion, below the analyst estimate of $1.05 billion. On an adjusted basis, the company's quarterly earnings per share were $1.66, exceeding the estimate of $1.51.