The US company surpasses expectations in Q2 2025 and raises its annual forecasts driven by contracts in artificial intelligence and strong international demand.
Akamai Technologies, Inc. (NASDAQ: AKAM), historically known for its role in content delivery networks (CDN), has solidified its transition toward an integrated cybersecurity and cloud computing platform. In Q2 2025, the company reported total revenues of $1.043 billion, representing a 7% year-over-year increase and a 6% currency-adjusted growth.
Beyond its strong overall performance, notable is the evolution of its cloud infrastructure services unit, which grew 30% year-over-year to reach $71 million, becoming Akamai’s fastest-growing segment.
📊 Diversified Growth: Security, Cloud, and International Expansion
Revenue from security solutions, traditionally Akamai’s strongest area, hit $552 million, up 11% year-over-year. Meanwhile, content delivery (Delivery) services declined by 3%, reflecting a strategic pivot toward higher-value areas.
The overall cloud business generated $171 million, up 13%, with expectations for this trend to accelerate in the second half of the year. Akamai projects its annual recurring revenue (ARR) from cloud infrastructure will grow between 40% and 45% by the end of 2025.
Regionally, US revenue was $528 million, up 4%, while international markets reached $516 million, with an impressive 10% year-over-year growth.
🧠 AI as a Growth Driver
Akamai’s CEO, Dr. Tom Leighton, emphasized that “AI is driving decisions, experiences, and operations, acting as a tailwind for Akamai.” The company has secured several major contracts related to the rise of artificial intelligence:
- A 3-year, $16 million agreement with an unidentified AI leader.
- A 2-year, $28 million contract with a major travel company.
- A 3-year, $18 million deal with a South Korean internet platform.
- A $19 million contract with a Japanese company.
- A 3-year, $10 million agreement with a multinational media firm.
These complement the $100 million contract signed in February with another undisclosed company using Akamai’s full-stack cloud computing suite.
☁️ New Solutions and Focus on Cloud AI
During the first half of the year, Akamai launched two key products to reinforce its cloud strategy:
- Akamai Container Service (February 2025): a managed container service.
- Akamai Cloud Inference (March 2025): an offering for AI inference workloads, designed to compete with options like AWS Inferentia or NVIDIA Triton.
These solutions strengthen Akamai’s focus on multi-cloud environments, edge computing, and AI-optimized infrastructure.
💰 Operating Margin and Profitability
The non-GAAP operating margin was 30%, one percentage point higher than in Q2 2024. Adjusted operating income reached $309 million, a 10% increase. Adjusted EBITDA amounted to $444 million, rising 9%.
GAAP net income was $104 million, a 21% decline, while non-GAAP net income grew 4% to $251 million.
Adjusted earnings per share were $1.73, up 9% from 2024.
🏗️ Investment in Capacity and Outlook for the Year
Q2 capital expenditures decreased to $214 million from $226 million in Q1. However, spending is expected to increase in Q3 due to investments in colocation and compute capacity.
Akamai raised its full-year revenue guidance to between $4.135 billion and $4.205 billion, representing an annual growth of 4–5%.
🎯 TikTok Joins the Picture
Notably, Akamai has, for the first time, included revenue from TikTok in its annual outlook, estimating that the Chinese social media platform will contribute between $40 and $50 million in 2025, with about half in the second half. This inclusion comes amid reduced likelihood of a TikTok ban in the US.
🔐 From CDN to Critical Infrastructure
Akamai is moving beyond its CDN roots to position itself as a major player in cybersecurity and distributed cloud computing. The strategy is paying off with multimillion-dollar contracts, rapid infrastructure growth, and a solid financial foundation supporting its transformation.
“We are helping companies maximize their AI investments, ensuring every interaction is intuitive, instant, and secure,” Leighton concluded.
Frequently Asked Questions (FAQ)
What is Akamai’s fastest-growing segment?
Cloud infrastructure services, which grew 30% year-over-year in Q2 2025.What role does Akamai play in artificial intelligence?
Akamai provides optimized network infrastructure and solutions for AI, including cloud inference and low-latency secure connectivity.Why has TikTok’s revenue now been included in forecasts?
Because the likelihood of a comprehensive ban in the US has decreased, and Akamai expects significant revenue from TikTok’s domestic traffic.Does Akamai still primarily operate as a CDN provider?
While maintaining its content delivery business, its current strategic focus is on security and cloud computing, especially with an emphasis on AI and edge computing.