Akamai raises annual results forecast on cybersecurity demand

Akamai Technologies AKAM raised its annual revenue and profit forecast on Thursday, helped by steady demand for its cloud infrastructure services and content delivery network offerings.

The company, whose shares rose 2.6% in extended trading, is seeing strong momentum in its security and compute verticals, as enterprises ramp up investments in securing applications and web infrastructure amid the accelerating adoption of cloud technologies.

Akamai's cloud infrastructure services grew 30% in the quarter. "We think it's going to accelerate as we go through the year on a much larger number, well over $250 million annual run rate, and quickly approaching $300 million and growing rapidly," CEO Tom Leighton told Reuters.

In the second quarter, Akamai saw a 22% increase in cyberattacks over the last quarter — the biggest hike it has seen in at least two years — driven in part by growing AI threats.

Customers are now seeking more longer-term contracts, Leighton added.

The Cambridge, Massachusetts-based company said it does not see a material impact from tariffs.

Akamai's customers include Adobe ADBE, eBay EBAY and Electronic Arts EA, as well as the U.S. Defense and Labor departments.

The cybersecurity company now expects annual revenue between $4.14 billion and $4.21 billion, ahead of its prior projection of $4.05 billion to $4.20 billion.

On an adjusted basis, Akamai sees per-share earnings in the range of $6.60 to $6.80, from its earlier forecast of between $6.10 and $6.40 apiece.

It expects revenue between $1.04 billion and $1.05 billion for the third quarter, compared with the analysts' average estimate of $1.04 billion, according to data compiled by LSEG.

Akamai posted revenue of $1.04 billion for the quarter ended June 30, compared to analysts' consensus estimate of $1.02 billion.