Why Are Akamai Shares Trading Higher On Wednesday?

Akamai Technologies Inc. (NASDAQ:AKAM) shares were trending on Wednesday. Last week, the cybersecurity and cloud computing company announced first-quarter financial results topping analyst estimates.

• Akamai Technologies stock is at critical resistance. Why is AKAM stock breaking out?

Earnings Snapshot

Akamai reported first-quarter revenue of $1.074 billion for the period ended March 31, beating the analyst estimate by 0.17%. It was up 6% year-over-year.

The company reported earnings per share of $1.61, surpassing estimates by 8.78%. Akamai has now exceeded EPS expectations for six straight quarters.

For the second quarter, Akamai expected revenue of $1.075 billion-$1.100 billion, along with adjusted EPS of $1.45 to $1.65.

For full-year 2026, the company projected revenue of $4.445 billion to $4.550 billion, with non-GAAP EPS in the range of $6.40 to $7.15.

Rating Upgrade & Forecast Boost

Today, BofA Securities analyst Tal Liani upgraded the stock from Neutral to Buy and raised the price target from $130 to $175.

The analyst wrote that the company’s story shifted from a traditional content delivery network to a credible AI infrastructure platform. This was supported by meaningful cloud wins, including a $1.8 billion, seven-year contract, which underscored real demand for distributed AI beyond narrative-driven expectations.

The analyst said Cloud Infrastructure Services (CIS) was becoming a core growth driver, rising 40% year-over-year, fueled by AI workloads and edge inference demand. Brooks expected the new deal to add $20 million-$25 million per quarter starting in the fourth quarter, creating more recurring, capacity-based revenue.

The analyst expected growth to re-accelerate from 7% in 2026 to 11% in 2027.

Also, EPS was expected to rise from $6.93 in 2026 to $9.03 in 2028, remaining ahead of consensus across the period.

Also, AI demand would be driving elevated capex of $800–$825 million over the next 12 months (~40% of second quarter revenue), temporarily weighing on 2026 free cash flow, added the analyst.

AKAM Price Action: Akamai Technologies shares were up 4.95% at $156.97 at the time of publication on Wednesday, according to Benzinga Pro.

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