Akamai surges as $1.8 billion cloud deal eclipses downbeat forecast

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May 7, 2026 4:04 PM EDT

By Zaheer Kachwala

May ‌7 (Reuters) - Shares ​of ​Akamai Technologies soared 24% in extended trading on Thursday after the ‌company disclosed a $1.8 billion long-term cloud deal ⁠with a frontier model provider.

Still, the company forecast ‌underwhelming quarterly results as ‌a sharp rise in prices of memory infrastructure ripples across the industry, hitting ​profits and hiking costs and prompting firms to get cautious with spending.

"There's some ⁠component prices that have gone up quite a bit in ​response to the increased demand. I think Akamai is in a good ​position to get access to ‌all the components, CPUs, GPUs we need," CEO Tom Leighton told ⁠Reuters.

• The company forecast second-quarter revenue of between $1.08 billion and $1.10 billion, compared with estimates of $1.10 ⁠billion, according to data compiled by LSEG.

• It ​expects second-quarter adjusted profit of $1.45 to $1.65 per share, while analysts expect $1.68 per share.

• Revenue for the first ‌quarter came in at $1.07 billion, in line with Wall Street expectations.

• ‌It reported profit per share of 71 ⁠cents, compared with ‌82 cents per ​share a year ago.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim ‌Zahid)


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