Akamai Forecasts Weak Second Quarter Profit and Revenue
Akamai Technologies expects second-quarter revenue between 1.08 billion and 1.10 billion dollars as high memory costs and cautious spending weigh on results. The company also projected adjusted profit below Wall Street expectations amid competition from new agentic security tools.
AKAMAI TECHNOLOGIES INC forecast second-quarter profit and revenue below analyst estimates on May 7. The company expects adjusted profit between $1.45 and $1.65 per share, trailing the $1.68 per share anticipated by Wall Street. Higher infrastructure costs and shifting security demand are pressuring margins as enterprise clients tighten budgets.
### Infrastructure Costs Pressure Margins Rising memory hardware prices are increasing capital requirements for cloud service providers. Akamai prepares to spend more to secure crucial hardware, a trend affecting the broader technology sector. These expenses contributed to a first-quarter profit of 71 cents per share, down from 82 cents per share a year ago.
