Akamai Technologies Inc., once the undisputed king of content delivery networks, is executing a high-stakes pivot toward cybersecurity and distributed cloud computing, betting its vast edge network will become indispensable in an AI-driven world. With security revenue surging past $2 billion in 2024 and cloud infrastructure services accelerating, the company is reshaping its identity from a legacy CDN provider to a fortified platform for enterprise-grade protection and low-latency compute. This transformation, underway for years through acquisitions and organic innovation, faces a pivotal test in the upcoming Q4 2025 earnings call on February 19, 2026.

The shift reflects broader industry pressures: hyperscalers like Amazon Web Services and Google Cloud encroaching on commoditized delivery services, while exploding threats—such as the 150 billion API attacks recorded between January 2023 and December 2024—demand sophisticated defenses. Akamai’s global footprint of over 4,000 points of presence positions it uniquely to deliver Zero Trust architectures and microsegmentation at the network edge, where traditional firewalls fall short. “Akamai delivered a solid fourth quarter, demonstrating robust profitability and sustained momentum across our security and cloud computing solutions,” said Dr. Tom Leighton, Akamai’s CEO, in the Q4 2024 earnings release from Akamai’s press release.

In Q4 2024, security revenue hit $535 million, up 14% year-over-year, powering total revenue to $1.02 billion—a 3% increase. Full-year 2024 security sales reached $2.043 billion, a 16% rise, now comprising about half of Akamai’s business alongside compute. Delivery revenue, meanwhile, declined 18% to $318 million in that quarter, underscoring the urgency of the pivot detailed in Ad-Hoc-News.

Security Surge Fuels Margin Expansion

Akamai’s security portfolio, bolstered by acquisitions like Guardicore for microsegmentation and Prolexic for DDoS protection, targets regulated sectors including finance, critical infrastructure, and public agencies. Guardicore segmentation solutions drove much of the Q4 growth, while API security products expanded at 35-48% rates in high-growth segments. The company’s State of the Internet report highlighted the API attack explosion, emphasizing microsegmentation’s role in containing breaches—a capability now extended via partnerships like the January 2026 deal with Deutsche Telekom Security, as reported by StockTitan.

FedRAMP High Ready status for Akamai Cloud, achieved in December 2025, opens doors to U.S. government contracts requiring stringent Zero Trust compliance, per Simply Wall St. This certification validates Akamai’s platform for sensitive workloads, aligning with sovereign cloud demands in Europe and beyond. Security and compute now represent 69% of revenue, up from prior years, with non-GAAP operating margins holding steady around 31% despite rising capital expenditures.

Analysts note the pivot’s success: “Akamai has successfully transformed from a commoditized CDN provider into a cybersecurity and distributed cloud leader,” according to BeyondSPX, which pegged security at over $2 billion for 2024 with 16% growth.

Compute Ambitions Power AI Workloads

Akamai Connected Cloud, integrating the former Linode acquisition, has evolved into the world’s most distributed cloud platform, embedding Generalized Edge Compute (Gecko) across its edge network. This enables AI/ML inference closer to users, addressing GPU scarcity via CPU-based optimizations with partners like Neural Magic. A multi-year deal with a major tech firm commits over $100 million to Akamai’s cloud services, including managed Kubernetes and load balancing, as announced in Akamai’s IR site.

Cloud infrastructure services (CIS) revenue grew 39% year-over-year in Q3 2025, with full-year 2025 projections at 40-45% ARR growth. “Technology platforms with a massive global presence require sophisticated and reliable cloud services,” said COO Adam Karon in the deal announcement. Q3 2025 total revenue hit $1.06 billion, beating estimates, driven by CIS and security, per Akamai’s quarterly filings.

IDC research commissioned by Akamai reveals generative AI pushing enterprises toward edge-first infrastructure for performance, security, and compliance. “GenAI is shifting from experimentation to enterprise-wide deployment,” said Daphne Chung of IDC Asia-Pacific in Akamai’s press release.

Agentic Commerce and Strategic Alliances

Akamai’s December 2025 collaboration with Visa integrates Trusted Agent Protocol with Akamai’s behavioral intelligence to secure AI agents in “agentic commerce,” where autonomous agents execute transactions. “The promise of agentic commerce hinges on recognition: the fundamental ability to trust an agent acting on someone’s behalf,” said Visa’s Chief Product & Strategy Officer in Visa’s announcement. This positions Akamai as core infrastructure for AI-driven e-commerce.

The ISV Catalyst program, launched the same month, aids independent software vendors in building AI-ready solutions on Akamai’s platform, per Yahoo Finance. CEO Tom Leighton highlighted internal GenAI efficiencies boosting productivity in a Bloomberg interview cited by StartupHub.ai.

Seeking Alpha rates AKAM a buy with a $108.20 target, citing edge AI inference offsetting CDN declines, as in Seeking Alpha.

Financial Pressures and Investor Scrutiny

Despite gains, challenges persist: legacy delivery down 4% in Q3 2025, heavy CapEx for compute ramps, and reliance on large contracts. Q4 2025 EPS is projected at $1.13, down 5%, with revenue at $1.08 billion up 5.59%, per AInvest. Full-year 2025 revenue guidance: $4.178-$4.198 billion.

Morgan Stanley upgraded to Overweight with $115 target in January 2026, praising content delivery, security, and edge compute, boosting shares 3.5%, according to Barchart. Ad-Hoc-News questions if investors should buy or sell ahead of earnings, focusing on managed security offsetting legacy shifts.

Akamai repurchased $819.51 million in shares under its 2024 plan. With Q4 2025 results looming, the market awaits proof that security and compute can sustain 7-10% and 40%+ growth, respectively, amid AI tailwinds.

Edge Dominance in Prospect