Akamai posts 5% revenue growth but profit falls amid heavy cloud investments, HSBC downgrades to Hold.

Akamai Technologies reported a 5% increase in revenue to $1.1 billion for Q2 2026, driven by strong demand for AI and cybersecurity services. However, GAAP net income dropped to $79.4 million from $103.6 million due to significant investments in cloud infrastructure and rising operating costs. HSBC set a new price target of $123 but downgraded the stock to a Hold rating, reflecting cautious optimism. Akamai expects full-year 2026 revenues between $4.45 billion and $4.53 billion, with adjusted EPS projected between $6.40 and $7.05.