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Home/News Feed/Akamai shifts focus to cloud infrastructure and security with $1.8B contract, targeting strong growth by 2027
AKAM
$125.02
-$0.11 -0.09%

Akamai shifts focus to cloud infrastructure and security with $1.8B contract, targeting strong growth by 2027

Market News
14 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Akamai Technologies is transitioning from its declining content delivery business to focus on cloud infrastructure and security, supported by a $1.8 billion, seven-year cloud contract. The company expects its Cloud Infrastructure Services to grow at least 50% in 2026, driving double-digit total revenue growth by 2027 despite significant upfront capital expenditures. Akamai's valuation at 18.8 times 2026 non-GAAP earnings is considered reasonable due to committed demand, reducing risks compared to speculative investments. The company benefits from improved revenue visibility and dual AI-driven growth opportunities in infrastructure and security, leading to a cautious Buy rating.

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