Akamai Upgraded to 'Buy' Following Major $1.8 Billion Cloud Services Deal

Akamai Technologies continues to see analyst adjustments as Craig Hallum upgraded the stock to 'Buy' with a $190 target, while UBS Group raised its price target from $110 to $160 despite maintaining a 'Neutral' rating. The optimism is fueled by a massive $1.8 billion cloud contract and strong Q1 performance, where Cloud Infrastructure revenue surged 40% and Security revenue grew 11%. However, the company's Q2 guidance fell below Wall Street estimates, hampered by rising memory costs and cautious enterprise spending. While Akamai has raised its long-term fiscal 2026 guidance, Q2 revenue is projected between $1.07 billion and $1.10 billion following Q1 revenue of $1.07 billion. Investors are currently weighing the impressive growth in high-margin segments against near-term macroeconomic headwinds and cost pressures.