AKAM · 10-Q · 2026Q3 · Full report
Capital Expenditure Outlook
AKAMAI TECHNOLOGIES INC · 2026-11-06 · Importance 64 · Surprise 42 · In source text
Akamai estimates approximately $6.8 billion of significant capital expenditures over the next several years to support recently announced large, multi-year cloud infrastructure services arrangements. Spending is expected to begin in the fourth quarter of 2026, accelerate in 2027 and continue into 2028, primarily to secure and deploy supporting infrastructure and equipment; these investments are expected to precede a significant portion of related customer cash inflows. The company expects to fund the investments through existing cash, cash equivalents and marketable securities, operating cash flows and available borrowing capacity, but says differences in the timing of expenditures and anticipated inflows could affect liquidity needs and may lead it to evaluate financing alternatives. As the arrangements ramp, Akamai expects a meaningful increase in operating cash flows beginning in 2028, enhancing internally generated funding and reducing leverage over time.
Key facts
- Akamai expects approximately $6.8 billion of capital expenditures over the next several years in connection with recently announced large, multi-year cloud infrastructure services arrangements. source
- Akamai’s purchases of property and equipment and capitalization of internal-use software development costs were $1,022,755 thousand for the nine months ended September 30, 2026, compared with $614,805 thousand in 2025. source
- Akamai intends to use a portion of the net proceeds from its 2030 and 2032 Notes to fund accelerated capital expenditure requirements for cloud infrastructure services, prioritizing rapid global footprint build-out, and for general corporate purposes; it also used a portion for share repurchases. source
- Akamai's network equipment depreciation was $90.751 million for the three months ended September 30, 2026, compared with $82.245 million in 2025, and $259.534 million for the nine months, compared with $242.394 million in 2025. source
- Akamai expects capital expenditures for the large, multi-year cloud infrastructure services arrangements to begin in the fourth quarter of 2026, accelerate in 2027, and continue into 2028, primarily to secure and deploy necessary infrastructure and equipment. source
- Akamai plans to continue investing in cloud infrastructure, including expanding its platform and capacity to support AI applications and its 2026 commitments. source
- Akamai expects higher server and memory costs driven by hyperscaler market dynamics to increase future capital expenditures and resulting depreciation expense. source
- Akamai plans to continue investing in its platform to support faster-growing cloud infrastructure services, including new enterprise customers and large multi-year arrangements entered into in 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | committed | -37.2% | Akamai expects approximately $6.8 billion of capital expenditures over the next several years in connection with recently announced large,… |
| assets | positive | committed | +37.2% | Akamai expects approximately $6.8 billion of capital expenditures over the next several years in connection with recently announced large,… |
| cash | negative | probable | — | Akamai expects capital expenditures for the large, multi-year cloud infrastructure services arrangements to begin in the fourth quarter of… |
| assets | positive | probable | — | Akamai expects capital expenditures for the large, multi-year cloud infrastructure services arrangements to begin in the fourth quarter of… |