AKAM · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
AKAMAI TECHNOLOGIES INC · 2026-11-06 · Importance 52 · Surprise 56 · From source text
Third-quarter cost of revenue increased 17% year over year to $504.7 million, compared with revenue growth of 6% to $1.122 billion. Cost of revenue was approximately 45.0% of revenue, versus 40.7% a year earlier, implying a gross-margin decline of about 4.3 percentage points. Network build-out and supporting services rose to $86.4 million from $59.5 million, primarily because of compute-partner costs; co-location costs rose to $108.5 million from $86.8 million as the company expanded its platform. The company expects co-location, bandwidth, network-equipment depreciation, and internal-use software amortization costs to increase during the remainder of 2026, citing platform investment and higher co-location, server, and memory prices.
Key facts
- Akamai's cost of revenue was $504.690 million for the three months ended September 30, 2026, compared with $429.532 million in 2025, and $1,461.921 million for the nine months, compared with $1,275.012 million in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -16.7% | Akamai's cost of revenue was $504.690 million for the three months ended September 30, 2026, compared with $429.532 million in 2025, and… |