Akamai's cloud infrastructure services revenue has seen strong growth, with the company securing several large contracts.

The content delivery network (CDN) company's cloud segment saw a quarterly revenue of $71 million, up 30 percent year-over-year (YoY), while compute revenue for the company reached $171 million, up 13 percent. The previous quarter saw a combined $165m for both cloud and compute segments.

While still a small proportion of Akamai's overall revenue of $1.043bn (up seven percent YoY, and up from $1.015bn in the previous quarter) for the quarter, cloud infrastructure services are the fastest-growing segment for the company.

The growth comes off the back of several large contracts signed in the quarter, including a three-year, $16 million renewal and expansion with an unnamed "AI leader;" a two-year, $28 million deal with a "major travel firm;" a three-year, $18 million agreement with a "top South Korean Internet platform;" a $19 million contract with a Japanese Internet company; and a three-year, $10 million deal with a global media company.

Speaking about this success, CEO Tom Leighton said: "So far this year, compute and particularly cloud infrastructure services [are] where we're focused and [we are] seeing a really great growth [that] is meeting and exceeding expectations." He added that following the large contracts, the company is forecasting an increase of annual recurring revenue (ARR) for cloud of between 40 and 45 percent by the end of 2025.

The success also follows Akamai winning a major $100 million contract with an unnamed company in February 2025 that would use Akamai's "full-stack" cloud computing offering.

Security has remained Akamai's largest earner, bringing in $552 million, up 11 percent, followed by delivery revenue of $320 percent, down three percent. The operating margin for the quarter was 30 percent.

Capex dropped to $214m from Q1's $226m. The company expects Q3 capex to be greater, due to an increase in colocation and related costs as it plans to bring additional compute capacity online.

Akamai also announced its guidance for the full year of 2025, projecting revenue of between $4.135 billion and $4.205 billion, a growth of four to five percent.

Notably, within this, the company is including revenue from a contract signed with TikTok, which it had previously omitted. CFO Ed McGowan explained: "Despite initial concerns, the likelihood of a complete TikTok ban in the US appears to be less likely. With this in mind, we are now including domestic revenue from TikTok in our Q3 and full-year 2025 revenue guidance."

TikTok represents between $40-50 million for the year, half of which is included in guidance for the second half of 2025.

Akamai was previously known for its CDN services, but has since refocused on cloud and security offerings. The company launched a managed container service in February 2025, and a cloud inference offering in March.