Akamai Technologies (AKAM) is expected to deliver a Q1 top-line beat, with revenue at the high end of guidance, led by average contract size rising by mid-single digits year over year, Oppenheimer said Thursday.
The larger contracts are driven by increased adoption of Guardicore and Noname security modules and cloud infrastructure capabilities. Oppenheimer expects Guardicore uptake to grow at least 25% and Noname 65% in 2026, driving at least 10% growth for the security portfolio.
The agentic web offers a notable opportunity for Akamai. The company's API security is considered "best in class" and gives it an edge in multi-content delivery network environments. Separately, both delivery and compute should benefit from the proliferation of agents, according to the note.
Given underlying business strength, recent price hikes, and a potential second-half agentic AI boost, Akamai can easily achieve the high end of its full-year revenue guide of 8%, and accelerate to 9%-to-10% growth by Q4, the investment firm said.
The company is set to report Q1 results on May 7.
Oppenheimer maintained an outperform rating on Akamai and raised the price target to $130 from $115.
Price: $95.48, Change: $-1.63, Percent Change: -1.68%