The analyst sees risk to both Q3 and Q4 FY23 top-line estimates, with potential downside to Compute business, which will likely require the utilization of incremental capacity build-outs, most of which will probably come online in Q4.

On the other hand, the analyst sees a 2%-3% potential upside to current FY24 estimates, even if H2 FY23 results come slightly below expectations.

The analyst is bullish on expected new business growth in the mid-teens in the Security business, the utilization of incremental data center additions to drive Compute results, and the Delivery segment benefiting from H2 FY24 events, including the Summer Olympics/Presidential Election.

McDonough revised revenue and EPS estimates to $4.132 billion (from $4.137 billion) and $6.55 (from $6.56) for FY23. 

AKAM will report Q3 FY23 results on November 7, 2023.

Price Action: AKAM shares are trading lower by 0.58% at $102.00 on the last check Thursday.