Akamai Technologies, Inc. (AKAM) AI Stock Analysis

Akamai Technologies, Inc. specializes in cloud services designed to secure, deliver, and optimize content, applications, and software across the internet. Its solutions safeguard infrastructure, websites, applications, and APIs from cyber threats while boosting performance. The company offers web and mobile performance solutions, media delivery services such as video streaming and game distribution, as well as cloud computing services encompassing compute, storage, networking, database management, and container security. It also delivers carrier solutions including cybersecurity protection, parental controls, and DNS infrastructure. Headquartered in Cambridge, Massachusetts, Akamai sells its offerings through direct sales, service organizations, and strategic channel partners.

Revenue grew from $3.46B in FY2021 to $4.21B in FY2025, recording a 5-year revenue CAGR of 5.6%. Annual revenue expanded 5.4% in FY2025, following 4.7% growth in FY2024. However, profitability has faced pressure: gross margin narrowed from 63.3% in FY2021 to 54.7% in FY2025, while operating margin shifted from 22.6% to 14.9%. Net income decreased from $651.6M in FY2021 to $452.0M in FY2025, though EPS rose from $5.74 to $6.50 over the same period. For the trailing twelve months ended June 30, 2026, revenue stood at $4.32B with an operating margin of 7.6% and a net profit margin of 9.5%. In the latest quarter, revenue rose 5.4% year-over-year, while earnings declined 26.8%.

As of June 30, 2026, Akamai held $3.36B in cash and short-term investments against total debt of $9.34B, resulting in net debt of $5.98B. Total assets stood at $15.07B and shareholders' equity was $4.75B, yielding a debt-to-equity ratio of 1.97 and a current ratio of 1.64. In FY2025, the company generated $1.52B in operating cash flow and $699.3M in free cash flow. Capital expenditures were $819.5M, while share buybacks totaled $800.0M, contributing to a 5-year share count reduction of 6.8%.

With a market cap of $12.62B and enterprise value of $23.01B, Akamai trades at a trailing P/E of 31.8x, slightly above the median of its S&P 500 Technology peers of 30.8x. Its forward P/E of 15.0x and price-to-sales of 2.9x trade below the peer medians of 20.9x and 6.3x, respectively. The company's EV/EBITDA stands at 18.3x compared to the peer median of 19.9x. Over the past year, the stock returned 20.4%, outperforming the S&P 500 return of 16.8%. Over five years, the stock returned -17.4% versus an 83.0% gain for the benchmark.

Wall Street coverage includes 10 Strong Buy, 5 Buy, 8 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target is $158.87, representing an 80.9% premium over the last close of $87.81. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.49B and EPS of $6.64, an EPS decline of 6.8%. For FY2027, 23 analysts project revenue of $5.22B and EPS of $6.85. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Akamai Technologies, Inc. (AKAM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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