Akamai (AKAM) AI Stock Analysis

• Market Cap: $10.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.78
• Revenue Growth: 3.98%
• EPS Growth: -31.18%
• Country: US
• Employees: 10,811
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.73
• Shares Outstanding: 143,385,530
• 10 Day Avg. Volume: 2,031,734
• 30 Day Avg. Volume: 1,802,537
• PEG Ratio: -4.12
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 3.63
• P/FCF Ratio: 17.36
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 6.58
• Enterprise Value/Ebitda: 12.50
• 1Y Price Target: $94.73
• Price Target Upside: 25.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $85.00 ▲(12.20% Upside)

Akamai's overall stock score reflects strong financial performance and positive earnings call insights, particularly in cloud and security services. However, technical analysis and valuation suggest caution due to mixed market signals and a high P/E ratio. The company's strategic focus on growth areas is promising, but profitability pressures and competitive challenges in delivery remain concerns.

Positive Factors

Cloud Infrastructure Growth

The significant growth in cloud infrastructure services highlights Akamai's strong position in a rapidly expanding market, providing a durable revenue stream and enhancing its competitive edge.

Security Revenue Expansion

The increase in security revenue underscores Akamai's robust capabilities in cybersecurity, a critical area for long-term growth as demand for security solutions continues to rise globally.

Strategic Partnerships

The partnership with Harmonic to launch Media Services Live 5 enhances Akamai's media delivery capabilities, strengthening its market position in live streaming and expanding its service offerings.

Negative Factors

Declining Net Profit Margin

The declining net profit margin indicates pressure on profitability, which could affect Akamai's ability to reinvest in growth initiatives and maintain competitive pricing over the long term.

Rising Leverage

Increased leverage poses financial risk, potentially limiting Akamai's flexibility to invest in new opportunities or weather economic downturns, impacting long-term financial health.

Operating Margin Pressure

Expected declines in operating margins due to increased investments may strain profitability, challenging Akamai's ability to sustain its growth trajectory and manage costs effectively.

Akamai Business Overview & Revenue Model

Company Description

Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and edge compute solutions to enable developers to deploy and distribute code at the edge. In addition, the company offers carrier offerings, including cybersecurity protection, parental controls, DNS infrastructure and content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through direct sales and service organizations, as well as through various channel partners. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Akamai generates revenue primarily through its CDN and cloud services, which are billed on a usage basis. The company offers a variety of products including web performance solutions, media delivery, and cybersecurity services such as web application firewalls and DDoS protection. Key revenue streams include subscription fees for ongoing services and transactional fees based on data transfer volumes. Additionally, Akamai has established strategic partnerships with major cloud providers and technology companies, allowing them to integrate their services and expand market reach. These partnerships, along with a focus on innovation and expanding their service portfolio, contribute significantly to Akamai's earnings.

Akamai Financial Statement Overview

Summary

Akamai demonstrates solid financial performance with consistent revenue growth and strong cash flow generation. However, the declining net profit margin and increasing leverage pose potential risks. The company maintains a healthy operational efficiency, but needs to address profitability pressures and manage debt levels to sustain long-term growth.

Income Statement

Akamai's income statement shows a stable revenue growth trajectory with a TTM growth rate of 1.59%. The gross profit margin remains strong at approximately 59%, although it has slightly decreased over the years. Net profit margin has seen a decline to 10.4% in the TTM, indicating some pressure on profitability. EBIT and EBITDA margins are healthy, suggesting efficient operations. However, the declining net profit margin is a concern.

Balance Sheet

The balance sheet reflects a moderate increase in leverage, with the debt-to-equity ratio rising to 1.18 in the TTM. This indicates higher financial risk. Return on equity has decreased to 9.1%, showing reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the increase in debt is a potential risk factor.

Cash Flow

Akamai's cash flow statement is strong, with a 17.5% growth in free cash flow in the TTM, indicating robust cash generation. The operating cash flow to net income ratio is healthy at 1.64, suggesting efficient cash conversion. The free cash flow to net income ratio is also solid at 0.58, highlighting good cash profitability. The cash flow position is a key strength for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	3.99B	3.81B	3.62B	3.46B	3.20B
Gross Profit	2.41B	2.37B	2.30B	2.23B	2.19B	2.07B
EBITDA	1.27B	1.26B	1.24B	1.26B	1.35B	1.16B
Net Income	424.60M	504.92M	547.63M	523.67M	651.64M	557.05M
Balance Sheet
Total Assets	10.54B	10.37B	9.90B	8.30B	8.14B	7.76B
Cash, Cash Equivalents and Short-Term Investments	966.62M	1.60B	864.44M	1.11B	1.08B	1.10B
Total Debt	5.27B	4.63B	4.54B	3.17B	2.86B	2.78B
Total Liabilities	6.07B	5.49B	5.30B	3.94B	3.61B	3.51B
Stockholders Equity	4.47B	4.88B	4.60B	4.36B	4.53B	4.25B
Cash Flow
Free Cash Flow	678.91M	833.90M	618.40M	816.37M	859.33M	483.13M
Operating Cash Flow	1.45B	1.52B	1.35B	1.27B	1.40B	1.22B
Investing Cash Flow	-166.43M	-798.68M	-1.85B	-622.31M	-646.90M	-1.04B
Financing Cash Flow	-896.66M	-679.63M	443.38M	-634.18M	-562.00M	-223.64M

Akamai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKAM, the sentiment is Negative. The current price of 75.76 is below the 20-day moving average (MA) of 76.84, below the 50-day MA of 76.62, and below the 200-day MA of 82.46, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKAM.

Akamai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKAM	72 Outperform	$10.93B	26.86	9.21%	―	3.98%	-31.18%
NET	70 Neutral	$76.17B	-633.94	-9.44%	―	27.32%	-11.94%
FTNT	67 Neutral	$64.86B	33.56	94.14%	―	14.46%	48.06%
ZS	67 Neutral	$47.00B	-1,117.30	-2.31%	―	23.31%	31.04%
CRWD	66 Neutral	$122.58B	-409.81	-7.91%	―	23.46%	-270.07%
SAIL	53 Neutral	$12.42B	-18.78	5.65%	―	25.99%	-25.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Akamai Corporate Events

Akamai Adopts New Bylaws Lowering Voting Threshold

On September 10, 2025, Akamai Technologies’ board of directors adopted new bylaws that lower the voting threshold for stockholders to remove directors and amend bylaws. These changes, effective immediately, reduce the threshold from two-thirds to a majority, potentially increasing shareholder influence and flexibility in corporate governance.

The most recent analyst rating on (AKAM) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Akamai stock, see the AKAM Stock Forecast page.

Akamai Executives Boost Confidence with Stock Purchases

On August 11, 2025, Akamai Technologies’ CEO, F. Thomson Leighton, and Board Chair, Daniel Hesse, made significant purchases of the company’s common stock, acquiring 50,000 and 3,000 shares respectively. These transactions, conducted at an average price of around $72 per share, may indicate strong confidence in the company’s future performance and could positively influence investor sentiment.

The most recent analyst rating on (AKAM) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Akamai stock, see the AKAM Stock Forecast page.