Akamai (AKAM) AI Stock Analysis

• Market Cap: $11.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.74
• Revenue Growth: 3.98%
• EPS Growth: -31.18%
• Country: US
• Employees: 10,811
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 1.73
• Shares Outstanding: 143,385,530
• 10 Day Avg. Volume: 1,708,567
• 30 Day Avg. Volume: 2,128,339
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 6.58
• Enterprise Value/Ebitda: 12.50
• 1Y Price Target: $93.91
• Price Target Upside: 18.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $88.00 ▲(11.11% Upside)

Akamai's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in cloud and security services. However, the premium valuation and technical indicators suggest cautious optimism, with potential risks in profitability and leverage.

Positive Factors

Cloud Infrastructure Growth

Akamai's significant growth in cloud infrastructure services indicates strong demand and positions the company well for future expansion in this high-growth sector.

Security Revenue Increase

The increase in security revenue, driven by API security and Zero Trust solutions, highlights Akamai's strength in cybersecurity, a critical and expanding market.

Strategic Board Appointments

The addition of experienced board members supports Akamai's strategic growth in cloud computing and cybersecurity, enhancing its leadership and market position.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests pressure on profitability, which could impact Akamai's ability to reinvest in growth and maintain competitive pricing.

Rising Debt Levels

Increased leverage heightens financial risk and may constrain Akamai's financial flexibility, affecting its capacity to invest in strategic initiatives.

Operating Margin Pressure

Expected decline in operating margin due to investments could reduce short-term profitability, impacting Akamai's financial performance and investor confidence.

Akamai Business Overview & Revenue Model

Company Description

Akamai Technologies, Inc. is a leading provider of content delivery network (CDN) services, cybersecurity solutions, and cloud service offerings. Founded in 1998 and headquartered in Cambridge, Massachusetts, Akamai operates at the intersection of the internet and enterprise, delivering services that enhance the performance, security, and reliability of digital content. The company’s offerings are crucial for a wide range of industries, including media, retail, and technology, enabling businesses to optimize user experiences and protect against cyber threats.

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	835.39M	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: Positive
• Last Price: 79.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKAM, the sentiment is Positive. The current price of 79.2 is above the 20-day moving average (MA) of 77.15, above the 50-day MA of 77.26, and below the 200-day MA of 83.74, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKAM.

Akamai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKAM	73 Outperform	$11.00B	27.21	9.21%	―	3.98%	-31.18%
NET	70 Neutral	$77.70B	―	-11.04%	―	27.32%	-11.94%
FTNT	67 Neutral	$60.90B	31.72	165.17%	―	14.46%	48.06%
ZS	67 Neutral	$43.41B	―	-2.70%	―	23.31%	31.04%
CRWD	67 Neutral	$108.76B	721.64	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
SAIL	53 Neutral	$11.03B	―	-11.15%	―	25.99%	-25.47%

Akamai Corporate Events

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.