Akamai (AKAM) AI Stock Analysis

• Market Cap: $12.96B
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.71
• Revenue Growth: 4.21%
• EPS Growth: -0.63%
• Country: US
• Employees: 10,811
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.86
• Shares Outstanding: 143,865,230
• 10 Day Avg. Volume: 3,390,658
• 30 Day Avg. Volume: 2,122,360
• 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: 1.16
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 6.17
• Enterprise Value/Ebitda: 10.67
• 1Y Price Target: $93.50
• Price Target Upside: 3.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 7.01
• Revenue Forecast (FY): $4.19B

• Rating: 74 Outperform
• Price Target: $94.00 ▲(4.33% Upside)

Akamai's overall stock score reflects its solid financial performance and strong earnings call results, driven by growth in cloud and security services. The technical analysis indicates bullish momentum, although the high valuation and challenges in the delivery segment pose risks. The company's strategic focus on cloud and security solutions offers promising growth prospects.

Positive Factors

Cloud Infrastructure Growth

The significant growth in Cloud Infrastructure Services indicates strong demand and successful execution in expanding cloud capabilities, which is crucial for long-term revenue expansion and market position.

High-Growth Security Products

The robust growth in security products like API security and Zero Trust Enterprise Security highlights Akamai's strength in cybersecurity, a critical area for future-proofing against evolving digital threats.

Strategic Partnerships

The partnership with NVIDIA to support AI inference at the edge positions Akamai to leverage cutting-edge technology, enhancing its competitive edge and service offerings in AI-driven solutions.

Negative Factors

Rising Debt Levels

Increasing leverage on the balance sheet could strain financial flexibility and cash flow, potentially impacting Akamai's ability to invest in growth opportunities or weather economic downturns.

Delivery Revenue Decline

The decline in delivery revenue suggests challenges in maintaining competitiveness in this segment, which could affect overall revenue growth and market share if not addressed.

Compute Revenue Challenges

Underperformance in compute revenue highlights potential issues in contract execution and timing, which could hinder growth in this critical segment if not managed effectively.

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 health with consistent revenue growth and profitability. The company maintains a strong cash flow position, but the increasing leverage on the balance sheet warrants attention. The company should focus on managing its debt levels to sustain long-term financial stability.

Income Statement

Akamai's income statement shows a steady revenue growth with a TTM growth rate of 1.22%. The gross profit margin is healthy at 59.13%, although it has slightly decreased from previous years. The net profit margin is stable at 12.26%, indicating consistent profitability. However, the EBIT and EBITDA margins have seen a decline, suggesting increased operational costs or other expenses impacting earnings before interest and taxes.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.11, which has increased over the years, indicating higher leverage. The return on equity is reasonable at 10.86%, showing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced asset structure, but the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Akamai's cash flow statement is strong, with a positive free cash flow growth rate of 5.80% in the TTM. The operating cash flow to net income ratio is robust at 1.57, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.48, showing a good conversion of income into free cash flow, although slightly lower than previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.13B	3.99B	3.81B	3.62B	3.46B	3.20B
Gross Profit	2.44B	2.37B	2.30B	2.23B	2.19B	2.07B
EBITDA	1.41B	1.26B	1.24B	1.26B	1.35B	1.16B
Net Income	506.86M	504.92M	547.63M	523.67M	651.64M	557.05M
Balance Sheet
Total Assets	10.83B	10.37B	9.90B	8.30B	8.14B	7.76B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.60B	864.44M	1.11B	1.08B	1.10B
Total Debt	5.23B	4.63B	4.54B	3.17B	2.86B	2.78B
Total Liabilities	6.10B	5.49B	5.30B	3.94B	3.61B	3.51B
Stockholders Equity	4.73B	4.88B	4.60B	4.36B	4.53B	4.25B
Cash Flow
Free Cash Flow	718.30M	833.90M	618.40M	816.37M	859.33M	483.13M
Operating Cash Flow	1.50B	1.52B	1.35B	1.27B	1.40B	1.22B
Investing Cash Flow	-418.54M	-798.68M	-1.85B	-622.31M	-646.90M	-1.04B
Financing Cash Flow	-727.17M	-679.63M	443.38M	-634.18M	-562.00M	-223.64M

Akamai Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 90.1 is above the 20-day moving average (MA) of 76.90, above the 50-day MA of 76.61, and above the 200-day MA of 79.56, indicating a bullish trend. The MACD of 2.78 indicates Negative momentum. The RSI at 75.58 is Negative, neither overbought nor oversold. The STOCH value of 92.28 is Negative, 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	74 Outperform	$12.96B	26.42	10.64%	―	4.21%	-0.63%
CRWD	73 Outperform	$139.92B	―	-8.99%	―	23.46%	-270.07%
FTNT	71 Outperform	$61.19B	34.44	228.04%	―	14.78%	22.52%
ZS	71 Outperform	$50.66B	―	-2.70%	―	23.31%	31.04%
NET	64 Neutral	$84.25B	―	-8.88%	―	28.06%	-7.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIL	45 Neutral	$11.31B	―	―	―	25.99%	-25.47%

Akamai Corporate Events

Akamai Technologies Q3 2025 Earnings Call Highlights

Akamai Technologies’ recent earnings call for Q3 2025 painted a picture of robust growth and strategic advancements, despite some challenges in specific segments. The overall sentiment was positive, driven by strong financial results and promising developments in cloud and security services. However, the delivery segment’s revenue decline remains a concern.

Akamai Technologies Reports Strong Q3 2025 Results

Akamai Technologies, Inc., a leading company in the cybersecurity and cloud computing sector, is renowned for its market-leading security solutions and full-stack cloud computing services that enhance online business operations globally. The company has reported its financial results for the third quarter of 2025, showcasing a robust performance with significant growth in key areas.

Akamai Launches AI Inference Cloud with NVIDIA

On October 28, 2025, Akamai Technologies launched the Akamai Inference Cloud, a platform designed to enable AI inferencing at the edge of the internet. This platform, leveraging NVIDIA’s AI infrastructure, aims to transform AI applications by providing low-latency, real-time processing close to users, thus enhancing AI’s decision-making capabilities globally. The launch is expected to significantly impact AI’s scalability and performance, offering benefits like instant financial insights, real-time decision-making, and enhanced physical AI operations. Akamai Inference Cloud is initially available in 20 global locations, with plans for further expansion.

The most recent analyst rating on (AKAM) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on Akamai stock, see the AKAM Stock Forecast page.

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.

Akamai Technologies Reports Strong Earnings Amidst Challenges

Akamai Technologies’ recent earnings call revealed a generally positive sentiment, driven by robust revenue growth and earnings performance. The company showcased significant advancements in its cloud infrastructure and security services, although it acknowledged challenges in its delivery segment and legacy compute products. Additionally, anticipated cost increases are expected to impact future margins.