A Business at a Glance
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AKAMAI TECHNOLOGIES INC
AKAM
$17.0B
Mkt Cap
$115.37
-1.70%
AKAMAI TECHNOLOGIES INC (AKAM) has a current P/E ratio of 37.6, compared to its historical median P/E of 31.0. The stock is currently considered Fair based on its historical valuation range.
AKAMAI TECHNOLOGIES INC (AKAM) has a 5-year average return on invested capital (ROIC) of 7.2%. This is below average and may indicate limited pricing power.
AKAMAI TECHNOLOGIES INC (AKAM) has a market capitalization of $16.8B. It is classified as a large-cap stock.
AKAMAI TECHNOLOGIES INC (AKAM) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 3.01%.
Based on historical P/E analysis, AKAMAI TECHNOLOGIES INC (AKAM) appears fair. The current P/E of 37.6 is 21% above its historical median of 31.0. The estimated fair value CAGR (P/E method) is 6.1%.
AKAMAI TECHNOLOGIES INC (AKAM) operates in the Services-Business Services, Nec industry, within the Industrials sector.
AKAMAI TECHNOLOGIES INC (AKAM) reported annual revenue of $4.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Akamai provides security, cloud computing, and content delivery solutions to global enterprises through a massively distributed infrastructure comprising over 4,300 edge points-of-presence across more than 130 countries and approximately 700 cities, integrated with roughly 1,200 network partners. The security segment operates two platforms—Application Protection and Zero Trust Network Security—offering web application firewall, bot management, DDoS protection, DNS security, API security, and network segmentation solutions designed to defend against cyberattacks and emerging AI-driven threats. The cloud computing segment provides Cloud Infrastructure Services (compute, storage, cloud-native networking, and serverless products) and other cloud applications, enabling customers to build and deploy distributed, low-latency applications at the edge; this segment has been accelerating with AI inference capabilities and GPU deployments. The delivery segment comprises web and mobile performance solutions and media delivery services, leveraging Akamai's global network to optimize performance, reduce latency, and improve reliability for digital content and applications. Akamai's business model is primarily subscription and usage-based, with customers paying for access to its distributed infrastructure and security services; the company generates revenue from security subscriptions, cloud infrastructure consumption, and delivery services, supported by professional services and managed security offerings. The company's competitive moat derives from its unmatched global scale, network visibility into internet traffic patterns and attack vectors, and integrated platform combining security, compute, and delivery capabilities, which enables it to serve enterprises across all verticals seeking to secure and accelerate applications in hybrid cloud and AI-driven environments.
【AI inference acceleration driving growth】 Management expects significant acceleration of overall revenue growth heading into 2027 and beyond, driven by exceptional demand for Cloud Infrastructure Services, particularly AI inference capabilities deployed at the edge of Akamai's global network. The company is investing substantially ahead of revenue growth to build out physical infrastructure and sales teams to capture this momentum, with large multi-year customer contracts signed in late 2025 and early 2026 expected to ramp throughout 2026 and into 2027. Security solutions continue to show strong performance with double-digit growth, particularly in API security and Zero Trust network segmentation, as enterprises navigate increasingly complex hybrid cloud environments and AI-driven threat landscapes. Management anticipates that as the company scales its AI inference cloud and GPU deployments, gross margins and operating leverage will improve over time, though near-term margin expansion is not expected as the company prioritizes growth investments and infrastructure buildout to meet surging customer demand.
| Metric | Target | Period |
|---|---|---|
| Revenue | $4.445 billion–$4.55 billion | FY2026 |
| Cloud Infrastructure Services revenue growth | at least 50% year-over-year in constant currency | FY2026 |
| Security revenue growth | high single digits in constant currency | FY2026 |
| Delivery and other cloud apps revenue growth | decline in the mid single digits year-over-year in constant currency | FY2026 |
| Capital expenditures | approximately 40%-42% of total revenue | FY2026 |
| Non-GAAP EPS | $6.40–$7.15 | FY2026 |
| Revenue from $1.8 billion customer win | approximately $20 million–$25 million | Q4 2026 |
Revenue (FY2026): “Looking ahead to the full year 2026, we expect revenue of $4.445 billion-$4.55 billion, which is up 6%-8% as reported and up 5%-8% in constant currency.”
Cloud Infrastructure Services revenue growth (FY2026): “For Cloud Infrastructure Services, we are raising our outlook to at least 50% year-over-year growth in constant currency.”
Security revenue growth (FY2026): “We continue to expect security revenue growth in the high single digits on a constant currency basis in 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.3B | 4.2B | 4.0B | 3.8B | 3.6B | 3.5B |
| Net Income | 435M | 452M | 505M | 548M | 524M | 652M |
| EPS | $3.02 | $3.07 | $3.27 | $3.52 | $3.26 | $3.93 |
| Free Cash Flow | 1.1B | 1.0B | 1.1B | 891M | 1.0B | 1.1B |
| ROIC | 5.1% | 4.9% | 5.1% | 6.5% | 8.5% | 11.3% |
| Gross Margin | - | 58.9% | 59.4% | 60.4% | 61.7% | 63.3% |
| Debt/Equity | 0.84 | 1.14 | 1.19 | 0.99 | 0.73 | 0.63 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 527M | 567M | 533M | 637M | 676M | 783M |
| Operating Margin | 12.3% | 13.5% | 13.4% | 16.7% | 18.7% | 22.6% |
| ROE | 8.9% | 9.2% | 10.4% | 11.9% | 12.0% | 14.4% |
| Shares Outstanding | 146M | 147M | 154M | 156M | 161M | 166M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.0B | 2.2B | 2.3B | 2.5B | 2.7B | 2.9B | 3.2B | 3.5B | 3.6B | 3.8B | 4.0B | 4.2B | 4.3B |
| Gross Margin | 68.9% | 67.0% | 65.4% | 65.0% | 64.9% | 65.9% | 64.6% | 63.3% | 61.7% | 60.4% | 59.4% | 58.9% | N/A |
| R&D | 125M | 149M | 168M | 222M | 246M | 261M | 269M | 335M | 391M | 406M | 471M | 514M | 532M |
| SG&A | 326M | 388M | 440M | 509M | 574M | 516M | 548M | 553M | 584M | 601M | 622M | 657M | 665M |
| EBIT | 490M | 466M | 467M | 314M | 362M | 549M | 659M | 783M | 676M | 637M | 533M | 567M | 527M |
| Op. Margin | 24.9% | 21.2% | 19.9% | 12.6% | 13.4% | 19.0% | 20.6% | 22.6% | 18.7% | 16.7% | 13.4% | 13.5% | 12.3% |
| Net Income | 334M | 321M | 321M | 223M | 298M | 478M | 557M | 652M | 524M | 548M | 505M | 452M | 435M |
| Net Margin | 17.0% | 14.6% | 13.7% | 8.9% | 11.0% | 16.5% | 17.4% | 18.8% | 14.5% | 14.4% | 12.7% | 10.7% | 10.2% |
| Non-Recurring | 101M | 49M | 10M | 55M | 28M | 17M | 37M | 11M | 14M | 57M | 95M | 58M | 58M |
| Returns on Capital | |||||||||||||
| ROIC | 12.9% | 9.4% | 9.0% | 6.9% | 8.9% | 10.3% | 10.3% | 11.3% | 8.5% | 6.5% | 5.1% | 4.9% | 5.1% |
| ROE | 12.0% | 10.5% | 10.0% | 6.7% | 9.3% | 13.1% | 13.1% | 14.4% | 12.0% | 11.9% | 10.4% | 9.2% | 8.9% |
| ROA | 9.6% | 7.9% | 7.5% | 4.9% | 5.5% | 6.8% | 7.2% | 8.0% | 6.3% | 5.5% | 4.9% | 4.1% | 3.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 658M | 793M | 872M | 801M | 1.0B | 1.1B | 1.2B | 1.4B | 1.3B | 1.3B | 1.5B | 1.5B | 1.6B |
| Free Cash Flow | 451M | 482M | 691M | 547M | 791M | 699M | 701M | 1.1B | 1.0B | 891M | 1.1B | 1.0B | 1.1B |
| Owner Earnings | 299M | 367M | 393M | 264M | 390M | 430M | 539M | 651M | 465M | 449M | 477M | 351M | 386M |
| CapEx | 207M | 312M | 181M | 254M | 218M | 360M | 514M | 329M | 241M | 458M | 390M | 508M | 492M |
| Maint. CapEx | 247M | 300M | 334M | 372M | 435M | 441M | 478M | 551M | 593M | 571M | 648M | 709M | 718M |
| Growth CapEx | 0 | 12M | 0 | 0 | 0 | 0 | 36M | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 247M | 300M | 334M | 372M | 435M | 441M | 478M | 551M | 593M | 571M | 648M | 709M | 718M |
| CapEx/OCF | 31.5% | 39.3% | 20.8% | 31.7% | 21.6% | 34.0% | 42.3% | 23.4% | 18.9% | 34.0% | 25.7% | 33.4% | 31.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 269M | 303M | 374M | 361M | 750M | 335M | 194M | 522M | 608M | 654M | 557M | 800M | 506M |
| Buyback Yield | 2.3% | 3.2% | 3.2% | 3.2% | 7.2% | 2.3% | 1.1% | 2.7% | 4.5% | 3.5% | 3.7% | 6.1% | 3.0% |
| Stock-Based Comp | 112M | 127M | 145M | 164M | 184M | 187M | 197M | 203M | 217M | 328M | 393M | 459M | 476M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -37M | -89M | -116M | -15M | 355M | 1.1B | 1.7B | 1.8B | 2.1B | 3.7B | 4.2B | 4.5B | 3.2B |
| Cash & Equiv. | 239M | 289M | 324M | 313M | 1.0B | 394M | 353M | 537M | 542M | 489M | 518M | 930M | 930M |
| Long-Term Debt | 721M | 661M | 721M | 697M | 874M | 1.8B | 1.9B | 2.0B | 2.3B | 3.5B | 2.4B | 4.1B | 4.1B |
| Debt/Equity | 0.24 | 0.21 | 0.22 | 0.21 | 0.70 | 0.73 | 0.65 | 0.63 | 0.73 | 0.99 | 1.19 | 1.14 | 0.84 |
| Interest Coverage | 31.7 | 25.2 | 25.0 | 16.7 | 8.4 | 11.1 | 9.5 | 10.8 | 60.9 | 36.0 | 19.7 | 18.4 | 52.6 |
| Equity | 2.9B | 3.2B | 3.3B | 3.4B | 3.2B | 3.7B | 4.3B | 4.5B | 4.4B | 4.6B | 4.9B | 5.0B | 4.9B |
| Total Assets | 4.0B | 4.2B | 4.4B | 4.6B | 5.5B | 7.0B | 7.8B | 8.1B | 8.3B | 9.9B | 10.4B | 11.5B | 11.6B |
| Total Liabilities | 1.1B | 1.1B | 1.1B | 1.3B | 2.3B | 3.3B | 3.5B | 3.6B | 3.9B | 5.3B | 5.5B | 6.5B | 6.7B |
| Intangibles | 132M | 156M | 149M | 201M | 168M | 179M | 235M | 313M | 442M | 536M | 728M | 615M | 589M |
| Retained Earnings | -1.6B | -1.3B | -961M | -691M | -431M | 48M | 605M | 1.3B | 1.9B | 2.5B | 3.0B | 3.4B | 3.5B |
| Working Capital | 929M | 921M | 935M | 890M | 1.3B | 1.5B | 1.2B | 1.1B | 1.2B | 969M | 487M | 1.3B | 1.1B |
| Current Assets | 1.3B | 1.3B | 1.3B | 1.3B | 2.5B | 2.2B | 1.9B | 1.9B | 2.0B | 1.8B | 2.6B | 2.3B | 2.1B |
| Current Liabilities | 334M | 332M | 375M | 457M | 1.2B | 693M | 758M | 790M | 819M | 836M | 2.1B | 968M | 1.0B |
| Per Share Data | |||||||||||||
| EPS | 1.84 | 1.78 | 1.82 | 1.29 | 1.76 | 2.90 | 3.37 | 3.93 | 3.26 | 3.52 | 3.27 | 3.07 | 3.02 |
| Owner EPS | 1.65 | 2.03 | 2.23 | 1.53 | 2.30 | 2.61 | 3.26 | 3.93 | 2.89 | 2.89 | 3.09 | 2.38 | 2.65 |
| Book Value | 16.23 | 17.52 | 18.56 | 19.47 | 18.83 | 22.19 | 25.72 | 27.32 | 27.14 | 29.55 | 31.59 | 33.80 | 33.73 |
| Cash Flow/Share | 3.63 | 4.39 | 4.95 | 4.64 | 5.95 | 6.42 | 7.35 | 8.47 | 7.94 | 8.67 | 9.84 | 10.31 | 7.93 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 181.5M | 180.6M | 176.2M | 172.7M | 169.5M | 164.8M | 165.3M | 165.8M | 160.6M | 155.6M | 154.4M | 147.2M | 145.5M |
| Valuation | |||||||||||||
| P/E Ratio | 35.2 | 29.9 | 37.0 | 50.7 | 34.7 | 29.8 | 31.8 | 30.1 | 25.6 | 33.8 | 29.7 | 28.8 | 38.2 |
| P/FCF | 26.1 | 19.9 | 17.2 | 20.7 | 13.1 | 20.4 | 25.3 | 18.3 | 13.0 | 20.8 | 13.3 | 12.9 | 15.4 |
| EV/EBIT | 23.9 | 20.4 | 25.2 | 35.9 | 27.1 | 26.5 | 28.2 | 26.2 | 21.6 | 33.2 | 31.7 | 28.1 | 37.9 |
| Price/Book | 4.0 | 3.0 | 3.6 | 3.4 | 3.2 | 3.9 | 4.2 | 4.3 | 3.1 | 4.0 | 3.1 | 2.6 | 3.4 |
| Price/Sales | 5.3 | 5.6 | 4.1 | 3.8 | 4.4 | 4.5 | 5.3 | 5.3 | 4.4 | 3.8 | 3.9 | 2.9 | 3.9 |
| FCF Yield | 3.8% | 5.0% | 5.8% | 4.8% | 7.6% | 4.9% | 4.0% | 5.5% | 7.7% | 4.8% | 7.5% | 7.8% | 6.5% |
| Market Cap | 11.8B | 9.6B | 11.9B | 11.3B | 10.3B | 14.3B | 17.7B | 19.6B | 13.4B | 18.5B | 15.0B | 13.0B | 16.8B |
| Avg. Price | 57.69 | 68.60 | 55.06 | 55.47 | 71.22 | 79.80 | 102.14 | 109.68 | 98.92 | 94.23 | 101.85 | 81.63 | 115.37 |
| Year-End Price | 64.79 | 53.18 | 67.27 | 65.43 | 61.05 | 86.50 | 107.28 | 118.45 | 83.50 | 119.02 | 96.97 | 88.42 | 115.37 |
AKAMAI TECHNOLOGIES INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
AKAMAI TECHNOLOGIES INC trades at 37.6x trailing earnings, compared to its 15-year median P/E of 31.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 16.8x vs a median of 17.7x. The company's 5-year average ROIC is 7.2% with a gross margin of 60.8%. Total shareholder yield (buybacks) is 3.0%. At current prices, the estimated annualized return to fair value is +9.2%.
AKAMAI TECHNOLOGIES INC (AKAM) has a net profit margin of 10.7%. This is a healthy margin.
AKAMAI TECHNOLOGIES INC (AKAM) generated $1.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AKAMAI TECHNOLOGIES INC (AKAM) has a debt-to-equity ratio of 1.14. This indicates moderate leverage.
AKAMAI TECHNOLOGIES INC (AKAM) reported earnings per share (EPS) of $3.07 in its most recent fiscal year.
AKAMAI TECHNOLOGIES INC (AKAM) has a return on equity (ROE) of 9.2%. This indicates moderate shareholder returns.
AKAMAI TECHNOLOGIES INC (AKAM) has a 5-year average gross margin of 60.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for AKAMAI TECHNOLOGIES INC (AKAM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AKAMAI TECHNOLOGIES INC (AKAM) has a book value per share of $33.80, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects significant acceleration of overall revenue growth heading into 2027 and beyond, driven by exceptional demand for Cloud Infrastructure Services, particularly AI inference capabilities deployed at the edge of Akamai's global network. The company is investing substantially ahead of revenue growth to build out physical infrastructure and sales teams to capture this momentum, with large multi-year customer contracts signed in late 2025 and early 2026 expected to ramp throughout 2026 and into 2027. Security solutions continue to show strong performance with double-digit growth, particularly in API security and Zero Trust network segmentation, as enterprises navigate increasingly complex hybrid cloud environments and AI-driven threat landscapes. Management anticipates that as the company scales its AI inference cloud and GPU deployments, gross margins and operating leverage will improve over time, though near-term margin expansion is not expected as the company prioritizes growth investments and infrastructure buildout to meet surging customer demand.
Based on recent SEC filings and earnings calls, AKAMAI TECHNOLOGIES INC (AKAM) has provided the following forward guidance: Revenue: $4.445 billion–$4.55 billion (FY2026); Cloud Infrastructure Services revenue growth: at least 50% year-over-year in constant currency (FY2026); Security revenue growth: high single digits in constant currency (FY2026); Delivery and other cloud apps revenue growth: decline in the mid single digits year-over-year in constant currency (FY2026); Capital expenditures: approximately 40%-42% of total revenue (FY2026), plus 2 additional metrics.
Delivery and other cloud apps revenue growth (FY2026): “For delivery and other cloud apps, we continue to expect a decline in the mid single digits year-over-year on a constant currency basis.”
Capital expenditures (FY2026): “At this time, we anticipate our full year capital expenditures will be approximately 40%-42% of total revenue, including the $700 million impact from the $1.8 billion contract we mentioned earlier.”
Non-GAAP EPS (FY2026): “For full year 2026, we expect non-GAAP earnings per diluted share in the range of $6.40-$7.15.”
Revenue from $1.8 billion customer win (Q4 2026): “we anticipate revenue from the $1.8 billion customer win to start to ramp in Q4, and we expect to generate approximately $20 million-$25 million of revenue in the fourth quarter.”