Akamai Technologies (AKAM)

Information Technology · $11.6B market cap · SEC CIK 0001086222

Next reports on Feb 17, 2027, after the close, with analysts expecting $1.67 in earnings per share.

52-week range $76.75 to $165.45. 49% below its 52-week high and 9% above its low.

The case for AKAM

• Generated $1.0B of free cash flow in FY2025, 24% of revenue.
• Free cash flow of 8.7% of its market value a year: a lot of cash for the price.
• Gross margin of 56% absorbs cost shocks.
• Moves less than the market (beta 0.68).
• Current assets cover the near-term bills 2.1 times over.
• Price/sales of 2.6× is lower than 85% of Information Technology companies.

The case against

• Expensive for its growth: 29.9× earnings, where 3% a year of growth would justify about 13×.
• Earnings per share down 24.4%.
• Return on equity of only 8%.
• Near the bottom of its 52-week range, 49% below the high. Falling prices usually have a reason; find it first.
• Revenue growth of +6.2% is slower than 90% of Information Technology companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Akamai Technologies's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Akamai Technologies says it does

Overview Akamai's mission is to power and protect life online. Since 1998, Akamai has developed and provided solutions for global enterprises to build, secure and accelerate their applications and digital experiences. As of December 31, 2025, our massively distributed global infrastructure was comprised of core and distributed compute sites, more than 4,300 edge points-of-presence in over 130 countries and approximately 700 cities, and our underlying global network integrated with roughly 1,200 network partners. With this scale and distribution, Akamai has visibility and insight into traffic volumes, congestion, attack patterns, vulnerabilities and other activities across the internet's complex intersections of networks and systems. Leveraging these insights, Akamai offers solutions designed to protect our customers from threats and attacks, along with full-stack compute solutions to build and deliver high-performance, low-latency…

Risk factors AKAM lists in its 10-K

• Slowing, flat or limited revenue growth has in the past and may continue to negatively impact our profitability and stock price
• Failure to control expenses could reduce our profitability, which would negatively impact our stock price
• If we do not develop or acquire new solutions that are attractive to our customers, our revenue and operating results could be adversely affected
• If we are unable to compete effectively and adapt to changing market conditions, our business will be adversely affected
• Defects or disruptions in our products and IT systems could require us to increase spending on upgrading systems, diminish demand for our solutions or subject us to substantial liability
• If we cannot maintain compatibility with our customers’ IT infrastructure, including their chosen third-party services, our business will be harmed
• We face risks associated with global operations that could harm our business
• Acquisitions and other strategic transactions could result in operating difficulties, dilution, diversion of management attention and other harmful consequences that may adversely impact our business and results of operations
• If current and potential large customers shift to DIY internal solutions for content and application delivery or security protection, our business will be negatively impacted
• If we are unable to recruit and retain key employees and qualified sales, research and development, technical, marketing and support personnel, our ability to compete could be harmed
• Our failure to manage new risks as our business evolves and our work practices change could harm us
• Our restructuring and reorganization activities may be disruptive to our operations and harm our business
• We may have exposure to greater-than-anticipated tax liabilities
• Fluctuations in foreign currency exchange rates affect our reported operating results in U.S. dollar terms
• Our sales to government clients subject us to risks, including early termination, audits, investigations, sanctions and penalties
• We utilize third-party technology in our business, and failures or vulnerabilities, and/or litigation, related to these technologies may adversely affect our business
• We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
• Evolving privacy regulations could negatively impact our profitability and business operations
• Other regulatory developments could negatively impact our business
• We may need to defend against patent or copyright infringement claims, which would cause us to incur substantial costs or limit our ability to use certain technologies in the future
• Our business will be adversely affected if we are unable to protect our intellectual property rights from unauthorized use or infringement by third parties
• Litigation may adversely impact our business
• Global climate change, other disruptions and related natural resource conservation regulations could adversely impact our business
• Our stock price has been, and may continue to be, volatile, and your investment could lose value
• Any failure to meet our debt obligations or obtain financing would damage our business
• Because we currently do not intend to pay dividends, stockholders will benefit from an investment in our common stock only if it appreciates in value
• Provisions of our charter, by-laws and Delaware law may have anti-takeover effects that could prevent a change in control even if the change in control would be beneficial to our stockholders

Filings

Other Information Technology companies