Akamai Technologies (AKAM)
Information Technology · $16.9B market cap · SEC CIK 0001086222
fundamentals score out of 100
Next reports on Nov 4, 2026, after the close, with analysts expecting $1.71 in earnings per share.
The case for AKAM
- Generated $1.0B of free cash flow in FY2025, 24% of revenue.
- Gross margin of 57% absorbs cost shocks.
- Moves less than the market (beta 0.64).
- Up 53.9% over the past year.
The case against
- Pricey at 41.0× earnings, against a long-run market average nearer 20×.
- Revenue growth of +5.9% is slower than 93% of Information Technology companies.
- Profitability is weak (42/100): return on equity 8%, net margin 9.5%, gross margin 57%, 224% of profit turned to cash.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 58 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 31 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 58 |
| Stabilityhow violently it moves, what it owes and what it pays you | 57 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 41.0× |
|---|---|
| Price / book | 3.62× |
| Price / sales | 3.9× |
| Revenue growth (YoY) | +5.9% |
| EPS growth (YoY) | -1.7% |
| Gross margin | 57% |
| Operating margin | 11% |
| Net margin | 10% |
| Return on equity | 8% |
| Debt / equity | 1.59× |
| Current ratio | 1.64 |
| Dividend yield | none |
| Beta | 0.64 |
| 52-week range | $70.82 – $165.45 |
| Position in that range | 50% of the way up |
| 3-month return | -6.0% |
| 1-year return | +53.9% |
Five years of financials, as filed
Pulled from Akamai Technologies's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $4.2B | $4.0B | $3.8B | $3.6B | $3.5B |
| Operating income | $567M | $533M | $637M | $676M | $783M |
| Net income | $452M | $505M | $548M | $524M | $652M |
| Operating cash flow | $1.5B | $1.5B | $1.3B | $1.3B | $1.4B |
| Capital expenditure | $508M | $390M | $458M | $241M | $329M |
| Total assets | $11.5B | $10.4B | $9.9B | $8.3B | $8.1B |
| Total liabilities | $6.5B | $5.5B | $5.3B | $3.9B | $3.6B |
| Shareholder equity | $5.0B | $4.9B | $4.6B | $4.4B | $4.5B |
| Cash | $930M | $518M | $489M | $542M | $537M |
| Free cash flow | $1.0B | $1.1B | $891M | $1.0B | $1.1B |
| Operating margin | 13.5% | 13.4% | 16.7% | 18.7% | 22.6% |
| Net margin | 10.7% | 12.7% | 14.4% | 14.5% | 18.8% |
| Diluted shares | 147M | 154M | 155M | 160M | 166M |
Share count is down 11.3% over 4 years. Buybacks have been shrinking the pie.
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
- Global conditions have in the past and may in the future harm our industry, business and results of operations
- 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