AKAM Stock Analysis: Akamai Technologies | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 16.471m USD | 12M Return: 43.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 506M
EPS Trend: 7.1%
Qual. Beats: 0
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Akamai Technologies (NASDAQ: AKAM) is a U.S.-based provider of cybersecurity, content delivery, and cloud computing services, operating both domestically and internationally. Founded in 1998 and headquartered in Cambridge, Massachusetts, the company is classified within the Internet Services & Infrastructure sub-industry and is generally regarded as a pioneer in the content delivery network (CDN) space, which uses distributed edge servers to deliver web content closer to end users.
Its security portfolio covers web application and API protection, bot and abuse mitigation, account takeover defense, credential stuffing prevention, and microservice traffic protection. The cybersecurity sector has been a key growth area for Akamai, as enterprises increasingly rely on edge-based security to defend against application-layer attacks and automated threats.
In cloud computing, Akamai offers compute, storage, networking, and container orchestration services, including its App Platform for managing Kubernetes clusters at scale. These offerings position the company within the competitive edge cloud market, where it competes against hyperscalers and specialized providers to support distributed application workloads.
The companys delivery solutions span web and mobile performance optimization, global traffic management, load balancing, real-user monitoring, video streaming, game and software delivery, and broadcast operations. Akamai went public in 1999 and currently trades as a large-cap stock with a market capitalization of approximately $17.5 billion USD.
- Security solutions revenue growth outpaces legacy delivery business
- Cloud computing segment accelerates post-Linode acquisition
- CDN pricing pressure intensifies from Cloudflare and hyperscaler competition
| Net Income: 435.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.56 > 1.0 |
| NWC/Revenue: 23.95% < 20% (prev 8.92%; Δ 15.04% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.58b > Net Income 435.2m |
| Net Debt (6.70b) to EBITDA (1.33b): 5.05 < 3 |
| Current Ratio: 1.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (150.0m) vs 12m ago -0.69% < -2% |
| Gross Margin: 57.23% > 18% (prev 59.07%; Δ -1.84% > 0.5%) |
| Asset Turnover: 39.45% > 50% (prev 40.27%; Δ -0.81% > 0%) |
| Interest Coverage Ratio: 8.40 > 6 (EBIT TTM 606.7m / Interest Expense TTM 72.2m) |
| A: 0.09 (Total Current Assets 2.06b - Total Current Liabilities 1.04b) / Total Assets 11.6b |
| B: 0.30 (Retained Earnings 3.53b / Total Assets 11.6b) |
| C: 0.06 (EBIT TTM 606.7m / Avg Total Assets 10.8b) |
| D: 0.73 (Book Value of Equity 4.91b / Total Liabilities 6.74b) |
| Altman-Z'' = 2.71 = A |
| DSRI: 1.09 (Receivables 881.1m/759.4m, Revenue 4.27b/4.02b) |
| GMI: 1.03 (GM 59.07% / 57.23%) |
| AQI: 1.05 (AQ_t 0.47 / AQ_t-1 0.45) |
| SGI: 1.06 (Revenue 4.27b / 4.02b) |
| TATA: -0.10 (NI 435.2m - CFO 1.58b) / TA 11.6b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at USD 113.17 with a total of 4,091,900 shares traded. Over the past week, the price has changed by +0.25%, over one month by -24.21%, over three months by -1.25% and over the past year by +43.14%.
Current recommended Stop Loss: 105.60 (which is 6.7% or 1.2 ATR below the current price).
Akamai Technologies has received a consensus analysts rating of 4.09. Therefore, it is recommended to buy AKAM.
- StrongBuy: 12
- Buy: 2
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 159.3 | 40.8% |
P/E Trailing = 38.2736
P/E Forward = 16.9205
P/S = 3.8603
P/B = 3.3553
P/EG = 1.342
Revenue TTM = 4.27b USD
EBIT TTM = 606.7m USD
EBITDA TTM = 1.33b USD
Long Term Debt = 4.11b USD (from longTermDebt, last quarter)
Short Term Debt = 369.1m USD (from shortTermDebt, last quarter)
Debt = 7.63b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.76b
Net Debt = 6.70b USD (calculated: Debt 7.63b - CCE 930.4m)
Enterprise Value = 23.2b USD (16.5b + Debt 7.63b - CCE 930.4m)
Interest Coverage Ratio = 8.40 (Ebit TTM 606.7m / Interest Expense TTM 72.2m)
EV/FCF = 30.30x (Enterprise Value 23.2b / FCF TTM 764.7m)
FCF Yield = 3.30% (FCF TTM 764.7m / Enterprise Value 23.2b)
FCF Margin = 17.92% (FCF TTM 764.7m / Revenue TTM 4.27b)
Net Margin = 10.20% (Net Income TTM 435.2m / Revenue TTM 4.27b)
Gross Margin = 57.23% ((Revenue TTM 4.27b - Cost of Revenue TTM 1.82b) / Revenue TTM)
Gross Margin QoQ = 56.10% (prev 54.56%)
Tobins Q-Ratio = 1.99 (Enterprise Value 23.2b / Total Assets 11.6b)
Interest Expense / Debt = 0.95% (Interest Expense 72.2m / Debt 7.63b)
Taxrate = 21.02% (115.8m / 551.0m)
NOPAT = 479.2m (EBIT 606.7m * (1 - 21.02%))
Current Ratio = 1.99 (Total Current Assets 2.06b / Total Current Liabilities 1.04b)
Debt / Equity = 1.55 (Debt 7.63b / totalStockholderEquity, last quarter 4.91b)
Debt / EBITDA = 5.05 (Net Debt 6.70b / EBITDA 1.33b)
Debt / FCF = 8.76 (Net Debt 6.70b / FCF TTM 764.7m)
Total Stockholder Equity = 4.77b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.02% (Net Income 435.2m / Total Assets 11.6b)
RoE = 9.12% (Net Income TTM 435.2m / Total Stockholder Equity 4.77b)
RoCE = 6.83% (EBIT 606.7m / Capital Employed (Equity 4.77b + L.T.Debt 4.11b))
RoIC = 4.45% (NOPAT 479.2m / Invested Capital 10.8b)
WACC = 6.85% (E(16.5b)/V(24.1b) * Re(9.67%) + D(7.63b)/V(24.1b) * Rd(0.95%) * (1-Tc(0.21)))
Discount Rate = 9.67% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -2.01%
[DCF] Terminal Value 76.38% ; FCFF base≈743.2m ; Y1≈793.0m ; Y5≈948.6m
[DCF] Fair Price = 54.16 (EV 14.6b - Net Debt 6.70b = Equity 7.87b / Shares 145.4m; r=8.35% [WACC [floored]]; 5y FCF grow 7.56% → 2.50% )
EPS Correlation: 7.14 | EPS CAGR: 0.83% | SUE: 0.04 | # QB: 0
Revenue Correlation: 99.12 | Revenue CAGR: 5.20% | SUE: 0.10 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.58 | Chg30d=-0.03% | Revisions=-86% | Analysts=22
EPS next Quarter (2026-09-30): EPS=1.70 | Chg30d=+0.00% | Revisions=-42% | Analysts=22
EPS current Year (2026-12-31): EPS=6.71 | Chg30d=+0.14% | Revisions=-44% | GrowthEPS=-5.7% | GrowthRev=+7.0%
EPS next Year (2027-12-31): EPS=7.14 | Chg30d=-0.44% | Revisions=-46% | GrowthEPS=+6.3% | GrowthRev=+10.7%
[Analyst] Revisions Ratio: -60% (up=15, down=64)