AKAM

Akamai Technologies, Inc.

Fundamental data last updated:May 26, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and edge compute solutions to enable developers to deploy and distribute code at the edge. In addition, the company offers carrier offerings, including cybersecurity protection, parental controls, DNS infrastructure and content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through direct sales and service organizations, as well as through various channel partners. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

 


VALUATION

P/E

49.15

Market Cap ($M USD)

$21.41B

Forward P/E

15.69

PEG

0.07

PRICE TO SALES

5.02

PRICE TO BOOK

4.36

EV / EBITDA

23.33

5-Year Average P/E

Free Cash Flow Yield

3.57%

DCF Value

$202.69

Graham Number

$47.72

Price to FCF

27.99

EV to FCF

34.85

Earnings Yield

2.03%

FCF Yield

3.57%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.00

Next Year EPS Growth Estimate

$9.39

Next Year Revenue Growth Estimate

$653.52B

Return on Equity (ROE)

9.12%

FREE CASH FLOW

Operating Margin

13.67%

Debt-to-Equity

1.39

Piotroski F-Score

6

Altman Z-Score

2.95

Return on Invested Capital (ROIC)

5.50%

Current Ratio

1.99

Quick Ratio

1.99

Net Debt to EBITDA

4.59

Interest Coverage

10.47

Gross Profit margin

57.23%

FCF PER SHARE

$5.26

REVENUE PER SHARE

$29.37

Gainseekers Quantitative Analysis

Summary

Akamai Technologies presents a fascinating valuation conundrum. Despite a DCF value significantly higher than recent pricing, the market seems cautious, possibly due to its elevated Price/Earnings ratio of 49.31. However, the Forward P/E of 15.82 suggests optimism for future earnings growth. The Altman Z-score of 3.01 indicates financial stability, while the earnings yield of just 2.03% raises questions about immediate returns. Overall, the stock appears undervalued relative to its intrinsic worth, yet the market remains skeptical.

AI Exposure / Tech Reliance

Operating within the Software - Infrastructure industry, Akamai is well-positioned to leverage AI advancements. Its robust infrastructure supports the seamless integration of AI technologies, enhancing content delivery and cybersecurity solutions. This adaptability ensures resilience in the rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Akamai offers compelling strengths. A solid ROIC of 5.50% and a Piotroski F-Score of 6 highlight efficient capital use and financial health. The company's operating margin of 13.67% and a respectable FCF yield of 3.52% suggest strong pricing power and cash generation capabilities. These metrics paint a picture of a company with the potential for sustainable growth and profitability.

The Bear Case

Despite its strengths, Akamai faces notable challenges. The Price/Sales ratio of 5.10 and Price/Book of 4.37 indicate a premium valuation that may not be justified by its current earnings yield. With the stock trading close to its 52-week high, technical overextension is a concern. Additionally, a Net Debt to EBITDA ratio of 4.59 signals potential leverage risks that could impact future flexibility.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$158.31

Institutional Ownership %

1-Year Beta

0.45

Insider Buying % (6 Mo)

Distance to 52-Week High

12.38%

Distance to 52-Week Low

52.60%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$115.82

200-DAY SMA

$93.07

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.