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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.5%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AKAMAI TECHNOLOGIES INC (AKAM) receives a "Hold" rating with a composite score of 49.5/100, ranked #607 out of 4446 stocks. Key factor scores: Quality 50/100, Value 53/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
AKAMAI TECHNOLOGIES INC (AKAM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AKAMAI TECHNOLOGIES INC Do?
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. AKAMAI TECHNOLOGIES INC (AKAM) is classified as a large-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Frank T. Leighton and employs approximately 9,800 people, headquartered in Cambridge, Massachusetts. With a market capitalization of $16.8B, AKAM is one of the prominent companies in the Industrials sector.
AKAMAI TECHNOLOGIES INC (AKAM) Stock Rating — Hold (April 2026)
As of April 2026, AKAMAI TECHNOLOGIES INC receives a Hold rating with a composite score of 49.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AKAM ranks #607 out of 4,446 stocks in our coverage universe. Within the Industrials sector, AKAMAI TECHNOLOGIES INC ranks #103 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AKAM Stock Price and 52-Week Range
AKAMAI TECHNOLOGIES INC (AKAM) currently trades at $91.30. The stock lost $18.31 (16.7%) in the most recent trading session. The 52-week high for AKAM is $113.50, which means the stock is currently trading -19.6% from its annual peak. The 52-week low is $67.51, putting the stock 35.2% above its annual trough. Recent trading volume was 14.3M shares, indicating strong institutional interest and high liquidity.
Is AKAM Overvalued or Undervalued? — Valuation Analysis
AKAMAI TECHNOLOGIES INC (AKAM) carries a value factor score of 53/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 40.20x, compared to the Industrials sector average of 28.33x — a premium of 42%. The price-to-book ratio stands at 3.43x, versus the sector average of 2.23x. The price-to-sales ratio is 4.15x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, AKAM trades at 31.47x EV/EBITDA, versus 5.70x for the sector.
Overall, AKAM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
AKAMAI TECHNOLOGIES INC Profitability — ROE, Margins, and Quality Score
AKAMAI TECHNOLOGIES INC (AKAM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.5%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.7% versus the sector average of 3.3%.
On a margin basis, AKAMAI TECHNOLOGIES INC reports gross margins of 59.1%, compared to 35.8% for the sector. The operating margin is 13.1% (sector: 6.2%). Net profit margin stands at 10.3%, versus 3.9% for the average Industrials stock. Revenue growth is running at 7.7% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
AKAM Debt, Balance Sheet, and Financial Health
AKAMAI TECHNOLOGIES INC has a debt-to-equity ratio of 131.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.36x, indicating strong short-term liquidity. Total debt on the balance sheet is $4.10B. Cash and equivalents stand at $928M.
AKAM has a beta of 1.20, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for AKAMAI TECHNOLOGIES INC is 64/100, reflecting average volatility within the normal range for its sector.
AKAMAI TECHNOLOGIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, AKAMAI TECHNOLOGIES INC reported revenue of $4.12B and earnings per share (EPS) of $3.11. Net income for the quarter was $425M. Gross margin was 59.1%. Operating income came in at $543M.
In FY 2025, AKAMAI TECHNOLOGIES INC reported revenue of $4.21B and earnings per share (EPS) of $3.11. Net income for the quarter was $452M. Gross margin was 59.0%. Revenue grew 5.4% year-over-year compared to FY 2024. Operating income came in at $567M.
In Q3 2025, AKAMAI TECHNOLOGIES INC reported revenue of $1.05B and earnings per share (EPS) of $0.98. Net income for the quarter was $140M. Gross margin was 59.3%. Revenue grew 5.0% year-over-year compared to Q3 2024. Operating income came in at $166M.
In Q2 2025, AKAMAI TECHNOLOGIES INC reported revenue of $1.04B and earnings per share (EPS) of $0.72. Net income for the quarter was $104M. Gross margin was 59.1%. Revenue grew 6.5% year-over-year compared to Q2 2024. Operating income came in at $151M.
Over the past 8 quarters, AKAMAI TECHNOLOGIES INC has demonstrated a growth trajectory, with revenue expanding from $980M to $4.12B. Investors analyzing AKAM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AKAM Dividend Yield and Income Analysis
AKAMAI TECHNOLOGIES INC (AKAM) does not currently pay a dividend. This is common among growth-oriented companies in the Business Services industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
AKAM Momentum and Technical Analysis Profile
AKAMAI TECHNOLOGIES INC (AKAM) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AKAM vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing AKAM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AKAM vs S&P 500 (SPY) comparison to assess how AKAMAI TECHNOLOGIES INC stacks up against the broader market across all factor dimensions.
AKAM Next Earnings Date
No upcoming earnings date has been announced for AKAMAI TECHNOLOGIES INC (AKAM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AKAM? — Investment Thesis Summary
AKAMAI TECHNOLOGIES INC presents a balanced picture with arguments on both sides. Price momentum is positive at 62/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.
In summary, AKAMAI TECHNOLOGIES INC (AKAM) earns a Hold rating with a composite score of 49.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AKAM stock.
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Institutional Research Dossier
AKAMAI TECHNOLOGIES INC (AKAM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Akamai Technologies, Inc. (AKAM) is a global leader in cloud computing and content delivery services, providing critical infrastructure for securing, delivering, and optimizing digital content and applications. Our Hold rating reflects the company's solid market position and diversified revenue streams, but also concerns around increasing competition, margin pressure, and the need for further investment to drive long-term growth. While the company's fundamentals remain sound, the current valuation appears fair and does not offer a significant margin of safety for investors.
Business Strategy & Overview
Akamai Technologies is a pioneer in the content delivery network (CDN) industry, providing cloud services that enable organizations to deliver and secure digital content and applications over the internet. The company's core offerings include cloud security solutions, web and mobile performance optimization, media delivery, and edge computing services. Akamai's global network of servers, strategically located at the edge of the internet, allows it to cache and deliver content faster, reducing latency and improving user experience.
The company's diverse customer base spans e-commerce, media and entertainment, financial services, education, and government sectors, with a focus on large enterprise clients. Akamai generates revenue through a combination of subscription-based and pay-as-you-go pricing models, providing customers with flexibility and scalability. The company's recent initiatives, such as expanding its security offerings and investing in edge computing capabilities, aim to strengthen its position in the evolving cloud services landscape.
Akamai operates in a highly competitive market, with players like Amazon Web Services, Google Cloud, and Microsoft Azure offering similar cloud-based services. The company's success hinges on its ability to innovate, maintain its technological edge, and provide reliable, high-performance solutions that meet the evolving needs of its customers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.7%
Sector: 6.4%
+20% VS SCTR
Economic Moat Analysis
Akamai's primary competitive advantage lies in its extensive global network of servers and its expertise in content delivery and security. The company's network of over 325,000 servers in more than 130 countries allows it to cache and deliver content closer to end-users, reducing latency and improving user experience. This network effect creates a significant barrier to entry, as building a comparable global infrastructure would require substantial capital investment and time.
Akamai's long-standing relationships with large enterprise clients and its reputation for reliable, high-performance services also contribute to its economic moat. The company's security offerings, which protect against a wide range of cyber threats, further strengthen its value proposition and switching costs for customers. Additionally, Akamai's investments in edge computing and cloud security are designed to expand its capabilities and solidify its position in the evolving cloud services market.
However, the company faces increasing competition from larger cloud service providers, which have the resources to invest heavily in infrastructure and R&D. While Akamai's technical expertise and network advantages provide a sustainable competitive edge, the company must continue to innovate and differentiate its offerings to maintain its market leadership.
Financial Health & Profitability
Akamai's financial performance has been relatively stable, with consistent revenue growth and healthy profitability. Over the past three fiscal years, the company has reported revenue growth in the range of 7-8%, outpacing the overall Industrials sector. Gross margins have remained strong, averaging around 60%, reflecting the company's pricing power and the scalability of its business model.
However, Akamai's operating margins have been more volatile, ranging from 13.1% to 16.7% over the same period. This is partly due to the company's ongoing investments in its security and edge computing capabilities, which have weighed on its profitability in the short term. Additionally, the company's free cash flow has been negative in recent years, primarily due to increased capital expenditures and acquisition-related expenses.
Akamai's balance sheet shows a moderate level of leverage, with a debt-to-equity ratio of 131%, which is higher than the Industrials sector average of 70%. This debt load, coupled with the company's negative free cash flow, could limit its financial flexibility and ability to fund future growth initiatives.
Valuation Assessment
Akamai's current valuation appears fair, with the stock trading at a P/E ratio of 35.5x and an EV/EBITDA ratio of 7.1x, both of which are higher than the Industrials sector averages of 27.7x and 5.7x, respectively. This premium valuation is justified by the company's strong market position, growth potential, and solid profitability.
However, Akamai's free cash flow yield of approximately -3.3% (based on the TTM FCF of -$528.49M) suggests that the stock may be overvalued, as the company is currently not generating enough cash to support its current market capitalization. This low FCF yield could be a concern for value-oriented investors, especially if the company's investments in new initiatives do not translate into meaningful improvements in cash flow generation.
Overall, Akamai's valuation appears to be in the fair range, but investors should closely monitor the company's ability to improve its cash flow and maintain its competitive edge in the face of increasing competition from larger cloud service providers.
Risk & Uncertainty
One of the key risks facing Akamai is the highly competitive nature of the cloud services market. The company competes with larger, well-capitalized players such as Amazon, Google, and Microsoft, which have the resources to aggressively invest in infrastructure and technology. These competitors may be able to undercut Akamai's pricing or offer more comprehensive cloud solutions, potentially eroding the company's market share and profitability.
Another risk is the potential for regulatory changes or increased scrutiny on data privacy and security, which could impact Akamai's business. As a provider of cloud-based security solutions, the company is subject to evolving industry regulations and standards that could increase compliance costs or limit its ability to serve certain customers.
Additionally, Akamai's high debt load and negative free cash flow could constrain its financial flexibility and limit its ability to fund future growth initiatives. If the company is unable to effectively manage its capital allocation and cash flow, it could face challenges in maintaining its competitive edge and executing on its strategic priorities.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAkamai's extensive global network of servers and its expertise in content delivery and security provide a strong competitive advantage that will be difficult for rivals to replicate, allowing the company to maintain its market-leading position.
BULL VIEWThe company's investments in edge computing and cloud security solutions position it well to capitalize on the growing demand for these services, driving long-term revenue growth and profitability.
The Bear Case
BEAR VIEWIncreasing competition from larger cloud service providers, such as Amazon, Google, and Microsoft, could erode Akamai's market share and pricing power, leading to margin compression and slower revenue growth.
BEAR VIEWAkamai's high debt levels and negative free cash flow could limit its financial flexibility and hinder its ability to invest in new initiatives, potentially impacting its long-term growth and competitiveness.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AKAM and 4,400+ other equities.
AKAMAI TECHNOLOGIES INC exhibits a 320% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.7%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
59.1%
Sector: 35.8%
Operating Margin
Core business profitability
13.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
10.3%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
