Akamai Technologies, Inc.
- Open
- 107.06
- Day high
- 109.55
- Day low
- 107.03
- Prev close
- 107.47
- Volume
- 2.4M
- Mkt cap
- $15.6B
- P/E (TTM)
- 38.2
- EPS (TTM)
- $2.84
- P/B
- 3.3
- P/S
- 3.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$736K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Akamai Technologies, Inc. (AKAM) is a Technology company listed on NASDAQ. The stock is up 40% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Akamai Technologies, Inc. (AKAM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AKAM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $1.58 | $1.59 | +0.9% | $1.1B | +0.7% |
| May 7, 2026 | $1.61 | $1.61 | -0.3% | $1.1B | +0.1% |
| Feb 19, 2026 | $1.75 | $1.84 | +5.1% | $1.1B | +2.7% |
| Nov 6, 2025 | $1.64 | $1.86 | +13.4% | $1.1B | +1.1% |
| Aug 7, 2025 | $1.55 | $1.73 | +11.6% | $1.0B | +2.2% |
| May 8, 2025 | $1.57 | $1.70 | +8.3% | $1.0B | +0.5% |
| Feb 20, 2025 | $1.52 | $1.66 | +9.2% | $1.0B | +0.5% |
| Nov 7, 2024 | $1.59 | $1.59 | +0.0% | $1.0B | +0.5% |
| Aug 8, 2024 | $1.53 | $1.58 | +3.3% | $980M | +0.2% |
| May 9, 2024 | $1.61 | $1.64 | +1.9% | $987M | -0.2% |
| Feb 13, 2024 | $1.59 | $1.69 | +6.3% | $995M | -0.3% |
| Feb 14, 2023 | $1.27 | $1.37 | +7.9% | $928M | +2.5% |
AKAM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 15, 2026 | Joseph Paul Cofficer: EVP - Global Sales | Sell | 3,100 | $126.77 |
| Jun 18, 2026 | Blumofe Robertofficer: Chief Technology Officer | Sell | 243 | $129.41 |
| Jun 15, 2026 | Howell Lauraofficer: SVP, Chief Accounting Officer | Tax | 95 | $132.46 |
| Jun 15, 2026 | Howell Lauraofficer: SVP, Chief Accounting Officer | Option | 322 | — |
| Jun 10, 2026 | Salem-Jackson Kimofficer: EVP, Chief Marketing Officer | Sell | 2,300 | $135.57 |
| May 20, 2026 | HESSE DANIELdirector | Option | 2,336 | — |
| May 14, 2026 | Akella Janakidirector | Grant | 1,706 | — |
| May 14, 2026 | HESSE DANIELdirector | Grant | 2,172 | — |
| May 14, 2026 | MILLER JONdirector | Option | 3,547 | — |
| May 14, 2026 | MILLER JONdirector | Grant | 1,892 | — |
| May 14, 2026 | Akella Janakidirector | Option | 3,028 | — |
| May 14, 2026 | Brown Marianne Catherinedirector | Grant | 1,892 | — |
| May 14, 2026 | Burger Basdirector | Grant | 1,706 | — |
| May 14, 2026 | Killalea Peter Thomasdirector | Grant | 1,706 | — |
| May 14, 2026 | Bowen Sharondirector | Grant | 1,892 | — |
Source: AKAM SEC Form 4 filings, latest Jul 15, 2026. For informational purposes only — not investment advice.
See the full AKAM insider & 13F page →Akamai Technologies, Inc. company profile
Overview
Akamai Technologies, Inc. (NASDAQ:AKAM) is a cloud services company founded in 1998 and headquartered in Cambridge, Massachusetts. Originally established as a content delivery network (CDN) pioneer, Akamai has undergone a significant strategic transformation over the past decade to become a comprehensive cybersecurity and cloud computing provider. The company went public in 1999 and has evolved from its roots in optimizing internet content delivery to offering a broad portfolio of security solutions, edge computing services, and cloud infrastructure that serves enterprises globally.
Business
Akamai operates in the cloud infrastructure and cybersecurity industry, providing three main categories of services that protect, accelerate, and enable digital experiences across the internet. The company's business is organized into three primary segments: Security Solutions (53% of revenue): This segment includes web application firewalls, distributed denial-of-service (DDoS) protection, bot management, API security, and zero-trust network access solutions. The flagship product is the Guardicore platform, which provides micro-segmentation capabilities that isolate network traffic to prevent lateral movement of cyber threats within enterprise networks. API security solutions protect the application programming interfaces that enable different software systems to communicate with each other. These security services are delivered through Akamai's globally distributed network of servers. Compute Services (16% of revenue): Under the "Akamai Connected Cloud" brand, this segment offers cloud infrastructure services including virtual machines, storage, and networking capabilities. The compute platform combines traditional cloud data centers with edge computing locations, allowing customers to deploy applications closer to end users for better performance. This includes services for media streaming, gaming, AI inference, and general enterprise computing workloads. Delivery Services (31% of revenue): This represents Akamai's original content delivery network business, which accelerates the delivery of websites, applications, videos, and software downloads by caching content at servers located close to end users. The service includes video streaming optimization, software distribution, and domain name system (DNS) resolution services that help websites load faster and more reliably. The company serves over 300,000 customers globally, ranging from small businesses to large enterprises, through both direct sales and channel partners.
Revenue model
Akamai generates revenue primarily through subscription-based services sold to enterprise customers, with contracts typically ranging from one to three years. The security and compute segments operate on a software-as-a-service (SaaS) model where customers pay recurring fees based on usage levels, number of protected applications, or computing resources consumed. The delivery segment charges based on data transfer volumes and the number of requests processed through the network. The company's revenue model benefits from several factors that can expand margins. Network effects create operational leverage as adding more customers to the same infrastructure reduces per-unit costs. The subscription-based model provides predictable recurring revenue streams with high customer retention rates. Akamai's global scale allows it to negotiate better pricing with internet service providers and data center operators. The company also benefits from cross-selling opportunities, as customers often adopt multiple services from the portfolio. Several factors can pressure margins including increased competition from hyperscale cloud providers like Amazon Web Services and Microsoft Azure, which have significant resources to invest in competing services. Rising costs for data center capacity, bandwidth, and energy can impact profitability. The need for continuous investment in research and development to stay ahead of evolving cyber threats and computing demands also affects margins. Additionally, customer consolidation in some industries can lead to pricing pressure as larger customers negotiate volume discounts. The company has been strategically shifting its revenue mix toward higher-margin security and compute services while the lower-margin delivery business has been declining as a percentage of total revenue. This transformation is designed to improve overall profitability and position Akamai in faster-growing market segments.
Competitive moat
Akamai possesses a moderately strong competitive moat built primarily on its globally distributed network infrastructure and accumulated expertise in internet traffic management. The company operates one of the world's largest edge computing networks with over 4,100 locations across 130+ countries, which would be extremely expensive and time-consuming for competitors to replicate. This network provides inherent advantages in latency, performance, and reliability that are difficult to match. The company's security offerings benefit from the scale of traffic flowing through its network, which provides visibility into global threat patterns and enables more effective protection. The integration of security, delivery, and compute services creates switching costs for customers who would need to replace multiple vendors to leave Akamai's platform. Additionally, the company has developed deep relationships with internet service providers and enterprises over more than two decades. However, Akamai faces significant competitive threats that limit the strength of its moat. Hyperscale cloud providers like AWS, Microsoft Azure, and Google Cloud have vastly superior financial resources and are rapidly expanding their edge computing and security capabilities. These competitors can afford to price aggressively and invest heavily in competing technologies. The cybersecurity market is highly fragmented with numerous specialized vendors that may offer superior point solutions. In the compute segment, Akamai is competing against well-established players with larger ecosystems and more comprehensive service offerings. The company's transformation from a CDN provider to a broader cloud services company is still in progress, and execution risk remains high. While the network infrastructure provides some defensive characteristics, the competitive landscape in cloud computing and cybersecurity is intensely competitive and rapidly evolving, which constrains the durability of Akamai's competitive advantages.
Risks & safety
Akamai demonstrates a moderate margin of safety with solid financial fundamentals but some areas of concern: • Financial Stability: Strong free cash flow generation of $834 million in 2024, providing substantial cash generation capability. However, cash position declined from $570 million to $518 million, indicating some cash consumption. • Debt Management: Debt-to-equity ratio of 0.95 indicates moderate leverage. Current ratio of 1.23 suggests adequate short-term liquidity but relatively tight working capital management. • Valuation Metrics: Trading at 28.7x P/E ratio and 14.7x EV/EBITDA, representing reasonable but not cheap valuations for a technology company. Graham number of $49.17 compared to current price suggests modest overvaluation. • Profitability Trends: Return on equity of 10.4% demonstrates solid profitability, though net income volatility across quarters indicates some earnings instability. • Growth Investment Impact: Heavy investment in sales transformation and new product development may pressure near-term margins while positioning for future growth.
Recent development
Over the past few years, Akamai has executed a significant strategic transformation from a content delivery network company to a comprehensive cybersecurity and cloud computing provider. The most notable development has been the rapid growth of the security business, which became the company's largest revenue segment in 2024, surpassing $2 billion in annual revenue. Key security initiatives include the expansion of the Guardicore micro-segmentation platform, which reached $190 million in annual recurring revenue with 31% growth, and the development of API security solutions that achieved $57 million in ARR. The company has made substantial investments in its cloud computing capabilities through the "Akamai Connected Cloud" platform, combining traditional data center infrastructure with edge computing locations. This segment reached $259 million in ARR with 35% growth and signed its first customer committing over $100 million in cloud infrastructure services. Akamai expanded its data center footprint to 41 locations across 36 cities and is positioning itself for AI inference workloads at the edge. A major strategic initiative has been the comprehensive transformation of the go-to-market organization, rebalancing the sales team from account management to new customer acquisition. The company implemented workforce reductions of approximately 2.5% to fund growth investments in specialized sales resources and partner enablement. Management has also focused on longer-term, multi-year customer contracts to improve revenue predictability and customer relationships. Recent product innovations include the launch of "Firewall for AI" to protect artificial intelligence applications, expanded zero-trust security capabilities, and the introduction of managed container services for enterprise customers. The company has also been migrating its own internal applications to the Akamai Connected Cloud platform, expecting to achieve over $100 million in annual operational expense savings.
AKAM company profile · for informational purposes only — not investment advice.
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