Upside case
Bull case
$319+155.3%
AKAM would need investors to value it at roughly 48x earnings — about 29x more generous than today's 19x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Akamai Technologies, Inc. (AKAM) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
52
analysts
25 bullish · 2 bearish · 52 covering AKAM
Strong Buy
1
Buy
24
Hold
25
Sell
2
Strong Sell
0
Consensus Target
$158
+26.7% vs today
Scenario Range
$153 – $319
Model bear to bull value window
Coverage
52
Published analyst ratings
Valuation Context
18.6x
Forward P/E · Market cap $18.2B
AKAM price targets
Three scenarios for where AKAM stock could go
Current
~$125
Confidence
51 / 100
Updated
Jun 18, 2026
Where we are now
Current · $125
Bear
$153
Base
$242
Bull
$319
Market caseClosest to today
Base case
$242+93.8%
At 36x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$153+22.1%
The bear case assumes sentiment or fundamentals disappoint enough to push AKAM down roughly 22% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Akamai Technologies, Inc.
AKAM · NASDAQTechnologySoftware - InfrastructureDecember year-end
Akamai Technologies is a global cloud services company that secures, delivers, and optimizes content and applications over the internet. It generates revenue primarily through its security solutions (~60% of revenue) and content delivery network services (~40%), with customers paying subscription fees based on usage and service levels. The company's key advantage is its massive, distributed edge network—one of the world's largest—which provides both performance benefits and security protection at scale.
Market Cap
$18.2B
Revenue TTM
$4.3B
Net Income TTM
$435M
Net Margin
10.2%
AKAM Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+6.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.73/$1.55
Revenue
$1.0B/$1.0B
Q4 2025
EPS
$1.86/$1.64
Revenue
$1.1B/$1.0B
Q1 2026
EPS
$1.84/$1.76
Revenue
$1.1B/$1.1B
Q2 2026
EPS
$1.61/$1.60
Revenue
$1.1B/$1.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.73/$1.55 | +11.6% | $1.0B/$1.0B | +2.2% |
| Q4 2025 | $1.86/$1.64 | +13.4% | $1.1B/$1.0B | +1.1% |
| Q1 2026 | $1.84/$1.76 | +4.5% | $1.1B/$1.1B | +1.7% |
| Q2 2026 | $1.61/$1.60 | +0.6% | $1.1B/$1.1B | +0.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.7B
+11.2% YoY
FY2
$5.1B
+8.4% YoY
EPS Outlook
FY1
$5.04
+73.7% YoY
FY2
$5.57
+10.5% YoY
Trailing FCF (TTM)$765M
FCF Margin: 17.9%
Next Earnings
August 6, 2026
Expected EPS
$1.58
Expected Revenue
$1.1B
AKAM beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
AKAM Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $4.2B
Product Mix
Latest annual revenue by segment or product family
Reportable Segment
100.0%
+5.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
50.8%
+3.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Reportable Segment is the largest disclosed segment at 100.0% of FY 2025 revenue, up 5.4% YoY.
UNITED STATES is the largest reported region at 50.8%, up 3.1% YoY.
AKAM Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $358 — implies +186.5% from today's price.
Upside to Fair Value
186.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
AKAM
40.7x
vs
S&P 500
24.4x
+66% premium
vs Technology Trailing P/E
AKAM
40.7x
vs
Technology
29.0x
+40% premium
vs AKAM 5Y Avg P/E
Today
40.7x
vs
5Y Average
29.4x
+38% premium
Forward PE
18.6x
S&P 500
18.8x
-1%
Technology
22.3x
-16%
5Y Avg
—
—
Trailing PE
40.7x
S&P 500
24.4x
+66%
Technology
29.0x
+40%
5Y Avg
29.4x
+38%
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
18.1x
S&P 500
15.2x
+19%
Technology
16.6x
+9%
5Y Avg
15.5x
+16%
Price/FCF
26.0x
S&P 500
20.7x
+25%
Technology
19.2x
+35%
5Y Avg
21.0x
+24%
Price/Sales
4.3x
S&P 500
3.1x
+40%
Technology
2.4x
+77%
5Y Avg
4.2x
+3%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | AKAM | S&P 500 | Technology | 5Y Avg AKAM |
|---|---|---|---|---|
| Forward PE | 18.6x | 18.8x | 22.3x-16% | — |
| Trailing PE | 40.7x | 24.4x+66% | 29.0x+40% | 29.4x+38% |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | 18.1x | 15.2x+19% | 16.6x | 15.5x+16% |
| Price/FCF | 26.0x | 20.7x+25% | 19.2x+35% | 21.0x+24% |
| Price/Sales | 4.3x | 3.1x+40% | 2.4x+77% | 4.2x |
| Dividend Yield | — | 1.91% | 1.11% | — |
AKAM trades above S&P 500 benchmarks on 4 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolAKAM Financial Health
Verdict
Adequate
AKAM generates $765M in free cash flow at a 17.9% margin — returns 4.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.3B
Revenue Growth
TTM vs prior year
+6.2%
Gross Margin
Gross profit as a share of revenue
57.2%
Operating Margin
Operating income divided by revenue
13.7%
Net Margin
Net income divided by revenue
10.2%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.90
Free Cash Flow (TTM)
Cash generation after capex
$765M
FCF Margin
FCF as share of revenue — the primary cash quality signal
17.9%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.7%
ROA
Return on assets, trailing twelve months
3.9%
Cash & Equivalents
Liquid assets on the balance sheet
$930M
Net Debt
Total debt minus cash
$6.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
7.8× FCF
~7.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
9.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.4%
Dividend
—
Buyback
4.4%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$800M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
145M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageAKAM Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Market Sentiment
The stock experienced a significant bearish movement in the market, indicating negative investor sentiment.
Medium
Valuation Risk
The stock presents a balanced risk/reward profile, suggesting potential overvaluation concerns.
Medium
Competitive Pressure
As a CDN and cybersecurity provider, Akamai faces intense competition in cloud infrastructure and security services.
Lower
Operational Dependence
Akamai's performance relies heavily on internet-based services, making it vulnerable to broader tech sector downturns.
High Risk
Cybersecurity Risks
Despite being a cybersecurity provider, Akamai remains exposed to evolving threats that could impact its reputation and client trust.
Medium
Revenue Concentration
The company's revenue depends significantly on its CDN and cloud services, which may face pricing or demand pressures.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why AKAM Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Leading cybersecurity solutions
Akamai provides robust cybersecurity services including DDoS mitigation, protecting businesses online and enhancing their security posture.
Dominant content delivery network
Akamai's CDN improves website performance, reliability, and security by caching content globally, making it a critical infrastructure provider.
Expanding cloud computing services
Akamai's cloud and edge computing solutions enable low-latency applications, positioning it as a key player in the evolving cloud market.
Strong valuation metrics
Akamai's forward P/E of 13.89 suggests attractive valuation potential compared to its trailing P/E, indicating growth opportunities.
Global enterprise adoption
Akamai's solutions are trusted by global companies to enhance digital experiences, driving widespread adoption and recurring revenue.
Edge-native application platform
Akamai Connected Cloud enables developers to build and deliver low-latency applications, leveraging its edge infrastructure for superior performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
AKAM Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$124.91
52W Range Position
58%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$69.78
+79.0% from the low
52-Week High
$165.45
-24.5% from the high
1 Month
-17.15%
3 Month
+14.74%
YTD
+46.8%
1 Year
+58.7%
3Y CAGR
+11.3%
5Y CAGR
+1.7%
10Y CAGR
+8.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
AKAM vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
18.6x
vs 55.0x median
-66% below peer median
Revenue Growth
+11.2%
vs +16.0% median
-30% below peer median
Net Margin
10.2%
vs -2.4% median
+518% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
AKA AKAM Akamai Technologies, Inc. | $18.2B | 18.6x | +11.2% | 10.2% | Hold | +26.7% |
FSL FSLY Fastly, Inc. | $2.8B | 55.0x | +16.0% | -15.8% | Hold | +30.9% |
NET NET Cloudflare, Inc. | $79.2B | 187.1x | +19.5% | -3.7% | Buy | +2.2% |
CDN CDNS Cadence Design Systems, Inc. | $107.0B | 48.8x | +16.1% | 20.9% | Buy | +6.6% |
ZS ZS Zscaler, Inc. | $20.2B | 30.3x | +10.8% | -2.4% | Buy | +54.8% |
PAN PANW Palo Alto Networks, Inc. | $196.1B | 76.3x | +12.3% | 7.9% | Buy | +12.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
AKAM Dividend and Capital Return
AKAM returns 4.4% annually — null% through dividends and 4.4% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
4.4%
Dividend + buyback return per year
Buyback Yield
4.4%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$800M
Estimated Shares Retired
6M
Approx. Share Reduction
4.4%
Shares Outstanding
Current diluted share count from the screening snapshot
145M
At 4.4%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsAKAM Investor Questions
Common questions answered from live analyst data and company financials.
01Is Akamai Technologies, Inc. (AKAM) stock a buy or sell in 2026?
Akamai Technologies, Inc. (AKAM) is rated Hold by Wall Street analysts as of 2026. Of 52 analysts covering the stock, 25 rate it Buy or Strong Buy, 25 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $158, implying +26.7% from the current price of $125. The bear case scenario is $153 and the bull case is $319.
02What is the AKAM stock price target for 2026?
The Wall Street consensus price target for AKAM is $158 based on 52 analyst estimates. The high-end target is $195 (+56.1% from today), and the low-end target is $76 (-39.2%). The base case model target is $242.
03Is Akamai Technologies, Inc. (AKAM) stock overvalued in 2026?
AKAM trades at 18.6x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Akamai Technologies, Inc. (AKAM) stock in 2026?
The primary risks for AKAM in 2026 are: (1) Market Sentiment — The stock experienced a significant bearish movement in the market, indicating negative investor sentiment. (2) Cybersecurity Risks — Despite being a cybersecurity provider, Akamai remains exposed to evolving threats that could impact its reputation and client trust. (3) Valuation Risk — The stock presents a balanced risk/reward profile, suggesting potential overvaluation concerns. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Akamai Technologies, Inc.'s revenue and earnings forecast?
Analyst consensus estimates AKAM will report consensus revenue of $4.7B (+11.2% year-over-year) and EPS of $5.04 (+73.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $5.1B in revenue.
06When does Akamai Technologies, Inc. (AKAM) report its next earnings?
Akamai Technologies, Inc. is expected to report its next earnings on approximately 2026-08-06. Consensus expects EPS of $1.58 and revenue of $1.1B. Over recent quarters, AKAM has beaten EPS estimates 92% of the time.
07How much free cash flow does Akamai Technologies, Inc. generate?
Akamai Technologies, Inc. (AKAM) generated $765M in free cash flow over the trailing twelve months — a free cash flow margin of 17.9%. AKAM returns capital to shareholders through and share repurchases ($800M TTM).