Upside case
Bull case
$241+104.4%
AKAM would need investors to value it at roughly 35x earnings — about 18x more generous than today's 17x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 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
24 bullish · 2 bearish · 52 covering AKAM
Strong Buy
1
Buy
23
Hold
26
Sell
2
Strong Sell
0
Consensus Target
$111
-5.7% vs today
Scenario Range
$102 – $241
Model bear to bull value window
Coverage
52
Published analyst ratings
Valuation Context
17.2x
Forward P/E · Market cap $17.7B
AKAM price targets
Three scenarios for where AKAM stock could go
Current
~$118
Confidence
79 / 100
Updated
May 1, 2026
Where we are now
Current · $118
Bear
$102
Base
$189
Bull
$241
Market caseClosest to today
Base case
$189+60.5%
At 28x 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
$102-13.6%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push AKAM down roughly 14% from where it trades now.
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
$17.7B
Revenue TTM
$4.2B
Net Income TTM
$452M
Net Margin
10.7%
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
+6.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.70/$1.57
Revenue
$1.0B/$1.0B
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.70/$1.57 | +8.3% | $1.0B/$1.0B | +0.5% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.4B
+5.7% YoY
FY2
$4.7B
+5.9% YoY
EPS Outlook
FY1
$5.09
+65.5% YoY
FY2
$5.25
+3.1% YoY
Trailing FCF (TTM)$699M
FCF Margin: 16.6%
Next Earnings
May 7, 2026
Expected EPS
$1.61
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 2024
Total disclosed revenue $4.0B
Product Mix
Latest annual revenue by segment or product family
Reportable Segment
100.0%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
52.0%
+9.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Reportable Segment is the largest disclosed segment at 100.0% of FY 2024 revenue, with no year-over-year comparison yet.
UNITED STATES is the largest reported region at 52.0%, up 9.1% 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
Significantly Undervalued
Fair value est. $163 — implies +57.0% from today's price.
Upside to Fair Value
57.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
AKAM
36.1x
vs
S&P 500
25.1x
+44% premium
vs Technology Trailing P/E
AKAM
36.1x
vs
Technology
26.7x
+35% premium
vs AKAM 5Y Avg P/E
Today
36.1x
vs
5Y Average
29.9x
+20% premium
Forward PE
17.2x
S&P 500
19.1x
-10%
Technology
22.1x
-22%
5Y Avg
—
—
Trailing PE
36.1x
S&P 500
25.1x
+44%
Technology
26.7x
+35%
5Y Avg
29.9x
+20%
PEG Ratio
14.84x
S&P 500
1.72x
+765%
Technology
1.52x
+874%
5Y Avg
—
—
EV/EBITDA
18.5x
S&P 500
15.2x
+21%
Technology
17.5x
+6%
5Y Avg
16.2x
+14%
Price/FCF
21.2x
S&P 500
21.1x
+1%
Technology
19.5x
+9%
5Y Avg
24.5x
-13%
Price/Sales
4.4x
S&P 500
3.1x
+42%
Technology
2.4x
+81%
5Y Avg
4.7x
-5%
Dividend Yield
—
S&P 500
1.87%
—
Technology
1.16%
—
5Y Avg
—
—
| Metric | AKAM | S&P 500 | Technology | 5Y Avg AKAM |
|---|---|---|---|---|
| Forward PE | 17.2x | 19.1x | 22.1x-22% | — |
| Trailing PE | 36.1x | 25.1x+44% | 26.7x+35% | 29.9x+20% |
| PEG Ratio | 14.84x | 1.72x+765% | 1.52x+874% | — |
| EV/EBITDA | 18.5x | 15.2x+21% | 17.5x | 16.2x+14% |
| Price/FCF | 21.2x | 21.1x | 19.5x | 24.5x-13% |
| Price/Sales | 4.4x | 3.1x+42% | 2.4x+81% | 4.7x |
| Dividend Yield | — | 1.87% | 1.16% | — |
AKAM trades above S&P 500 benchmarks on 4 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
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 $699M in free cash flow at a 16.6% margin — returns 3.2% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.2B
Revenue Growth
TTM vs prior year
+5.4%
Gross Margin
Gross profit as a share of revenue
58.9%
Operating Margin
Operating income divided by revenue
13.5%
Net Margin
Net income divided by revenue
10.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.08
Free Cash Flow (TTM)
Cash generation after capex
$699M
FCF Margin
FCF as share of revenue — the primary cash quality signal
16.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.5%
ROA
Return on assets, trailing twelve months
3.9%
Cash & Equivalents
Liquid assets on the balance sheet
$518M
Net Debt
Total debt minus cash
$4.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
5.9× FCF
~5.9 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
3.2%
Dividend
—
Buyback
3.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$557M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
154M
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 April 29, 2026
High Risk
Slowing Growth
Akamai's revenue growth has been modest, with annual increases of 4.8% over the past three years and 4.2% in the last twelve months, falling short of broader market expectations. The content delivery segment faces challenges due to competition and declining demand.
High Risk
Competition
The company competes with major tech giants such as Amazon AWS, Microsoft Azure, Cloudflare, and Fastly. These competitors have significant resources to invest in technology and can potentially undercut Akamai's prices, impacting its market share.
High Risk
Execution Risk
Akamai is transitioning from traditional Content Delivery Network (CDN) services to cloud, security, and edge computing. The success of this pivot depends on effective execution, and there are risks associated with integrating new services and technologies.
Medium
Market Sentiment and Valuation
Akamai is susceptible to shifts in market sentiment, similar to other tech stocks. A history of significant stock drops following weak guidance indicates that investor perception can amplify downside risks.
Medium
Delivery Solutions Revenue Decline
Akamai's delivery solutions segment experienced an 18% year-over-year revenue decrease in Q4 2024 and a 9% decrease in Q1 2025. This decline raises concerns about the sustainability of revenue from this segment.
Medium
API Security Concerns
Recent research highlights a significant increase in API-related security incidents, with 87% of surveyed organizations reporting issues. This trend could affect Akamai's reputation as a cybersecurity provider.
Lower
Capital Expenditures for Compute
The compute segment requires substantial capital outlay, and there's a risk of underutilization of new capacity if growth is slower than expected. This underutilization could impact free cash flow.
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 April 29, 2026
Diversification and Growth
Akamai is expected to see slowing declines in its traditional content delivery business, while its security and compute divisions are projected to maintain steady and accelerating growth. This diversification is seen as a catalyst for improved overall growth.
Cybersecurity and Cloud Leadership
The company is increasingly viewed as a leader in cybersecurity and cloud computing, leveraging secular growth trends in these areas. This leadership position is expected to enhance Akamai's market share and revenue potential.
Financial Strength and Cash Flow
Akamai is expected to generate significant free cash flow, with projections of around $800 million through FY28. The initiation of a stock buyback program signals management's belief in the stock's undervaluation and commitment to returning value to shareholders.
Analyst Upgrades and Positive Sentiment
Several analysts have upgraded their ratings on AKAM, with some moving from 'Underweight' to 'Overweight' and raising price targets. This reflects an 'inflection point' in the business and expectations for faster revenue and earnings growth.
Market Position in AI and Security
Akamai's solutions in AI compute, security, and delivery are seen as supporting higher revenue and margin outcomes over time. This strategic positioning is expected to drive long-term growth and profitability.
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
$117.94
52W Range Position
94%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$69.78
+69.0% from the low
52-Week High
$121.12
-2.6% from the high
1 Month
+2.91%
3 Month
+28.91%
YTD
+38.6%
1 Year
+41.9%
3Y CAGR
+14.5%
5Y CAGR
+1.7%
10Y CAGR
+9.1%
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
17.2x
vs 49.9x median
-66% below peer median
Revenue Growth
+5.7%
vs +15.3% median
-62% below peer median
Net Margin
10.7%
vs -2.3% median
+577% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
AKA AKAM Akamai Technologies, Inc. | $17.7B | 17.2x | +5.7% | 10.7% | Hold | -5.7% |
FSL FSLY Fastly, Inc. | $4.6B | 121.3x | +12.9% | -19.5% | Hold | -39.7% |
NET NET Cloudflare, Inc. | $86.4B | 217.7x | +27.1% | -4.7% | Buy | -11.5% |
CDN CDNS Cadence Design Systems, Inc. | $97.6B | 44.5x | +15.0% | 20.9% | Buy | +4.9% |
ZS ZS Zscaler, Inc. | $22.7B | 35.2x | +17.7% | -2.3% | Buy | +96.1% |
PAN PANW Palo Alto Networks, Inc. | $129.3B | 49.9x | +15.3% | 13.0% | Buy | +13.0% |
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 3.2% annually — null% through dividends and 3.2% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
3.2%
Dividend + buyback return per year
Buyback Yield
3.2%
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
$557M
Estimated Shares Retired
5M
Approx. Share Reduction
3.1%
Shares Outstanding
Current diluted share count from the screening snapshot
154M
At 3.1%/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, 24 rate it Buy or Strong Buy, 26 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $111, implying -5.7% from the current price of $118. The bear case scenario is $102 and the bull case is $241.
02What is the AKAM stock price target for 2026?
The Wall Street consensus price target for AKAM is $111 based on 52 analyst estimates. The high-end target is $120 (+1.7% from today), and the low-end target is $76 (-35.6%). The base case model target is $189.
03Is Akamai Technologies, Inc. (AKAM) stock overvalued in 2026?
AKAM trades at 17.2x 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 significantly undervalued. 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) Slowing Growth — Akamai's revenue growth has been modest, with annual increases of 4. (2) Competition — The company competes with major tech giants such as Amazon AWS, Microsoft Azure, Cloudflare, and Fastly. (3) Execution Risk — Akamai is transitioning from traditional Content Delivery Network (CDN) services to cloud, security, and edge computing. 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 $4.4B (+5.7% year-over-year) and EPS of $5.09 (+65.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.7B in revenue.
06When does Akamai Technologies, Inc. (AKAM) report its next earnings?
Akamai Technologies, Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $1.61 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 $699M in free cash flow over the trailing twelve months — a free cash flow margin of 16.6%. AKAM returns capital to shareholders through and share repurchases ($557M TTM).