Akamai Technologies, Inc. (AKAM) Stock

Akamai Technologies, Inc. (AKAM) is a Technology stock trading at $105.49 (as of 2026-09-15), with a market capitalization of $15.16B and a trailing P/E of 36.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Akamai Technologies provides cloud services that secure, deliver, and optimize internet content and business applications. Its offerings include cybersecurity and DNS services, performance and media delivery, edge and related compute capabilities, and supporting integration and management services for enterprises and other organizations.

Understand Akamai Technologies, Inc.: how it makes money

Akamai operates a global edge network that secures, delivers, and accelerates web content, APIs, video, and AI workloads for enterprise customers, monetizing through per-unit usage fees and multi-year contracts. Security now drives the majority of growth, legacy content delivery is a gradually shrinking base, and the new AI compute line is small but strategically central.

The same edge network that moves gigabytes of video now secures API calls and runs GPU inference, so each new service layer adds revenue on existing infrastructure without proportional capex.

Revenue by segment (latest quarter)
Security$0.6B
Delivery and Other Cloud Apps$0.4B
Cloud Infrastructure Services$0.1B

Business quality (Weak): Operating margin at 7% and a 37.4x P/E on 5% revenue growth leave little room for execution risk; the quality grade is weak until CIS margins materialize.

Valuation: Trades at 37× trailing earnings · $15.4B market cap.

Bull case

  • Edge AI demand is validated: GPU capacity is fully sold out and the distributed global footprint is well suited for latency-sensitive AI inference, giving AKAM a structural edge over cloud-only GPU providers.
  • Security anchors the growth base: Security Revenue at $590M now equals 54% of total revenue, making it the dominant growth engine against a blended 5% company growth rate.
  • CIS contracts lock in visibility: Large Cloud Infrastructure Services contracts are expected to deliver attractive operating margins and provide multi-year revenue visibility, reducing the churn risk typical of usage-based pricing.

Bear case

  • GPU capex is a heavy lift: Management cites up to $500 million in GPU capital expenditure for CIS scaling, with operating margins expected to stay in the mid-20s during the investment phase, implying a multi-year stretch before returns normalize.
  • Legacy delivery keeps eroding: Delivery and Other Cloud Applications at $390M (35% of revenue) is described by management as a declining business, meaning security and CIS must more than offset this shrinkage just to maintain flat total growth.
  • Multiple prices in the upside: At 37.4x earnings on 7% operating margin, the valuation already embeds a significant CIS margin contribution that has not yet shown up in reported results.
Valuation — source: SEC EDGAR (first-party)
Price$105.49
Market Cap$15.16B
P/E Ratio36.9
EV / EBITDA11.6
Price / Book3.19
Price / Sales3.51
FCF Yield6.3%
DCF Value (model)$123.27
DCF Upside vs Price16.9%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$4.21B
Net Margin10.7%
Return on Equity8.7%
Current Ratio1.64
Revenue Growth (YoY)5.4%
EPS Growth (YoY)-23.6%
FCF Growth (YoY)-42.2%
Financial Health — source: SEC EDGAR
Altman Z-Score2.50 (grey)
Valuation vs Sector & Industry
Stock P/E36.9
Sector P/E (Technology)30.8
Industry P/E (Business Services)25.7
vs Sector19.7%
vs Industry43.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBanque Cantonale Vaudoise ($3.45B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryBusiness Services
CEOF. Thomson Leighton
Employees10,811
CountryUS
IPO Date1999-10-29

Akamai Technologies, Inc. earnings call transcripts

  • AKAM Q2 FY26 earnings call transcript (reported 2026-08-06) · analysis
  • AKAM Q1 FY26 earnings call transcript (reported 2026-05-07) · analysis
  • AKAM Q3 FY25 earnings call transcript (reported 2025-11-06) · analysis
  • AKAM Q2 FY25 earnings call transcript (reported 2025-08-07) · analysis

All AKAM earnings calls

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AKAM earnings history · AKAM institutional & insider holders · AKAM KPIs & operating metrics · AKAM financials · AKAM filings, presentations & press releases · AKAM investor presentations & press releases · AKAM SEC filings · AKAM peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.