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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on AKAM

Akamai Technologies' recent performance was driven by robust growth in cloud and security segments, with Q4 revenue up 7% year-over-year to $1.095 billion. Strong security and compute demand are expected to boost revenue growth. Analyst upgrades from Morgan Stanley and Raymond James Financial, with price targets raised to $115 and $100, respectively, have also contributed to the positive trend. Additionally, institutional investors such as Penserra Capital Management LLC and Asset Management One Co. Ltd. have increased their stakes in the company.

1.c. Company Highlights

2. Akamai's Q4 2025 Earnings: A Strong Finish with Growth Across Key Segments

Akamai's financial performance in Q4 2025 was robust, with revenue reaching $1.095 billion, up 7% year-over-year as reported and 6% in constant currency. The non-GAAP operating margin stood at 29%, while non-GAAP earnings per share (EPS) was $1.84, exceeding estimates of $1.75 and marking an 11% year-over-year increase. The company's Cloud Infrastructure Services (CIS) segment saw significant growth, with Q4 revenue of $94 million, up 45% year-over-year as reported. Security solutions also performed well, driven by strong demand for API security and Guardicore Segmentation solutions, with revenue from these high-growth security products growing 36% year-over-year.

Publication Date: Feb -22

📋 Highlights
  • Revenue Growth:: Q4 2025 revenue reached $1.095 billion, up 7% YoY, with non-GAAP EPS at $1.84 (11% YoY growth).
  • CIS Expansion:: Cloud Infrastructure Services revenue hit $94 million (+45% YoY), driven by a $200 million 4-year contract with a major U.S. AI-focused tech firm.
  • Security Solutions Momentum:: High-growth security products (API security, Guardicore) grew revenue 36% YoY, reflecting strong demand for AI-era cybersecurity.
  • 2026 Guidance:: Full-year revenue projected at $4.4–4.55 billion (+5–8% YoY), with CIS growth accelerating to 45–50% and Security revenue rising in high single digits.
  • Inference Cloud Investment:: $250 million allocated to expand GPU capacity by 10x, adding 40–50 locations by 2026, targeting AI inference, transcoding, and generative media workloads.

Segment Performance and Growth Drivers

The CIS segment's strong performance was underpinned by new and expanded contracts, including a significant 4-year, $200 million commitment with a major U.S. tech company. This deal, along with others, contributed to the CIS revenue growth and underscores the growing demand for Akamai's cloud infrastructure services, particularly in the AI space. As Ed McGowan noted, the capital intensity is increasing due to significant demand for CIS, indicating a positive outlook for this segment.

Guidance and Outlook for 2026

For 2026, Akamai expects revenue to range from $4.4 billion to $4.55 billion, representing a 5% to 8% increase as reported and 4% to 7% in constant currency. The company projects Security revenue to grow in the high single digits on a constant currency basis, while CIS is expected to accelerate to 45% to 50% year-over-year growth. Non-GAAP EPS is anticipated to be in the range of $6.20 to $7.20. The guidance suggests a continued strong performance across key segments, driven by the growing demand for cloud infrastructure and security services.

Valuation and Growth Expectations

Analysts estimate next year's revenue growth at 7.1%, which is slightly above the company's guided range. With a current P/E Ratio of 30.05 and an EV/EBITDA of 13.72, the market appears to be pricing in a certain level of growth and profitability. The ROE of 9.64% and ROIC of 4.32% indicate a reasonable return on equity and invested capital, respectively. As Akamai continues to expand its CIS and security offerings, the company's ability to deliver on its growth projections will be closely watched.

3. NewsRoom

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Akamai Technologies, Inc. (AKAM) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -05

Source: seekingalpha.com

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Akamai Discloses Technical Details on AI Cluster Deal

Mar -05

Source: globenewswire.com

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Akamai Technologies, Inc. (AKAM) Presents at 47th Annual Raymond James Institutional Investor Conference Transcript

Mar -04

Source: seekingalpha.com

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Akamai to Deploy Thousands of NVIDIA Blackwell GPUs to Create One of the World's Most Widely Distributed AI Platforms

Mar -03

Source: globenewswire.com

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Fox Run Management L.L.C. Grows Stock Holdings in Akamai Technologies, Inc. $AKAM

Feb -25

Source: defenseworld.net

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Akamai Technologies (NASDAQ:AKAM) Trading 5.3% Higher on Analyst Upgrade

Feb -24

Source: defenseworld.net

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Akamai Secures Critical Infrastructure with Agentless Zero Trust Segmentation Powered by NVIDIA

Feb -23

Source: globenewswire.com

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Aberdeen Group plc Decreases Stake in Akamai Technologies, Inc. $AKAM

Feb -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.79%)

6. Segments

Security

Expected Growth: 7%

Akamai's 7% growth driven by increasing demand for cloud security and content delivery services, fueled by rising online traffic and cybersecurity threats. Growing adoption of cloud-based solutions, expansion into new markets, and strategic partnerships also contribute to growth.

Delivery

Expected Growth: 5%

Akamai's 5% growth driven by increasing demand for cloud security, rising adoption of online video and gaming, expansion into new markets, and growing need for digital transformation. Additionally, the company's focus on innovation, strategic partnerships, and cost savings initiatives contribute to its growth momentum.

Compute

Expected Growth: 4%

Akamai's 4% growth is driven by increasing demand for cloud security and content delivery services, fueled by the rise of online video, gaming, and e-commerce. Additionally, the company's expansion into new markets, such as Latin America and Asia, and its strategic acquisitions, like Linode, contribute to its growth momentum.

7. Detailed Products

Content Delivery Network (CDN)

A network of distributed servers that deliver content to users from locations close to them, reducing latency and improving performance.

Web Application Firewall (WAF)

A security solution that protects web applications from cyber threats and attacks, ensuring the security and integrity of online applications.

DDoS Protection

A solution that detects and mitigates Distributed Denial of Service (DDoS) attacks, ensuring the availability and uptime of online services.

Performance and Optimization

A suite of solutions that optimize the performance and speed of online applications, ensuring fast and seamless user experiences.

Cloud Security

A comprehensive security solution that protects cloud-based applications and data from cyber threats and attacks.

Media and Entertainment

A suite of solutions that enable the secure and efficient delivery of high-quality media content, including video, audio, and images.

Enterprise Application Access

A solution that provides secure and controlled access to enterprise applications, ensuring the security and integrity of sensitive data.

8. Akamai Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Akamai Technologies, Inc. has a low threat of substitutes due to its unique content delivery network (CDN) and cloud security solutions, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Akamai Technologies, Inc. has a medium bargaining power of customers due to the presence of large enterprises and organizations that have some negotiating power, but the company's strong brand and unique offerings mitigate this power.

Bargaining Power Of Suppliers

Akamai Technologies, Inc. has a low bargaining power of suppliers due to its strong relationships with suppliers and its ability to negotiate favorable terms.

Threat Of New Entrants

Akamai Technologies, Inc. has a medium threat of new entrants due to the high barriers to entry in the CDN and cloud security markets, but new entrants could still emerge with innovative solutions.

Intensity Of Rivalry

Akamai Technologies, Inc. operates in a highly competitive market with intense rivalry among existing players, including Cloudflare, Verizon Digital Media Services, and Limelight Networks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.00%
Debt Cost 3.95%
Equity Weight 55.00%
Equity Cost 7.53%
WACC 5.92%
Leverage 81.82%

11. Quality Control: Akamai Technologies, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.1/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

99.89$

Current Price

99.89$

Potential

-0.00%

Expected Cash-Flows