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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 strong Q3 earnings, beating sales and earnings estimates, and raising guidance for the year. Robust demand in security and compute segments, fueled by new strategic partnerships and product expansion, contributed to the positive results. The company's recent breakouts above the 50-day and 200-day moving averages suggest short-term and long-term bullish trends. Additionally, the stock appears fairly priced after a 25.9% increase over 5 trading days.

1.c. Company Highlights

2. Akamai Technologies' Strong Q3 2025 Results Driven by Cloud Infrastructure Services and Security Growth

Akamai Technologies, Inc. reported strong third-quarter 2025 results, with revenue growing 5% year-over-year to $1.055 billion. Non-GAAP operating margins improved to 31%, and non-GAAP earnings per share were $1.86, up 17% year-over-year, beating analyst estimates of $1.64. The company's Cloud Infrastructure Services (CIS) revenue accelerated to 39% growth year-over-year, with $81 million in revenue. Security revenue grew 10% year-over-year, driven by strong demand for API security and Zero Trust Enterprise Security solutions.

Publication Date: Nov -13

📋 Highlights

Segment Performance

The company's compute revenue was $180 million, up 8% year-over-year, driven by continued strength in CIS. Security revenue was $568 million, up 10% year-over-year, with high-growth security products growing 35% year-over-year. Delivery revenue was $306 million, down 4% year-over-year, but slightly better than expected. International revenue was $525 million, up 9% year-over-year, representing 50% of total revenue.

Guidance and Outlook

For Q4, the company projects revenue in the range of $1.065 billion to $1.085 billion, up 4% to 6% year-over-year. Non-GAAP operating expenses are expected to be $322 million to $331 million, with a non-GAAP operating margin of approximately 28% to 30%. The company expects Q4 non-GAAP EPS in the range of $1.65 to $1.85. For the full year, Akamai expects total revenue to grow 4% to 5% in constant currency, with non-GAAP operating margin of approximately 29% to 30%, and EPS in the range of $6.93 to $7.13.

Valuation

Akamai's current P/E Ratio is 25.92, indicating that the stock may be slightly overvalued. However, the company's strong growth prospects, driven by its Cloud Infrastructure Services and security solutions, may justify the premium. The EV/EBITDA ratio is 21.26, which is relatively high, but consistent with the company's high-growth profile. The ROE is 10.86%, indicating a strong return on equity.

Growth Drivers

The company's CIS segment is expected to drive growth, with the Akamai Inference Cloud being a key product. The partnership with NVIDIA is expected to drive growth, with the NVIDIA Blackwell 6000 being well-suited to run at Akamai's edge. The company is also seeing significant demand for API Security and Guardicore Zero Trust platform security products.

Market Dynamics

Ed McGowan discussed market dynamics, stating that seasonality affects traffic, with Q4 typically being the strongest due to factors like holiday shopping and new content. He expects this trend to continue, with possibilities for growth driven by AI agent applications and increased video traffic.

3. NewsRoom

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Akamai Technologies Announces Acquisition of Function-as-a-Service Company Fermyon

Dec -01

Source: globenewswire.com

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Creative Planning Has $1.82 Million Stake in Akamai Technologies, Inc. $AKAM

Nov -27

Source: defenseworld.net

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Rep. Lisa C. McClain Sells Akamai Technologies, Inc. (NASDAQ:AKAM) Stock

Nov -27

Source: defenseworld.net

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Akamai Technologies (AKAM) Just Flashed Golden Cross Signal: Do You Buy?

Nov -26

Source: zacks.com

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AKAM or SHOP: Which Is the Better Value Stock Right Now?

Nov -24

Source: zacks.com

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Here Are Mondays Top Wall Street Analyst Research Calls: AppLovin, Block, Broadcom, DataDog, Dell Technologies, Gap, Pure Storage and More

Nov -17

Source: 247wallst.com

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Could Akamai Stock Drop 30%?

Nov -16

Source: forbes.com

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Earnings Estimates Moving Higher for Akamai Technologies (AKAM): Time to Buy?

Nov -14

Source: zacks.com

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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Dropbox

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Quality: 7.4

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Momentum: 7.5

Volatility: 7.7

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Okta

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Quality: 6.7

Yield: 0.0

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Growth: 5.3

Quality: 5.6

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Akamai

A-Score: 3.8/10

Value: 4.0

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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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

86.6$

Current Price

86.6$

Potential

-0.00%

Expected Cash-Flows