📊 AKAM Key Takeaways
Is Akamai Technologies Inc. (AKAM) a Good Investment?
Akamai demonstrates fortress-like financial health with strong free cash flow generation ($210.8M) and zero debt, but faces concerning profitability headwinds with net income declining 10.5% YoY despite 5.4% revenue growth. Deteriorating returns on capital (ROE 2.2%, ROA 0.9%) and thin margins suggest structural margin compression challenges that outweigh balance sheet strength.
Akamai shows solid fundamental quality through strong free cash flow generation, healthy liquidity, and good interest coverage, which support financial resilience. Profitability is positive but only moderate relative to asset and equity base, and the lack of revenue and earnings growth data limits conviction on growth quality. Overall, the business appears fundamentally stable, but not strong enough on the provided data alone to warrant a more aggressive rating.
Akamai Technologies Inc. Key Strengths (AKAM)
- Robust free cash flow generation of $210.8M with 19.6% FCF margin demonstrates operational cash conversion strength
- Fortress balance sheet with zero debt, 2.06x current ratio, and $622.4M cash position provides significant financial flexibility
- Positive revenue growth of 5.4% YoY and strong interest coverage (13.9x) indicate stable core business operations
- Strong free cash flow of $1.01B with a 24.0% FCF margin
- Healthy liquidity profile with current and quick ratios of 2.36x
- Good debt servicing capacity with 18.4x interest coverage and meaningful cash generation
AKAM Stock Risks: Akamai Technologies Inc. Investment Risks
- Net income declining 10.5% YoY while revenue grows only 5.4% indicates severe margin compression and deteriorating operational efficiency
- Critically low returns on equity (2.2%) and assets (0.9%) demonstrate poor capital deployment and shareholder value generation
- Thin operating margin (10.7%) combined with missing gross margin data suggests potential structural profitability challenges in core service delivery
- Missing YoY revenue and earnings trends makes growth quality difficult to assess
- Moderate profitability with 13.5% operating margin, 10.7% net margin, and 9.1% ROE
- Incomplete debt detail despite sizable total liabilities creates some balance sheet uncertainty
Key Metrics to Watch
- Operating and gross margin trends - critical to determine if compression is structural or temporary
- Return on equity trajectory - must show improvement toward acceptable levels (above 10%)
- Revenue growth acceleration and cash conversion ratio - validate if FCF strength is sustainable
- Revenue growth and diluted EPS growth
- Operating margin and free cash flow margin
Akamai Technologies Inc. (AKAM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.06x current ratio provides a solid financial cushion.
AKAM Profit Margin, ROE & Profitability Analysis
AKAM vs Services Sector: How Akamai Technologies Inc. Compares
How Akamai Technologies Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Akamai Technologies Inc. Stock Overvalued? AKAM Valuation Analysis 2026
Based on fundamental analysis, Akamai Technologies Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Akamai Technologies Inc. Balance Sheet: AKAM Debt, Cash & Liquidity
AKAM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Akamai Technologies Inc.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.52 reflects profitable operations.
AKAM Revenue Growth, EPS Growth & YoY Performance
AKAM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $106.3M | $0.71 |
| Q3 2025 | $1.0B | $57.9M | $0.38 |
| Q2 2025 | $979.6M | $103.6M | $0.71 |
| Q1 2025 | $987.0M | $123.2M | $0.82 |
| Q3 2024 | $965.5M | $57.9M | $0.38 |
| Q2 2024 | $935.7M | $128.8M | $0.84 |
| Q1 2024 | $915.7M | $97.1M | $0.62 |
| Q3 2023 | $881.9M | $123.7M | $0.78 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Akamai Technologies Inc. Dividends, Buybacks & Capital Allocation
AKAM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Akamai Technologies Inc. (CIK: 0001086222)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AKAM
What is the AI rating for AKAM?
Akamai Technologies Inc. (AKAM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AKAM's key strengths?
Claude: Robust free cash flow generation of $210.8M with 19.6% FCF margin demonstrates operational cash conversion strength. Fortress balance sheet with zero debt, 2.06x current ratio, and $622.4M cash position provides significant financial flexibility. ChatGPT: Strong free cash flow of $1.01B with a 24.0% FCF margin. Healthy liquidity profile with current and quick ratios of 2.36x.
What are the risks of investing in AKAM?
Claude: Net income declining 10.5% YoY while revenue grows only 5.4% indicates severe margin compression and deteriorating operational efficiency. Critically low returns on equity (2.2%) and assets (0.9%) demonstrate poor capital deployment and shareholder value generation. ChatGPT: Missing YoY revenue and earnings trends makes growth quality difficult to assess. Moderate profitability with 13.5% operating margin, 10.7% net margin, and 9.1% ROE.
What is AKAM's revenue and growth?
Akamai Technologies Inc. reported revenue of $1.1B.
Does AKAM pay dividends?
Akamai Technologies Inc. does not currently pay dividends.
Where can I find AKAM SEC filings?
Official SEC filings for Akamai Technologies Inc. (CIK: 0001086222) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AKAM's EPS?
Akamai Technologies Inc. has a diluted EPS of $0.71.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AKAM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Akamai Technologies Inc. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AKAM stock overvalued or undervalued?
Valuation metrics for AKAM: ROE of 2.2% (sector avg: 16%), net margin of 9.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AKAM's AI grade for 2026?
Our dual AI analysis gives Akamai Technologies Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AKAM's free cash flow?
Akamai Technologies Inc.'s operating cash flow is $312.5M, with capital expenditures of $101.7M. FCF margin is 19.6%.
How does AKAM compare to other Services stocks?
Vs Services sector averages: Net margin 9.9% (avg: 10%), ROE 2.2% (avg: 16%), current ratio 2.06 (avg: 1.5).