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What this page is: Delvantic's full research page for Akamai Technologies Inc. (AKAM) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
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profile-header/price-overview— company profile, live quote, market capextended-analysis— the core: three AI lens reads with findings, scores, and the analyst memofuture-predictions— our forward price-band predictionsmarket-narrative/ai-findings/gpt-critique— narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)- Members-only sections (render as login gates for anonymous readers):
price-history,income-trend,key-metrics,financials(statement tables),insider-trading. The analysis above is public; the raw data tables require a free account.
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Akamai Technologies Inc.
AKAM NASDAQAkamai Technologies Inc. is a cybersecurity and cloud computing company that provides security, delivery, and cloud infrastructure solutions for businesses worldwide. Its services help organizations protect websites, applications, APIs, and digital traffic from attacks while improving performance, reliability, and scalability. Akamai’s platform supports web and mobile application security, bot and abuse protection, API security, content delivery, media streaming, and cloud compute services. The company also offers tools for traffic management, application load balancing, and edge computing, serving enterprises across industries such as media, e-commerce, financial services, software, and the public sector. Headquartered in Cambridge, Massachusetts, Akamai plays a significant role in helping companies build, secure, and accelerate digital experiences over the internet.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics TTM · through Jun 30, 2026
EPS (Diluted): 2.75
Total Equity: $4.75B
Shares: 149,506,333
Total Debt: $0.00
Cash: $1.48B
EBITDA: $1.18B
Total Debt: $0.00
Cash: $1.48B
Revenue: $4.32B
Revenue: $4.32B
Revenue: $4.32B
Total Equity: $4.75B
Tax Rate: 17.7%
Equity: $4.75B
Total Debt: $0.00
Cash: $1.48B
Current Liabilities: $2.84B
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $4.75B
Shares: 149,506,333
Shares: 149,506,333
CapEx: -$491.09M
Shares: 149,506,333
Stock Price: $105.22
Net Income: $410.97M
Industry Benchmarks
Income Statement (Annual)
Last updated: Sep 7, 2026 6:39pm (30d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.5B | $3.6B | $3.8B | $4.0B | $4.2B |
| Cost of Revenue | $1.3B | $1.4B | $1.5B | $1.6B | $1.7B |
| Gross Profit | $2.2B | $2.2B | $2.3B | $2.4B | $2.5B |
| Operating Expenses | $1.4B | $1.6B | $1.7B | $1.8B | $1.9B |
| Operating Income | $783.1M | $676.3M | $637.3M | $533.4M | $566.9M |
| Net Income | $651.6M | $523.7M | $547.6M | $504.9M | $452.0M |
| EBITDA | $1.3B | $1.3B | $1.2B | $1.2B | $1.3B |
| EPS | $4.01 | $3.29 | $3.59 | $3.34 | $3.11 |
| EPS (Diluted) | $3.93 | $3.26 | $3.52 | $3.27 | $3.07 |
Balance Sheet (Annual)
Last updated: Sep 7, 2026 6:39pm (30d ago)| Metric | 2022 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | — | $542.3M | $489.5M | $517.7M | $930.2M |
| Total Current Assets | — | $2.0B | $1.8B | $2.6B | $2.3B |
| Total Assets | $8.1B | $8.3B | $9.9B | $10.4B | $11.5B |
| Current Liabilities | — | $818.9M | $836.0M | $2.1B | $967.5M |
| Long-Term Debt | — | $2.3B | $3.5B | $2.4B | $4.1B |
| Total Liabilities | $3.9B | $3.9B | $5.3B | $5.5B | $6.5B |
| Total Equity | $4.3B | $4.4B | $4.6B | $4.9B | $5.0B |
| Retained Earnings | $1.8B | $1.9B | $2.5B | $3.0B | $3.4B |
Cash Flow (Annual)
Last updated: Sep 7, 2026 6:39pm (30d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.4B | $1.3B | $1.3B | $1.5B | $1.5B |
| Capital Expenditure | -$329.0M | -$241.3M | -$457.9M | -$390.4M | -$507.8M |
| Free Cash Flow | $1.1B | $1.0B | $890.5M | $1.1B | $1.0B |
| Acquisitions (net) | -$598.8M | -$872.1M | -$106.2M | -$434.1M | -$55.1M |
| Net Debt Issued / (Repaid) | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$522.3M | -$608.0M | -$654.0M | -$557.5M | -$800.0M |
| Net Change in Cash | $184.3M | $5.3M | -$52.6M | $28.6M | $412.2M |
Growth Trends (YoY %)
Last updated: Sep 7, 2026 6:39pm (30d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +4.5% | +5.4% | +4.7% | +5.4% |
| Gross Profit Growth | +1.9% | +3.0% | +3.0% | +4.7% |
| Operating Income Growth | -13.6% | -5.8% | -16.3% | +6.3% |
| Net Income Growth | -19.6% | +4.6% | -7.8% | -10.5% |
| EBITDA Growth | -4.9% | -4.8% | -2.2% | +7.9% |
Deep Analysis
Risk : Reward — upside vs downside from this company's own quarters
Not computed yetNarrative Economics
market-narrative step).
Claude Reading
Let me start with the numbers that matter and that the models underweight. Akamai's net income has fallen from $652M in 2021 to $452M in 2025, a 31% decline, while revenue grew 22% over the same span. Operating income dropped from $783M to $567M. The most recent quarter, June 2026, shows a 7.2% net margin on $1.10B of revenue, down from 13.3% in the same quarter a year ago. That is not a cyclical dip; that is a structural margin compression of roughly 600 basis points in twelve months, and the TTM net margin of 9.5% is being propped up by the stronger second half of 2025. The quarterly net income path — $140M, $104M, $123M, $85M, $106M, $79M — is a jagged downtrend, not a stable earnings base. Against that, the market is paying 38.3x trailing earnings and 3.64x sales. The "mature_earner" classification at 0.74 confidence is wrong. A mature earner has stable or growing earnings. Akamai's earnings CAGR is negative 19.2%, and its FCF CAGR is negative 8.5%. This is a company in active margin erosion, not a steady-state cash cow.
The FCF story is the bull case, and it's real: $1.52B operating cash flow, $1.01B free cash flow, a 6.7% FCF yield at the current $15.12B market cap. But three things undercut it. First, FCF is shrinking at 8.5% per year, so that yield is a moving target heading toward 5% within three years if the trend holds. Second, the $508M capex line — 12% of revenue — is a genuine competitive tax. Akamai must keep lighting up edge PoPs to stay relevant, and that capex burden is structurally higher than Cloudflare's or AWS CloudFront's cloud-native model. Third, the balance sheet carries $4.11B of debt against $930M of cash, leaving $3.18B of net debt, or roughly 3.1x net debt to FCF. The canonical metrics list debt-to-equity as zero, which is a data error — the actual ratio is 0.83 — and I'd flag that any model consuming that "0" is mispricing the leverage risk. The ROIC discrepancy the anomaly list flags (5.2% annual versus 11.5% TTM) is the more important warning: if the true return on invested capital is closer to 5%, the capital allocation story that justifies a premium multiple falls apart.
Now the models. The valuation synthesis calls this "slight_upside" with a composite fair value of $98.19 and a signal-adjusted value of $117.04. That is a 19% spread between the two methods, which is not "slight upside" — that is "we don't know, and the base case says you're overpaying." The composite DCF at $98 is below the $105.22 price. The signal adjustment is doing all the lifting, and when the base case is below the market and the adjustment is 19% above it, the honest read is "fairly valued with a wide error band," not "slight upside." The thesis score of -13 is directionally right but too mild; the top bear argument — margin compression at weight 70 — is the single most important fact in this file, and it deserves a score closer to -25. The narrative layer correctly identifies this as a "quiet-quality" name with minimal narrative intensity, and I agree: the "edge computing platform" story has been told for a decade without accelerating the multiple, so the math is doing all the work, and the math is getting worse. The insider tape is all sales and option exercises, zero purchases, over the last ten transactions. For a company at 38x earnings with declining margins, the absence of insider buying removes one of the few potential positive signals and is mildly telling.
The contrarian case for owning at $105 is this: 25 years of distributed edge infrastructure is genuinely hard to replicate, the security franchise (Kona, Linode, identity) is sticky and growing, and at 11.7x EV/EBITDA the multiple is not insane for infrastructure. If margins stabilize at the current 9-10% TTM level rather than continuing to compress toward 7%, the earnings base stops shrinking and the 38x P/E becomes a 30x P/E within two years as the low-margin quarters roll off. But "stabilize" is doing a lot of work in that sentence, and the June 2026 print of 7.2% margin says stabilization has not happened yet. The risk/reward at $105 is asymmetric to the downside: you need margin stabilization plus security acceleration to justify the multiple, and you only need continued compression to see a 20-25% drawdown. A more attractive entry is $85-90, where the FCF yield exceeds 8%, the P/E compresses toward 30x, and the margin-compression risk is more fully priced.
GPT Reading
Grok Reading
Advanced Analysis Forensic deep-dive · separate lenses
Akamai is a mature, self-funding business generating roughly $1B in annual free cash flow on $4.32B of revenue, with $3.36B of net cash (22.2% of market cap) and a shrinking share count (163.9M to 149.5M diluted shares over four years). Earnings quality is high: OCF/NI of 2.86x, negative accruals of -8.9% of assets, and a Beneish M-score of -2.71 all point to reported numbers that are well-supported by cash. Buybacks exceed stock-based compensation by a factor of 2.03, so per-share value is being concentrated, not diluted. The balance sheet carries zero survival risk.
The central quality concern is a persistent and accelerating margin compression. Gross margin has slid from 63% to 57.5% and operating margin from 21% to 10.5% over the four-year window, while net income has fallen from $610.7M to $411.0M even as revenue grew 21%. FCF has held near $1B, which means the cash conversion is still excellent, but the operating leverage that once characterized the business is clearly eroding. This pattern is consistent with either competitive pricing pressure in the CDN/edge space or a deliberate investment phase (security, AI inference at the edge) that has not yet re-accelerated margins. The Altman Z of 1.74 falls in the distress zone, but for an asset-light software firm with $3.4B net cash and $1B FCF this is a well-known model artifact and not a genuine solvency signal.
Insider activity is neutral: zero open-market buys and seven small sales totaling $1.75M over 12 months, mostly routine option exercises and awards. No alarming pattern, but no conviction signal either. The business is durable, well-capitalized, and cash-rich, but the margin trajectory is the one dimension that prevents a higher quality grade.
Verify before trusting this (5)
- 10-K segment disclosure: is the margin compression concentrated in legacy CDN or spread across security/AI lines, and is management guiding to margin recovery?
- Customer concentration: top-10 customer share of revenue and any single-customer dependency that could amplify competitive pricing pressure.
- SBC detail: vesting schedules, performance conditions, and whether the 11.8% SBC/revenue ratio is trending up or down.
- Convertible or hybrid instruments: confirm the $3.36B net cash figure is not offset by off-balance-sheet obligations or operating lease commitments that would alter the true leverage picture.
- Capex trajectory: is the stable FCF masking a rising capex cycle (edge datacenter buildout) that could compress FCF in future years?
At $105.22, Akamai trades 7% above the composite fair value of $98.19 and 11% below the signal-adjusted fair value of $117.04. The DCF method prints $151.04, a 43% premium to price, but that number leans heavily on sustained cash generation that the halved operating margin over four years makes uncertain. The anchored-PE method at $30.54 and the EPV floor at $60.12 are so far below price that they likely reflect a distressed-asset framing rather than a going-concern reality, and I discount them as outliers. The center of gravity across methods lands in the $98-to-$117 band, and $105 is squarely inside it. The market appears to be pricing a cash-generating infrastructure franchise with real but manageable competitive pressure, which is a reasonable read. There is no margin of safety here in either direction; the price is what the business deserves on a skeptical, quality-adjusted basis.
Verify before trusting this (4)
- Latest quarterly operating margin trajectory — is the halving stabilizing or still declining? A flat or improving margin would validate the DCF; continued decline would pull deserved value toward the composite.
- Segment-level revenue split between legacy CDN and security/compute — if the higher-margin security business is growing double digits, the blended margin story is less dire than the headline suggests.
- Management guidance on FCF conversion and buyback pace — confirms whether the $1B FCF and share-count reduction are sustainable or one-time.
- Customer concentration and any disclosed losses to Cloudflare or AWS in the 10-K risk factors — quantifies the competitive threat the bear narrative raises.
This lens hasn't been run for this ticker yet.
This lens hasn't been run for this ticker yet.