# Akamai Technologies (AKAM.US)

Canonical: https://gigainvestors.com/s/AKAM

Analysis as of: 2026-10-16T07:26:20.849Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $92.32 per share; close as of 2026-10-15.

Estimated value: low $71.83 per share, central $83.73 per share, high $93.90 per share. Buy at or below the central value $83.73 per share. Valuation as of 2026-10-16T07:26:20.849Z; scenarios are not confidence intervals.

Expected annual return: 9.1% at the stated quote. About 9.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.13×

- FY2019: 0.19×

- FY2020: 0.21×

- FY2021: 0.23×

- FY2022: 0.19×

- FY2023: 0.17×

- FY2024: 0.13×

- FY2025: 0.15×

- LTM to Jun 2026: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.6%

- ROIC, second-lowest year: 9.6%

- Typical minus recent gross margin: 9.2 pp

- Typical gross margin (annual median): 64.0%

- Recent gross margin (lower of latest and 3-year median): 54.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 16.9%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.4%

- FY2017: 10.6%

- FY2018: 23.0%

- FY2019: 15.5%

- FY2020: 14.3%

- FY2021: 17.2%

- FY2022: 14.9%

- FY2023: 9.8%

- FY2024: 9.6%

- FY2025: 6.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.8B

- Net income, five-year total: $2.7B

- Return on incremental invested capital: 16.1%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.4 pp

- Working capital / revenue, final three-year average: 15.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.01×

- FY2022: 1.26×

- FY2023: 0.96×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.4% vs 9.6%

- Per-share earnings: 1.78 to 3.27 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.0%

- Ordinary dilution, 5-year annual growth: -2.3%

- Market cap gain: $1.1B

- Cumulative retained earnings: $4.4B

- Diluted shares, 10-year annual growth: -2.0%

- Diluted shares, 5-year annual growth: -2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.9%

- Per-share value change: $1.49

- Per-share value, starting three-year median: $1.78

- Per-share value, ending three-year median: $3.27

- Buybacks concentrated in cheaper years (correlation): 0.24

- Average buyback yield: 3.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.6B

- Cumulative net income, 10 years: $4.6B

- ROIC, first three-year median: 15.4%

- ROIC, last three-year median: 9.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.82

- FY2017: $1.29

- FY2018: $1.76

- FY2019: $2.90

- FY2020: $3.37

- FY2021: $3.93

- FY2022: $3.26

- FY2023: $3.52

- FY2024: $3.27

- FY2025: $3.07

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.3%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 30.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.36×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.77×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.6%

- FY2017: -12.6%

- FY2018: -13.0%

- FY2019: -8.3%

- FY2020: -8.5%

- FY2021: -9.3%

- FY2022: -9.0%

- FY2023: -8.1%

- FY2024: -9.8%

- FY2025: -9.3%

## Holders

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 38% since May 2026 · "These cost increases will increase our future capital expenditures and resulting depreciation expense." (SEC filing, Feb 2026) · sales +2.7%

Story as of 2026-10-16T09:58:16.005Z; price observation 2026-10-15.

Price needs cash profits to grow 4.7% a year for ten years

- 2025-08-07: Akamai raises annual results forecast on cybersecurity demand ([finance.yahoo.com](https://finance.yahoo.com/news/akamai-raises-annual-results-forecast-200315458.html))

- 2025-11-07: Akamai outlines 40%–45% CIS ARR growth target for 2025 while launching Inference Cloud ([seekingalpha.com](https://seekingalpha.com/news/4518184-akamai-outlines-40-percent-45-percent-cis-arr-growth-target-for-2025-while-launching?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-20: Akamai projects 45%-50% CIS revenue growth in 2026 as AI Inference Cloud momentum accelerates ([seekingalpha.com](https://seekingalpha.com/news/4554398-akamai-projects-45-percentminus-50-percent-cis-revenue-growth-in-2026-as-ai-inference-cloud?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-03-04: Akamai Technologies CEO Details AI Inference Cloud Push, 45%-50% Cloud Growth at Conference ([finance.yahoo.com](https://finance.yahoo.com/news/akamai-technologies-ceo-details-ai-140704322.html))

- 2026-05-12: Anthropic Signs $1.8 Billion Akamai Cloud Deal Amid Surging Claude AI Demand: Report ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/anthropic-signs-1-8-billion-100044638.html))

- 2026-08-07: Akamai Stock Falls on Earnings as Latest AI Announcement Fails to  Convince ([finance.yahoo.com](https://finance.yahoo.com/m/c4d7988b-b2f2-31de-9d24-483dfa9884ee/akamai-stock-falls-on.html))

### Sales · FY2025–2026

sales +2.7%; source https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm; observed 2026-02-20.

- FY2017: $2.5B 

- FY2018: $2.7B 

- FY2019: $2.9B 

- FY2020: $3.2B 

- FY2021: $3.5B 

- FY2022: $3.6B 

- FY2023: $3.8B 

- FY2024: $4.0B 

- FY2025: $4.2B 

- FY2026: $4.3B 

### Gross margin · FY2025

gross margin 54.7%; source https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm; observed 2026-02-20.

- FY2016: 65.5% 

- FY2017: 64.8% 

- FY2018: 64.9% 

- FY2019: 65.9% 

- FY2020: 64.6% 

- FY2021: 63.3% 

- FY2022: 61.7% 

- FY2023: 60.4% 

- FY2024: 59.4% 

- FY2025: 54.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 4.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm (filed 2026-02-20); FY2025: revenue 4208175000; grossProfit 2302687000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AKAM.US: Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally. It offers security solutions that include web application and application programming interfaces (API) protection solutions, which protect web, API, and mobile app traffic from attacks; Bot & Abuse portfolio, which provides solutions to help customers protect against threats; full account lifecycle protections including the ability to defend against account takeover and opening abuse, adversarial bot protection, protection against credential stuffing, inventory scalping, and hoarding; and solutions designed to stop persistent scrapers from stealing content; API security, which discovers, audits, and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components. The company also offers cloud computing services, which include compute, storage, and cloud native and networking services; and Akamai App Platform, provides ready-to-run templates that address challenges in deploying, managing and scaling Kubernetes clusters at scale. In addition, it offers delivery solutions that include web and mobile performance solutions, which enables dynamic websites and applications, as well as global traffic management, site acceleration, application load balancing, large-scale load testing, and real-user monitoring; and 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. The company has a strategic alliance with Deloitte Canada to help organizations achieve platform-based resilience against AI-accelerated cyberthreats. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

### Why customers stay

Margins ranged from 54.7% to 60.4% during 2023–25; it earns 14.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 60.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 59.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 54.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.15398098866638554],[2017,0.10618759495249057],[2018,0.2296118933807089],[2019,0.1546951730649887],[2020,0.14295453479323494],[2021,0.1719911846383401],[2022,0.14854973589324977],[2023,0.09849635051392977],[2024,0.096281904524251],[2025,0.06291350382514103]]; median 0.14575213534324236. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 24.5% of cash earnings on expansion; earns 16.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 316289000; owner earnings 338740000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 42465000; upkeep 372313000; owner earnings 222766000. Growth capex / owner earnings = 0.19062603808480647.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 405741000; owner earnings 327152000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 72595404.54870749; upkeep 489481595.4512925; owner earnings 429227404.5487075. Growth capex / owner earnings = 0.1691304044881169.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 145804595.55659795; upkeep 586067404.443402; owner earnings 449375595.55659795. Growth capex / owner earnings = 0.32446042241346895.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 545230000; owner earnings 657044000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 458302000; owner earnings 658124000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 135139056.28785014; upkeep 594900943.7121499; owner earnings 523504056.28785014. Growth capex / owner earnings = 0.2581432840198349.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 36857000; upkeep 648410000; owner earnings 504918000. Growth capex / owner earnings = 0.07299601123350723.

- Source: https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm (filed 2026-02-20); FY2025: growth capex 110889000; upkeep 708611000; owner earnings 452031000. Growth capex / owner earnings = 0.24531282146578443.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Incremental return on capital 0.16139855164782202, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,57112000],[2020,0],[2021,0],[2022,125000000],[2023,2001],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 799963000 USD.

### Are managers owners

Insiders own 2.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AKAM.US SharesStats.PercentInsiders = 2.1270000000000002 percentage points; cache date 2026-10-16.

### What could break it

"Slowing, flat or limited revenue growth has in the past" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm (filed 2026-02-20); Slowing, flat or limited revenue growth has in the past

### What the price says

The price assumes cash profits grow 4.7% yearly over ten years; actual growth was 8.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.054255581521537186. Price 92.32; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.347936324214031 → FY2025 3.074559762758208. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $69.47 per share

- 2016-11: $66.70 per share

- 2016-12: $66.68 per share

- 2017-01: $68.59 per share

- 2017-02: $62.60 per share

- 2017-03: $59.70 per share

- 2017-04: $60.94 per share

- 2017-05: $47.15 per share

- 2017-06: $49.81 per share

- 2017-07: $47.14 per share

- 2017-08: $47.15 per share

- 2017-09: $48.72 per share

- 2017-10: $52.25 per share

- 2017-11: $55.78 per share

- 2017-12: $65.04 per share

- 2018-01: $66.99 per share

- 2018-02: $67.46 per share

- 2018-03: $70.98 per share

- 2018-04: $71.65 per share

- 2018-05: $75.38 per share

- 2018-06: $73.23 per share

- 2018-07: $75.26 per share

- 2018-08: $75.14 per share

- 2018-09: $73.15 per share

- 2018-10: $72.25 per share

- 2018-11: $68.75 per share

- 2018-12: $61.08 per share

- 2019-01: $65.10 per share

- 2019-02: $69.66 per share

- 2019-03: $71.71 per share

- 2019-04: $80.06 per share

- 2019-05: $75.36 per share

- 2019-06: $80.14 per share

- 2019-07: $88.13 per share

- 2019-08: $89.13 per share

- 2019-09: $91.38 per share

- 2019-10: $86.50 per share

- 2019-11: $87.12 per share

- 2019-12: $86.38 per share

- 2020-01: $93.35 per share

- 2020-02: $86.51 per share

- 2020-03: $91.49 per share

- 2020-04: $97.71 per share

- 2020-05: $105.80 per share

- 2020-06: $107.09 per share

- 2020-07: $112.44 per share

- 2020-08: $116.43 per share

- 2020-09: $110.54 per share

- 2020-10: $95.12 per share

- 2020-11: $103.51 per share

- 2020-12: $104.99 per share

- 2021-01: $111.03 per share

- 2021-02: $94.50 per share

- 2021-03: $101.90 per share

- 2021-04: $108.70 per share

- 2021-05: $114.21 per share

- 2021-06: $116.60 per share

- 2021-07: $119.92 per share

- 2021-08: $113.25 per share

- 2021-09: $104.59 per share

- 2021-10: $105.46 per share

- 2021-11: $112.70 per share

- 2021-12: $117.04 per share

- 2022-01: $114.55 per share

- 2022-02: $108.26 per share

- 2022-03: $119.39 per share

- 2022-04: $112.28 per share

- 2022-05: $101.04 per share

- 2022-06: $91.33 per share

- 2022-07: $96.22 per share

- 2022-08: $90.28 per share

- 2022-09: $80.32 per share

- 2022-10: $88.33 per share

- 2022-11: $94.86 per share

- 2022-12: $84.30 per share

- 2023-01: $88.95 per share

- 2023-02: $72.60 per share

- 2023-03: $78.30 per share

- 2023-04: $81.97 per share

- 2023-05: $92.12 per share

- 2023-06: $89.87 per share

- 2023-07: $94.50 per share

- 2023-08: $105.09 per share

- 2023-09: $106.54 per share

- 2023-10: $103.33 per share

- 2023-11: $115.53 per share

- 2023-12: $118.35 per share

- 2024-01: $123.23 per share

- 2024-02: $110.92 per share

- 2024-03: $108.76 per share

- 2024-04: $100.93 per share

- 2024-05: $92.24 per share

- 2024-06: $90.08 per share

- 2024-07: $98.28 per share

- 2024-08: $101.84 per share

- 2024-09: $100.95 per share

- 2024-10: $101.08 per share

- 2024-11: $94.02 per share

- 2024-12: $95.65 per share

- 2025-01: $99.90 per share

- 2025-02: $80.68 per share

- 2025-03: $80.50 per share

- 2025-04: $80.58 per share

- 2025-05: $75.93 per share

- 2025-06: $79.76 per share

- 2025-07: $76.31 per share

- 2025-08: $79.13 per share

- 2025-09: $75.76 per share

- 2025-10: $75.10 per share

- 2025-11: $89.52 per share

- 2025-12: $87.25 per share

- 2026-01: $97.15 per share

- 2026-02: $98.39 per share

- 2026-03: $114.85 per share

- 2026-04: $102.98 per share

- 2026-05: $149.54 per share

- 2026-06: $118.21 per share

- 2026-07: $115.18 per share

- 2026-08: $108.62 per share

- 2026-09: $106.35 per share

- 2026-10: $92.32 per share

## Annual estimated value (USD per share)

- FY2016: low $31.38 per share, central $42.90 per share, high $49.61 per share

- FY2017: low $30.23 per share, central $38.97 per share, high $44.96 per share

- FY2018: low $36.46 per share, central $46.45 per share, high $52.62 per share

- FY2019: low $37.80 per share, central $50.14 per share, high $57.33 per share

- FY2020: low $43.24 per share, central $59.08 per share, high $68.31 per share

- FY2021: low $45.96 per share, central $63.05 per share, high $73.00 per share

- FY2022: low $50.19 per share, central $66.54 per share, high $76.91 per share

- FY2023: low $51.31 per share, central $66.68 per share, high $77.20 per share

- FY2024: low $52.47 per share, central $62.11 per share, high $70.79 per share

- FY2025: low $54.21 per share, central $65.53 per share, high $75.21 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:31:56.694Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1086222/000108622226000022/akam-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.