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what it is
Akamai keeps websites fast, safe, and online with security, delivery, and cloud tools.
how it gets paid
2025 revenue ~$4.208B vs. ~$3.991B in 2024 — per the Feb 19, 2026 release.
why it's growing
Full‑year GAAP operating margin was ~13%; non‑GAAP operating margin ~30% — large reconciliations (SBC, amortization, restructuring).
what just happened
Q4 2025: revenue ~$1.095B; non‑GAAP EPS ~$1.84; GAAP EPS ~$0.58 (restructuring charge in the quarter).
At a glance
B++ balance sheet — above average — nothing keeping you up at night
65/100 earnings predictability — reasonably predictable
25.4x trailing p/e — priced about right
10.0% return on capital — nothing to write home about
xvary composite: 75/100 — average
What they do
Akamai keeps websites fast, safe, and online with security, delivery, and cloud tools.
Akamai is the internet's plumbing. content delivery network (CDN) → servers that sit closer to users → so your site loads without waiting on one faraway box. Microsoft has used Akamai since 1999, and 48% of 2024 revenue came from outside the U.S.
How they make money
$4.21B
2025 revenue · +~5% vs. 2024 (as reported)
Security solutions (FY2025)
$2.24B
+10%
Delivery (FY2025)
$1.26B
5%
Cloud computing (FY2025, as reported)
$708M
The products that matter
higher-margin security stack
Security Solutions
growth driver inside ~$4.21B FY revenue
Web application firewalls, DDoS protection, and bot management are the higher-margin wedge inside a business that still reports roughly low- to mid-teens operating margin companywide. This is the part of Akamai the market wants to believe becomes the center of gravity.
growth · higher margin
distributed cloud platform
Cloud Computing
built through Linode + Fermyon
This is Akamai's attempt to make the edge network do more than move traffic. The bet is simple: use those 4,200+ locations to win workloads that care about speed and proximity, not just raw scale. It is still early. Translation: the market is not giving this much credit yet.
early · prove-it stage
legacy delivery engine
Content Delivery
original business · under price pressure
This business built Akamai and still funds the pivot, but it now competes against hyperscaler bundles and cheaper alternatives. When a mature segment inside a ~$4.2B revenue company gets cheaper, management has to replace that profit somewhere else. That's the entire story.
mature · pressured
Key numbers
$115
18-mo target
That is 28% above $90.11. The market still gives you upside, just not a bargain bin price.
25.4x
trailing p/e
You pay 25.4 years of earnings for one year of profit. That needs steady growth.
13%
GAAP op. margin (FY)
Full‑year 2025 GAAP operating margin per the company release; non‑GAAP was ~30%.
$4.1B
long-term debt
Debt equals 24% of capital, so the balance sheet has weight.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $4.1B (24% of capital)
- net profit margin 16.0% — keeps 16 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AKAM 3 years ago → it's now worth $10,890.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Q4 2025 revenue ~$1.095B; non‑GAAP EPS ~$1.84; GAAP EPS ~$0.58.
Reported Feb 19, 2026. FY2025 revenue ~$4.208B (+~5%). Q4 included a ~$55M restructuring charge that depressed GAAP operating income; use GAAP vs non‑GAAP reconciliation in the release.
$1.095B
Q4 revenue
$1.84
non‑GAAP EPS
$0.58
GAAP EPS
the number that mattered
Security at ~$2.24B FY revenue while delivery shrank — whether security + cloud can outrun CDN decay.
-
akamai technologies’ profits rose nicely in the third quarter of 2025.
-
earnings of $0.97 per share for the september period rose 37% sequentially and more than doubled from a year ago.the solid showing was underpinned by a strong performance in the cloud infrastructure services division, as well as expanding margins due to higher-growth security products.
-
for the recently ended 2025, we think akamai will report profits of $3.55 per share, with the bottom line set to expand 31% vs. prior year in 2026, propelled by further operating margin improvements.
-
the stock price is up sharply since our october review.indeed, investors seemed to applaud the company’s latest financial performance, combined with a broader rally among tech-related equities.
-
akam shares are up more than 15% in value over the past three months.at this time, the stock holds our highest rank (1) for timeliness, suggesting that the shares are poised to outpace the broader market averages over the coming six to 12 months. recent acquisitions, strategic collaborations, and product enhancements augur well for top-line growth. first, akamai has acquired fermyon, a serverless webassembly function-as-a-service company, in an effort to support developer’s ability to code and innovate.
source: Akamai Q4 & FY2025 results (Feb 19, 2026) — akamai.com newsroom
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What could go wrong
Akamai's biggest risk is specific, not theoretical: the mature delivery business funds the pivot, while hyperscalers pressure the same categories Akamai needs to win next. If the old engine weakens before security and cloud matter enough, the rerating story breaks in the middle.
med
The core CDN business keeps getting cheaper
AWS, Azure, Google Cloud, and other platforms use bundled pricing to make content delivery feel like a feature instead of a product. If that keeps happening, Akamai's legacy cash engine weakens faster than security and cloud can replace it.
impact: revenue slips below the recent ~5% growth pace and the margin story loses cover
med
Cloud investments stay interesting but never get big enough
Linode and Fermyon make the strategy clear, but clarity is not traction. If edge cloud stays niche, Akamai risks spending into a category that never grows large enough to move a ~$4.2B revenue company.
impact: weaker follow-through on the street's $4.65 fiscal 2026 EPS expectation
med
Security stops carrying the margin story
The current bull case needs higher-margin security to do more of the work. If customers choose cheaper alternatives, the mix shift that supported recent earnings improvement loses force.
impact: EPS growth falls back toward revenue growth instead of outrunning it
med
$4.1B in long-term debt limits patience
Debt at 24% of capital is manageable, not trivial. If growth and margins hold, it looks fine. If the pivot stalls, that same debt becomes a reminder that this company cannot afford many expensive detours.
impact: less flexibility on acquisitions, buybacks, and cloud investment
A business growing ~5% does not get infinite room for error. The current margin profile buys time. It does not buy immunity.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next earnings
Q4 2025 earnings report
Watch whether operating margin stays near 35.5% while revenue remains a mid-single-digit story. If the margin holds, the thesis gets more time.
the key metric
the gap between revenue growth and EPS growth
This is the cleanest scoreboard for the mix shift. Revenue grew ~5% while non‑GAAP EPS grew ~10%. If that gap widens, security and cloud are doing their job. If it closes, the rerating case gets thin fast.
risk to watch
another quarter of net institutional selling
Q3 2025 showed 311 buyers versus 325 sellers. That is not capitulation, but it is not support either. If selling continues, analyst optimism starts looking early at best.
trend line
whether the stock finally stops trailing the index
Three-year total return turned $10,000 into $10,890 versus $13,920 for the index. If the business is really changing, the stock eventually has to show it.
Analyst rankings
short-term outlook
top 5%
outlook rank 1 — the highest rating possible. Analysts expect this stock to outperform nearly everything over the next 6–12 months. in human-speak: they think the comeback setup is real.
risk profile
average
risk rank 3 — middle-of-the-road risk. Not a bunker stock. Not chaos either. You are taking business-model transition risk more than balance-sheet risk.
chart momentum
below average
momentum rank 4 — the chart still looks like a stock that needs to prove itself. Analysts see value. The tape is asking for evidence.
earnings predictability
65 / 100
More predictable than a typical transition story, less predictable than a mature subscription compounder. Expect some noise.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 311 buyers vs. 325 sellers in 3q2025. total institutional holdings: 0.1B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$70
$159
$90
current price
$115
target midpoint · +28% from current · 3-5yr high: $190 (+110% · 21% ann'l return)
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