Akamai Technologies (AKAM)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$105.22-1.20%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
Broken: Primary pillar broken — Non-GAAP operating margin near 29%: GAAP operating margin 7.3% vs 25% trip; Non-GAAP margin not reported.
Akamai grows revenue about 7% yearly, driven by cloud services. Profit margins stay steady near 29%. The company wins big cloud deals and partnerships, boosting growth. Its valuation is cheap versus peers, with free cash flow positive.
Revenue growth could slow below 7%. Margins may compress from rising costs. Debt issuance and capital obligations could pressure financials. Market expects 11% growth, which Akamai may not meet.
The price is about 20% below our fair value near $143. Analysts expect 11% revenue growth, slightly above Akamai's recent 6-7%. Our fair value is 16% below the Street median, reflecting cautious optimism.
Breaks if: Debt servicing or capital costs materially impair cash flow or margins
Breaks if: Cloud Infrastructure Services revenue growth falls below 30% YoY in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is characterized as a durable compounder, focusing on steady growth in cloud infrastructure and security services. The current thesis state is intact, although recent earnings performance has been a concern.
The market appears to have priced in a low expectations gap, suggesting that AKAM is seen as relatively cheap compared to its peers. There is a low fragility tier, indicating that the stock is not overly sensitive to negative news at this time.
Management is on track with priorities like expanding cloud infrastructure services and achieving consistent revenue growth. However, there is some mixed performance regarding operating margins, which have declined but are still targeted to be maintained around 25-26%.
The thesis hinges on several factors, including management's guidance in the next earnings call and potential changes in interest rates by the Fed. Additionally, the performance of key tech sector peers could influence AKAM's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook for growth. Additionally, the expansion of Cloud Infrastructure Services reinforces this growth potential. There are no new threats impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue investing in and growing the Cloud Infrastructure Services segment, including multi-year contracts and AI infrastructure positioning.
Stated as a priority in 5 of last 5 quarters. Cloud Infrastructure Services revenue grew from $71 million in 2025-Q2 to $99 million in 2026-Q2, a 39% increase year-over-year. Management highlighted multi-year CIS contracts worth over $2.8 billion, including a $600 million contract, validating their AI infrastructure positioning. The trajectory is delivering with sustained strong growth and contract wins.
“Rapid growth of our CIS portfolio with multi-year contracts worth over $2.8 billion”
“Leading frontier model provider committed $1.8 billion over seven years for CIS”
“Cloud Infrastructure Services revenue up 45% year-over-year, benefiting from AI applications growth”
“Cloud Infrastructure Services revenue up 39% year-over-year; launched Akamai Inference Cloud”
“Cloud Infrastructure Services revenue up 30% year-over-year; increasing guidance for remainder of year”
Breaks if: Operating margin falls below 25% in FY26
Breaks if: YoY revenue growth falls below 5% in FY26
Overall, AKAM's fundamentals show promise, but near-term risks remain. Not investment advice.