NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-07-07
Reading AKAM? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track AKAM free→Intact: The reason to own it still holds.
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
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Akamai aims to expand its Cloud Infrastructure Services, focusing on AI and edge computing.
Stated in 6 of last 6 quarters. Cloud Infrastructure Services revenue grew 45% year-over-year in 2025-Q4, reaching $94 million. The consistent growth trajectory indicates delivering on the expansion priority.
“CEO: 'Cloud Infrastructure Services revenue grew 45% year-over-year.'”
“CEO: 'Revenue growth accelerated to 39% year-over-year.'”
“CEO: 'Cloud Infrastructure Services grew 30% year-over-year.'”
“CEO: 'Cloud Infrastructure Services grew 36% year-over-year.'”
“CEO: 'Cloud Infrastructure Services revenue was $314 million, up 36% year-over-year.'”
“CEO: 'Cloud Infrastructure Services revenue was $81 million, up 39% year-over-year.'”
Breaks if: Operating margin falls below 25% in FY26
Akamai aims to maintain its non-GAAP operating margin within the guided range.
Stated in 6 of last 6 quarters. Non-GAAP operating margin for 2025-Q4 was 29%, flat from the same period last year. The margin stability indicates delivering on this priority.
“CEO: 'Non-GAAP operating margin for the fourth quarter was 29%, flat from the same period last year.'”
“CEO: 'Non-GAAP operating margin for the third quarter was 31%, up 2 percentage points from the same period last year.'”
“CEO: 'Non-GAAP operating margin for the second quarter was 30%, up 1 percentage point from the same period last year.'”
“CEO: 'Non-GAAP operating margin for the first quarter was 30%, up 1 percentage point from the same period last year.'”
“CEO: 'Non-GAAP operating margin for the fourth quarter was 29%, down 1 percentage point from the same period last year.'”
“CEO: 'Non-GAAP operating margin for the third quarter was 29%, down 2 percentage points from the same period last year.'”
Breaks if: YoY revenue growth falls below 5% in FY26
Akamai is focused on achieving consistent revenue growth across its business segments.
Stated in 6 of last 6 quarters. Revenue for 2025-Q4 was $1.095 billion, a 7% increase over the prior year. The consistent revenue growth indicates delivering on this priority.
“CEO: 'Revenue for the fourth quarter was $1.095 billion, a 7% increase over the prior year.'”
“CEO: 'Revenue was $1.055 billion, a 5% increase over the prior year.'”
“CEO: 'Revenue was $1.043 billion, a 7% increase over the prior year.'”
“CEO: 'Revenue was $1.015 billion, an 8% increase over the prior year.'”
“CEO: 'Revenue was $1.020 billion, a 3% increase over the prior year.'”
“CEO: 'Revenue was $1.005 billion, a 4% increase over the prior year.'”
