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Akamai Technologies
NASDAQ: AKAM Technology IT 🔎 Screen
S&P 500
$16.0B
Market Cap
28.4
P/E
1.74
PEG
8.2%
ROCE
9.2%
ROE
1.07
D/E
13.5%
OPM
-34.4%
% from 52W High
57
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for AKAM including FX impact
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📈 Price History
Ratio Health
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About

Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding AKAM
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 3.30M $379.1M 0.49% Mar 2026
Steve Cohen Point72 Asset Management 22.50M $26.1M 0.03% Mar 2026
Steve Cohen Point72 Asset Management 7.50M $8.6M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.100B
+5% YoY
Operating Income
$271M
-12% YoY
Operating Margin
25%
-5pp YoY
Net Income
$236M
-6% YoY
What Went Right
  • Year-to-date multi-year CIS commitments exceed $2.8B, including a new $600M robotics deal with a U.S. tech company.
  • Security revenue grew 10% YoY to $604M, led by WAF, API Security and Guardicore Segmentation.
  • CrowdStrike switched to Akamai for web security and content delivery, validating enterprise security capabilities.
  • GPU capacity is fully sold out, supporting a rich pipeline and accelerating 2027 revenue outlook to low-teens growth.
What to Watch
  • Non-GAAP operating margin fell 5pp YoY to 25% due to co-location, depreciation and headcount investments.
  • CIS revenue will not meaningfully accelerate until Q4; delayed GPU shipments pushed a portion of Q2 spend into Q3.
  • Second-half FX headwinds expected to reduce revenue by roughly $9M, and LayerX adds ~$0.12 EPS dilution in 2026.
  • Share repurchases are temporarily paused and full-year CapEx is elevated at ~40% of revenue to fund CIS growth.
Management Guidance
  • Q3 2026 revenue of $1.105B-$1.13B, up 5%-7% YoY reported and 5%-8% constant currency.
  • Q3 non-GAAP operating margin of 24%-26%; non-GAAP EPS of $1.60-$1.80.
  • FY2026 revenue of $4.445B-$4.53B, up 6%-8% YoY; non-GAAP EPS of $6.40-$7.05; CapEx ~40% of revenue.
  • CIS revenue expected to grow at least 50% in constant currency in 2026; overall revenue growth expected to accelerate to low teens in 2027.
Investor Lens
The thesis is stronger after this call. Akamai has converted strong AI demand into $2.8B of signed multi-year CIS commitments, giving multi-year visibility and a clear path to reaccelerating overall growth into the low teens in 2027. The CrowdStrike win and expanding security attach — especially WAF/API/Guardicore — reinforce the platform advantage. The main offsets are near-term margin compression, heavier capex, paused buybacks and execution risk as large GPU contracts ramp into revenue.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: revenue +5%, CIS bookings top $2.8B
Revenue
Q2 revenue was $1.100B, up 5% YoY as reported and in constant currency. Security was $604M (+10% YoY), CIS was $99M (+39% YoY), and Delivery & Other Cloud Apps declined 6% to $396M.
Profitability
Non-GAAP net income was $236M, down 6% YoY, with non-GAAP EPS of $1.59, down 8% YoY as reported and 6% constant currency. GAAP EPS was $0.52, down 27% YoY due to higher investments.
Margins
Non-GAAP operating margin was 25%, down 5pp YoY, reflecting co-location, depreciation and headcount investments. Q3 non-GAAP operating margin guidance is 24%-26%; GAAP operating margin was 7%, down 8pp YoY.
Balance Sheet
Cash, equivalents and marketable securities totaled $4.6B. The company raised $3.5B via convertible notes in May, spent $347M CapEx in Q2 (32% of revenue), and paused buybacks to fund CIS growth.
Key Risks
Management flagged near-term CIS revenue acceleration is back-half-weighted and delayed GPU receipts pushed spend into Q3. FX is a ~$9M second-half revenue headwind, LayerX dilutes EPS by ~$0.12 in 2026, and large CIS deals carry upfront capex with operating margin dilution until fully ramped.
Outlook
Q3 revenue is guided at $1.105B-$1.13B with non-GAAP EPS of $1.60-$1.80. Full-year 2026 revenue is $4.445B-$4.53B, non-GAAP EPS $6.40-$7.05, and 2027 growth is expected to accelerate to low teens.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Multi-year CIS commitments surpassed $2.8 billion YTD, fueling accelerated revenue growth and strong AI-driven demand across cloud and security portfolios. Q2 revenue rose 5% year-over-year, with CIS up 39% and security up 10%. Guidance calls for continued robust growth and significant CapEx investment.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw strong revenue growth, highlighted by a record $1.8B CIS contract and robust security demand amid rising AI threats. CIS revenue surged 40% year-over-year, and full-year guidance was raised, with double-digit growth expected in 2027.
Q4 2025 Q4 2025 2026-02-19
Q4 2025 saw 7% revenue growth and 11% EPS growth, with cloud infrastructure services accelerating 45% year-over-year. A major $200M, four-year CIS contract was signed, and 2026 guidance projects 5–8% revenue growth, 45–50% CIS growth, and higher CapEx due to AI investments and hardware inflation.
Q3 2025 Q3 2025 2025-11-06
Q3 2025 saw revenue and EPS exceed expectations, driven by strong growth in cloud infrastructure and security, with all major U.S. cloud providers now using CIS. The launch of Akamai Inference Cloud and robust international performance, especially in APJ, position the company for continued momentum.
Q2 2025 Q2 2025 2025-08-07
Q2 2025 saw revenue and EPS exceed guidance, with strong growth in security and compute, especially Cloud Infrastructure Services. Large contracts, new AI solutions, and improved delivery trends support a positive outlook, with full-year revenue and EPS guidance raised.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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