DailyIQ
|
Sector:TechnologyAll sectors
Last updated 6 minutes ago

AKAM·Akamai Technologies, Inc.

$.
-. (-.%)
High
$131.07
Open
$130.18
Market Cap
18.40B
52W High
$165.45
Low
$125.28
P. Close
$129.52
P/E
42.28
52W Low
$69.78
Fwd P/E
18.14
DailyIQ Est.
$165.24
Technical Score (1D)
73
BUY
News Sentiment
77
BULLISH
Akamai announced a partnership with World Wide Technology to build an AI‑security framework called ARMOR, positioning the company as the core security layer for AI factories and receiving acceleration from NVIDIA. The move expands Akamai’s AI security footprint and signals a new revenue stream that could offset the modest 4.8 % YoY revenue growth forecast for the upcoming earnings. Investors are watching the August 6, 2026 earnings release for guidance on the size of the AI‑security business and whether it will lift the company’s EPS outlook, which is expected to decline 8.7 % YoY. The partnership could also strengthen Akamai’s edge delivery moat, as the firm was recently named a Gartner Customers’ Choice for Edge Distribution Platforms, underscoring high user satisfaction across edge compute, security, and AI infrastructure. This recognition may boost demand for Akamai’s edge services, potentially supporting revenue growth beyond the current forecast. The market has already rewarded the stock with a 2.33 % gain, outperforming the S&P 500 but lagging its sector, indicating that traders are still cautious about the company’s near‑term upside. In the next 1–10 trading days, watch for any early guidance on AI‑security revenue and how the ARMOR framework is progressing with WWT and NVIDIA. Also monitor how the Gartner award translates into new edge platform contracts or higher pricing power. Finally, keep an eye on sector peers’ performance to gauge whether Akamai’s edge and AI security positioning will translate into a competitive advantage.
Earnings Summary
Akamai Technologies, Inc. is a global provider of cloud services that focus on securing and accelerating online experiences, offering web application firewalls, bot protection, and a suite of cloud computing solutions that include compute, storage, networking, and content delivery for video streaming and game delivery. Operating in the technology sector’s software‑infrastructure niche, Akamai’s business model centers on protecting digital assets while enhancing performance for content creators and distributors worldwide. In the most recent quarters, Akamai’s earnings showed a mixed trajectory: Q1 2025 EPS rose to $1.70 from $1.66 in Q4 2024, while revenue slipped slightly to $1.015 billion from $1.020 billion; Q2 2025 EPS climbed to $1.73 and revenue increased to $1.043 billion; Q3 2025 EPS jumped to $1.86 with revenue at $1.055 billion; Q4 2025 EPS reached $1.84, a modest $0.02 decline from Q3 2025, and revenue hit $1.095 billion, up 7.5% YoY; Q1 2026 EPS fell to $1.61, a 12% drop from Q4 2025, and revenue dipped to $1.074 billion, a 2% YoY decline. Across the five quarters, Akamai consistently beat EPS estimates in four of the last five reports, while revenue growth has been largely positive with a brief slowdown in Q1 2026. Historically, the company has maintained a steady upward revenue trend, with EPS growth outpacing revenue in most periods, indicating improving profitability margins; however, the recent Q1 2026 EPS decline signals a potential headwind that investors should monitor. Recent news highlights Oppenheimer’s reaffirmed Outperform rating and a $180 price target, citing underestimation of Akamai’s cloud and AI inference data‑center opportunities and projected capacity growth to 100 MW by 2028; LayerX’s acquisition adds edge‑computing capabilities, and a seven‑year contract with Anthropic expands AI‑cloud services; the Claroty alliance introduces micro‑segmentation expertise for critical infrastructure. Forward‑looking watch points include monitoring new data‑center contracts and capital‑expenditure announcements that could confirm the projected capacity build‑out, tracking the integration timeline of LayerX for early revenue acceleration, and observing Claroty partnership adoption metrics that may broaden Akamai’s recurring revenue mix.}}

EPS

EstBeatMiss
$1.48$1.59$1.69$1.80$1.91Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.58 - -
Q1'26$1.63$1.61-1.1%
Q4'25$1.79$1.84+2.8%
Q3'25$1.64$1.86+13.7%
Q2'25$1.53$1.73+13.2%
Q1'25$1.57$1.70+8.6%

Revenue

EstBeatMiss
$1.0B$1.0B$1.1B$1.1B$1.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.1B - -
Q1'26$1.1B$1.1B-1.9%
Q4'25$1.1B$1.1B-0.2%
Q3'25 - $1.1B -
Q2'25 - $1.0B -
Q1'25 - $1.0B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

AKAM Stock Snapshot

AKAM is currently trading at $126.41, giving Akamai Technologies, Inc. a market cap of 18.40B and a P/E ratio of 42.3. Today's range spans $125.28–$131.07, with shares opening at $130.18 and moving down $3.11 (2.4%) from the prior close. DailyIQ's technical score sits at 73/100 (BUY) with a news sentiment reading of 77/100.

Over the past year AKAM has traded between $69.78 and $165.45 - the current price is +81.2% off the 52-week low and -23.6% from the high. 34 analysts cover the stock with a Buy consensus and a mean 12-month target of $159.30 (range $87.00–$195.00), implying upside of +26.0%.

The combination of bullish technicals and bullish sentiment for Akamai Technologies, Inc. (AKAM) is the kind of setup that shows up in systematic screens before the more discretionary investors arrive. Score 73/100 (BUY), price $126.41 (in the middle of its 52-week range), sentiment 77/100. The current P/E ratio stands at 42.3. At 18.40B in Technology market cap, this large-cap name has the right size to matter to a wide range of buyers. Annual range: $69.78–$165.45.

Earnings revision cycles in large-cap Technology names tend to compound: when technicals confirm a BUY thesis (73/100) and news sentiment (77/100, bullish) supports the narrative, analyst upgrades follow price rather than lead it. At $126.41 (in the middle of its 52-week range), AKAM's position within the $69.78–$165.45 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.