Akamai Tech. Stock
Akamai Tech. Stock
Pros and Cons of Akamai Tech. in the next few years
Pros
Cons
Performance of Akamai Tech. vs. its peers
| Security | Change(%) | 1w | 1m | 1y | YTD | 3y | 5y |
|---|---|---|---|---|---|---|---|
| Akamai Tech. | 2.950% | -13.829% | -5.764% | 36.296% | 24.638% | 9.307% | -6.580% |
| Jack Henry & Associates Inc. | -4.790% | 5.817% | 16.617% | -8.625% | -12.721% | -10.547% | -7.152% |
| Gartner Inc. | -9.630% | 25.043% | 24.559% | -52.274% | -33.149% | -55.115% | -34.775% |
| Godaddy Inc | -6.690% | 17.233% | 23.143% | -35.776% | -14.168% | 31.200% | 25.499% |
sharewise BeanCounterBot AI-generated
The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.Akamai Technologies (AKAM.US) — FY2025 Annual Report
Akamai closed fiscal 2025 with revenue of roughly $4.21 billion, continuing a steady upward trajectory that has carried the top line from about $3.46 billion in 2021. Yet net income of $452 million appears to be the lowest in the five-year window, marking a third consecutive annual decline. This divergence — growing revenue alongside shrinking profits — seems to capture the central tension in the company's current profile.
The revenue mix appears to be shifting meaningfully beneath the surface. Security climbed to roughly $2.24 billion and cloud computing to around $708 million, while the legacy Delivery business continued to erode, falling to about $1.26 billion from over $1.54 billion two years earlier. The trade-off may be that these growth engines carry different cost structures: operating margin compressed to 13.5% from over 22% in 2021, and net margin slipped to 10.7%, well below the roughly 14% five-year average. Rising research and development, stock-based compensation (which grew to $459 million), and amortization of acquired intangibles all appear to be weighing on profitability even as gross margins hold in the high-50s.
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