Akamai Technologies, Inc. (AKAM)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Akamai as a security-and-delivery infrastructure business with real customers and $629.9 million of trailing free cash flow, but the numbers do not show a high-quality compounder. Revenue rose from $3.8 billion in fiscal 2023 to $4.0 billion in fiscal 2024 and $4.2 billion in fiscal 2025, while net income fell from $547.6 million to $504.9 million to $452.0 million over those same years. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.1 billion but net income was $79.4 million and diluted EPS was $0.52, versus net income of $103.6 million and diluted EPS of $0.71 in fiscal Q2 2025, the quarter ended 2025-06-30. That is deterioration, not pricing power. At the $98.50 close on 2026-10-26, FairStock calculates a P/E of 35.69, P/B of 2.98, ROE of 8.92%, ROCE of 2.52%, and FCF yield of 4.4%. The Graham Number is $45.32, implying a -106.38% margin of safety, so the price is far above what Graham's arithmetic would support. Debt-to-equity of 1.97, an Altman Z-score of 1.35, and a Piotroski F-score of 4/9 add caution. FairStock's Lynch category is SLOW GROWER — Shrinking, with profit down 4.1% a year over five years. The low beta of 0.64 and steady cash generation are offsets, but I see earnings that must stabilize before the valuation can be defended.

In plain English: Akamai helps companies keep websites, apps, and data secure and moving over the internet. The business still generates cash, but profit has been falling while sales rise only slowly. At the 2026-10-26 close, the shares look expensive compared with the company's recent earnings and asset values.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer