Akamai Technologies (NASDAQ:AKAM) Updates FY 2025 Earnings Guidance

Key Points

• Akamai Technologies has updated its FY 2025 earnings guidance, projecting an EPS range of 6.600-6.800, which exceeds the consensus estimate of 6.312.
• The company also forecasted revenue for FY 2025 to be between $4.1 billion and $4.2 billion, aligning with the consensus estimate of $4.1 billion.
• Following the update, Akamai's stock increased by 0.4%, trading at $74.76 during market hours.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 6.600-6.800 for the period, compared to the consensus EPS estimate of 6.312. The company issued revenue guidance of $4.1 billion-$4.2 billion, compared to the consensus revenue estimate of $4.1 billion. Akamai Technologies also updated its Q3 2025 guidance to 1.620-1.660 EPS.

Akamai Technologies Trading Up 1.6%

AKAM stock traded up $1.12 during midday trading on Monday, reaching $71.65. 726,186 shares of the company's stock traded hands, compared to its average volume of 2,407,727. The business has a 50-day moving average price of $78.12 and a two-hundred day moving average price of $81.39. Akamai Technologies has a fifty-two week low of $67.51 and a fifty-two week high of $106.80. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.31 and a quick ratio of 1.18. The company has a market capitalization of $10.48 billion, a P/E ratio of 25.40, a PEG ratio of 2.23 and a beta of 0.76.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its earnings results on Thursday, August 7th. The technology infrastructure company reported $1.73 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.18. Akamai Technologies had a net margin of 10.40% and a return on equity of 14.26%. The business had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.02 billion. During the same period in the previous year, the company posted $1.58 earnings per share. The business's revenue for the quarter was up 6.5% compared to the same quarter last year. Equities research analysts forecast that Akamai Technologies will post 4.6 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AKAM shares. Piper Sandler reduced their target price on shares of Akamai Technologies from $88.00 to $83.00 and set a "neutral" rating on the stock in a research report on Friday. Morgan Stanley cut shares of Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 target price on the stock. in a research report on Tuesday, August 5th. KeyCorp began coverage on shares of Akamai Technologies in a research note on Friday, June 6th. They issued an "underweight" rating and a $63.00 price target for the company. Wall Street Zen upgraded shares of Akamai Technologies from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Scotiabank dropped their price target on shares of Akamai Technologies from $105.00 to $95.00 and set a "sector outperform" rating for the company in a research note on Friday. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $96.44.

Insider Buying and Selling at Akamai Technologies

In other news, EVP Kim Salem-Jackson sold 13,157 shares of the company's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $76.33, for a total transaction of $1,004,273.81. Following the completion of the transaction, the executive vice president owned 43,575 shares in the company, valued at approximately $3,326,079.75. This represents a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul C. Joseph sold 5,000 shares of the business's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $77.74, for a total transaction of $388,700.00. Following the transaction, the executive vice president directly owned 32,349 shares of the company's stock, valued at $2,514,811.26. The trade was a 13.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Akamai Technologies

Several institutional investors have recently bought and sold shares of the stock. Jones Financial Companies Lllp lifted its stake in Akamai Technologies by 35.2% during the first quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company's stock valued at $88,000 after buying an additional 283 shares in the last quarter. Brighton Jones LLC lifted its stake in Akamai Technologies by 101.4% during the fourth quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company's stock valued at $384,000 after buying an additional 2,022 shares in the last quarter. Empowered Funds LLC lifted its stake in Akamai Technologies by 73.0% during the first quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock valued at $574,000 after buying an additional 3,010 shares in the last quarter. Finally, United Services Automobile Association purchased a new stake in Akamai Technologies during the first quarter valued at about $266,000. Institutional investors and hedge funds own 94.28% of the company's stock.

Akamai Technologies Company Profile

Akamai Technologies, Inc provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance.