Akamai Technologies (NASDAQ:AKAM) Issues 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) updated its FY 2025 earnings guidance on Thursday. 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 Stock Up 0.4%

NASDAQ:AKAM traded up $0.28 during trading hours on Thursday, hitting $74.76. The company's stock had a trading volume of 4,015,696 shares, compared to its average volume of 1,514,236. The stock has a fifty day moving average of $78.22 and a 200-day moving average of $81.75. Akamai Technologies has a 52-week low of $67.51 and a 52-week high of $106.80. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $10.93 billion, a P/E ratio of 25.17, a price-to-earnings-growth ratio of 2.36 and a beta of 0.76.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The technology infrastructure company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.58 by $0.12. Akamai Technologies had a return on equity of 14.09% and a net margin of 11.26%. The business had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the prior year, the business earned $1.64 earnings per share. The business's revenue was up 2.9% on a year-over-year basis. On average, equities analysts forecast that Akamai Technologies will post 4.6 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Scotiabank reduced their target price on shares of Akamai Technologies from $107.00 to $105.00 and set a "sector outperform" rating on the stock in a research note on Friday, May 9th. KeyCorp initiated coverage on shares of Akamai Technologies in a report on Friday, June 6th. They issued an "underweight" rating and a $63.00 price target on the stock. Wall Street Zen cut Akamai Technologies from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Piper Sandler restated a "neutral" rating and issued a $88.00 price target (up from $80.00) on shares of Akamai Technologies in a research note on Friday, May 9th. Finally, Morgan Stanley downgraded Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 target price on the stock. in a report on Tuesday. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating, eight have given a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $99.58.

Insider Buying and Selling

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

Institutional Investors Weigh In On Akamai Technologies

Hedge funds have recently made changes to their positions in the company. Jones Financial Companies Lllp increased its holdings in shares of Akamai Technologies by 35.2% during the 1st quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company's stock valued at $88,000 after purchasing an additional 283 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Akamai Technologies during the first quarter worth about $266,000. Brighton Jones LLC grew its position in shares of Akamai Technologies by 101.4% during the fourth quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company's stock worth $384,000 after buying an additional 2,022 shares in the last quarter. Finally, Empowered Funds LLC boosted its holdings in Akamai Technologies by 73.0% in the first quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock valued at $574,000 after purchasing an additional 3,010 shares in the last quarter. 94.28% of the stock is currently owned by hedge funds and other institutional investors.

About Akamai Technologies

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.

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