Akamai Technologies (NASDAQ:AKAM) Posts Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Akamai Technologies reported earnings of $1.73 EPS for the quarter, exceeding expectations by $0.18, with year-over-year revenue growth of 6.5%.
• The company updated its FY 2025 guidance to a range of 6.600-6.800 EPS and its Q3 2025 guidance to 1.620-1.660 EPS.
• In recent days, analysts have issued mixed ratings, with a consensus target price of $97.42 and a majority of analysts maintaining a "hold" rating.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) announced its quarterly earnings results on Thursday, August 7th. The technology infrastructure company reported $1.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.18, Briefing.com reports. The business had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.02 billion. Akamai Technologies had a return on equity of 14.26% and a net margin of 10.40%. The company's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 earnings per share. Akamai Technologies updated its FY 2025 guidance to 6.600-6.800 EPS and its Q3 2025 guidance to 1.620-1.660 EPS.

Akamai Technologies Stock Performance

Shares of AKAM traded down $1.17 during mid-day trading on Thursday, hitting $74.27. The stock had a trading volume of 1,643,946 shares, compared to its average volume of 2,184,675. The firm has a market cap of $10.65 billion, a P/E ratio of 26.34, a PEG ratio of 2.92 and a beta of 0.76. The business has a fifty day moving average price of $77.85 and a 200-day moving average price of $80.92. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.31 and a quick ratio of 1.18. Akamai Technologies has a 52 week low of $67.51 and a 52 week high of $106.80.

Wall Street Analyst Weigh In

Several research analysts have issued reports on AKAM shares. Wall Street Zen upgraded Akamai Technologies from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. UBS Group raised their target price on Akamai Technologies from $85.00 to $90.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Morgan Stanley lowered 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, August 5th. Piper Sandler dropped their target price on Akamai Technologies from $88.00 to $83.00 and set a "neutral" rating on the stock in a report on Friday, August 8th. Finally, KeyCorp began coverage on Akamai Technologies in a report on Friday, June 6th. They issued an "underweight" rating and a $63.00 target price on the stock. Four analysts have rated the stock with a sell rating, eight have given a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $94.89.

Insider Buying and Selling at Akamai Technologies

In other Akamai Technologies news, 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 sale, the executive vice president directly owned 43,575 shares in the company, valued at $3,326,079.75. The trade was a 23.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, 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 value of $388,700.00. Following the completion of 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 ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.00% of the company's stock.

Institutional Trading of Akamai Technologies

Hedge funds have recently made changes to their positions in the company. Worldquant Millennium Advisors LLC grew its position in shares of Akamai Technologies by 1,921.3% in the second quarter. Worldquant Millennium Advisors LLC now owns 281,419 shares of the technology infrastructure company's stock valued at $22,446,000 after purchasing an additional 267,496 shares in the last quarter. Treasurer of the State of North Carolina grew its position in shares of Akamai Technologies by 83.9% in the second quarter. Treasurer of the State of North Carolina now owns 231,935 shares of the technology infrastructure company's stock valued at $18,499,000 after purchasing an additional 105,818 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Akamai Technologies by 57.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 271,552 shares of the technology infrastructure company's stock valued at $21,649,000 after purchasing an additional 99,565 shares in the last quarter. Quantinno Capital Management LP grew its position in shares of Akamai Technologies by 625.8% in the second quarter. Quantinno Capital Management LP now owns 61,731 shares of the technology infrastructure company's stock valued at $4,924,000 after purchasing an additional 53,226 shares in the last quarter. Finally, California Public Employees Retirement System grew its position in shares of Akamai Technologies by 10.6% in the second quarter. California Public Employees Retirement System now owns 245,097 shares of the technology infrastructure company's stock valued at $19,549,000 after purchasing an additional 23,411 shares in the last quarter. 94.28% of the stock is currently owned by 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.