Zacks Research Brokers Lower Earnings Estimates for AKAM

Key Points

• Zacks Research lowered Akamai’s Q3 2026 EPS estimate to $0.99 from $1.00 and maintained a “Hold” rating. Analysts’ average rating is also “Hold,” with a consensus price target of $141.62.
• Akamai shares opened at $107.13, down 3.3%, and remain well below their 12-month high of $165.45. The stock trades at a reported P/E ratio of 38.54, increasing sensitivity to growth expectations and profit-taking.
• The company recently exceeded quarterly expectations, reporting $1.59 in EPS and $1.10 billion in revenue, while security revenue rose 10% and cloud infrastructure revenue increased 39% year over year. Institutional investors own 94.28% of the stock, though recent insider activity showed selling and no purchases.

Akamai Technologies, Inc. (NASDAQ:AKAM - Free Report) - Stock analysts at Zacks Research lowered their Q3 2026 earnings per share (EPS) estimates for shares of Akamai Technologies in a research note issued to investors on Wednesday, September 9th. Zacks Research analyst Team now anticipates that the technology infrastructure company will earn $0.99 per share for the quarter, down from their prior estimate of $1.00. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Akamai Technologies' current full-year earnings is $3.66 per share. Zacks Research also issued estimates for Akamai Technologies' Q4 2026 earnings at $1.11 EPS, FY2026 earnings at $3.80 EPS, Q2 2028 earnings at $1.14 EPS and FY2028 earnings at $4.68 EPS.

A number of other research firms also recently commented on AKAM. UBS Group increased their target price on shares of Akamai Technologies from $125.00 to $143.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. HSBC cut shares of Akamai Technologies from a "buy" rating to a "hold" rating and reduced their price target for the company from $171.00 to $123.00 in a research report on Monday, August 10th. Susquehanna decreased their price objective on shares of Akamai Technologies from $175.00 to $140.00 and set a "positive" rating for the company in a research note on Monday, August 10th. TD Cowen raised their price objective on Akamai Technologies from $135.00 to $140.00 and gave the stock a "hold" rating in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. upgraded Akamai Technologies from an "underweight" rating to a "neutral" rating and lifted their target price for the stock from $132.00 to $158.00 in a research report on Thursday, August 13th. Thirteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $141.62.

Akamai Technologies Stock Down 3.3%

Shares of NASDAQ:AKAM opened at $107.13 on Friday. The company has a market capitalization of $15.40 billion, a PE ratio of 38.54, a P/E/G ratio of 5.11 and a beta of 0.63. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 1.23. Akamai Technologies has a twelve month low of $70.82 and a twelve month high of $165.45. The firm has a 50 day simple moving average of $115.39 and a 200-day simple moving average of $118.07.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.02. The firm had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.09 billion. Akamai Technologies had a return on equity of 11.32% and a net margin of 9.51%.The firm's revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.73 earnings per share. Akamai Technologies has set its Q3 2026 guidance at 1.600-1.800 EPS and its FY 2026 guidance at 6.400-7.050 EPS.

Institutional Investors Weigh In On Akamai Technologies

Hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System increased its stake in Akamai Technologies by 11,945.9% in the 2nd quarter. California State Teachers Retirement System now owns 20,219,939 shares of the technology infrastructure company's stock valued at $2,390,199,000 after buying an additional 20,052,082 shares during the period. First Trust Advisors LP boosted its holdings in shares of Akamai Technologies by 16.5% in the fourth quarter. First Trust Advisors LP now owns 6,752,000 shares of the technology infrastructure company's stock valued at $589,112,000 after acquiring an additional 957,345 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Akamai Technologies by 11.2% in the first quarter. Dimensional Fund Advisors LP now owns 3,464,793 shares of the technology infrastructure company's stock valued at $397,881,000 after acquiring an additional 349,451 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Akamai Technologies by 5.8% in the third quarter. Invesco Ltd. now owns 3,239,099 shares of the technology infrastructure company's stock valued at $245,394,000 after acquiring an additional 177,756 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Akamai Technologies during the fourth quarter worth about $192,959,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Akamai Technologies

In other news, CTO Robert Blumofe sold 243 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $129.41, for a total value of $31,446.63. Following the transaction, the chief technology officer owned 31,006 shares of the company's stock, valued at approximately $4,012,486.46. The trade was a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.30% of the company's stock.

Akamai Technologies News Summary

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Expanded MuleSoft collaboration: Akamai announced an expanded integration with MuleSoft that combines Akamai API Security intelligence with MuleSoft’s Agent Fabric. The offering is designed to help enterprises discover and govern APIs, AI agents and MCP servers; more than 20 joint customers are already using the integration. Akamai and MuleSoft Unify Real-Time API Defense and AI Policy Control
• Positive Sentiment: ITV streaming win: ITV selected Akamai TrafficPeak, powered by Hydrolix, to improve real-time monitoring of its ITVX streaming infrastructure during the World Cup. Faster issue detection could help protect service reliability and advertising revenue, although the announcement did not disclose financial terms. ITV Selects Akamai TrafficPeak to Optimize World Cup Streaming
• Positive Sentiment: Favorable investor commentary: Jim Cramer called Akamai “terrific,” while recent conference appearances and commentary kept attention on the company’s faster-growing security and cloud infrastructure operations. Second-quarter security revenue rose 10% year over year and cloud infrastructure revenue increased 39%, according to the supplied analysis. Lightning Round: Akamai is terrific, says Jim Cramer
• Neutral Sentiment: Conference updates: Akamai management appeared at the Citi Global TMT and Goldman Sachs Communacopia + Technology conferences, but the provided entries contain no specific new guidance or material disclosures. Goldman Sachs conference transcript
• Negative Sentiment: Insider selling may weigh on sentiment: The supplied data shows eight insider sales and no purchases during the past six months. This can raise caution among investors, although insider sales do not necessarily indicate a change in business outlook.
• Negative Sentiment: Valuation and profit-taking concerns: Akamai trades at a reported P/E ratio above 38, leaving the stock sensitive to expectations. After its recent advance, investors may be locking in gains while waiting for clearer evidence that cloud and security growth can offset slower legacy delivery operations.

Akamai Technologies Company Profile

Akamai Technologies, Inc is a global technology company that provides cloud computing, content delivery and cybersecurity services. Its distributed platform helps businesses deliver websites, applications, software downloads, video and other digital content with improved speed, availability and scalability.

The company's offerings include content delivery and edge computing services, cloud infrastructure, web and application performance solutions, and security products designed to protect applications, application programming interfaces, networks and users from cyber threats.

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