Zacks Research Has Bearish Forecast for AKAM FY2026 Earnings

Key Points

• Zacks Research cut its FY2026 EPS estimate for Akamai Technologies to $3.90 from $4.21 and kept a Strong Sell rating, signaling a more cautious outlook on future earnings.
• Akamai’s latest quarterly results were in line with expectations, with $1.61 EPS and $1.07 billion in revenue, while the company also guided FY2026 EPS to 6.40-7.15 and Q2 EPS to 1.45-1.65.
• Despite the bearish estimate revision, other analysts remain mixed: the stock has an overall Hold consensus and an average price target of $145.29, while recent partnerships with GM Sectec and NVIDIA point to continued growth in cybersecurity and AI-related infrastructure.

Akamai Technologies, Inc. (NASDAQ:AKAM - Free Report) - Equities researchers at Zacks Research cut their FY2026 earnings per share estimates for Akamai Technologies in a research note issued to investors on Monday, May 25th. Zacks Research analyst Team now anticipates that the technology infrastructure company will post earnings per share of $3.90 for the year, down from their previous estimate of $4.21. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Akamai Technologies' current full-year earnings is $3.93 per share. Zacks Research also issued estimates for Akamai Technologies' Q4 2026 earnings at $1.06 EPS, Q1 2027 earnings at $0.80 EPS, Q4 2027 earnings at $1.08 EPS, FY2027 earnings at $3.98 EPS, Q1 2028 earnings at $1.02 EPS and FY2028 earnings at $4.69 EPS.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The technology infrastructure company reported $1.61 EPS for the quarter, meeting the consensus estimate of $1.61. The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.07 billion. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The business's revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.70 earnings per share. Akamai Technologies has set its FY 2026 guidance at 6.400-7.150 EPS and its Q2 2026 guidance at 1.450-1.650 EPS.

Several other brokerages have also commented on AKAM. UBS Group raised their price target on Akamai Technologies from $110.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. The Goldman Sachs Group upped their target price on Akamai Technologies from $76.00 to $87.00 and gave the stock a "sell" rating in a report on Friday, May 8th. Royal Bank Of Canada upped their target price on Akamai Technologies from $100.00 to $150.00 and gave the stock a "sector perform" rating in a report on Friday, May 8th. Evercore started coverage on Akamai Technologies in a report on Tuesday, April 14th. They set an "outperform" rating and a $130.00 target price for the company. Finally, Raymond James Financial upped their target price on Akamai Technologies from $140.00 to $170.00 in a report on Monday, May 11th. Twelve research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, Akamai Technologies presently has an average rating of "Hold" and an average price target of $145.29.

Akamai Technologies Stock Performance

Shares of Akamai Technologies stock opened at $160.32 on Wednesday. The firm has a market cap of $23.31 billion, a P/E ratio of 53.98, a P/E/G ratio of 4.82 and a beta of 0.60. The company has a current ratio of 2.06, a quick ratio of 2.06 and a debt-to-equity ratio of 0.84. Akamai Technologies has a 12 month low of $69.78 and a 12 month high of $165.45. The stock's fifty day moving average price is $120.94 and its 200-day moving average price is $103.52.

Hedge Funds Weigh In On Akamai Technologies

Large investors have recently made changes to their positions in the business. TD Waterhouse Canada Inc. increased its position in shares of Akamai Technologies by 130.0% during the third quarter. TD Waterhouse Canada Inc. now owns 345 shares of the technology infrastructure company's stock worth $26,000 after purchasing an additional 195 shares in the last quarter. Smartleaf Asset Management LLC increased its position in shares of Akamai Technologies by 566.7% during the third quarter. Smartleaf Asset Management LLC now owns 340 shares of the technology infrastructure company's stock worth $26,000 after purchasing an additional 289 shares in the last quarter. JFS Wealth Advisors LLC increased its position in shares of Akamai Technologies by 626.2% during the fourth quarter. JFS Wealth Advisors LLC now owns 305 shares of the technology infrastructure company's stock worth $27,000 after purchasing an additional 263 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new position in shares of Akamai Technologies during the third quarter worth $30,000. Finally, Sarver Vrooman Wealth Advisors acquired a new position in shares of Akamai Technologies during the fourth quarter worth $31,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, EVP Anthony P. Williams sold 15,000 shares of the company's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $104.29, for a total transaction of $1,564,350.00. Following the transaction, the executive vice president directly owned 22,064 shares of the company's stock, valued at approximately $2,301,054.56. This represents a 40.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Mani Sundaram sold 1,722 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $98.58, for a total value of $169,754.76. Following the transaction, the executive vice president directly owned 21,647 shares in the company, valued at approximately $2,133,961.26. The trade was a 7.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 19,908 shares of company stock valued at $2,058,758. 2.30% of the stock is owned by company insiders.

Key Akamai Technologies News

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

• Positive Sentiment: Akamai announced a new partnership with GM Sectec through its Partner Connect program to help secure an autonomous digital workforce, reinforcing its cybersecurity and zero-trust offerings. Akamai and GM Sectec Partner to Secure Autonomous Digital Workforce
• Positive Sentiment: Akamai and NVIDIA expanded their collaboration to embed security deeper into AI infrastructure, which could support growth in AI-related security and edge computing demand. Akamai Brings Security Inside AI Factories with NVIDIA
• Neutral Sentiment: Zacks Research reiterated a Strong Sell view and cut multiple near- and longer-term EPS estimates for Akamai, signaling a more cautious earnings outlook despite a few small upward revisions in out-year forecasts.

Akamai Technologies Company Profile

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company's core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.

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