Zacks Research Issues Pessimistic Forecast for AKAM Earnings

Key Points

• Zacks Research trimmed Akamai’s near‑term EPS forecasts (Q2 2026 cut to $1.03 from $1.04 and modest reductions to FY2026/FY2027), signaling reduced earnings visibility that could pressure sentiment and valuation.
• Analyst views remain mixed-to-positive: Evercore initiated coverage with an outperform and $130 target and several brokers raised targets, while the MarketBeat consensus is a Hold with a $111.58 target price.
• Akamai recently beat quarterly estimates (EPS $1.84 vs. $1.75) with revenue up 7.4% and set FY2026 guidance of $6.20–$7.20 EPS, providing fundamental support despite the downward estimate revisions.

Akamai Technologies, Inc. (NASDAQ:AKAM - Free Report) - Research analysts at Zacks Research lowered their Q2 2026 earnings per share (EPS) estimates for shares of Akamai Technologies in a note issued to investors on Friday, April 17th. Zacks Research analyst Team now expects that the technology infrastructure company will earn $1.03 per share for the quarter, down from their previous forecast of $1.04. The consensus estimate for Akamai Technologies' current full-year earnings is $4.18 per share. Zacks Research also issued estimates for Akamai Technologies' Q3 2026 earnings at $1.06 EPS, Q4 2026 earnings at $1.11 EPS, FY2026 earnings at $4.21 EPS, Q1 2027 earnings at $1.23 EPS, Q4 2027 earnings at $1.07 EPS and FY2027 earnings at $4.66 EPS.

Several other brokerages also recently weighed in on AKAM. Evercore began coverage on Akamai Technologies in a research note on Tuesday, April 14th. They set an "outperform" rating and a $130.00 target price for the company. KeyCorp increased their target price on Akamai Technologies from $115.00 to $120.00 and gave the company an "overweight" rating in a research note on Friday, February 20th. UBS Group increased their target price on Akamai Technologies from $90.00 to $110.00 and gave the company a "neutral" rating in a research note on Friday, February 20th. Royal Bank Of Canada increased their target price on Akamai Technologies from $90.00 to $100.00 and gave the company a "sector perform" rating in a research note on Friday, February 20th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Akamai Technologies in a research note on Friday, March 27th. Nine analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $111.58.

Akamai Technologies Price Performance

Shares of NASDAQ:AKAM opened at $97.62 on Tuesday. The business has a 50 day moving average price of $105.44 and a 200 day moving average price of $92.65. Akamai Technologies has a twelve month low of $69.78 and a twelve month high of $121.12. The company has a market cap of $14.16 billion, a price-to-earnings ratio of 31.69, a PEG ratio of 3.29 and a beta of 0.59. The company has a quick ratio of 2.36, a current ratio of 2.36 and a debt-to-equity ratio of 0.82.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its earnings results on Thursday, February 19th. The technology infrastructure company reported $1.84 earnings per share for the quarter, beating the consensus estimate of $1.75 by $0.09. Akamai Technologies had a return on equity of 13.86% and a net margin of 10.74%.The firm had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the prior year, the company earned $1.66 EPS. The firm's revenue for the quarter was up 7.4% compared to the same quarter last year. Akamai Technologies has set its FY 2026 guidance at 6.200-7.200 EPS and its Q1 2026 guidance at 1.500-1.670 EPS.

Insider Buying and Selling at Akamai Technologies

In related news, EVP Mani Sundaram sold 8,642 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $101.25, for a total transaction of $875,002.50. Following the completion of the transaction, the executive vice president owned 19,923 shares in the company, valued at $2,017,203.75. This trade represents a 30.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Laura Howell sold 11,273 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $100.14, for a total value of $1,128,878.22. Following the transaction, the chief accounting officer owned 12,559 shares of the company's stock, valued at $1,257,658.26. This trade represents a 47.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 60,954 shares of company stock worth $6,228,871 over the last three months. 2.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Akamai Technologies

Several hedge funds and other institutional investors have recently modified their holdings of AKAM. Norges Bank bought a new position in shares of Akamai Technologies during the 4th quarter worth approximately $192,959,000. AQR Capital Management LLC increased its holdings in Akamai Technologies by 522.8% during the 3rd quarter. AQR Capital Management LLC now owns 2,020,346 shares of the technology infrastructure company's stock valued at $153,061,000 after purchasing an additional 1,695,937 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in Akamai Technologies by 570.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 1,634,040 shares of the technology infrastructure company's stock valued at $123,795,000 after purchasing an additional 1,390,167 shares in the last quarter. Rubric Capital Management LP acquired a new stake in Akamai Technologies during the 4th quarter valued at $104,700,000. Finally, Nordea Investment Management AB increased its holdings in Akamai Technologies by 39.9% during the 3rd quarter. Nordea Investment Management AB now owns 3,437,472 shares of the technology infrastructure company's stock valued at $258,739,000 after purchasing an additional 980,966 shares in the last quarter. Institutional investors own 94.28% of the company's stock.

More Akamai Technologies News

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

• Positive Sentiment: Analyst target suggesting upside — a $130 target published by a market outlet argues the market may be underestimating Akamai’s growth potential, signaling possible further upside if execution and multiple expansion continue. Akamai Technologies (AKAM): A $130 Target Suggests The Market May Be Missing Something
• Positive Sentiment: New growth channel from AI and higher spending — coverage highlights that Akamai’s AI-related product opportunities and customers increasing spend could drive revenue and margin expansion over time. Why Akamai Technologies (AKAM) Just Opened A New Growth Channel
• Positive Sentiment: Technical strength — Akamai hit an 80+ relative strength benchmark, a sign momentum investors may view favorably if fundamentals follow. Akamai Technologies hits 80-plus relative strength rating benchmark
• Neutral Sentiment: Market note on recent trading — a Zacks market update recapped Akamai’s recent price action and context for the move, useful background but not a driver by itself. Akamai Technologies (AKAM) Increases Despite Market Slip: Here's What You Need to Know
• Negative Sentiment: Zacks Research cut multiple near‑term EPS estimates — Zacks trimmed Q2–Q4 2026 and Q1–Q4 2027 quarter-level forecasts and modestly lowered FY2026 and FY2027 EPS (e.g., FY2026 down from $4.25 to $4.21). Those downward revisions reduce near‑term earnings visibility and may pressure sentiment and valuation until Akamai demonstrates re-acceleration. Zacks Research Has Pessimistic View of AKAM FY2028 Earnings
• Negative Sentiment: Zacks’ longer‑term caution — commentary flagged by coverage suggests more conservative multi‑year outlook adjustments (including FY2027/FY2028), which can cap multiple expansion if growth assumptions are dialed back. Zacks Research Has Pessimistic View of AKAM FY2028 Earnings

About Akamai Technologies

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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