In the latest close session, Akamai Technologies (AKAM) was down 3.62% at $73.01. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.55%.
Coming into today, shares of the cloud services provider had lost 0.01% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 3.83%.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on November 6, 2025. On that day, Akamai Technologies is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 3.14%. Simultaneously, our latest consensus estimate expects the revenue to be $1.04 billion, showing a 3.7% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.71 per share and revenue of $4.17 billion. These totals would mark changes of +3.55% and +4.36%, respectively, from last year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.61% upward. At present, Akamai Technologies boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Akamai Technologies is currently exchanging hands at a Forward P/E ratio of 11.29. This indicates a discount in contrast to its industry's Forward P/E of 26.45.
It's also important to note that AKAM currently trades at a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Akamai Technologies, Inc. (AKAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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