Akamai Technologies (AKAM) Stock Forecast & Price Target

Akamai Technologies has demonstrated significant growth in its security segment, which now comprises approximately 53% of total revenue, reflecting a shift towards higher-value services as enterprises increasingly address cybersecurity threats. The company's security revenue increased by 14% year-over-year to $535 million, driven largely by the successful performance of Guardicore and API security offerings, which combined for $247 million in annual recurring revenue at the end of the fourth quarter. Additionally, overall revenue showed a commendable 3% increase in constant currency, indicating resilience and positive momentum in Akamai's diversified business model, even as certain legacy segments experienced declines.

Akamai Technologies has experienced a year-over-year decline of 2% in earnings per share (EPS), falling to $1.66, despite beating guidance primarily due to higher gross margins and reduced operating expenses. Projections for EPS suggest a further decline of 7% to 1% in calendar year 2025, which falls short of market consensus, indicating ongoing revenue pressures and a challenging operating environment. Additionally, while the company's cloud segment is expected to grow by 15%, this mark represents a significant deceleration from prior rates and remains below consensus estimates, reinforcing concerns regarding overall business sustainability and growth potential.