Is the business good?
How good a business is AKAM?
Akamai Technologies earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
26%
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Cash conversion
- 2.33×
Cash conversion · 2.30× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +5.8%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 23% |
| FY2022 | 19% |
| FY2023 | 17% |
| FY2024 | 13% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q2 2026
- 57%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 9.5%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $4.32B
- Free cash flow, trailing twelve months
- $956M
- Net income, trailing twelve months
- $411M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #70 of 78 by Smart Score