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Akamai Technologies Inc. (NASDAQ: AKAM) Financial Overview

  • Akamai Technologies Inc. (NASDAQ:AKAM) showcases a strong financial performance with significant net margin, return on equity, and return on assets.
  • The company's earnings and valuation outperform competitors like Sprout Social, with higher gross revenue, net income, and a favorable price/earnings ratio.
  • Akamai's financial stability is indicated by its debt-to-equity and current ratios, suggesting it is a potentially attractive investment.

Akamai Technologies Inc. (NASDAQ:AKAM) is a key player in the computer and technology sector, known for its cloud services and content delivery network solutions. The company competes with firms like Sprout Social (NASDAQ:SPT), but Akamai stands out with its robust financial performance. On December 15, 2025, McGowan Edward J, the CFO, sold 6,560 shares at $88.03 each, retaining 16,442 shares.

Akamai's financial metrics highlight its strong market position. The company boasts a net margin of 12.26%, a return on equity of 14.16%, and a return on assets of 6.33%. These figures contrast sharply with Sprout Social's negative metrics, including a net margin of -10.59% and a return on equity of -18.93%, as highlighted by the data.

In terms of earnings and valuation, Akamai outperforms with a gross revenue of $3.99 billion and a net income of $504.92 million. Its earnings per share are $3.41, with a price/earnings ratio of 25.18. Sprout Social, however, reports a gross revenue of $405.91 million and a net income of -$61.97 million, indicating weaker financial health.

Akamai's price-to-earnings ratio of approximately 24.89 shows investor confidence in its earnings potential. The company's price-to-sales ratio of about 3.01 and enterprise value to sales ratio of around 4.05 reflect a strong market valuation. With an earnings yield of 4.02%, Akamai offers a solid return on investment.

The company's financial stability is further supported by a debt-to-equity ratio of about 1.11 and a current ratio of approximately 2.28. These metrics indicate Akamai's ability to manage its financial obligations and cover short-term liabilities, reinforcing its position as a potentially attractive investment.