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Akamai Technologies (AKAM) Stock Dips While Market Gains: Key Facts

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Akamai Technologies (AKAM - Free Report) closed at $95.08 in the latest trading session, marking a -2.01% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.28%.

Prior to today's trading, shares of the cloud services provider had gained 9.24% outpaced the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 0.6%.

Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on February 19, 2026. The company's upcoming EPS is projected at $1.75, signifying a 5.42% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 5.62% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.03 per share and a revenue of $4.19 billion, demonstrating changes of +8.49% and 0%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% lower. Akamai Technologies is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 13.39 right now. This valuation marks a discount compared to its industry average Forward P/E of 17.56.

Also, we should mention that AKAM has a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.8.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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