Akamai TechnologiesWBO:AKAM -0.34%78 Operating Margin % is 10.61% as of Mar. 2026, which is 44% below its 10-year median of 19.06. GuruFocus rates WBO:AKAM with a GF Score™ of 78/100 and a GF Value™ of €99.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,818 Software companies, Akamai Technologies ranks better than 78.53% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Akamai Technologies Operating Margin % Related Terms
Akamai Technologies Operating Margin % Historical Data
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The historical data trend for Akamai Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WBO:AKAM vs FFIV, OKTA, ZS: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Akamai Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Akamai Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Akamai Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Akamai Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Akamai Technologies (WBO:AKAM) has a Operating Margin % of 10.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Akamai Technologies and its competitors. This is 44% below median its historical median of 19.06. Over the past decade, Akamai Technologies' Operating Margin % has ranged from 13.76 to 23.32. According to the industry distribution chart, Akamai Technologies ranks #605 out of 2818 companies in the Software industry, placing it in the top 21.5%.
Is Akamai Technologies' Operating Margin % too high?
Akamai Technologies' current Operating Margin % of 10.61% is 44% below median its 10-year median of 19.06. Over the past 10 years, this metric has ranged from a low of 13.76 to a high of 23.32. The Software industry median Operating Margin % is 3.87. Akamai Technologies' value of 10.61% is 174.5% above this industry median. Based on the distribution chart, Akamai Technologies ranks #605 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Akamai Technologies has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akamai Technologies' Operating Margin % compare to FFIV and OKTA?
According to the Software industry distribution chart, Akamai Technologies ranks #605 out of 2818 companies for Operating Margin %. This places Akamai Technologies in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Akamai Technologies' value of 10.61% is 174.5% above this benchmark. Historically, Akamai Technologies' own Operating Margin % has ranged from 13.76 to 23.32 over the past decade. While the company's 10-year median is 19.06 vs. the industry median of 3.87, Akamai Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Akamai Technologies's current Operating Margin % of 10.61% is 174.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Akamai Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akamai Technologies's current Operating Margin % is 10.61%, which is 44% below median its own 10-year median of 19.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akamai Technologies stock overvalued right now?
Based on GuruFocus' analysis, Akamai Technologies (WBO:AKAM) is currently considered Fairly Valued. The stock's GF Value™ is €99.42, compared to a current price of €106.12 — trading 6.7% above its estimated fair value. The current Operating Margin % is 10.61%, which is 44% below median its 10-year median of 19.06 and 174.5% above the Software industry median of 3.87. Akamai Technologies' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Akamai Technologies (WBO:AKAM), the current Operating Margin % is 10.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Akamai Technologies (WBO:AKAM) Overvalued in 2026?
Based on GuruFocus' analysis, Akamai Technologies stock appears to be overvalued.
The current stock price of €106.12 is trading 6.7% above its estimated GF Value™ of €99.42.
GuruFocus considers Akamai Technologies to be Fairly Valued.
Key valuation signals for WBO:AKAM:
Operating Margin %: 10.61% (44% below median its 10-year median of 19.06)
GF Value™: €99.42 vs. price of €106.12 (6.7% above fair value)
Industry Position: 174.5% above the Software median (#605 of 2818)
No single metric tells the full story. See the WBO:AKAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly. Akamai has over 350,000 servers distributed over 4,350 points of presence in more than 700 cities globally. This network supports upward of 20% of global internet traffic, generating massive amounts of data. Using data generated by the delivery network, the firm offers cybersecurity products and cloud computing services, ranging from API security to zero-trust enterprise access, which has surpassed the delivery network in revenue and importance. As of 2026, the primary focus has shifted to offering computing hardware as a service, with an emphasis on serving large language model providers such as Anthropic.
78GF Score
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