Akamai Technologies (WBO:AKAM) ROE %: 8.66% (As of Mar. 2026) — 23% Below Median


WBO:AKAM Akamai Technologies Inc WBO:AKAM
77 GF Score
Price €96.35
GF Value €95.20
Valuation Fairly Valued
! 5 Warning Signs
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What is Akamai Technologies ROE %?

Akamai Technologies WBO:AKAM -3.67% 77 ROE % is 8.66% as of Mar. 2026, which is 23% below its 10-year median of 11.22. GuruFocus rates WBO:AKAM with a GF Score™ of 77/100 and a GF Value™ of €95.20 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,679 Software companies, Akamai Technologies ranks better than 61.14% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Akamai Technologies's annualized net income for the quarter that ended in Mar. 2026 was €368 Mil. Akamai Technologies's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €4,248 Mil. Therefore, Akamai Technologies's annualized ROE % for the quarter that ended in Mar. 2026 was 8.66%.

The historical rank and industry rank for Akamai Technologies's ROE % or its related term are showing as below:

WBO:AKAM' s ROE % Range Over the Past 10 Years
Min: 6.76   Med: 11.22   Max: 14.84
Current: 9.19

During the past 13 years, Akamai Technologies's highest ROE % was 14.84%. The lowest was 6.76%. And the median was 11.22%.

WBO:AKAM's ROE % is ranked better than
61.14% of 2679 companies
in the Software industry
Industry Median: 4.68 vs WBO:AKAM: 9.19

Akamai Technologies  (WBO:AKAM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=367.864/4248.4045
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(367.864 / 3714.692)*(3714.692 / 9938.595)*(9938.595 / 4248.4045)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.9 %*0.3738*2.3394
=ROA %*Equity Multiplier
=3.7 %*2.3394
=8.66 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=367.864/4248.4045
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (367.864 / 422.112) * (422.112 / 394.156) * (394.156 / 3714.692) * (3714.692 / 9938.595) * (9938.595 / 4248.4045)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8715 * 1.0709 * 10.61 % * 0.3738 * 2.3394
=8.66 %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Akamai Technologies ROE % Related Terms


Akamai Technologies ROE % Historical Data

* Premium members only.

The historical data trend for Akamai Technologies's ROE % 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.

Akamai Technologies ROE % Chart

Akamai Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.37 12.17 12.05 10.87 8.67

Akamai Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.24 8.86 12.09 7.02 8.66

WBO:AKAM vs FFIV, OKTA, ZS: ROE % Comparison

For the Software - Infrastructure subindustry, Akamai Technologies's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry

For the Software industry and Technology sector, Akamai Technologies's ROE % distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's ROE % falls into.


WBO:AKAM
77GF Score
Akamai Technologies Inc WBO:AKAM
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Akamai Technologies ROE % Calculation

Akamai Technologies's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=386.034/( (4658.831+4250.675)/ 2 )
=386.034/4454.753
=8.67 %

Akamai Technologies's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=367.864/( (4250.675+4246.134)/ 2 )
=367.864/4248.4045
=8.66 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 8.66% mean?
Akamai Technologies (WBO:AKAM) has a ROE % of 8.66% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Akamai Technologies and its competitors. This is 23% below median its historical median of 11.22. Over the past decade, Akamai Technologies' ROE % has ranged from 6.76 to 14.84. According to the industry distribution chart, Akamai Technologies ranks #1041 out of 2679 companies in the Software industry, placing it in the top 38.9%.
Is Akamai Technologies' ROE % too high?
Akamai Technologies' current ROE % of 8.66% is 23% below median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 6.76 to a high of 14.84. The Software industry median ROE % is 4.68. Akamai Technologies' value of 8.66% is 85% above this industry median. Based on the distribution chart, Akamai Technologies ranks #1041 out of 2679 companies in the Software industry, which is above the industry midpoint. Overall, Akamai Technologies has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akamai Technologies' ROE % compare to FFIV and OKTA?
According to the Software industry distribution chart, Akamai Technologies ranks #1041 out of 2679 companies for ROE %. This puts Akamai Technologies in the upper half of its industry. The industry median ROE % is 4.68. Akamai Technologies' value of 8.66% is 85% above this benchmark. Historically, Akamai Technologies' own ROE % has ranged from 6.76 to 14.84 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 4.68, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.68, based on 2,679 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Akamai Technologies's current ROE % of 8.66% is 85% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Akamai Technologies and its competitors. For the Software industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akamai Technologies's current ROE % is 8.66%, which is 23% below median its own 10-year median of 11.22. 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 €95.20, compared to a current price of €96.35 — trading 1.2% above its estimated fair value. The current ROE % is 8.66%, which is 23% below median its 10-year median of 11.22 and 85% above the Software industry median of 4.68. Akamai Technologies' overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Akamai Technologies (WBO:AKAM), the current ROE % is 8.66% 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 €96.35 is trading 1.2% above its estimated GF Value™ of €95.20. GuruFocus considers Akamai Technologies to be Fairly Valued.

Key valuation signals for WBO:AKAM:

  • ROE %: 8.66% (23% below median its 10-year median of 11.22)
  • GF Value™: €95.20 vs. price of €96.35 (1.2% above fair value)
  • GF Score™: 77/100 with 5 warning signs
  • Industry Position: 85% above the Software median (#1041 of 2679)

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 Technologies Business Description

Address 145 Broadway, Cambridge, MA, USA, 02142
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.
77GF Score

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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€96.35
Price
€95.20
GF Value