Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Akamai Technologies's 3-Year RORE % for the quarter that ended in Mar. 2026 was -10.54%.
The industry rank for Akamai Technologies's 3-Year RORE % or its related term are showing as below:
AKAM's 3-Year RORE % is ranked worse than 60.32% of 2538
companies
in the Software industry
Industry Median: 2.99
vs AKAM: -10.54
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Akamai Technologies 3-Year RORE % Related Terms
Akamai Technologies 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Akamai Technologies's 3-Year RORE % 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.
For the Software - Infrastructure subindustry, Akamai Technologies's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Akamai Technologies's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's 3-Year RORE % falls into.
* 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Akamai Technologies (AKAM) has a 3-Year RORE % of -10.54 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Akamai Technologies and its competitors. According to the industry distribution chart, Akamai Technologies ranks #1531 out of 2538 companies in the Software industry, placing it in the top 60.3%.
Is Akamai Technologies' 3-Year RORE % too high?
Akamai Technologies' current 3-Year RORE % is -10.54. Based on the distribution chart, Akamai Technologies ranks #1531 out of 2538 companies in the Software industry, which is below the industry midpoint. Overall, Akamai Technologies has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akamai Technologies' 3-Year RORE % compare to TOST and RBRK?
According to the Software industry distribution chart, Akamai Technologies ranks #1531 out of 2538 companies for 3-Year RORE %. This places Akamai Technologies in the lower half of its industry. The industry median 3-Year RORE % is 2.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Software company?
The median 3-Year RORE % among Software companies is 2.99, based on 2,538 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Akamai Technologies and its competitors. For the Software industry, the median 3-Year RORE % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akamai Technologies's current 3-Year RORE % is -10.54. 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 (AKAM) is currently considered Fairly Valued. The stock's GF Value™ is $112.12, compared to a current price of $114.37 — trading 2% above its estimated fair value. The current 3-Year RORE % is -10.54. Akamai Technologies' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Akamai Technologies (AKAM), the current 3-Year RORE % is -10.54 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 (AKAM) Overvalued in 2026?
Based on GuruFocus' analysis, Akamai Technologies stock appears to be overvalued.
The current stock price of $114.37 is trading 2% above its estimated GF Value™ of $112.12.
GuruFocus considers Akamai Technologies to be Fairly Valued.
Key valuation signals for AKAM:
3-Year RORE %: -10.54
GF Value™: $112.12 vs. price of $114.37 (2% above fair value)
No single metric tells the full story. See the 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.
86GF Score
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