Akamai Technologies saw its stock price increase on January 12 after Morgan Stanley issued a double upgrade for the company. The firm moved its rating from Underweight to Overweight and set a new price target of $115, up from $83.
Shares of Akamai closed at $91.27, a gain of 3.5% for the day. The Cambridge, Massachusetts-based company operates content delivery, cloud security, and compute platforms.
Akamai reported third quarter 2025 revenue of approximately $1.05 billion, representing 5% year-over-year growth. Security revenue increased 10% during the quarter to $568 million, while cloud computing revenue rose 8% to $180 million. Delivery revenue declined 4% year-over-year.
GAAP income from operations grew 135% in the quarter, with GAAP operating margin reaching 16%. Non-GAAP income from operations increased 9%, with non-GAAP margin at 31%. GAAP net income rose 142%, while non-GAAP net income was up 10%.
The company provided guidance for fourth quarter 2025 revenue of up to $1.08 billion and full-year 2025 revenue of up to $4.19 billion. Non-GAAP operating margin is expected to remain between 28% and 30% for the fourth quarter and between 29% and 30% for the full year.
Morgan Stanley's upgrade follows a similar move by KeyBanc on December 15, 2025, which also raised its rating from Underweight to Overweight and increased its price target from $66 to $115. KeyBanc noted the stock had returned more than 12% since it began coverage in June 2025.
Akamai has a market capitalization of $12.78 billion and trailing 12-month sales of around $4 billion. The company's forward price-to-earnings ratio is approximately 19.5 times, below the sector average of 25.8 times.
The cybersecurity market is projected to reach $211.69 billion in 2026 and $265.17 billion by 2030, representing a compound annual growth rate of 5.79% through the decade. Cloud security represents a key component of this growth as businesses adopt hybrid and multi-cloud setups.