AKAMCAUTIOUS

AKAM Gross Margin Analysis

56.1%

Higher than 40% of Technology sector peers

Updated 3898h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of delivering its services—a higher number generally indicates stronger pricing power and cost efficiency.

Sector Performance

40th percentile

AKAM

56.1%

Sector Median

65.7%

Sector Avg

61.2%

Prior Period

54.6%(Apr 2026)

↑ Improving

📊

Deep Analysis

At 56.1%, Akamai’s gross margin sits below the sector median of 62.2%, placing it in the 43rd percentile among technology peers. No year-over-year or quarter-over-quarter data is available, so the trend direction and recent changes cannot be assessed. The combination of a below-median margin with an unknown trend introduces uncertainty: without improvement data, there is no clear signal of a competitive advantage or deterioration, which creates a neutral risk profile. This metric aligns with the overall NEUTRAL verdict, as the margin level is not strong enough to be a positive catalyst nor weak enough to raise a red flag on its own.

Frequently Asked Questions

What does the Gross Margin tell investors about AKAM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AKAM's Gross Margin compare to its sector?

AKAM's Gross Margin of 56.1% compares to a Technology sector median of 65.7%, placing it in the 40th percentile.

Who are AKAM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%), CAMT (50.1%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.