AKAMNEUTRAL

Gross Margin

56.1%

Higher than 42% of Technology sector peers

Updated 1712h ago

Sector Performance

42th percentile

AKAM

56.1%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

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.

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 65.2%, placing it in the 42th percentile.

Who are AKAM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), SAP (73.0%), LIF (77.3%), OKTA (77.8%).

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.