Shareholders in Akamai Technologies, Inc. (NASDAQ:AKAM) had a terrible week, as shares crashed 23% to US$76.73 in the week since its latest yearly results. Akamai Technologies reported in line with analyst predictions, delivering revenues of US$4.0b and statutory earnings per share of US$3.27, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Akamai Technologies

Taking into account the latest results, the most recent consensus for Akamai Technologies from 24 analysts is for revenues of US$4.12b in 2025. If met, it would imply a modest 3.3% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 2.4% to US$3.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.26b and earnings per share (EPS) of US$3.99 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to US$107. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Akamai Technologies, with the most bullish analyst valuing it at US$140 and the most bearish at US$72.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Akamai Technologies' revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Akamai Technologies.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Akamai Technologies' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Akamai Technologies analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Akamai Technologies' balance sheet, and whether we think Akamai Technologies is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.