Amdocs (NASDAQ:DOX) Releases Earnings Results, Hits Estimates

Amdocs (NASDAQ:DOX) announced its earnings results on Tuesday. The technology company reported $1.98 EPS for the quarter, hitting the consensus estimate of $1.98, FiscalAI reports. The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.19 billion. Amdocs had a net margin of 10.59% and a return on equity of 20.70%. The business’s quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.83 EPS.

Here are the key takeaways from Amdocs’ conference call:

• Amdocs signed an eight-year strategic agreement with AT&T and announced additional aOS deals with VEON, Globe, and VodafoneThree, expanding its agentic technology footprint across major telecom customers.
• The company acquired insurance software provider EIS for $340 million in cash, giving Amdocs a platform and customer base in policy, billing, claims, and customer engagement while opening a new long-term growth vertical.
• A dispute and reduced discretionary spending at T-Mobile are expected to materially pressure fiscal 2027 results; Amdocs guided to a 7%–11% pro forma constant-currency revenue decline, approximately 200 basis points of operating-margin contraction, and a 26%–30% EPS decline.
• Management expects the non-T-Mobile business to grow at a mid-single-digit rate in fiscal 2027, with internal AI-driven productivity gains supporting improving margins through the year and a potential return to mid-single-digit revenue growth and high-single-digit EPS growth in fiscal 2028.
• The board proposed a 3% dividend increase, although Amdocs expects slower share repurchases in fiscal 2027 as it prioritizes investments in aOS, insurance expansion, and its internal transformation.

Amdocs Trading Down 2.2%

Shares of Amdocs stock traded down $0.97 on Thursday, hitting $42.69. The stock had a trading volume of 717,660 shares, compared to its average volume of 1,258,699. The stock has a 50 day moving average of $60.27 and a 200 day moving average of $62.38. The firm has a market capitalization of $4.61 billion, a P/E ratio of 9.13, a PEG ratio of 1.00 and a beta of 0.42. Amdocs has a twelve month low of $41.44 and a twelve month high of $85.63. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.94 and a current ratio of 0.94.

Amdocs Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 29th. Stockholders of record on Thursday, December 31st will be paid a $0.5690 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $2.28 annualized dividend and a dividend yield of 5.3%. Amdocs’s dividend payout ratio is currently 54.29%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on DOX. Oppenheimer cut Amdocs from an “outperform” rating to a “market perform” rating in a report on Wednesday. Weiss Ratings upgraded shares of Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 23rd. Wall Street Zen raised shares of Amdocs from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. Finally, Stifel Nicolaus decreased their price objective on shares of Amdocs from $71.00 to $46.00 and set a “buy” rating on the stock in a report on Wednesday. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $78.33.

Trending Headlines about Amdocs

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs reported fourth-quarter adjusted EPS of $1.98, in line with estimates, while revenue of $1.19 billion also matched expectations and grew 3.8% year over year. Amdocs meets Q4 earnings estimates
• Positive Sentiment: Amdocs is expanding with an eight-year strategic agreement with AT&T and its $340 million acquisition of insurance software provider EIS, initiatives that could broaden its growth opportunities beyond telecom. Amdocs: 3 key takeaways for long-term investors
• Neutral Sentiment: The company declared a quarterly dividend of $0.569 per share, equivalent to $2.28 annualized. The payout offers income but does not resolve concerns about the business outlook.
• Negative Sentiment: The T-Mobile contractual dispute is the central risk: Amdocs’ outlook reportedly allows for the possibility that its agreements with the customer could end. Management’s reduced FY2027 guidance points to a 7–11% pro forma revenue decline and a 19.2–19.8% operating margin; backlog also fell nearly 10% to $3.5 billion. Amdocs: The T-Mobile shock changes everything
• Negative Sentiment: The dispute has triggered analyst caution, including an Oppenheimer downgrade and a steep cut to Stifel’s price target. Multiple law firms have also announced investigations into whether Amdocs misled investors about its T-Mobile relationship; these are allegations under investigation, not findings of wrongdoing. Amdocs stock has its worst day in 24 years as T-Mobile business is at risk

About Amdocs

Amdocs Ltd. (NASDAQ: DOX) is a global provider of software and technology services for communications, media and entertainment companies. Its solutions help service providers manage customer relationships, billing, subscriptions, product offerings and digital experiences across consumer and enterprise markets.

The company’s portfolio includes business support systems and operational support systems, cloud-based software, artificial intelligence and automation tools, network and service management platforms, and solutions for media distribution and monetization.