Amdocs (NASDAQ:DOX – Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $1.84 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.84, Briefing.com reports. Amdocs had a return on equity of 20.10% and a net margin of 9.75%.The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same quarter in the prior year, the company earned $1.72 earnings per share. The company’s quarterly revenue was up 2.7% on a year-over-year basis. Amdocs updated its Q4 2026 guidance to 1.940-2.000 EPS and its FY 2026 guidance to 7.374-7.444 EPS.
Here are the key takeaways from Amdocs’ conference call:
- Q3 results met guidance, with revenue of $1.175 billion, non-GAAP EPS of $1.84, and a 21.6% non-GAAP operating margin that improved year over year. Managed services reached a record 67% of revenue, supporting business visibility.
- Amdocs signed a significant 10-year strategic engagement with Liberty Latin America to manage and transform its end-to-end IT ecosystem using the Amdocs Agentic Operating System (aOS). Management described the deal as a flagship proof point for its agentic transformation strategy and said aOS has gained traction with several other major telecom providers.
- The company reiterated fiscal 2026 guidance, including approximately 3% constant-currency revenue growth, 6% non-GAAP EPS growth, free cash flow of $710 million-$730 million before restructuring payments, and a 21.3%-21.9% operating-margin range. About half of expected revenue growth is anticipated to be inorganic.
- GAAP EPS was $0.59, below the prior guidance range, due to a roughly $0.91-per-share restructuring charge tied to accelerating Amdocs’ internal agentic transformation. Twelve-month backlog declined $20 million sequentially, although it remained up 2.7% year over year.
Amdocs Stock Down 1.0%
Shares of NASDAQ:DOX traded down $0.57 during mid-day trading on Friday, hitting $58.55. 1,315,207 shares of the company traded hands, compared to its average volume of 1,356,400. The stock has a market cap of $6.32 billion, a P/E ratio of 13.94, a P/E/G ratio of 1.03 and a beta of 0.40. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.23. Amdocs has a 12-month low of $49.74 and a 12-month high of $90.29. The stock has a 50-day moving average price of $54.41 and a two-hundred day moving average price of $63.30.
Amdocs Dividend Announcement
Institutional Investors Weigh In On Amdocs
A number of institutional investors and hedge funds have recently bought and sold shares of DOX. Alyeska Investment Group L.P. increased its position in shares of Amdocs by 155.1% during the 4th quarter. Alyeska Investment Group L.P. now owns 2,110,393 shares of the technology company’s stock valued at $169,908,000 after purchasing an additional 1,283,231 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Amdocs by 24.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,892,761 shares of the technology company’s stock valued at $232,903,000 after buying an additional 560,380 shares during the period. Squarepoint Ops LLC increased its holdings in Amdocs by 469.4% during the fourth quarter. Squarepoint Ops LLC now owns 543,875 shares of the technology company’s stock worth $43,787,000 after buying an additional 448,358 shares during the last quarter. Voloridge Investment Management LLC raised its position in Amdocs by 501.1% in the fourth quarter. Voloridge Investment Management LLC now owns 520,494 shares of the technology company’s stock worth $41,905,000 after acquiring an additional 433,907 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Amdocs by 50.8% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,004,757 shares of the technology company’s stock valued at $80,893,000 after acquiring an additional 338,408 shares during the last quarter. 92.02% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
A number of brokerages have recently weighed in on DOX. Cfra cut Amdocs to a “sell” rating in a report on Thursday, May 14th. KeyCorp assumed coverage on shares of Amdocs in a research note on Monday, June 29th. They set a “sector weight” rating for the company. Weiss Ratings restated a “hold (c-)” rating on shares of Amdocs in a report on Wednesday. Stifel Nicolaus dropped their price objective on shares of Amdocs from $88.00 to $71.00 and set a “buy” rating on the stock in a research note on Thursday, May 14th. Finally, Wall Street Zen cut shares of Amdocs from a “buy” rating to a “hold” rating in a report on Sunday, July 5th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Amdocs has a consensus rating of “Hold” and an average price target of $86.67.
Amdocs Company Profile
Amdocs (NASDAQ: DOX) is a global software and services provider specializing in solutions for communications, media and entertainment companies. The company designs, develops and integrates revenue management, customer experience and digital services platforms that enable service providers to launch and monetize new offerings, streamline operations and enhance subscriber engagement. Amdocs’ product suite encompasses billing and order management, customer relationship management, digital commerce and network function virtualization, supported by professional services for implementation, integration and managed operations.
Founded in 1982 and structured as a separate public company in 1998, Amdocs has its corporate headquarters in Chesterfield, Missouri, and maintains major development centers in Ra’anana, Israel.
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