Amdocs (NASDAQ:DOX) Posts Quarterly Earnings Results, Hits Expectations

Amdocs (NASDAQ:DOX) issued its quarterly earnings results on Wednesday. The technology company reported $1.84 earnings per share for the quarter, hitting the consensus estimate of $1.84, Briefing.com reports. The company had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $1.18 billion. Amdocs had a return on equity of 20.10% and a net margin of 9.75%.The firm’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the prior year, the firm earned $1.72 earnings per share. 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 DOX traded down $0.57 on Friday, hitting $58.55. 1,315,207 shares of the stock traded hands, compared to its average volume of 1,356,400. Amdocs has a one year low of $49.74 and a one year high of $90.29. The company has a market capitalization of $6.32 billion, a PE ratio of 13.94, a P/E/G ratio of 1.03 and a beta of 0.40. The business has a 50 day simple moving average of $54.41 and a 200 day simple moving average of $63.30. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.98 and a current ratio of 0.98.

Amdocs Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be given a dividend of $0.569 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $2.28 annualized dividend and a dividend yield of 3.9%. Amdocs’s dividend payout ratio (DPR) is 54.29%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on DOX shares. Weiss Ratings restated a “hold (c-)” rating on shares of Amdocs in a report on Wednesday. Cfra lowered shares of Amdocs to a “sell” rating in a report on Thursday, May 14th. KeyCorp assumed coverage on Amdocs in a research report on Monday, June 29th. They issued a “sector weight” rating on the stock. Stifel Nicolaus cut their price target on 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 lowered Amdocs from a “buy” rating to a “hold” rating in a research report on Sunday, July 5th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $86.67.

Institutional Trading of Amdocs

Several institutional investors have recently added to or reduced their stakes in the business. WealthCollab LLC lifted its holdings in shares of Amdocs by 94.5% during the third quarter. WealthCollab LLC now owns 356 shares of the technology company’s stock valued at $29,000 after purchasing an additional 173 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Amdocs in the 4th quarter worth about $39,000. Advisory Services Network LLC purchased a new position in Amdocs in the 3rd quarter worth about $42,000. CIBC Private Wealth Group LLC lifted its stake in Amdocs by 190.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 595 shares of the technology company’s stock valued at $49,000 after acquiring an additional 390 shares during the period. Finally, Transamerica Financial Advisors LLC boosted its holdings in shares of Amdocs by 146.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 668 shares of the technology company’s stock valued at $54,000 after acquiring an additional 397 shares during the last quarter. 92.02% of the stock is currently owned by hedge funds and other institutional investors.

About Amdocs

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.