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

Amdocs (NASDAQ:DOX) posted its earnings results on Tuesday. The technology company reported $1.98 earnings per share for the quarter, meeting the consensus estimate of $1.98, FiscalAI reports. Amdocs had a net margin of 9.75% and a return on equity of 20.28%. The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.19 billion.

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 1.7%

NASDAQ:DOX traded down $1.11 on Tuesday, hitting $62.43. The stock had a trading volume of 1,599,371 shares, compared to its average volume of 1,223,025. Amdocs has a 1-year low of $49.74 and a 1-year high of $85.63. The company has a fifty day moving average price of $60.64 and a two-hundred day moving average price of $62.69. The stock has a market cap of $6.74 billion, a price-to-earnings ratio of 14.86, a PEG ratio of 0.99 and a beta of 0.42. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.23.

Amdocs Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.5690 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $2.28 dividend on an annualized basis and a yield of 3.6%. Amdocs’s payout ratio is 54.05%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on DOX. Wall Street Zen upgraded shares of Amdocs from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Weiss Ratings raised shares of Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 23rd. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $86.67.

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.