Amdocs (NASDAQ:DOX) Issues Quarterly Earnings Results

Key Points

• Amdocs reported Q2 revenue of $1.17 billion and EPS of $1.78, slightly beating expectations on profit while matching revenue estimates. Revenue rose 3.9% year over year.
• The company highlighted several new and expanded customer wins, including deals with Cricket Wireless, Vodafone Spain, and KT, and said its new aOS agentic operating system is gaining early commercial traction.
• Amdocs reaffirmed fiscal 2026 guidance, including about 3% constant-currency revenue growth and roughly 6% non-GAAP EPS growth, while noting continued caution around customer spending and macro uncertainty.

Amdocs (NASDAQ:DOX - Get Free Report) announced its earnings results on Wednesday. The technology company reported $1.78 earnings per share for the quarter, beating the consensus estimate of $1.77 by $0.01, FiscalAI reports. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.17 billion. Amdocs had a return on equity of 20.19% and a net margin of 12.47%.The firm's revenue for the quarter was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.78 EPS. Amdocs updated its FY 2026 guidance to 7.340-7.480 EPS and its Q3 2026 guidance to 1.810-1.870 EPS.

Here are the key takeaways from Amdocs' conference call:

• Amdocs reported a solid Q2 revenue of $1.17 billion and non-GAAP EPS of $1.78, both above the midpoint of guidance, with year-over-year growth in North America and record revenue in Europe.
• The company secured several meaningful contract wins and extensions, including expanded managed services with Cricket Wireless, a 5-year CRM/OSS modernization deal with Vodafone Spain, and a multi-year charging system extension with KT.
• Amdocs said its new aOS agentic operating system is getting early traction, with initial commercial agreements from Cricket, Lumen, Bell Canada, EchoStar, and PLDT; PLDT is already seeing over 90% of customer requests resolved through the platform.
• Management reiterated full-year fiscal 2026 guidance, including 3% constant-currency revenue growth at the midpoint and roughly 6% non-GAAP EPS growth, while noting it is still monitoring customer spending amid macro uncertainty.
• Cash generation remained strong, with $97 million in free cash flow before restructuring in Q2 and the company on track for $710 million to $730 million for fiscal 2026, supporting continued shareholder returns and liquidity.

Amdocs Trading Down 3.9%

Shares of Amdocs stock traded down $2.41 during trading on Wednesday, hitting $59.93. The stock had a trading volume of 1,810,046 shares, compared to its average volume of 953,890. The stock has a 50 day simple moving average of $65.54 and a 200 day simple moving average of $73.80. The company has a market capitalization of $6.47 billion, a PE ratio of 11.59, a P/E/G ratio of 1.10 and a beta of 0.40. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.23. Amdocs has a 1 year low of $59.40 and a 1 year high of $95.41.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Wall Street Zen upgraded Amdocs from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Stifel Nicolaus lowered their price target on Amdocs from $97.00 to $88.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Amdocs in a research report on Friday, May 8th. Finally, Barclays lowered their price target on Amdocs from $111.00 to $92.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 4th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Amdocs presently has an average rating of "Moderate Buy" and an average price target of $92.33.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. WealthCollab LLC grew 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 buying an additional 173 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Amdocs during the fourth quarter valued at $39,000. Advisory Services Network LLC purchased a new position in shares of Amdocs during the third quarter valued at $42,000. CIBC Private Wealth Group LLC grew its holdings in shares of Amdocs by 190.2% during the third quarter. CIBC Private Wealth Group LLC now owns 595 shares of the technology company's stock valued at $49,000 after buying an additional 390 shares in the last quarter. Finally, Transamerica Financial Advisors LLC grew its holdings in shares of Amdocs by 146.5% during the fourth quarter. Transamerica Financial Advisors LLC now owns 668 shares of the technology company's stock valued at $54,000 after buying an additional 397 shares in the last quarter. Hedge funds and other institutional investors own 92.02% of the company's stock.

Key Amdocs News

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs reported fiscal Q2 revenue of $1.17 billion and non-GAAP EPS of $1.78, both slightly ahead of estimates, which suggests steady demand and execution. Amdocs Limited Reports Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company secured several new and expanded customer wins, including agreements with Telefónica Móviles Argentina, Vodafone Ireland, Lumen Technologies, and Qué tal Móvil, which support its recurring revenue base and long-term backlog. Telefónica Móviles Argentina Signs Strategic Multi-Year Agreement with Amdocs to Advance its Operational Excellence
• Positive Sentiment: Amdocs also highlighted new AI and cloud-related announcements, including Telco Agents in Google’s Gemini Enterprise marketplace and a benchmark performance milestone for its Entitlement Server on Microsoft Azure, reinforcing its positioning in telecom software modernization. Amdocs Entitlement Server Sets New Industry Performance Benchmark on Microsoft Azure
• Neutral Sentiment: Management nudged full-year fiscal 2026 revenue and EPS guidance slightly, but the updated outlook appears broadly consistent with Wall Street expectations, limiting the stock’s immediate upside. Amdocs (DOX) Tops Q2 Earnings and Revenue Estimates
• Negative Sentiment: The company announced that long-time CFO Tamar Rapaport-Dagim will retire, with an internal successor taking over in June, and investors may view the leadership change as an added uncertainty near term. Amdocs Limited Reports Second Quarter Fiscal 2026 Results

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.

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