Zacks Research Brokers Lower Earnings Estimates for Amdocs

Key Points

• Zacks Research lowered Amdocs’ FY2026 EPS estimate to $6.57 from $6.60, broadly in line with the $6.56 consensus forecast, while also reducing its FY2027 estimate to $6.99 from $7.12.
• Amdocs’ latest quarterly results met expectations at $1.84 EPS, while revenue rose 2.7% year over year to $1.17 billion but fell slightly short of analyst forecasts.
• The company announced a quarterly dividend of $0.569 per share, equivalent to $2.28 annually and a 3.6% yield; analysts’ average rating remains “Hold,” with an average price target of $86.67.

Amdocs Limited (NASDAQ:DOX - Free Report) - Analysts at Zacks Research dropped their FY2026 EPS estimates for Amdocs in a research report issued to clients and investors on Wednesday, August 26th. Zacks Research analyst Team now forecasts that the technology company will post earnings per share of $6.57 for the year, down from their prior estimate of $6.60. The consensus estimate for Amdocs' current full-year earnings is $6.56 per share. Zacks Research also issued estimates for Amdocs' Q4 2026 earnings at $1.78 EPS, Q1 2027 earnings at $1.71 EPS, Q2 2027 earnings at $1.71 EPS, Q3 2027 earnings at $1.76 EPS, FY2027 earnings at $6.99 EPS, Q2 2028 earnings at $1.93 EPS, Q3 2028 earnings at $1.97 EPS and FY2028 earnings at $7.79 EPS.

Amdocs (NASDAQ:DOX - Get Free Report) last issued its earnings results on Thursday, August 6th. The technology company reported $1.84 EPS for the quarter, meeting the consensus estimate of $1.84. Amdocs had a net margin of 9.75% and a return on equity of 20.28%. The company had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.18 billion. During the same quarter in the previous year, the company posted $1.72 EPS. The business's revenue for the quarter was up 2.7% compared to the same quarter last year.

A number of other brokerages have also recently issued reports on DOX. Weiss Ratings restated a "hold (c-)" rating on shares of Amdocs in a report on Wednesday, August 5th. Wall Street Zen raised Amdocs from a "hold" rating to a "buy" rating in a research note on Saturday. Stifel Nicolaus lowered their price target on Amdocs from $88.00 to $71.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Cfra downgraded shares of Amdocs to a "sell" rating in a research report on Thursday, May 14th. Finally, KeyCorp started coverage on shares of Amdocs in a research note on Monday, June 29th. They set a "sector weight" rating on the stock. Three equities research 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, Amdocs has an average rating of "Hold" and an average price target of $86.67.

Amdocs Price Performance

Shares of Amdocs stock opened at $62.91 on Monday. The business has a fifty day simple moving average of $55.10 and a 200 day simple moving average of $61.13. The stock has a market cap of $6.79 billion, a PE ratio of 14.98, a price-to-earnings-growth ratio of 1.09 and a beta of 0.40. 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 has a 12 month low of $49.74 and a 12 month high of $86.14.

Amdocs Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.569 per share. The ex-dividend date is Wednesday, September 30th. This represents a $2.28 annualized dividend and a yield of 3.6%. Amdocs's payout ratio is currently 54.29%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DOX. WealthCollab LLC raised its position in shares of Amdocs by 94.5% during the third quarter. WealthCollab LLC now owns 356 shares of the technology company's stock worth $29,000 after purchasing an additional 173 shares during the period. BOK Financial Private Wealth Inc. acquired a new position in shares of Amdocs in the 4th quarter valued at approximately $37,000. Los Angeles Capital Management LLC bought a new stake in Amdocs during the 4th quarter worth approximately $39,000. Advisory Services Network LLC bought a new stake in Amdocs during the 3rd quarter worth approximately $42,000. Finally, CIBC Private Wealth Group LLC raised its holdings in Amdocs by 190.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 595 shares of the technology company's stock worth $49,000 after buying an additional 390 shares during the period. 92.02% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Amdocs

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs’ AI-driven deal with Telefonica Chile could strengthen its managed-services business and demonstrate how the company is using artificial intelligence to expand or deepen telecom-customer relationships. The development supports the longer-term growth story, although the immediate financial contribution remains unclear. How Amdocs’ AI-Driven Telefonica Chile Deal Could Reshape Its Managed Services Trajectory
• Positive Sentiment: Analysts maintain an average price target of $86.67 for DOX, suggesting substantial potential upside from recent trading levels and helping support investor sentiment. Amdocs Receives $86.67 Consensus Target Price from Analysts
• Positive Sentiment: Zacks Research raised several estimates, including Q1 and Q2 fiscal 2027 EPS to $1.71, Q2 fiscal 2028 EPS to $1.93, Q3 fiscal 2028 EPS to $1.97, and fiscal 2028 EPS to $7.79 from $7.69. These increases point to expectations for improving longer-term earnings power.
• Neutral Sentiment: The estimate changes were mixed rather than uniformly bullish. Zacks kept its current-year EPS forecast at $6.57, which matches consensus, while the various quarterly revisions largely offset one another.
• Negative Sentiment: Zacks cut its Q4 fiscal 2026 EPS forecast to $1.78 from $1.81 and reduced fiscal 2026 EPS to $6.57 from $6.60. It also lowered fiscal 2027 EPS to $6.99 from $7.12 and Q3 fiscal 2027 EPS to $1.76 from $1.83, signaling some pressure on near-term and intermediate-term growth expectations. Zacks Research Has Pessimistic Outlook of Amdocs Q4 Earnings

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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