Amdocs (NASDAQ:DOX) Announces Quarterly Earnings Results

Amdocs (NASDAQ:DOX) released its quarterly earnings results on Tuesday. The technology company reported $1.98 EPS for the quarter, hitting the consensus estimate of $1.98, FiscalAI reports. Amdocs had a return on equity of 20.70% and a net margin of 10.59%. The company had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the company posted $1.83 earnings per share. The firm’s revenue was up 3.8% compared to the same quarter last year.

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 Stock Performance

Shares of DOX stock opened at $42.55 on Thursday. The stock has a fifty day moving average price of $60.27 and a 200 day moving average price of $62.38. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a market cap of $4.59 billion, a PE ratio of 9.28, a P/E/G ratio of 1.00 and a beta of 0.42. Amdocs has a 1 year low of $41.44 and a 1 year high of $85.63.

Amdocs Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 29th. Investors of record on Thursday, December 31st will be paid a $0.5690 dividend. This represents a $2.28 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend is Thursday, December 31st. Amdocs’s dividend payout ratio (DPR) is presently 54.29%.

Amdocs News Roundup

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs reported fourth-quarter adjusted EPS of $1.98, in line with estimates, while revenue of $1.19 billion also matched expectations and grew 3.8% year over year. Amdocs meets Q4 earnings estimates
• Positive Sentiment: Amdocs is expanding with an eight-year strategic agreement with AT&T and its $340 million acquisition of insurance software provider EIS, initiatives that could broaden its growth opportunities beyond telecom. Amdocs: 3 key takeaways for long-term investors
• Neutral Sentiment: The company declared a quarterly dividend of $0.569 per share, equivalent to $2.28 annualized. The payout offers income but does not resolve concerns about the business outlook.
• Negative Sentiment: The T-Mobile contractual dispute is the central risk: Amdocs’ outlook reportedly allows for the possibility that its agreements with the customer could end. Management’s reduced FY2027 guidance points to a 7–11% pro forma revenue decline and a 19.2–19.8% operating margin; backlog also fell nearly 10% to $3.5 billion. Amdocs: The T-Mobile shock changes everything
• Negative Sentiment: The dispute has triggered analyst caution, including an Oppenheimer downgrade and a steep cut to Stifel’s price target. Multiple law firms have also announced investigations into whether Amdocs misled investors about its T-Mobile relationship; these are allegations under investigation, not findings of wrongdoing. Amdocs stock has its worst day in 24 years as T-Mobile business is at risk

Analyst Upgrades and Downgrades

A number of research firms have weighed in on DOX. Stifel Nicolaus decreased their price objective on Amdocs from $71.00 to $46.00 and set a “buy” rating for the company in a research report on Wednesday. Wall Street Zen upgraded shares of Amdocs from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. Oppenheimer cut shares of Amdocs from an “outperform” rating to a “market perform” rating in a report on Wednesday. Finally, Weiss Ratings upgraded Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, October 23rd. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $78.33.

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.