Amdocs (NASDAQ:DOX) Announces Earnings Results, Hits Expectations

Amdocs (NASDAQ:DOX) posted its earnings results on Wednesday. The technology company reported $1.84 EPS for the quarter, meeting analysts’ consensus estimates of $1.84, Briefing.com reports. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.18 billion. Amdocs had a net margin of 9.75% and a return on equity of 20.10%. Amdocs’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $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 Performance

Shares of DOX traded down $0.57 during trading hours on Friday, reaching $58.55. 1,315,207 shares of the company traded hands, compared to its average volume of 1,356,400. The stock has a market capitalization of $6.32 billion, a P/E ratio of 13.94, a P/E/G ratio of 1.03 and a beta of 0.40. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.23. Amdocs has a 12-month low of $49.74 and a 12-month high of $90.29. The business has a fifty day moving average price of $54.41 and a 200-day moving average price of $63.30.

Amdocs Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.569 per share. This represents a $2.28 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Wednesday, September 30th. Amdocs’s payout ratio is presently 54.29%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. KeyCorp started coverage on Amdocs in a research report on Monday, June 29th. They set a “sector weight” rating on the stock. Stifel Nicolaus dropped their target price on Amdocs from $88.00 to $71.00 and set a “buy” rating on the stock in a research note on Thursday, May 14th. Wall Street Zen lowered Amdocs from a “buy” rating to a “hold” rating in a research report on Sunday, July 5th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Amdocs in a research note on Wednesday. Finally, Cfra cut Amdocs to a “sell” rating in a research note on Thursday, May 14th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $86.67.

Hedge Funds Weigh In On Amdocs

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. EP Wealth Advisors LLC acquired a new position in shares of Amdocs in the fourth quarter valued at about $631,000. Mackenzie Financial Corp raised its stake in shares of Amdocs by 218.0% in the fourth quarter. Mackenzie Financial Corp now owns 118,898 shares of the technology company’s stock worth $9,644,000 after purchasing an additional 81,504 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Amdocs by 8.6% during the fourth quarter. NewEdge Advisors LLC now owns 11,276 shares of the technology company’s stock worth $908,000 after purchasing an additional 897 shares during the period. Empowered Funds LLC lifted its holdings in shares of Amdocs by 97.4% during the fourth quarter. Empowered Funds LLC now owns 41,466 shares of the technology company’s stock worth $3,338,000 after purchasing an additional 20,460 shares during the period. Finally, XTX Topco Ltd boosted its position in Amdocs by 41.2% in the fourth quarter. XTX Topco Ltd now owns 14,183 shares of the technology company’s stock valued at $1,142,000 after buying an additional 4,139 shares during the last quarter. Hedge funds and other institutional investors own 92.02% of the company’s stock.

Amdocs Company Profile

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.