Amdocs (AOS) AI Stock Analysis

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Amdocs

(Frankfurt:AOS)

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Positive Factors

Long-duration customer commitmentsMulti-year agreements with major telecom operators deepen customer relationships and support recurring software, implementation, and managed-services revenue. Their duration can improve revenue visibility, create follow-on expansion opportunities, and reinforce Amdocs’ position in mission-critical transformation programs.

Negative Factors

T-Mobile disruption and disputeThe T-Mobile situation creates a material customer-specific headwind through lower discretionary spending, contract uncertainty, and potential revenue loss. Because it affects both sales and profitability guidance, it can weigh on execution, resource planning, and earnings durability over the next several quarters.

Amdocs (AOS) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 4.64B
Dividend Yield: 5.31%
Average Volume (3M): 69
Price to Earnings (P/E): 9.2
Beta (1Y): 0.43
Revenue Growth: -1.54%
EPS Growth: -12.86%
Country: Germany
Employees: 26,969
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Amdocs Business Overview & Revenue Model

Company Description

Amdocs Limited is a global provider of software solutions and associated services, operating through its various subsidiaries worldwide. The company is actively involved in the full lifecycle of its cloud-based portfolio, from designing and developin...

Amdocs Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q4-2026)|% Change Since:-33.31%|Next Earnings Date:Feb 02, 2027

Earnings Call SentimentNeutral

The call presented strong strategic momentum, including major AOS agreements, broad customer wins, entry into insurance through the $340 million EIS acquisition, internal productivity gains and a proposed dividend increase. However, these positives are substantially offset in the near term by the T-Mobile dispute and reduced spending, which drive expected fiscal 2027 declines of 7% to 11% in pro forma constant-currency revenue, approximately 200 to 210 basis points of operating-margin pressure and a 26% to 30% EPS decline. Management remains optimistic about a return to growth in fiscal 2028, but the near-term outlook is financially challenging.

Positive Updates

Solid Fourth-Quarter Financial Performance

Q4 revenue was approximately $1.194 billion, up 3.8% year-over-year as reported and 4% in constant currency. Non-GAAP operating margin was 21.6%, unchanged from the previous quarter, while non-GAAP diluted EPS was $1.98, $0.01 above the guidance midpoint. Free cash flow before restructuring payments was $202 million.

Negative Updates

T-Mobile Headwinds Drive Fiscal 2027 Decline

Reduced discretionary spending by T-Mobile, completion of a large one-time UScellular customer integration project, and a legal dispute concerning a recently signed agreement are expected to cause a significant decline in Amdocs' fiscal 2027 revenue and profitability outlook. Management's guidance includes a conservative assumption that the T-Mobile agreements could be terminated by either party.

Company Guidance

For fiscal 2027, Amdocs expects first-quarter revenue within a range of $955 million to $995 million, revenue to decline by between 14.3% and 17.9% as reported, and, after adjusting for the exit of nonstrategic business activities and the divestiture of the media business, revenue to decline by between 7% and 11% in pro forma constant currency; outside of T-Mobile, the rest of Amdocs' business is expected to grow mid-single digits, while non-GAAP operating margin is expected within a range of 19.2% to 19.8%, non-GAAP diluted earnings per share is expected to decline by between 26% to 30%, non-GAAP effective tax rate is expected within a range of 16% to 19%, and free cash flow before restructuring payments is expected in the range of $440 million to $500 million, equating to a conversion rate of 85% relative to non-GAAP net income; the quarterly cash payment is proposed to increase 3% to a new rate of $0.586 per share, and for fiscal 2028, while formal guidance is not being provided, Amdocs expects mid-single-digit revenue growth, high single-digit growth in non-GAAP diluted EPS and a steadily rising dividend.

Amdocs Risk Analysis

Amdocs disclosed 29 risk factors in its most recent earnings report. Amdocs reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Amdocs Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:AOS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATH	80Outperform	$6.69B	19.61	18.42%	―	14.98%	1765.75%
ORCL	79Outperform	$356.74B	19.81	42.58%	1.56%	21.62%	45.95%
TDC	74Outperform	$3.00B	6.79	91.52%	―	1.39%	294.07%
TWLO	72Outperform	$33.15B	26.38	15.08%	―	19.10%	1795.49%
APPN	65Neutral	$3.75B	-670.00	7.90%	―	22.03%	19.51%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

DE:AOS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:AOS	Amdocs Limited	37.04	-27.02	-42.18%
ORCL	Oracle Corporation	128.38	-86.32	-40.20%
TDC	Teradata Corp	33.28	6.30	23.35%
TWLO	Twilio Inc	219.48	95.49	77.01%
APPN	Appian	53.60	10.55	24.51%
PATH	Uipath Inc	13.14	-0.95	-6.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Amdocs AI Stock Analysis