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Amdocs
(NASDAQ:DOX)
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Rating:74Outperform
Price Target:
$66.00
▲(26.68% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid financial performance (strong growth, steady margins, modest leverage, and reliable free cash flow) and supportive valuation (low P/E and a high dividend yield). Technicals are mixed—near-term momentum is positive, but the longer-term trend is still weak and stochastics are elevated. Earnings call signals are broadly constructive with reiterated guidance and strong free cash flow targets, tempered by restructuring impacts and some working-capital/backlog and adoption-timing uncertainties.
Positive Factors
Managed Services strength and scale
Managed Services now comprise the majority of sales and delivered a record quarter, providing stable, contract‑driven recurring revenue. Multi‑year outsourcing deals and high renewal rates support predictable cash flows, customer stickiness, and margin durability over the medium term.
Negative Factors
Restructuring charges and transition costs
Material restructuring charges indicate significant near‑term cost from repositioning to an Agentic‑first model. These charges and ongoing transformation expenses depress GAAP earnings and consume cash, creating execution and timing risk for realizing efficiency and revenue gains over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Managed Services strength and scale
Managed Services now comprise the majority of sales and delivered a record quarter, providing stable, contract‑driven recurring revenue. Multi‑year outsourcing deals and high renewal rates support predictable cash flows, customer stickiness, and margin durability over the medium term.
Read all positive factors
Amdocs (DOX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.26B
Dividend Yield3.77%
Average Volume (3M)1.55M
Price to Earnings (P/E)13.8
Beta (1Y)0.63
Revenue Growth0.16%
EPS Growth-15.59%
CountryUS
Employees26,969
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)4.23
Shares Outstanding107,571,000
10 Day Avg. Volume1,361,552
30 Day Avg. Volume1,548,664
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)2.66
Price to Sales (P/S)2.01
P/FCF Ratio14.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$71.00Price Target Upside36.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)7.41
Revenue Forecast (FY)$4.70B
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 develo...
How the Company Makes Money
Amdocs makes money primarily by selling software and delivering technology services to communications service providers (e.g., wireless, wireline, cable) and related media/technology customers. Its revenue model is largely service- and contract-dr...
Amdocs Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and strategic picture: revenue growth, margin improvement, record Managed Services performance, strong free cash flow generation and a major flagship 10-year Liberty Latin America aOS deal provide clear upside. Near-term headwinds include a material restructuring charge that depressed GAAP EPS, elevated receivables/DSO and some sequential backlog fluctuation, plus macro and Gen AI cost uncertainties and variable customer adoption timing for aOS. Overall, the positive financial results, strong cash generation, reiterated guidance and significant strategic momentum around aOS and Agentic initiatives outweigh the near-term lowlights.Positive Updates
Solid Revenue and EPS Performance
Q3 revenue of $1.175 billion, up 2.7% year-over-year (2.2% in constant currency). Non-GAAP diluted EPS of $1.84, in line with the midpoint of guidance. Company reiterated full fiscal 2026 midpoint outlook (revenue growth ~3% constant currency; non-GAAP EPS growth ~6% midpoint).
Negative Updates
Restructuring Charge Impacting GAAP EPS
A restructuring charge of roughly $0.91 per share (accelerating internal transformation to become Agentic-first) reduced GAAP diluted EPS to $0.59, which was below the guidance range of $1.39 to $1.47. Adjusting for the charge, GAAP EPS would have been above the guidance range.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Revenue and EPS Performance
Q3 revenue of $1.175 billion, up 2.7% year-over-year (2.2% in constant currency). Non-GAAP diluted EPS of $1.84, in line with the midpoint of guidance. Company reiterated full fiscal 2026 midpoint outlook (revenue growth ~3% constant currency; non-GAAP EPS growth ~6% midpoint).
Read all positive updates
Company Guidance
Amdocs reiterated its fiscal 2026 midpoint outlook, targeting ~3% revenue growth in constant currency (reported range 3.2%–4.0%; constant‑currency range 2.6%–3.4%; assumes ~0.6% FX tailwind), non‑GAAP diluted EPS growth of 5.5%–6.5% (6% midpoint), and a non‑GAAP operating margin target of 21.3%–21.9%; Q4 revenue is guided to $1.175–1.215 billion and the non‑GAAP tax rate to 16%–19%. In Q3 Amdocs reported $1.175B revenue, non‑GAAP diluted EPS $1.84, non‑GAAP operating margin 21.6% (+20 bps YoY, +10 bps sequential), Managed Services $791M (67% of revenue), 12‑month backlog $4.26B (+2.7% YoY, -$20M seq.), and free cash flow $193M before restructuring ($172M after $21M restructuring); the company is on track for roughly $710–730M (≈$720M) free cash flow pre‑restructuring with ~90% cash conversion to non‑GAAP net income. Balance sheet and capital allocation metrics include DSO 78 days (+2 days YoY, +5 days seq.), cash ≈$206M, aggregate borrowings ≈$930M (including $200M commercial paper outstanding and $520M revolver availability), $143M of share repurchases in Q3 with $560M remaining authority, and a $60M dividend; GAAP EPS was pressured by a ~$0.91/share restructuring charge (GAAP EPS $0.59).Amdocs Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.65B | 4.53B | 5.00B | 4.89B | 4.58B | 4.29B |
| Gross Profit | 1.76B | 1.66B | 1.76B | 1.73B | 1.62B | 1.48B |
| EBITDA | 847.16M | 927.10M | 819.03M | 855.15M | 889.85M | 1.04B |
| Net Income | 454.66M | 564.70M | 493.20M | 540.71M | 549.50M | 688.37M |
Balance Sheet | ||||||
| Total Assets | 6.42B | 6.25B | 6.39B | 6.43B | 6.39B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 206.45M | 325.00M | 514.33M | 742.53M | 817.98M | 965.59M |
| Total Debt | 1.09B | 826.40M | 789.74M | 807.31M | 826.83M | 881.17M |
| Total Liabilities | 3.09B | 2.78B | 2.89B | 2.86B | 2.83B | 2.88B |
| Stockholders Equity | 3.29B | 3.43B | 3.46B | 3.52B | 3.52B | 3.59B |
Cash Flow | ||||||
| Free Cash Flow | 638.84M | 645.14M | 618.93M | 698.27M | 529.50M | 715.37M |
| Operating Cash Flow | 748.82M | 749.10M | 724.43M | 822.63M | 756.72M | 925.81M |
| Investing Cash Flow | -261.98M | -2.06M | -127.41M | -224.50M | -262.50M | -329.00M |
| Financing Cash Flow | -547.71M | -768.12M | -771.02M | -651.43M | -629.90M | -870.93M |
Amdocs Technical Analysis
Positive
52.10
Price Trends
54.16
Positive
58.77
Negative
66.76
Negative
Market Momentum
1.29
Negative
59.52
Neutral
65.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOX, the sentiment is Positive. The current price of 52.1 is below the 20-day moving average (MA) of 55.50, below the 50-day MA of 54.16, and below the 200-day MA of 66.76, indicating a neutral trend. The MACD of 1.29 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 65.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOX.
Amdocs Risk Analysis
Amdocs disclosed 29 risk factors in its most recent earnings report. Amdocs reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amdocs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.26B | 13.76 | 13.45% | 4.21% | 0.16% | -15.59% | |
71 Outperform | $5.26B | 860.00 | 0.61% | ― | 28.89% | ― | |
66 Neutral | $3.58B | 71.48 | 5.65% | ― | 32.44% | -78.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $17.96B | 44.01 | 8.49% | ― | 5.87% | -0.31% |
* Technology Sector Average
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Amdocs
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-30.84%
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Amdocs Corporate Events
Amdocs Posts Steady Q3 2026 Results, Secures 10-Year Liberty Latin America Deal
Aug 6, 2026
On August 5, 2026, Amdocs reported third-quarter fiscal 2026 results for the period ended June 30, 2026, with revenue of $1.175 billion, up 2.7% year over year as reported and 2.2% in constant currency, landing at the midpoint of guidance. Managed...
Amdocs Posts Higher Assets and Revenue in Q2 FY2026 Form 6-K Filing
May 26, 2026
Amdocs Limited reported unaudited financial results for the quarter ended March 31, 2026, filing a Form 6-K with the U.S. Securities and Exchange Commission that detailed its consolidated balance sheet and income statement. The company showed tota...
Amdocs Posts Solid Q2 2026 Results and Names New CFO as It Pushes Into ‘Agentic’ Telco Era
May 14, 2026
On May 13, 2026, Amdocs reported results for the quarter ended March 31, 2026, posting revenue of $1.17 billion, up 3.9% year on year as reported and slightly above guidance, with strength in Europe and Rest of World and managed services contribut...
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.