Amdocs (DOXN) Q4 2026 Earnings Report

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.

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.