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1. Company Snapshot

1.a. Company Description

Amdocs Limited, through its subsidiaries, provides software and services worldwide.The company designs, develops, operates, implements, supports, and markets open and modular cloud portfolio.It provides CES21, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; the Commerce and Care suite for order capture, handling, and customer engagement; the Monetization suite for charging, billing, policy, and revenue management; Intelligent Networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; MarketONE, a cloud-native business ecosystem; Digital Brands Suite, a pre-integrated digital business suite for digital telecom brands and small-scale service providers; and eSIM Cloud for service providers.


It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; media services for media publishers, TV networks, and video streaming and service providers; end-to-end application development and maintenance services; and ongoing services.In addition, the company provides a line of services designed for various stages of a service provider's lifecycle includes design, delivery, quality engineering, operations, systems integration, mobile network services, consulting, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems.It serves to the communications, cable and satellite, entertainment, and media industry service providers, as well as mobile virtual network operators and directory publishers.


Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.

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1.b. Last Insights on DOX

Amdocs Limited's recent performance was positively driven by its Q4 earnings beat, with earnings of $1.83 per share exceeding the Zacks Consensus Estimate of $1.82 per share. The company's higher margins and solid cash flow also contributed to its strong results. Additionally, several institutional investors, including Creative Planning, Osaic Holdings Inc., and AlphaCore Capital LLC, have recently increased their stakes in the company. Amdocs' focus on cutting-edge cloud, digital, and AI-driven solutions for its telecommunications customers also positions it well for future growth.

1.c. Company Highlights

2. Amdocs Delivers Steady Q4 2025 Results with Cloud and GenAI Growth

Amdocs reported revenue of $1.15 billion for the fourth quarter of 2025, up 2.8% year-over-year in pro forma constant currency. Non-GAAP diluted earnings per share was $1.83, slightly beating estimates of $1.82. For the full fiscal year 2025, revenue grew 3.1% in pro forma constant currency, and non-GAAP diluted earnings per share growth was 8.5%. The company's 12-month backlog was $4.19 billion, up 3.2% from a year ago, representing roughly 90% of its forward-looking revenue.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth:: Q4 revenue reached $1.15B (+2.8% YoY constant currency), with FY 2025 total revenue up 3.1% in pro forma constant currency.
  • Cloud Dominance:: Cloud revenue contributed over 30% of total revenue, growing double-digit YoY, driven by strategic wins like AT&T and PLDT agreements.
  • Backlog Expansion:: 12-month backlog hit $4.19B (+3.2% YoY), representing ~90% of forward-looking revenue and underpinning future growth.
  • Free Cash Flow and Shareholder Returns:: FY 2025 free cash flow was $735M, with $136M in share repurchases and a planned 8% dividend increase in 2026.
  • AI and Margin Growth:: GenAI investments aim to boost productivity, with cognitive AI platforms like Cognitive Core launching mid-2026 and non-GAAP operating margins expanding by 20 bps in FY 2026.

Revenue Growth Drivers

Cloud revenue grew double-digit, contributing over 30% of total revenue, and Managed Services revenue reached a record $3 billion in fiscal 2025, up 3.1% from the previous year. The company signed several key deals, including a landmark agreement with PLDT from the Philippines and expanded agreements with Globe in the Philippines and TELUS in Canada. Amdocs' international presence continues to grow, with half of its top 12 customers now international.

Guidance and Outlook

Amdocs expects revenue growth of 1.7% to 5.7% as reported and 1.0% to 5.0% in constant currency for fiscal year 2026, with a non-GAAP operating margin to increase by roughly 20 basis points year-over-year. Non-GAAP diluted earnings per share growth is expected to be between 4% to 8% in fiscal 2026. The company assumes a stronger second half to the fiscal year as it ramps up activities on recently secured deals.

Valuation and Dividend Yield

With a P/E Ratio of 15.5 and a Dividend Yield of 2.65%, Amdocs appears to be reasonably valued. The company's Free Cash Flow Yield is 7.39%, indicating a healthy cash generation capability. Amdocs plans to return the majority of its free cash flow to shareholders, with a proposed 8% increase in its quarterly cash payment.

GenAI and Future Growth

Amdocs is investing in GenAI to support customer use cases, particularly in call center activities, and expects to launch its Cognitive Core platform in mid-2026. The company believes GenAI will have a significant impact on the telecom industry, improving productivity and generating new services. With multiple growth engines, including cloud and GenAI, Amdocs aims to achieve a mid-single-digit growth rate.

Challenges and Risks

The company expects some pressure on below-the-line items, specifically tax rates and financing costs, due to regulatory changes and higher finance expense costs. The effective tax rate range has been elevated to 16-19%. T-Mobile's reduction in discretionary spending will also impact Amdocs' revenue growth in 2026.

3. NewsRoom

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Amdocs (DOX) to Release Earnings on Tuesday

Jan -27

Source: defenseworld.net

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Wealth Enhancement Advisory Services LLC Raises Stake in Amdocs Limited $DOX

Jan -24

Source: defenseworld.net

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Scott Black's Strategic Moves: M&T Bank Corp Leads the Way with 1.48% Portfolio Impact

Jan -21

Source: gurufocus.com

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The Telecom Software Giant Shrinks Revenue but Expands Margins While Its Rival Beats Estimates

Jan -15

Source: 247wallst.com

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Osaic Holdings Inc. Acquires 11,041 Shares of Amdocs Limited $DOX

Dec -28

Source: defenseworld.net

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Amdocs Limited Files Fiscal 2025 Annual Report

Dec -15

Source: accessnewswire.com

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Amdocs Limited (DOX) Presents at 53rd Annual Nasdaq Investor Conference Transcript

Dec -10

Source: seekingalpha.com

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e& Selects Amdocs to Power Its Generative AI Experiences

Dec -09

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.92%)

6. Segments

Managed Services Arrangements

Expected Growth: 3.5%

Amdocs' Managed Services Arrangements' 3.5% growth driven by increasing demand for digital transformation, need for operational efficiency, and growing adoption of cloud-based services. Additionally, Amdocs' strong partnerships with leading communication service providers and its ability to provide end-to-end solutions contribute to its growth.

Others

Expected Growth: 4.5%

Amdocs' 4.5% growth is driven by increasing demand for 5G and cloud-based services, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, artificial intelligence, and cybersecurity solutions is contributing to its growth. Furthermore, Amdocs' strong relationships with leading communication service providers and its ability to provide end-to-end solutions are also key growth drivers.

7. Detailed Products

Amdocs Optima

Amdocs Optima is a digital business platform that enables service providers to quickly launch and monetize new digital services.

Amdocs CES (Customer Experience Systems)

Amdocs CES is a customer experience management platform that helps service providers to deliver personalized and omnichannel experiences to their customers.

Amdocs OSS (Operations Support Systems)

Amdocs OSS is a network management platform that enables service providers to design, build, and operate their networks efficiently.

Amdocs BSS (Business Support Systems)

Amdocs BSS is a business support system that enables service providers to manage their business operations efficiently.

Amdocs Network Functions Virtualization (NFV)

Amdocs NFV is a network virtualization platform that enables service providers to deploy and manage virtual network functions (VNFs) efficiently.

Amdocs 5G Monetization

Amdocs 5G Monetization is a platform that enables service providers to monetize their 5G network investments.

Amdocs Data and Analytics

Amdocs Data and Analytics is a data analytics platform that enables service providers to gain insights from their data and make data-driven decisions.

8. Amdocs Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Amdocs Limited operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the telecommunications industry.

Bargaining Power Of Customers

Amdocs Limited's customers, primarily telecommunications companies, have significant bargaining power due to their large size and negotiating capabilities.

Bargaining Power Of Suppliers

Amdocs Limited has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company's size and reputation also give it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecommunications software industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The telecommunications software industry is highly competitive, with several established players, which leads to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.64%
Debt Cost 3.95%
Equity Weight 81.36%
Equity Cost 7.49%
WACC 6.83%
Leverage 22.91%

11. Quality Control: Amdocs Limited passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amdocs

A-Score: 5.8/10

Value: 5.2

Growth: 4.9

Quality: 7.0

Yield: 5.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
F5

A-Score: 5.3/10

Value: 3.3

Growth: 6.6

Quality: 9.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Gen Digital

A-Score: 5.2/10

Value: 3.0

Growth: 4.6

Quality: 6.7

Yield: 4.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Qualys

A-Score: 4.8/10

Value: 1.9

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
GoDaddy

A-Score: 4.5/10

Value: 3.4

Growth: 8.6

Quality: 6.9

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Varonis Systems

A-Score: 3.4/10

Value: 5.0

Growth: 6.9

Quality: 4.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

74.24$

Current Price

74.24$

Potential

-0.00%

Expected Cash-Flows