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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' recent performance was negatively impacted by revenue decline in its Q4 2025 results, despite beating earnings estimates. The company's phased-out operations led to a revenue slip. Additionally, Amdocs faces customer concentration risks and uncertain impact of AI on software companies, making it challenging to be bullish on the stock. Its Q1 2026 results showed mixed signals, with EPS and cash flow exceeding expectations, but concerns linger. Analysts have a "Moderate Buy" rating with a price target of $92.33.

1.c. Company Highlights

2. Amdocs' Q1 Fiscal 2026 Earnings: A Solid Start

Amdocs reported a solid start to fiscal 2026, with Q1 revenue of $1.16 billion, up 4.1% from a year ago and 3.5% in constant currency. The company's non-GAAP diluted earnings per share was $1.81, above the guidance range, primarily due to a lower than expected tax rate. The non-GAAP operating margin was 21.6%, which improved by 40 basis points from a year ago. Tamar Rapaport-Dagim, CFO, highlighted that the strong earnings to cash conversion drove free cash flow before restructuring payments to $237 million in Q1.

Publication Date: Feb -09

📋 Highlights
  • Q1 Revenue Growth:: Revenue increased to $1.16 billion, up 4.1% YoY and 3.5% in constant currency.
  • Non-GAAP EPS Exceeds Guidance:: Earnings per share reached $1.81, driven by a lower tax rate.
  • Backlog Expansion:: 12-month backlog grew to $4.25 billion, a $60M sequential increase and 2.7% YoY.
  • Free Cash Flow Strength:: Q1 free cash flow was $188M, with $237M before restructuring payments.
  • Strategic Acquisitions & Contracts:: Acquired Matrix Software for $197M and secured multiyear deals with T-Mobile and Vodafone Germany.

Revenue Growth and Customer Wins

Amdocs signed a new multiyear agreement with T-Mobile, including managed services, software development, and AI innovation, and expanded its global customer footprint with an expanded multiyear engagement with Vodafone Germany. The company also won significant transformation awards with two new logos in Western Europe. The acquisition of Matrix Software for $197 million is expected to complement and extend its leading market position in billing, monetization, and charging solutions.

Guidance and Outlook

Amdocs reiterated its guidance for revenue growth of between 1.5% and 5.5% in constant currency for fiscal 2026, and non-GAAP diluted earnings per share growth of between 4% to 8%. The company expects free cash flow of $710-730 million, non-GAAP operating margins of 21.3-21.9%, and revenue growth of 1.5-5.5% for the full fiscal year, with half of the growth coming from acquisitions, including the recently acquired Matrix Software. Analysts estimate next year's revenue growth at 3.4%.

Valuation Metrics

With a P/E Ratio of 14.17 and an EV/EBITDA of 9.24, Amdocs' valuation appears reasonable, considering its growth prospects. The company's ROE of 16.32% and ROIC of 13.37% indicate strong profitability. The Dividend Yield of 2.87% and Free Cash Flow Yield of 8.0% also make it an attractive investment opportunity.

Strategic Developments

Amdocs announced its new agentic operating system, AOS, which is expected to serve as a new growth engine for the company. AOS is a holistic value proposition that addresses the future needs of telcos, providing a complete platform for leveraging GenAI. The pipeline for AOS is progressing, with many customers showing interest in the technology.

3. NewsRoom

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Amdocs Limited $DOX Stock Holdings Decreased by Envestnet Asset Management Inc.

Feb -14

Source: defenseworld.net

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Amdocs Recognized as the Current Company to Beat in the 2025 Gartner AI Vendor Race: Amdocs Is the Company to Beat for AI in CSP Business Support Systems

Feb -09

Source: accessnewswire.com

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Analysts Set Amdocs Limited (NASDAQ:DOX) Price Target at $92.33

Feb -08

Source: defenseworld.net

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Richard Pzena's Strategic Moves: A Closer Look at PPG Industries Inc.

Feb -06

Source: gurufocus.com

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Amdocs: The Good And The Bad

Feb -05

Source: seekingalpha.com

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Amdocs Stock Rises 4% as Q1 Earnings and Revenues Surpass Estimates

Feb -04

Source: zacks.com

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Amdocs Limited (DOX) Q1 2026 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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Amdocs (DOX) Reports Q1 Earnings: What Key Metrics Have to Say

Feb -04

Source: zacks.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

69.23$

Current Price

69.23$

Potential

-0.00%

Expected Cash-Flows