Amdocs Limited Reports First Quarter Fiscal 2026 Results

Revenue of $1.16 Billion, up 4.1% YoY as Reported and up 3.5% YoYin Constant Currency (1)

T-Mobile USA, Inc. Enters into a Strategic Multi-Year Agreement with Amdocs to Support Its Customer Experience and Operational Excellence Journey

Amdocs Introduces aOS: An Agentic Operating System for Telecommunications

Expects Fiscal 2026 Revenue Growth Outlook of 1.5%-5.5% YoY as Reported

Reiterates Fiscal 2026 Revenue Growth Outlook of 1.0%-5.0% YoY in Constant Currency (1)

First Quarter Fiscal 2026 Highlights

(All comparisons are against the prior year)

Revenue of $1,156 million, up 4.1% as reported and up 3.5% in constant currency (1); revenue was above the midpoint of the $1,135-$1,175 million guidance range even with unfavorable foreign currency movements of roughly $3 million compared to our guidance assumptions

Revenue of $182 million in Europe, up 17.1% as compared to last year's first quarter

Managed services revenue of $746 million, equivalent to approximately 65% of total revenue and up 2.3% as compared to last year's first quarter

GAAP diluted EPS of $1.45, above the $1.36-$1.44 guidance range, primarily due to a lower than anticipated GAAP effective tax rate

Non-GAAP diluted EPS of $1.81, above the guidance range of $1.73-$1.79, primarily due to a lower than anticipated non-GAAP effective tax rate

GAAP operating income of $207 million; GAAP operating margin of 17.9%, up 640 basis points sequentially, mainly due to lower restructuring charges, and unchanged compared to last year's first quarter

Non-GAAP operating income of $250 million; non-GAAP operating margin of 21.6%, up 40 basis points as compared to last year's first fiscal quarter and unchanged sequentially

Free cash flow of $188 million, comprised of cash flow from operations of $220 million, less $32 million in net capital expenditures (2), including $49 million of restructuring payments; reiterates full year fiscal 2026 free cash outlook of $710 million to $730 million, excluding restructuring payments

Repurchased $146 million of ordinary shares during the first fiscal quarter

Twelve-month backlog of $4.25 billion, up approximately $60 million sequentially and up 2.7% as compared to last year's first fiscal quarter

(1) Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period

(2) Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding)

(3) Expected total shareholder return assumes midpoint of fiscal year 2026 non-GAAP EPS growth outlook, plus dividend yield

JERSEY CITY, NJ / ACCESS Newswire / February 3, 2026 / Amdocs Limited (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today reported operating results for the three months ended December 31, 2025.

"First quarter financial results were consistent with our guidance as we continue to focus on our primary goal of reaccelerating Amdocs' long-term growth and extending our position as a market leader for the generative AI era. I am proud to announce that Amdocs has extended our long-term relationship with T-Mobile under a new multi-year agreement which includes managed services, software development, and AI innovation. In addition, we signed an expanded multi-year engagement at Vodafone Germany, added two new western European logos, and closed the acquisition of Matrixx Software as a strategic consolidation move which complements and expands our activities at Verizon, Telus, Telefonica, Swisscom, Three, Virgin Media O2, Telstra and other customers. As to generative AI, our accelerated development roadmap is progressing as planned with today's announcement of aOS, an agentic operating system purpose-built for telecommunications which we expect can provide a new long-term growth engine for Amdocs," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

"Our first quarter profitability improved significantly from a year ago and was unchanged sequentially as we balanced internal efficiency gains with accelerated generative AI investments. Earnings-to-cash conversion was strong, reflecting consistent execution under the many milestone and outcome-based projects and managed services engagements we are supporting for our customers. Over the busy holiday period, we provided best-in-class mission critical operations support for our customers. We also maintained very high managed services renewal rates, signing expanded multi-year engagements with T-Mobile, Vodafone Germany and other customers which together strengthen our business resiliency, said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, "Across our serviceable addressable market of roughly $60 billion, many growth opportunities exist by expanding our value proposition with current customers, diversifying in new geographies and by addressing emerging domains such as Generative AI, cloud migration and fiber rollout. With our deep telco domain expertise and tech-led, outcomes-based business model, we are strongly positioned to monetize a rich deal pipeline. That said, we continue to monitor our customers' demand and spending behavior within the global macroeconomic environment. Overall, we are reiterating our fiscal 2026 revenue growth outlook of 1.0% to 5.0% in constant currency (1), putting us on-track to achieve our target of high single-digit expected total shareholder returns (3) for the year."

Revenue

(All comparisons are against the prior year period)

In millions

Three months ended

December 31, 2025

Actual

Guidance

$ 1,156

$ 1,135 - $1,175

4.1%

3.5%

Revenue for the first fiscal quarter of 2026 was slightly above the midpoint of Amdocs' guidance

Revenue for the first fiscal quarter includes a positive impact from foreign currency movements of approximately $7 million relative to the first quarter of fiscal 2025 and a negative impact from foreign currency movements of approximately $3 million relative to the fourth quarter of fiscal 2025 and compared to our guidance assumptions

Net Income and Earnings Per Share

In thousands, except per share data

Three months ended

December 31,

2025

2024

$ 158,454

$ 151,852

$ 157,566

$ 151,133

$ 1.45

$ 1.33

$ 197,131

$ 188,877

$ 196,243

$ 188,158

$ 1.81

$ 1.66

Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, restructuring charges, and other, net of related tax effects. For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Capital Allocation

M&A Activity: On December 23, 2025, Amdocs completed the acquisition of Matrixx, a privately owned company specializing in Charging & Rating solutions for global communication service providers, for a net consideration of approximately $197 million

Quarterly Cash Dividend Program: On February 3, 2026, the Board approved the Company's next quarterly cash dividend payment at the new increased rate of $0.569 per share, as approved at the January 2026 annual general meeting of shareholders and set March 31, 2026 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on April 24, 2026

Share Repurchase Activity: Repurchased $146 million of ordinary shares during the first quarter of fiscal 2026

Twelve-month Backlog

Twelve-month backlog was $4.25 billion at the end of the first quarter of fiscal 2026, up approximately 2.7% as compared to last year's first fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

In millions, except per share data

Q2 - 2026

$ 1,150-$1,190

$ 1.22-$1.30

$ 1.73-$1.79

Second quarter revenue guidance assumes a positive $1 million sequential impact from foreign currency fluctuations as compared to the first quarter of fiscal 2026

Second quarter non-GAAP diluted EPS guidance excludes primarily equity-based compensation expense of approximately $0.33-$0.35 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.15 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

GAAP diluted EPS guidance does not include the impact of future restructuring charges

FY 2026 - Year-over -Year growth

Current guidance

Previous guidance

1.5%-5.5%

1.7%-5.7%

1.0%-5.0%

10.0%-17.0%

13.5%-20.5%

4.0%-8.0%

FY 2026, in millions

Current guidance

Previous guidance

$ 710-$730

Full year fiscal 2026 revenue guidance incorporates an expected positive impact from foreign currency fluctuations of approximately 0.5% year-over-year compared with a positive impact of 0.7% year-over-year previously, and includes some inorganic contribution, including the acquisition of Matrixx Software which was already contemplated in the full year revenue guidance

GAAP diluted EPS guidance does not include the impact of future restructuring charges

Non-GAAP diluted earnings per share growth excludes primarily equity-based compensation expense of approximately $0.98-$1.04 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.55 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

Non-GAAP operating margin is anticipated to be within a range of 21.3% to 21.9% for the full year fiscal 2026

Non-GAAP operating margin is comprised of GAAP operating margin, excluding amortization of purchased intangible assets and other, equity-based compensation expense, restructuring charges, and changes in certain acquisitions related liabilities measured at fair value

Non-GAAP effective tax rate is anticipated to be within a range of 16% to 19% for the full year fiscal 2026

Reiterates full year fiscal 2026 free cash flow (2) of $710 million to $730 million, excluding payments related to restructuring charges; free cash flow (2) is comprised of cash flow from operations, less net capital expenditures

The forward-looking statements regarding our second fiscal quarter 2026 and full year fiscal 2026 guidance take into consideration the Company's current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from certain geopolitical events, the current inflationary environment, changes to trade policies including tariffs and trade restrictions and the resulting impact on economic activities (as our outlook assumes current economic conditions do not deteriorate significantly due to trade policy or other macro factors), global or regional events, and the prevailing level of macro-economic, business and operational uncertainty, which have created, and continue to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Conference Call and Earnings Webcast Presentation Details

Amdocs will host a conference call and earnings webcast presentation on February 3, 2026 at 5:00 p.m. Eastern Time to discuss the Company's first quarter of fiscal 2026 results. To participate in the call, please register here to receive the dial-in numbers and unique access PIN. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow (2), revenue on a constant currency (1) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:

amortization of purchased intangible assets and other acquisition-related costs;

changes in certain acquisition-related liabilities measured at fair value;

restructuring and unusual charges or benefits;

equity-based compensation expense;

other; and

tax effects related to the above.

Free cash flow (2) equals cash generated by operating activities less net capital expenditures. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs' results of operations in conjunction with the corresponding GAAP measures.

Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow (2), revenue on a constant currency (1) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, restructuring and unusual charges or benefits, equity-based compensation expense, other and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

Supporting Resources

Keep up with Amdocs news by visiting the Company's website

Subscribe to Amdocs' RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs helps the world's leading communications and media companies deliver exceptional customer experiences through reliable, efficient, and secure operations at scale. We provide software products and services that embed intelligence into how work runs across business, IT, and network domains - delivering measurable outcomes in customer experience, network performance, cloud modernization, and revenue growth. With our talented people, and more than 40 years of experience running mission-critical systems around the globe, Amdocs runs billions of transactions daily. Our technology is relied on every day, connecting people worldwide and advancing a more inclusive, connected world. Together, we help those who shape the future to make it amazing. Amdocs is listed on the NASDAQ Global Select Market (NASDAQ:DOX) and reported revenue of $4.53 billion in fiscal 2025. For more information, visit www.amdocs.com.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, changes to trade policies including tariffs and trade restrictions, as well as the current inflationary environment, and the effects of these conditions on the Company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company's customers. Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2025, filed on December 15, 2025.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: [email protected]

AMDOCS LIMITED

Consolidated Statements of Income

(In thousands, except per share data)

Three months ended

December 31,

2025

2024

1,155,939

1,110,055

727,723

682,259

81,978

84,333

113,721

122,087

14,534

15,759

11,301

6,783

949,257

911,221

206,682

198,834

(11,265

)

(6,409

)

195,417

192,425

36,963

40,573

158,454

151,852

888

719

157,566

151,133

1.46

1.34

1.45

1.33

0.527

0.479

107,977

112,745

108,512

113,439

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

Three months ended

December 31,

2025

2024

1,155,939

1,110,055

249,939

235,398

197,131

188,877

196,243

188,158

1.81

1.66

108,512

113,439

Free Cash Flows

(In thousands)

Three months ended

December 31,

2025

2024

220,182

105,555

(32,239

)

(27,355

)

187,943

78,200

(a) The amounts under "Purchase of property and equipment, net", include immaterial proceeds from sale of property and equipment for all periods presented.

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

Three Months Ended December 31, 2025

GAAP

Amortization of purchased intangible assets and other

Equity based compensation expense

Changes in certain acquisitions related liabilities measured at fair value

Restructuring charges

Other

Tax

effect

Non-GAAP

727,723

(11,373

)

(359

)

715,991

81,978

(1,859

)

80,119

113,721

(10,858

)

7,027

109,890

14,534

(14,534

)

11,301

(11,301

)

949,257

(14,534

)

(24,090

)

6,668

(11,301

)

906,000

206,682

14,534

24,090

(6,668

)

11,301

249,939

(11,265

)

1,573

(9,692

)

36,963

6,153

43,116

158,454

14,534

24,090

(6,668

)

11,301

1,573

(6,153

)

197,131

888

157,566

14,534

24,090

(6,668

)

11,301

1,573

(6,153

)

196,243

Three Months Ended December 31, 2024

GAAP

Amortization of purchased intangible assets and other

Equity based compensation expense

Changes in certain acquisitions related liabilities measured at fair value

Restructuring charges

Other

Tax

effect

Non-GAAP

682,259

(13,250

)

669,009

84,333

(2,271

)

82,062

122,087

(10,999

)

12,498

123,586

15,759

(15,759

)

6,783

(6,783

)

911,221

(15,759

)

(26,520

)

12,498

(6,783

)

874,657

198,834

15,759

26,520

(12,498

)

6,783

235,398

(6,409

)

6,048

(361

)

40,573

5,587

46,160

151,852

15,759

26,520

(12,498

)

6,783

6,048

(5,587

)

188,877

719

151,133

15,759

26,520

(12,498

)

6,783

6,048

(5,587

)

188,158

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

As of

December 31,

2025

September 30,

2025

247,875

324,999

962,780

935,751

333,224

331,387

1,543,879

1,592,137

744,706

768,557

179,081

182,088

3,247,622

3,046,962

628,794

660,086

6,344,082

6,249,830

1,167,772

1,201,206

130,000

37,808

38,725

125,209

118,861

1,460,789

1,358,792

137,495

140,776

647,058

646,901

633,620

632,681

3,423,005

3,429,453

42,115

41,227

3,465,120

3,470,680

6,344,082

6,249,830

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

Three months ended

December 31,

2025

2024

158,454

151,852

50,736

46,968

157

151

24,090

26,520

15,152

1,651

662

(14,547

)

2,417

18,816

(14,787

)

17,597

(7,925

)

(1,190

)

(2,329

)

(19,383

)

(50,837

)

6,516

867

(9,327

)

(5,129

)

(26,889

)

(44,526

)

220,182

105,555

(32,239

)

(27,355

)

33,362

(194,489

)

(57,083

)

1,846

16,347

(224,882

)

(34,729

)

(146,168

)

(144,483

)

1,700

4,408

(57,156

)

(54,081

)

(1,323

)

130,000

(800

)

(7,599

)

(72,424

)

(203,078

)

(77,124

)

(132,252

)

324,999

346,085

247,875

213,833

AMDOCS LIMITED

Supplementary Information

(In millions)

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2024

764.7

762.4

745.4

738.3

737.4

181.7

179.8

189.4

180.7

155.2

209.5

208.0

209.6

209.2

217.4

1,155.9

1,150.2

1,144.4

1,128.2

1,110.1

Three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2024

745.9

748.3

771.5

747.1

728.9

as of

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2024

4,250

4,190

4,150

4,170

4,140

SOURCE: Amdocs - IR