Amdocs Ltd
NASDAQ:DOX
Amdocs Ltd
Amdocs Ltd., with its origins tracing back to 1982, has carved an influential niche in the realm of communications and media services. Born out of a creative partnership with the Israeli Yellow Pages, Amdocs has evolved into a global leader in software and services for communications, media, and financial services businesses. Its core competency revolves around providing comprehensive solutions that support the complex ecosystems of telecom and digital service providers. By offering everything from customer experience systems and network services to next-generation digital transformation platforms, Amdocs orchestrates the seamless operation of some of the world’s largest telecom operators. This prowess has allowed it to maintain long-standing relationships with major players like AT&T, Vodafone, and more.
At the heart of Amdocs' revenue generation strategy lies its ability to operate on multiple business fronts: licensing and implementing their robust software platforms, offering maintenance and managed services, and facilitating emerging digital offerings. By providing these multifunctional and adaptable solutions, Amdocs empowers operators to reduce churn, optimize operations, and effectively monetize data services in an ever-evolving digital landscape. This strategic orchestration enables its clients to deliver personalized and innovative customer experiences while maximizing operational efficiencies. Consequently, Amdocs not only sustains its relevance in the competitive tech landscape but also continually drives growth by adapting its offerings to the dynamic demands of the digital age.
Amdocs Ltd., with its origins tracing back to 1982, has carved an influential niche in the realm of communications and media services. Born out of a creative partnership with the Israeli Yellow Pages, Amdocs has evolved into a global leader in software and services for communications, media, and financial services businesses. Its core competency revolves around providing comprehensive solutions that support the complex ecosystems of telecom and digital service providers. By offering everything from customer experience systems and network services to next-generation digital transformation platforms, Amdocs orchestrates the seamless operation of some of the world’s largest telecom operators. This prowess has allowed it to maintain long-standing relationships with major players like AT&T, Vodafone, and more.
At the heart of Amdocs' revenue generation strategy lies its ability to operate on multiple business fronts: licensing and implementing their robust software platforms, offering maintenance and managed services, and facilitating emerging digital offerings. By providing these multifunctional and adaptable solutions, Amdocs empowers operators to reduce churn, optimize operations, and effectively monetize data services in an ever-evolving digital landscape. This strategic orchestration enables its clients to deliver personalized and innovative customer experiences while maximizing operational efficiencies. Consequently, Amdocs not only sustains its relevance in the competitive tech landscape but also continually drives growth by adapting its offerings to the dynamic demands of the digital age.
Revenue Growth: Revenue reached $1.16 billion, up 4.1% year-over-year and slightly above the midpoint of guidance.
Profitability: Operating margin improved by 40 basis points from a year ago; non-GAAP EPS of $1.81 and GAAP EPS of $1.45 both exceeded guidance, mainly due to a lower-than-expected tax rate.
Backlog: 12-month backlog rose to $4.25 billion, up $60 million sequentially and 2.7% year-over-year.
AI & Product Developments: Announced aOS, a new agentic operating system for telecom, and highlighted momentum in generative AI with new wins and partnerships.
T-Mobile Agreement: Signed a new 5-year agreement with T-Mobile, covering managed services, software development, and AI innovation, but expect revenue from T-Mobile to decline in fiscal 2026 due to lower spending.
Matrixx Acquisition: Closed the $197 million Matrixx Software acquisition; its revenue contribution was immaterial in Q1 but is included in full-year guidance.
Guidance Reiterated: Revenue growth outlook for fiscal 2026 remains 1%–5% in constant currency, with non-GAAP EPS expected to grow 4%–8%.
