Amdocs 2025 Q3 Earnings Strong Earnings Growth Amid Revenue Decline

Amdocs reported mixed quarterly results, with revenue declining but earnings per share and net income both rising. The company did not formally adjust its guidance but reiterated full-year revenue and EPS expectations.

Revenue
Amdocs reported total revenue of $1.14 billion for fiscal 2025 Q3, representing an 8.4% year-over-year decline from $1.25 billion in 2024 Q3. The contraction reflects broader macroeconomic challenges and shifting customer priorities, though the company remains committed to innovation and long-term value creation.

Earnings/Net Income
Earnings per share (EPS) rose 13.9% to $1.39 in 2025 Q3, up from $1.22 in the prior-year period. Net income also grew by 9.8%, reaching $154.80 million compared to $141 million in 2024 Q3. This continued earnings growth, alongside a track record of over 20 years of consistent profitability, demonstrates the company’s strong operational resilience and disciplined cost management.

Price Action
Following the earnings release, Amdocs stock experienced mixed short-term performance. The stock rose 2.79% in the latest trading day and gained 4.11% during the most recent full trading week. However, it fell 4.05% month-to-date.

Post-Earnings Price Action Review
A post-earnings trading strategy that involved purchasing Amdocs shares after a positive earnings report and holding for 30 days returned 28.72%, a moderate gain but significantly below the benchmark’s 86.19% return. While the Sharpe ratio of 0.26 indicated reasonable risk-adjusted performance, the reported maximum drawdown of 0.00% appears inconsistent with the 20.34% volatility noted, raising questions about the strategy’s risk profile and volatility measurement.

CEO Commentary
CEO Leo McPherson highlighted the company’s strong business performance, driven by rising demand for digital transformation and cloud infrastructure adoption. Despite macroeconomic headwinds, Amdocs continues to strengthen its core offerings. Strategic priorities include expanding AI-driven solutions, accelerating R&D investments, and deepening partnerships in the 5G and enterprise markets. McPherson expressed cautious optimism for future growth, emphasizing operational efficiency and market differentiation as key to sustaining momentum.

Guidance
Amdocs maintained its full-year revenue guidance of approximately $4.7 billion and expects EPS to reach $5.50. Management anticipates stable revenue in Q4 and a focus on margin expansion through cost optimization and innovation. Modest CAPEX growth is aligned with long-term capital discipline.

Additional News
During the three weeks following Amdocs’ earnings report on August 8, 2025, no major corporate actions or leadership changes were reported. A search for relevant non-earnings news within this period returned only a restricted access notice from a Chinese platform titled “哔哩哔哩 - 知乎” dated June 26, 2009. The content indicated an access error and no substantive company-related information was available. As such, no additional news from Amdocs or its industry sector was available for inclusion.