Amdocs 2025 Q4 Earnings EPS Rises 15.8% Amid Revenue Decline

Amdocs (DOX) reported fiscal 2025 Q4 earnings on Nov 12, 2025, with revenue declining 9% to $1.15 billion but EPS rising 15.8% to $0.88. The company beat Q3 revenue estimates by 0.6% but guided FY2026 EPS lower than analyst expectations, signaling cautious optimism about profitability.

Revenue

Amdocs’s total revenue fell 9.0% year-over-year to $1.15 billion in Q4 2025, with North America revenue at $762.4 million (down 8.8%), international markets reporting $208 million (down 14.8%), and Europe contributing $179.8 million (down 2.3%). Managed services revenue, however, rose 3.7% to $748.3 million, reflecting strong demand for recurring service contracts.

Earnings/Net Income

Net income surged 11.4% to $97.11 million, driven by a 15.8% EPS increase to $0.88. Despite the revenue decline, Amdocs maintained profitability for over 20 years, highlighting operational resilience.

Post-Earnings Price Action Review

The strategy of buying Amdocs shares post-revenue beats and holding for 30 days shows potential. Recent Q3 results saw a 0.6% revenue beat, yet shares fell 6.2% due to weaker profit guidance. While adjusted EPS of $1.83 met estimates, FY2026 EPS guidance (7.27–7.55) fell below the $1.87 consensus. Amdocs’ focus on AI adoption, cloud growth, and active buybacks (42.6% payout ratio) supports long-term shareholder value. However, macroeconomic pressures and client spending caution could temper revenue growth.

CEO Commentary

Shuky Sheffer, CEO, emphasized Amdocs’ strategic investments in AI and cloud solutions, driving double-digit growth in cloud revenue (30% of total revenue). The company secured GenAI contracts with Telefónica Germany and expanded digital transformation deals globally. Tamar Rapaport-Dagim, CFO, highlighted margin improvements from operational efficiency and R&D investments.

Guidance

Amdocs updated FY2026 guidance to 7.27–7.55 EPS (vs. 7.32 consensus) and Q1 2026 guidance of 1.73–1.79 EPS (vs. 1.78 consensus). Revenue guidance for FY2026 is $4.6B–$4.8B (vs. $4.7B consensus).

Additional News

1. Dividend Increase: Amdocs plans an 8% quarterly dividend hike to $0.569 per share, effective April 2026, pending shareholder approval.

2. AI Expansion: The company secured GenAI contracts with Telefónica Germany, Altice Optimum, and e& UAE, accelerating telecom AI adoption.

3. Global Deals: Amdocs expanded its footprint with cloud migration projects at TELUS and Lumen, and modernization awards at British Telecom and PLDT.