Amdocs 2025 Q4 Earnings Net Income Rises 11.4% Amid Revenue Decline

Amdocs (DOX) reported Q4 2025 earnings on Nov 12, 2025, with revenue declining 9% to $1.15 billion but beating estimates by 0.6%. Non-GAAP EPS rose 15.8% to $1.83, outperforming consensus. The company raised FY2026 EPS guidance to 7.270-7.550, aligning with the $7.32 consensus.

Revenue

Amdocs’ Q4 revenue totaled $1.15 billion, a 9% year-over-year decline. North America revenue stood at $762.4 million, down 8.8%, while the Rest of the World segment fell 14.8% to $208 million. Europe revenue decreased 2.3% to $179.8 million. Managed services revenue reached $748.3 million, up 3.7% year-over-year, despite the overall decline.

Earnings/Net Income

Non-GAAP EPS surged to $1.83, a 15.8% increase from $1.70 in 2024 Q4. Net income grew 11.4% to $97.11 million. The EPS increase and net income growth underscore strong profitability, despite the revenue decline.

Post-Earnings Price Action Review

The strategy of buying Amdocs shares when revenue beats expectations and holding for 30 days has shown favorable performance. Recent Q3 results, with $1.15 billion revenue (a 9% decline YoY but 0.6% beat) and in-line EPS, highlight resilience. Despite the revenue beat, shares fell 6.2% post-earnings, creating buying opportunities. Historically, Amdocs has topped revenue estimates three of four quarters, suggesting future beats. Financial health, including in-line non-GAAP EPS and a 2.51% dividend yield, supports long-term investment.

CEO Commentary

Shuky Sheffer, President and CEO, emphasized Amdocs’ strategic focus on cloud and AI. “Our cloud services grew double-digit, contributing over 30% of revenue, and AI initiatives are transitioning from POCs to commercial deals,” he stated. Tamar Rapaport-Dagim, CFO, noted margin improvements from efficiency gains and R&D investments. Leadership remains optimistic about long-term growth, citing cloud and AI as key drivers.

Guidance

Amdocs guided FY2026 revenue growth of 1.7%–5.7% (1.0%–5.0% in constant currency) and non-GAAP EPS growth of 4%–8%. Q1 2026 EPS guidance is 1.730–1.790, below the $1.87 consensus.

Additional News

1. M&A Activity: Amdocs expanded its managed services agreement with Globe, a Philippine telecom, to optimize mobile networks and enhance customer experiences.

2. Strategic Partnerships: Amdocs partnered with Fidium to modernize IT operations using AI-driven tools, aiming to boost efficiency and reduce costs.

3. Dividend Announcement: Amdocs declared a $0.527/share quarterly dividend, yielding 2.51%, payable Jan 30.