Amdocs (DOX) reported Q2 revenue of $1.14 billion, up 1.4% YoY and beating analyst estimates. Non-GAAP profit was $1.72 per share, 0.6% above estimates. The company expects Q3 revenue of $1.15 billion, in line with estimates, and reiterated its full-year Adjusted EPS guidance of $8.50. Amdocs attributed its performance to cloud-related projects, managed services, and efficiency improvements.
Amdocs (DOX) has reported robust Q2 financial results, with revenue of $1.14 billion, up 1.4% year-over-year (YoY) and exceeding analyst estimates. The company's non-GAAP profit was $1.72 per share, 0.6% above estimates. Amdocs expects Q3 revenue of $1.15 billion, in line with estimates, and reiterated its full-year Adjusted EPS guidance of $8.50 [2].
The company attributed its performance to cloud-related projects, managed services, and efficiency improvements. Amdocs' managed services segment, which accounts for 66% of total revenue, grew 3.7% YoY, driven by long-term telecom contracts. This growth reflects the company's expertise in automating operations and reducing costs, a key driver of its resilience [1].
Amdocs' AI-driven solutions are also contributing significantly to its performance. The company's 2025 AI roadmap includes hybrid AI for proactive customer care, autonomous agents for B2B commerce, and generative AI for network optimization. These solutions are already delivering measurable results, such as a 35% drop in billing-related churn and 80% fewer billing errors, driven by real-time anomaly detection [1].
Looking ahead, Amdocs expects a year-over-year revenue decline of 9.0-10.0% for the full year, with non-GAAP operating margins anticipated to be in the range of 21.1-21.7%. The company continues to expect free cash flow between $710 million and $730 million for fiscal 2025 [2].
References:
[1] https://www.ainvest.com/news/amdocs-strategic-reinvention-resilient-cash-flow-case-undervalued-growth-communications-software-sector-2508/
[2] https://www.nasdaq.com/articles/amdocs-q3-earnings-surpass-expectations-revenues-fall-y-y
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