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Amdocs Q2 FY26 EPS of $1.78 beat estimates, whereas revenues rose 3.9% y/y.
Amdocs reported revenue growth across North America, Europe and Rest of World.
The FY26 outlook calls for 2.6-4.6% revenue growth and a 5-7% EPS expansion.
Amdocs Limited (DOX - Free Report) reported better-than-expected second-quarter fiscal 2026 results. DOX’s non-GAAP earnings of $1.78 per share came above the midpoint of management’s guidance of $1.73-$1.79 and remained flat on a year-over-year basis. The figure also surpassed the Zacks Consensus Estimate of $1.77.
Amdocs’ fiscal second-quarter revenues of $1.172 billion topped the consensus mark of $1.167 billion and came above the midpoint of management’s guidance of $1.15-$1.19 billion. The top line increased 3.9% on a reported basis and 2.2% on a constant-currency basis.
Amdocs’ Q2 Details
DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $754.3 million (64.4% of the total revenues), which increased 2.2% year over year. Europe revenues (16.4% of the total revenues) of $191.8 million advanced 6.1% year over year.
RoW revenues (19.2% of the total revenues) increased 7.9% year over year to $225.8 million. Our model estimates for North America, Europe and RoW were pinned at $766.6 million, $204.3 million and $195.1 million, respectively.
Managed services revenues rose 1.6% year over year to $758.7 million. The company ended the second quarter of fiscal 2026 with a 12-month backlog of $4.28 billion, up $30 million sequentially. Our model estimates for managed services revenues and backlog were pegged at $767.3 million and $4.27 billion, respectively.
The non-GAAP operating income increased 5% year over year to $252 million, whereas the operating margin expanded 20 basis points to 21.5%.
DOX’s Balance Sheet & Cash Flow
Amdocs had cash and cash equivalents of $214.5 million as of March 31, 2026, compared with $247.9 million as of Dec. 31, 2025. Long-term debt was $647.2 million as of March 31, 2026, increasing marginally from the Dec. 31, 2025, level of $647 million.
In the fiscal second quarter, the company generated an operating cash flow of $101.6 million and a free cash flow of $80.3 million. During the quarter, it repurchased shares worth $138 million and paid out $57 million in dividends.
Amdocs Updates FY26 Guidance
For fiscal 2026, DOX expects revenues to grow 2.6-4.6% compared with the earlier mentioned 1.5-5.5% rise. The Zacks Consensus Estimate for revenues is pegged at $4.7 billion, suggesting a year-over-year increase of 3.7%.
The non-GAAP operating margin is anticipated to be 21.3-21.9% for fiscal 2026. Non-GAAP earnings per share are expected to grow 5-7%, instead of the earlier stated 4-8% range. The Zacks Consensus Estimate for earnings is pegged at $7.44 per share, indicating a year-over-year rise of 6.4%.
The company expects the free cash flow between $710 million and $730 million.
Amdocs also initiated the guidance for the third quarter of fiscal 2026. For the fiscal third quarter, the company expects revenues of $1.155-$1.195 billion. The Zacks Consensus Estimate for revenues is pegged at $1.18 billion, suggesting a year-over-year jump of 3.1%.
Amdocs expects non-GAAP earnings per share between $1.81 and $1.87. The Zacks Consensus Estimate is pegged at $1.88 per share, indicating a year-over-year rise of 9.3%.
Shares of Broadcom have gained 20.4% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating a year-over-year surge of 67.9%.
Shares of Celestica have gained 26% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 7.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
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Amdocs Q2 Earnings Surpass Estimates, Revenues Rise Y/Y
Key Takeaways
Amdocs Limited (DOX - Free Report) reported better-than-expected second-quarter fiscal 2026 results. DOX’s non-GAAP earnings of $1.78 per share came above the midpoint of management’s guidance of $1.73-$1.79 and remained flat on a year-over-year basis. The figure also surpassed the Zacks Consensus Estimate of $1.77.
Amdocs’ fiscal second-quarter revenues of $1.172 billion topped the consensus mark of $1.167 billion and came above the midpoint of management’s guidance of $1.15-$1.19 billion. The top line increased 3.9% on a reported basis and 2.2% on a constant-currency basis.
Amdocs’ Q2 Details
DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $754.3 million (64.4% of the total revenues), which increased 2.2% year over year. Europe revenues (16.4% of the total revenues) of $191.8 million advanced 6.1% year over year.
RoW revenues (19.2% of the total revenues) increased 7.9% year over year to $225.8 million. Our model estimates for North America, Europe and RoW were pinned at $766.6 million, $204.3 million and $195.1 million, respectively.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited price-consensus-eps-surprise-chart | Amdocs Limited Quote
Managed services revenues rose 1.6% year over year to $758.7 million. The company ended the second quarter of fiscal 2026 with a 12-month backlog of $4.28 billion, up $30 million sequentially. Our model estimates for managed services revenues and backlog were pegged at $767.3 million and $4.27 billion, respectively.
The non-GAAP operating income increased 5% year over year to $252 million, whereas the operating margin expanded 20 basis points to 21.5%.
DOX’s Balance Sheet & Cash Flow
Amdocs had cash and cash equivalents of $214.5 million as of March 31, 2026, compared with $247.9 million as of Dec. 31, 2025. Long-term debt was $647.2 million as of March 31, 2026, increasing marginally from the Dec. 31, 2025, level of $647 million.
In the fiscal second quarter, the company generated an operating cash flow of $101.6 million and a free cash flow of $80.3 million. During the quarter, it repurchased shares worth $138 million and paid out $57 million in dividends.
Amdocs Updates FY26 Guidance
For fiscal 2026, DOX expects revenues to grow 2.6-4.6% compared with the earlier mentioned 1.5-5.5% rise. The Zacks Consensus Estimate for revenues is pegged at $4.7 billion, suggesting a year-over-year increase of 3.7%.
The non-GAAP operating margin is anticipated to be 21.3-21.9% for fiscal 2026. Non-GAAP earnings per share are expected to grow 5-7%, instead of the earlier stated 4-8% range. The Zacks Consensus Estimate for earnings is pegged at $7.44 per share, indicating a year-over-year rise of 6.4%.
The company expects the free cash flow between $710 million and $730 million.
Amdocs also initiated the guidance for the third quarter of fiscal 2026. For the fiscal third quarter, the company expects revenues of $1.155-$1.195 billion. The Zacks Consensus Estimate for revenues is pegged at $1.18 billion, suggesting a year-over-year jump of 3.1%.
Amdocs expects non-GAAP earnings per share between $1.81 and $1.87. The Zacks Consensus Estimate is pegged at $1.88 per share, indicating a year-over-year rise of 9.3%.
DOX’s Zacks Rank & Stocks to Consider
Currently, Amdocs carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 20.4% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating a year-over-year surge of 67.9%.
Shares of Celestica have gained 26% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 7.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.