We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Amdocs (DOX) Down 9.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Amdocs (DOX - Free Report) . Shares have lost about 9.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amdocs due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amdocs Limited before we dive into how investors and analysts have reacted as of late.
Amdocs 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 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 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.
Amdocs expects non-GAAP earnings per share between $1.81 and $1.87.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Amdocs has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Amdocs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amdocs is part of the Zacks Computers - IT Services industry. Over the past month, CDW (CDW - Free Report) , a stock from the same industry, has gained 26.4%. The company reported its results for the quarter ended March 2026 more than a month ago.
CDW reported revenues of $5.68 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $2.28 for the same period compares with $2.15 a year ago.
CDW is expected to post earnings of $2.77 per share for the current quarter, representing a year-over-year change of +6.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CDW. Also, the stock has a VGM Score of B.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Amdocs (DOX) Down 9.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Amdocs (DOX - Free Report) . Shares have lost about 9.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amdocs due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amdocs Limited before we dive into how investors and analysts have reacted as of late.
Amdocs Q2 Earnings Surpass Estimates, Revenues Rise Y/Y
Amdocs 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 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 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.
Amdocs expects non-GAAP earnings per share between $1.81 and $1.87.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Amdocs has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Amdocs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amdocs is part of the Zacks Computers - IT Services industry. Over the past month, CDW (CDW - Free Report) , a stock from the same industry, has gained 26.4%. The company reported its results for the quarter ended March 2026 more than a month ago.
CDW reported revenues of $5.68 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $2.28 for the same period compares with $2.15 a year ago.
CDW is expected to post earnings of $2.77 per share for the current quarter, representing a year-over-year change of +6.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CDW. Also, the stock has a VGM Score of B.