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Why Is Amdocs (DOX) Up 7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Amdocs (DOX - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amdocs due for a pullback? Well, first let's take a quick look at the 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 Q3 Earnings Match Expectations, Revenues Rise Y/Y
Amdocs reported third-quarter fiscal 2026 non-GAAP earnings of $1.84 per share, which increased 7% on a year-over-year basis. The figure matched the Zacks Consensus Estimate.
Amdocs’ fiscal third-quarter revenues of $1.175 billion missed the consensus mark by 0.04%. The top line increased 2.7% on a reported basis and 2.2% on a constant-currency basis.
DOX's Managed Services Business Sets a Record
Managed services delivered record revenues and accounted for 67% of total revenues. Managed services revenues rose 2.5% year over year to a record $791 million. The business continued to provide revenue visibility through multiyear agreements and consistently high renewal rates.
Amdocs expanded its managed services relationships during the quarter. The company signed an agreement with a U.S. digital television entertainment provider for a billing migration program and extended its collaboration with Telefonica Vivo to support customer growth and OSS modernization.
The company ended the third quarter of fiscal 2026 with a 12-month backlog of $4.26 billion, up 2.7% year over year. Our model estimates for managed services revenues and backlog were pegged at $769.5 million and $4.29 billion, respectively.
Amdocs’ Q3 in Detail
DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $748.1 million (63.7% of the total revenues), which increased 0.4% year over year. Europe revenues (16.5% of the total revenues) of $193.5 million increased 2.2% year over year.
RoW revenues (19.9% of the total revenues) increased 11.3% year over year to $233.3 million. Our model estimates for North America, Europe and RoW were pinned at $765.9 million, $197.2 million and $212.8 million, respectively.
Non-GAAP operating income increased to $253.4 million from $244.7 million in the year-ago quarter. The non-GAAP operating margin expanded 20 basis points year over year and 10 basis points sequentially to 21.6%.
DOX’s Balance Sheet & Cash Flow
Amdocs had cash and cash equivalents of $206.5 million as of June 30, 2026, compared with $214.5 million as of March 31, 2026. Long-term debt was $647.4 million as of June 30, 2026, increasing marginally from the March 31, 2026, level of $647.2 million.
In the fiscal third quarter, the company generated an operating cash flow of $197.2 million and a free cash flow of $171.9 million. During the quarter, it repurchased shares worth $143 million and paid out $60 million in dividends.
DOX Reiterates Key Fiscal 2026 Targets
For the fourth quarter of fiscal 2026, Amdocs expects revenues between $1.175 billion and $1.215 billion. Amdocs’ Non-GAAP diluted earnings are projected in the range of $1.94-$2 per share.
For fiscal 2026, reported revenue growth is now expected between 3.2% and 4% compared with the previous range of 2.6-4.6%. Constant-currency growth is projected between 2.6% and 3.4%, retaining the prior 3% midpoint.
Non-GAAP earnings growth is expected between 5.5% and 6.5%, with the 6% midpoint unchanged. The company maintained its non-GAAP operating margin forecast of 21.3-21.9% and free cash flow outlook of $710-$730 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Amdocs has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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, Cognizant (CTSH - Free Report) , a stock from the same industry, has gained 13.6%. The company reported its results for the quarter ended June 2026 more than a month ago.
Cognizant reported revenues of $5.48 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.37 for the same period compares with $1.31 a year ago.
Cognizant is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +3.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Cognizant has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Amdocs (DOX) Up 7% Since Last Earnings Report?
It has been about a month since the last earnings report for Amdocs (DOX - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amdocs due for a pullback? Well, first let's take a quick look at the 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 Q3 Earnings Match Expectations, Revenues Rise Y/Y
Amdocs reported third-quarter fiscal 2026 non-GAAP earnings of $1.84 per share, which increased 7% on a year-over-year basis. The figure matched the Zacks Consensus Estimate.
Amdocs’ fiscal third-quarter revenues of $1.175 billion missed the consensus mark by 0.04%. The top line increased 2.7% on a reported basis and 2.2% on a constant-currency basis.
DOX's Managed Services Business Sets a Record
Managed services delivered record revenues and accounted for 67% of total revenues. Managed services revenues rose 2.5% year over year to a record $791 million. The business continued to provide revenue visibility through multiyear agreements and consistently high renewal rates.
Amdocs expanded its managed services relationships during the quarter. The company signed an agreement with a U.S. digital television entertainment provider for a billing migration program and extended its collaboration with Telefonica Vivo to support customer growth and OSS modernization.
The company ended the third quarter of fiscal 2026 with a 12-month backlog of $4.26 billion, up 2.7% year over year. Our model estimates for managed services revenues and backlog were pegged at $769.5 million and $4.29 billion, respectively.
Amdocs’ Q3 in Detail
DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $748.1 million (63.7% of the total revenues), which increased 0.4% year over year. Europe revenues (16.5% of the total revenues) of $193.5 million increased 2.2% year over year.
RoW revenues (19.9% of the total revenues) increased 11.3% year over year to $233.3 million. Our model estimates for North America, Europe and RoW were pinned at $765.9 million, $197.2 million and $212.8 million, respectively.
Non-GAAP operating income increased to $253.4 million from $244.7 million in the year-ago quarter. The non-GAAP operating margin expanded 20 basis points year over year and 10 basis points sequentially to 21.6%.
DOX’s Balance Sheet & Cash Flow
Amdocs had cash and cash equivalents of $206.5 million as of June 30, 2026, compared with $214.5 million as of March 31, 2026. Long-term debt was $647.4 million as of June 30, 2026, increasing marginally from the March 31, 2026, level of $647.2 million.
In the fiscal third quarter, the company generated an operating cash flow of $197.2 million and a free cash flow of $171.9 million. During the quarter, it repurchased shares worth $143 million and paid out $60 million in dividends.
DOX Reiterates Key Fiscal 2026 Targets
For the fourth quarter of fiscal 2026, Amdocs expects revenues between $1.175 billion and $1.215 billion. Amdocs’ Non-GAAP diluted earnings are projected in the range of $1.94-$2 per share.
For fiscal 2026, reported revenue growth is now expected between 3.2% and 4% compared with the previous range of 2.6-4.6%. Constant-currency growth is projected between 2.6% and 3.4%, retaining the prior 3% midpoint.
Non-GAAP earnings growth is expected between 5.5% and 6.5%, with the 6% midpoint unchanged. The company maintained its non-GAAP operating margin forecast of 21.3-21.9% and free cash flow outlook of $710-$730 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Amdocs has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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, Cognizant (CTSH - Free Report) , a stock from the same industry, has gained 13.6%. The company reported its results for the quarter ended June 2026 more than a month ago.
Cognizant reported revenues of $5.48 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.37 for the same period compares with $1.31 a year ago.
Cognizant is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +3.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Cognizant has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.