Amdocs (DOX)
NASDAQ:DOX
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Amdocs
(NASDAQ:DOX)
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Rating:70Outperform
Price Target:
$69.00
▲(6.25% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by strong financial quality (notably free-cash-flow strength and conservative leverage) and supportive valuation (moderate P/E plus a ~2.9% dividend). These are partly offset by weak technicals (price below key moving averages with bearish momentum) and earnings-call risks tied to modest growth guidance and customer-specific revenue pressure (notably T-Mobile), despite steady margins and backlog.
Positive Factors
Free cash flow strength
Sustained, high-quality free cash flow and strong conversion indicate durable internal funding for R&D, cloud/migration investments, dividends and buybacks. Robust FCF reduces refinancing risk and supports strategic optionality during multi-year telco transformation programs.
Negative Factors
Modest revenue growth
Low organic top-line growth constrains operating leverage and limits the upside from margins and scale. In a sector where large transformation deals drive step-change growth, persistent modest growth suggests slower portfolio expansion or elongated sales cycles versus peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained, high-quality free cash flow and strong conversion indicate durable internal funding for R&D, cloud/migration investments, dividends and buybacks. Robust FCF reduces refinancing risk and supports strategic optionality during multi-year telco transformation programs.
Read all positive factors
Amdocs (DOX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.99B
Dividend Yield2.57%
Average Volume (3M)1.11M
Price to Earnings (P/E)13.9
Beta (1Y)0.50
Revenue Growth-9.43%
EPS Growth19.14%
CountryUS
Employees29,058
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.81
Shares Outstanding107,571,000
10 Day Avg. Volume860,206
30 Day Avg. Volume1,106,361
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)2.66
Price to Sales (P/S)2.01
P/FCF Ratio14.14
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda8.12
Forecast
1Y Price Target
$92.33Price Target Upside42.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)7.45
Revenue Forecast (FY)$4.68B
Amdocs Business Overview & Revenue Model
Company Description
Amdocs Limited, through its subsidiaries, provides software and services worldwide. The company designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. It provides CES21, a 5G and cloud-native microservices...
How the Company Makes Money
Amdocs primarily makes money by selling software and delivering related services to communications service providers (wireless, wireline, cable, satellite) and other enterprise customers. Its revenue model is largely contract-based and includes: (...
Amdocs Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: Amdocs delivered a solid start to FY26 with revenue slightly above guidance, improved margins, strong free cash flow conversion, strategic commercial wins, and a new acquisition bolstering monetization capabilities. At the same time, the company reiterated modest full-year revenue growth (1.5%–5.5%), flagged expected revenue decline from a large customer (T-Mobile) in FY26, noted restructuring charges and higher financing costs, and emphasized some regional/quarterly variability and limited near-term visibility from the recent acquisition. Management highlighted material progress in generative AI (AOS) and cloud momentum, but also cautioned about macro and customer spending uncertainty.Positive Updates
Revenue Slightly Above Guidance
Q1 revenue of $1.156 billion, up 4.1% year-over-year reported and up 3.5% in constant currency; revenue was slightly above the midpoint of guidance despite unfavorable FX of ~$3 million.
Negative Updates
Modest Full-Year Revenue Guidance
Reiterated FY26 revenue growth guidance of 1.5% to 5.5% in constant currency (roughly half expected to be inorganic), signaling modest top-line expansion for the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Slightly Above Guidance
Q1 revenue of $1.156 billion, up 4.1% year-over-year reported and up 3.5% in constant currency; revenue was slightly above the midpoint of guidance despite unfavorable FX of ~$3 million.
Read all positive updates
Company Guidance
Amdocs reiterated full‑year fiscal 2026 guidance for revenue growth of 1.5%–5.5% in constant currency (roughly half inorganic), non‑GAAP diluted EPS growth of 4%–8% (midpoint tied to high‑single‑digit TSR including a ~2.7% dividend yield), and non‑GAAP operating margin target of 21.3%–21.9%; Q2 revenue is guided to $1.15–$1.19 billion, the company expects a non‑GAAP effective tax rate of 16%–19% for the year (with Q2 above the high end), and free cash flow of $710–$730 million (≈90% conversion of non‑GAAP net income, ~8% FCF yield) excluding restructuring payments. In Q1 Amdocs delivered $1.156B revenue (+3.5% cc, +4.1% reported), non‑GAAP EPS $1.81 (GAAP EPS $1.45, including ~$0.09 restructuring), non‑GAAP operating margin 21.6% (+40 bps YoY), managed services revenue $746M (~65% of total), 12‑month backlog of $4.25B (+$60M seq, +2.7% YoY), DSO 76 days (‑5 days YoY, +2 days seq), FCF before restructuring $237M (reported FCF $188M after $49M restructuring), cash ~$248M, aggregate borrowings ~$780M (including $130M revolver draw and $650M notes maturing June 2030), Q1 interest and other expenses ~ $10M, $146M of buybacks in the quarter and $840M remaining repurchase authorization, and FX now assumed to benefit full‑year revenue by ~0.5% (vs 0.7% prior).Amdocs Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.58B | 4.53B | 5.00B | 4.89B | 4.58B | 4.29B |
| Gross Profit | 1.72B | 1.66B | 1.76B | 1.73B | 1.62B | 1.48B |
| EBITDA | 950.57M | 927.10M | 819.03M | 855.15M | 889.85M | 1.04B |
| Net Income | 571.92M | 564.70M | 493.20M | 540.71M | 549.50M | 688.37M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.25B | 6.39B | 6.43B | 6.39B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 247.88M | 325.00M | 514.33M | 742.53M | 817.98M | 965.59M |
| Total Debt | 952.36M | 826.40M | 789.74M | 807.31M | 826.83M | 881.17M |
| Total Liabilities | 2.88B | 2.78B | 2.89B | 2.86B | 2.83B | 2.88B |
| Stockholders Equity | 3.42B | 3.43B | 3.46B | 3.52B | 3.52B | 3.59B |
Cash Flow | ||||||
| Free Cash Flow | 754.89M | 645.14M | 618.93M | 698.27M | 529.50M | 715.37M |
| Operating Cash Flow | 863.72M | 749.10M | 724.43M | 822.63M | 756.72M | 925.81M |
| Investing Cash Flow | -192.21M | -2.06M | -127.41M | -224.50M | -262.50M | -329.00M |
| Financing Cash Flow | -637.47M | -768.12M | -771.02M | -651.43M | -629.90M | -870.93M |
Amdocs Technical Analysis
Negative
64.94
Price Trends
67.76
Negative
73.27
Negative
78.54
Negative
Market Momentum
-0.89
Negative
45.79
Neutral
21.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOX, the sentiment is Negative. The current price of 64.94 is above the 20-day moving average (MA) of 64.86, below the 50-day MA of 67.76, and below the 200-day MA of 78.54, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOX.
Amdocs Risk Analysis
Amdocs disclosed 29 risk factors in its most recent earnings report. Amdocs reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amdocs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.99B | 13.88 | 16.56% | 2.57% | -9.43% | 19.14% | |
66 Neutral | $5.36B | -297.33 | -2.82% | ― | 32.81% | -36.32% | |
62 Neutral | $13.77B | 28.07 | 9.64% | ― | 4.21% | -0.63% | |
62 Neutral | $4.65B | 42.45 | 7.54% | ― | 23.16% | 27.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DOX
Amdocs
64.98
-16.03
-19.79%
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Amdocs Corporate Events
Amdocs Names Shimie Hortig CEO of Amdocs Management and Board Director as Shuky Sheffer Retires
Mar 23, 2026
On March 23, 2026, Amdocs announced that Shuky Sheffer retired from both its management team and Board of Directors, stepping down as President and Chief Executive Officer of Amdocs Management Limited. Concurrently, the Board appointed Shimie Hort...
Amdocs Posts Higher Revenue and Stable Equity in Q1 FY2026 Form 6-K
Feb 17, 2026
Amdocs Limited reported unaudited financial results for the quarter ended December 31, 2025, filing a Form 6-K with the U.S. Securities and Exchange Commission as a foreign private issuer. The company’s total assets rose to about $6.34 billi...
Amdocs Posts Solid Q1 FY2026 Results, Expands Telco AI Push With T-Mobile Deal and aOS Launch
Feb 4, 2026
On February 3, 2026, Amdocs reported results for the first quarter of fiscal 2026, covering the three months ended December 31, 2025, posting revenue of $1.16 billion, up 4.1% year-on-year as reported and slightly above the midpoint of guidance, w...
Amdocs Names Shimie Hortig CEO as Shuky Sheffer Plans March 31 Retirement
Feb 4, 2026
On February 3, 2026, Amdocs announced that long-serving CEO Shuky Sheffer will retire and hand leadership to Shimie Hortig, the current Group President of the Americas, effective March 31, 2026. The carefully planned succession underscores Amdocs&...
Amdocs Shareholders Back Board, Boost Dividend and Expand Employee Share Plan at 2026 AGM
Jan 30, 2026
At its Annual General Meeting of Shareholders held on January 30, 2026, Amdocs Limited reported that investors re-elected all ten board nominees for one-year terms, signaling continued support for the company’s existing leadership and strate...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.