Amdocs (DOX) AI Stock Analysis

• Market Cap: $8.24B
• Dividend Yield: 2.66%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.47
• Revenue Growth: -9.43%
• EPS Growth: 19.53%
• Country: US
• Employees: 29,058
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.83
• Shares Outstanding: 109,992,000
• 10 Day Avg. Volume: 912,695
• 30 Day Avg. Volume: 1,073,362
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 5.55
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $99.00
• Price Target Upside: 32.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.66
• Revenue Forecast (FY): $4.71B

• Rating: 69 Neutral
• Price Target: $85.00 ▲(13.41% Upside)

Amdocs' overall stock score is driven by a stable financial performance and positive earnings call insights, particularly in cloud and AI services. However, technical indicators show bearish momentum, and revenue growth challenges persist. The valuation is fair, with a moderate P/E ratio and dividend yield.

Positive Factors

Cloud Revenue Growth

Strong growth in cloud services indicates successful adaptation to digital trends, enhancing Amdocs' competitive position and revenue stability.

Managed Services Expansion

The expansion in managed services reflects Amdocs' ability to secure long-term contracts, ensuring stable cash flows and customer retention.

Generative AI Momentum

Advancements in generative AI projects position Amdocs as a leader in innovation, potentially driving future growth and market differentiation.

Negative Factors

Revenue Growth Challenges

Slower than expected revenue growth suggests potential market saturation or competitive pressures, impacting long-term growth prospects.

T-Mobile Revenue Decline

Revenue decline from a major customer like T-Mobile could signal dependency risks, affecting future revenue stability and diversification.

Operating Margin Constraints

Limited margin growth due to increased R&D and marketing investments may constrain profitability, impacting financial flexibility.

Amdocs Business Overview & Revenue Model

Company Description

Amdocs (DOX) is a leading provider of software and services for communications and media companies. With a focus on enhancing customer experience, Amdocs offers solutions that span billing, customer relationship management (CRM), and operational support systems (OSS). The company's offerings enable service providers to streamline operations, drive innovation, and deliver personalized services across various channels, including mobile, digital, and cloud environments. Amdocs serves a diverse range of clients, including telecommunications operators, cable and satellite companies, and digital service providers, operating in sectors that are increasingly reliant on technology to meet consumer demands.

How the Company Makes Money

Amdocs generates revenue primarily through the sale of software licenses, maintenance and support services, and consulting and systems integration services. The company’s revenue model includes both recurring revenues from long-term contracts and project-based revenues from specific implementations. Key revenue streams come from its customer experience systems, billing solutions, and managed services. Amdocs has established significant partnerships with major telecommunications and media companies, which contribute to its earnings through long-term engagements and collaborations. Additionally, the company benefits from a strong demand for digital transformation services, as clients increasingly seek to modernize their operations and enhance customer engagement through advanced technology solutions.

Amdocs Financial Statement Overview

Summary

Amdocs presents a stable financial profile with strong profitability and efficient operations. The balance sheet is solid, and cash flow remains positive, supporting ongoing operations. However, the recent decline in revenue growth poses a challenge that needs addressing for sustained long-term success.

Income Statement

Amdocs shows a strong gross profit margin and consistent profitability, although recent revenue has declined by 2.45%. EBIT and EBITDA margins remain healthy, indicating operational efficiency. However, the negative revenue growth rate is a concern, suggesting potential market challenges.

Balance Sheet

The company maintains a solid balance sheet with a manageable debt-to-equity ratio and a strong equity position. Return on equity is robust, reflecting effective use of shareholder funds. The equity ratio indicates a stable financial structure, though slight increases in debt levels should be monitored.

Cash Flow

Amdocs demonstrates positive cash flow metrics with a slight growth in free cash flow. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is modest, suggesting limited expansion in cash reserves.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	4.53B	―	4.53B	5.00B	4.89B	4.58B
Gross Profit	1.72B	―	1.66B	1.76B	1.73B	1.62B
EBITDA	927.10M	―	927.10M	819.03M	855.15M	889.85M
Net Income	565.49M	―	567.77M	493.20M	540.71M	549.50M
Balance Sheet
Total Assets	6.25B	―	6.25B	6.39B	6.43B	6.39B
Cash, Cash Equivalents and Short-Term Investments	325.00M	―	325.00M	514.33M	742.53M	817.98M
Total Debt	826.40M	―	826.40M	789.74M	807.31M	826.83M
Total Liabilities	2.78B	―	2.78B	2.89B	2.86B	2.83B
Stockholders Equity	3.43B	―	3.43B	3.46B	3.52B	3.52B
Cash Flow
Free Cash Flow	645.14M	―	645.14M	618.93M	698.27M	529.50M
Operating Cash Flow	749.10M	―	749.10M	724.43M	822.63M	756.72M
Investing Cash Flow	-2.06M	―	-2.06M	-127.41M	-224.50M	-262.50M
Financing Cash Flow	-768.12M	―	-768.12M	-771.02M	-651.43M	-629.90M

Amdocs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 74.95 is below the 20-day moving average (MA) of 78.10, below the 50-day MA of 80.87, and below the 200-day MA of 85.78, indicating a bearish trend. The MACD of -1.87 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOX.

Amdocs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKAM	74 Outperform	$12.49B	25.79	10.64%	―	4.21%	-0.63%
FOUR	74 Outperform	$6.27B	33.23	15.52%	―	23.16%	27.38%
DOX	69 Neutral	$8.24B	14.84	16.34%	2.66%	-9.43%	19.53%
KVYO	63 Neutral	$8.50B	―	-6.10%	―	32.81%	-36.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INFA	54 Neutral	―	―	0.43%	―	1.32%	-84.56%

Amdocs Corporate Events

Amdocs Reports Q4 2025 Results and Strategic AI Investments

On November 11, 2025, Amdocs Limited announced its financial results for the fourth quarter and full fiscal year 2025, reporting a revenue of $4.53 billion, a decrease of 9.4% year-over-year due to the phase-out of certain business activities. Despite this, the company achieved a record managed services revenue and improved profitability, driven by operational efficiencies and a focus on high-margin activities. Amdocs also highlighted strong sales momentum and significant international expansion, securing major contracts with companies like TELUS, Lumen Technologies, and British Telecom. The company is increasing its investment in generative AI to unlock new growth opportunities, with a strategic focus on modernizing IT operations and enhancing customer experiences. Looking forward, Amdocs expects revenue growth in the range of 1.7% to 5.7% for fiscal year 2026.

Amdocs Reports Decline in Q2 2025 Revenue

Amdocs Limited reported its financial results for the quarter ended June 30, 2025, showing a decline in revenue compared to the previous year. The company’s total assets slightly decreased from September 2024, while liabilities also saw a reduction. These financial results may impact Amdocs’ market positioning and stakeholder confidence, reflecting challenges in maintaining growth amidst changing market conditions.