Amdocs Limited (DOX)
NASDAQ:DOX
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Amdocs
(NASDAQ:DOX)
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Rating:71Outperform
Price Target:
$67.00
▼(-0.93% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid financial quality (steady profitability, conservative leverage, strong free cash flow) and a supportive valuation (low-to-moderate P/E plus a ~3.55% dividend). Earnings-call fundamentals are constructive with reiterated guidance, backlog growth, and margin improvement, but the overall score is held back by weak technical trend signals and modest organic growth alongside rising financing costs.
Positive Factors
Strong free cash flow
Amdocs generates robust free cash flow (TTM ~$679M, ~86% of net income). This durable cash generation supports reinvestment in products, multi-year managed-service delivery, share buybacks and dividends while providing a buffer during project timing volatility and economic cycles.
Negative Factors
Modest organic growth
Top-line expansion is modest on an organic basis (≈2.2% CC), with management indicating roughly half of expected FY growth will come from inorganic sources. Dependence on acquisitions or tuck‑ins to hit growth targets raises execution and integration risk and may obscure core demand trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Amdocs generates robust free cash flow (TTM ~$679M, ~86% of net income). This durable cash generation supports reinvestment in products, multi-year managed-service delivery, share buybacks and dividends while providing a buffer during project timing volatility and economic cycles.
Read all positive factors
Amdocs (DOX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.74B
Dividend Yield2.57%
Average Volume (3M)1.01M
Price to Earnings (P/E)12.7
Beta (1Y)0.58
Revenue Growth-2.72%
EPS Growth4.15%
CountryUS
Employees29,058
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)5.03
Shares Outstanding107,571,000
10 Day Avg. Volume1,307,394
30 Day Avg. Volume1,010,638
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 Cap1.13
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda7.98
Forecast
1Y Price Target
$74.50Price Target Upside10.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)7.46
Revenue Forecast (FY)$4.69B
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:May 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive, growth-oriented tone: Amdocs reported revenues and EPS above guidance midpoints, delivered regional strengths (record Europe quarter, RoW growth), improved YoY operating margin, generated strong free cash flow and announced strategic product (aOS) launches and initial customer wins. Challenges include modest organic growth, early-stage aOS monetization, incremental financing costs due to lower cash and borrowings, and quarter-to-quarter project timing volatility. Management reiterated guidance, increased investment in GenAI/aOS, and emphasized liquidity and capital return plans. On balance the positive operational results, strong cash generation, backlog growth and clear strategic direction around agentic/GenAI initiatives outweigh the listed near-term headwinds.Positive Updates
Revenue and EPS Above Guidance
Q2 revenue of $1.172B (reported) was above the guidance midpoint, up 3.9% year-over-year as reported and up 2.2% in constant currency. Non-GAAP diluted EPS was $1.78, $0.02 above the guidance midpoint; GAAP diluted EPS was $1.28 (included non-recurring items).
Negative Updates
Modest Organic Growth
Constant currency revenue growth was modest at 2.2% YoY; managed services revenue grew just 1.6% YoY and still represents ~65% of total revenue. Management noted roughly half of fiscal 2026 expected growth will be inorganic.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EPS Above Guidance
Q2 revenue of $1.172B (reported) was above the guidance midpoint, up 3.9% year-over-year as reported and up 2.2% in constant currency. Non-GAAP diluted EPS was $1.78, $0.02 above the guidance midpoint; GAAP diluted EPS was $1.28 (included non-recurring items).
Read all positive updates
Company Guidance
Amdocs reiterated full‑year fiscal 2026 guidance with a constant‑currency revenue growth midpoint of 3% (tightened reported range 2.6%–4.6% and constant‑currency range 2%–4%), a Q3 revenue outlook of $1.155B–$1.195B, and roughly half of expected FY growth inorganic; FX tailwinds are now expected to benefit ~0.6% (vs. 0.5% prior). Profitability guidance targets non‑GAAP operating margin of 21.3%–21.9% (midpoint ≈21.6%, ~20 bps above prior year 21.4%) and non‑GAAP diluted EPS growth of ~6% (range 5%–7%). Management expects higher net interest/other expense from increased short‑term borrowing, a non‑GAAP tax rate of 16%–19%, free cash flow of $710M–$730M (≈90% conversion of non‑GAAP net income) with ~10% free cash flow yield, Q2 share repurchases of $138M (≈$702M remaining authority), and a 12‑month backlog of $4.28B.Amdocs Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.62B | 4.53B | 5.00B | 4.89B | 4.58B | 4.29B |
| Gross Profit | 1.73B | 1.66B | 1.76B | 1.73B | 1.62B | 1.48B |
| EBITDA | 951.97M | 927.10M | 819.03M | 855.15M | 889.85M | 1.04B |
| Net Income | 546.50M | 564.70M | 493.20M | 540.71M | 549.50M | 688.37M |
Balance Sheet | ||||||
| Total Assets | 6.36B | 6.25B | 6.39B | 6.43B | 6.39B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 214.50M | 325.00M | 514.33M | 742.53M | 817.98M | 965.59M |
| Total Debt | 1.07B | 826.40M | 789.74M | 807.31M | 826.83M | 881.17M |
| Total Liabilities | 2.94B | 2.78B | 2.89B | 2.86B | 2.83B | 2.88B |
| Stockholders Equity | 3.38B | 3.43B | 3.46B | 3.52B | 3.52B | 3.59B |
Cash Flow | ||||||
| Free Cash Flow | 678.74M | 645.14M | 618.93M | 698.27M | 529.50M | 715.37M |
| Operating Cash Flow | 792.85M | 749.10M | 724.43M | 822.63M | 756.72M | 925.81M |
| Investing Cash Flow | -270.56M | -2.06M | -127.41M | -224.50M | -262.50M | -329.00M |
| Financing Cash Flow | -555.18M | -768.12M | -771.02M | -651.43M | -629.90M | -870.93M |
Amdocs Technical Analysis
Negative
67.63
Price Trends
64.44
Negative
69.65
Negative
75.24
Negative
Market Momentum
-0.88
Negative
46.05
Neutral
65.77
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 67.63 is above the 20-day moving average (MA) of 63.26, above the 50-day MA of 64.44, and below the 200-day MA of 75.24, indicating a bearish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.74B | 12.68 | 15.91% | 2.57% | -2.72% | 4.15% | |
70 Outperform | $21.41B | 39.23 | 9.12% | ― | 6.15% | 0.30% | |
69 Neutral | $4.45B | 163.82 | -0.75% | ― | 30.27% | 80.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $3.43B | 53.67 | 6.42% | ― | 28.28% | -72.43% |
* Technology Sector Average
DOX
Amdocs
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-30.85%
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Amdocs Corporate Events
Amdocs Posts Solid Q2 2026 Results and Names New CFO as It Pushes Into ‘Agentic’ Telco Era
May 14, 2026
On May 13, 2026, Amdocs reported results for the quarter ended March 31, 2026, posting revenue of $1.17 billion, up 3.9% year on year as reported and slightly above guidance, with strength in Europe and Rest of World and managed services contribut...
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...
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.