Amdocs (DOX) AI Stock Analysis

• Market Cap: $8.65B
• Dividend Yield: 2.57%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.47
• Revenue Growth: -9.43%
• EPS Growth: 19.14%
• Country: US
• Employees: 29,058
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.83
• Shares Outstanding: 107,949,540
• 10 Day Avg. Volume: 1,036,394
• 30 Day Avg. Volume: 1,326,589
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $99.00
• Price Target Upside: 23.29% 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 ▲(5.85% 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 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-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; the Commerce and Care suite for order capture, handling, and customer engagement; the Monetization suite for charging, billing, policy, and revenue management; Intelligent Networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; MarketONE, a cloud-native business ecosystem; Digital Brands Suite, a pre-integrated digital business suite for digital telecom brands and small-scale service providers; and eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; media services for media publishers, TV networks, and video streaming and service providers; end-to-end application development and maintenance services; and ongoing services. In addition, the company provides a line of services designed for various stages of a service provider's lifecycle includes design, delivery, quality engineering, operations, systems integration, mobile network services, consulting, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, cable and satellite, entertainment, and media industry service providers, as well as mobile virtual network operators and directory publishers. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.

How the Company Makes Money

Amdocs generates revenue through a combination of software licensing, professional services, and managed services. Key revenue streams include the sale of software products that enable telecommunications companies to manage customer interactions, billing, and network operations. Professional services involve consulting, implementation, and support, which are often customized to meet the specific needs of clients. Additionally, Amdocs earns revenue from long-term contracts with major telecom operators, providing ongoing support and updates for its software solutions. Strategic partnerships with key players in the telecommunications industry further enhance Amdocs' ability to deliver integrated solutions, contributing significantly to its earnings.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.53B	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	927.10M	927.10M	819.03M	855.15M	889.85M	1.04B
Net Income	565.49M	567.77M	493.20M	540.71M	549.50M	688.37M
Balance Sheet
Total Assets	6.25B	6.25B	6.39B	6.43B	6.39B	6.51B
Cash, Cash Equivalents and Short-Term Investments	325.00M	325.00M	514.33M	742.53M	817.98M	965.59M
Total Debt	826.40M	826.40M	789.74M	807.31M	826.83M	881.17M
Total Liabilities	2.78B	2.78B	2.89B	2.86B	2.83B	2.88B
Stockholders Equity	3.43B	3.43B	3.46B	3.52B	3.52B	3.59B
Cash Flow
Free Cash Flow	645.14M	645.14M	618.93M	698.27M	529.50M	715.37M
Operating Cash Flow	749.10M	749.10M	724.43M	822.63M	756.72M	925.81M
Investing Cash Flow	-2.06M	-2.06M	-127.41M	-224.50M	-262.50M	-329.00M
Financing Cash Flow	-768.12M	-768.12M	-771.02M	-651.43M	-629.90M	-870.93M

Amdocs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOX, the sentiment is Positive. The current price of 80.3 is above the 20-day moving average (MA) of 77.92, above the 50-day MA of 80.05, and below the 200-day MA of 85.22, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOX.

Amdocs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKAM	73 Outperform	$12.96B	26.16	10.64%	―	4.21%	-0.63%
KVYO	72 Outperform	$10.04B	-136.74	-6.10%	―	32.81%	-36.32%
DOX	69 Neutral	$8.65B	15.89	16.26%	2.57%	-9.43%	19.14%
FOUR	69 Neutral	$5.76B	30.41	15.52%	―	23.16%	27.38%
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 Releases Annual Report for Fiscal Year 2025

On December 16, 2025, Amdocs Limited released its annual report for the fiscal year ending September 30, 2025. The report, which was issued as part of a Form 6-K filing, provides insights into the company’s financial performance and strategic initiatives over the past year. This release is significant for stakeholders as it offers a comprehensive overview of Amdocs’ operational achievements and future outlook, reinforcing its position in the competitive software and services market.

Amdocs Announces Annual General Meeting and Strategic Proposals for 2026

Amdocs Limited has announced its upcoming annual general meeting of shareholders, scheduled for January 30, 2026, in Jersey City, NJ. Key agenda items include the election of ten directors, an amendment to the Employee Share Purchase Plan to increase share issuance by 2.2 million shares, an increase in the quarterly dividend rate, approval of the fiscal year 2025 financial statements, and the ratification of Ernst & Young LLP as the independent accounting firm for fiscal year 2026. These proposals reflect Amdocs’ ongoing strategic initiatives to enhance shareholder value and ensure robust corporate governance.

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.