Amdocs (DOX) AI Stock Analysis

• Market Cap: $7.89B
• Dividend Yield: 2.57%
• Average Volume (3M): 884.33K
• Price to Earnings (P/E): 14.4
• 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): 1.81
• Shares Outstanding: 107,949,540
• 10 Day Avg. Volume: 1,156,381
• 30 Day Avg. Volume: 884,330
• PEG Ratio: 0.85
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 14.14
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 8.76
• 1Y Price Target: $94.33
• Price Target Upside: 29.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $80.00 ▲(9.50% Upside)

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

Amdocs converts a large share of earnings into cash (TTM FCF ~$755M, ~17% growth). Durable high FCF supports capital returns, buybacks, dividend coverage, and funding for M&A or product investment without needing material external financing over the next 2–6 months.

Conservative Leverage

Low leverage (debt/equity ~0.24) and sizeable equity provide financial flexibility for strategic initiatives, support continued buybacks and dividends, and reduce refinancing risk. This conservatism preserves balance sheet optionality during industry investments and near-term integration work.

Strategic Market Position & AI/Cloud Push

Amdocs combines strong telco relationships, a $4.25B backlog, strategic M&A (Matrixx) and new products (aOS) to capitalize on cloud migration and GenAI secular trends. These structural moves diversify revenue levers and position the firm as a platform partner over the next several quarters.

Negative Factors

Modest Top‑Line Momentum

Revenue growth is modest and partially inorganic, limiting organic expansion potential. Flat TTM revenue and a weak FY25 base mean upside depends on successful cross‑sell, SaaS adoption and M&A execution, constraining durable EPS growth absent sustained organic acceleration.

Customer Concentration Risk

Reliance on a few large telecom customers creates revenue volatility: even with a renewed multi‑year deal, expected FY26 declines from a major client highlight concentration risk that can materially alter top‑line trajectory and backlog utilization across quarters.

Integration & Cost Pressure

Recent acquisition integration uncertainty and restructuring payments increase short‑term execution risk. Higher aggregate borrowings and expected elevated finance costs reduce near‑term margin tailwind and create pressure to deliver predictable cross‑sell and recurring revenue from Matrixx.

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

Strong cash generation (TTM FCF ~$755M, ~17% growth) and healthy balance-sheet leverage (debt-to-equity ~0.24) support a high-quality profile. Profitability is solid and improving vs. 2024 (TTM net margin ~12.5%), but revenue growth is modest (TTM ~+1%) and margins remain below the 2021 peak, limiting the upside.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat (about +1.0%), following a decline in the latest annual period (2025: ~-9.4%), which points to modest top-line momentum. Profitability is solid and improving versus 2024, with TTM gross margin ~38% (up from ~35% in 2024) and TTM net margin ~12.5% (up from ~9.9% in 2024), indicating better cost control and mix. However, margins remain below the 2021 peak (net margin ~16%), suggesting some structural pressure versus prior highs.

Balance Sheet

Leverage is conservative, with TTM debt-to-equity around 0.24 and equity of roughly $3.4B supporting a ~$6.3B asset base. Returns to shareholders are healthy (TTM return on equity ~16%), consistent with a profitable, mature software business. The main watch-out is that total debt is up versus 2024 (about $952M vs. ~$790M), even though overall leverage still remains very manageable.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is ~$864M and free cash flow is ~$755M, with free cash flow up sharply (TTM growth ~17%). Free cash flow comfortably covers reported earnings (about 86% of net income), indicating good earnings quality and strong conversion. A constraint is that cash flow relative to current liabilities appears moderate (operating cash flow coverage ~0.55 in the provided data), implying less near-term cushion than the headline free-cash-flow figure might suggest.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.53B	5.00B	4.89B	4.58B	4.29B
Gross Profit	1.66B	1.76B	1.73B	1.62B	1.48B
EBITDA	927.10M	819.03M	855.15M	889.85M	1.04B
Net Income	564.70M	493.20M	540.71M	549.50M	688.37M
Balance Sheet
Total Assets	6.25B	6.39B	6.43B	6.39B	6.51B
Cash, Cash Equivalents and Short-Term Investments	325.00M	514.33M	742.53M	817.98M	965.59M
Total Debt	826.40M	789.74M	807.31M	826.83M	881.17M
Total Liabilities	2.78B	2.89B	2.86B	2.83B	2.88B
Stockholders Equity	3.43B	3.46B	3.52B	3.52B	3.59B
Cash Flow
Free Cash Flow	645.14M	618.93M	698.27M	529.50M	715.37M
Operating Cash Flow	749.10M	724.43M	822.63M	756.72M	925.81M
Investing Cash Flow	-2.06M	-127.41M	-224.50M	-262.50M	-329.00M
Financing Cash Flow	-768.12M	-771.02M	-651.43M	-629.90M	-870.93M

Amdocs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 73.06 is below the 20-day moving average (MA) of 81.36, below the 50-day MA of 79.86, and below the 200-day MA of 84.58, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 22.00 is Positive, neither overbought nor oversold. The STOCH value of 11.45 is Positive, 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	73 Outperform	$13.22B	26.95	10.64%	―	4.21%	-0.63%
DOX	70 Outperform	$7.89B	14.38	16.45%	2.57%	-9.43%	19.14%
FOUR	68 Neutral	$5.16B	27.33	15.52%	―	23.16%	27.38%
KVYO	62 Neutral	$6.26B	-87.29	-6.10%	―	32.81%	-36.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Amdocs Corporate Events

Amdocs Posts Solid Q1 FY2026 Results, Expands Telco AI Push With T-Mobile Deal and aOS Launch

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, with Europe growing 17.1%, managed services comprising about 65% of sales, and both GAAP and non-GAAP EPS topping guidance on the back of a lower effective tax rate and improved profitability. The company highlighted a stronger operating margin, robust free cash flow of $188 million, $146 million in share repurchases and a $4.25 billion twelve‑month backlog, while reinforcing its fiscal 2026 revenue growth outlook in constant currency and signaling a strategic push into generative AI and broader telecom transformation through a new multi-year strategic agreement with T-Mobile USA, expanded engagements with Vodafone Germany and other European customers, the completed acquisition of Matrixx Software, and the launch of aOS, an agentic operating system designed to position Amdocs as a key technology partner for operators pursuing AI, cloud migration and fiber rollout initiatives.

The most recent analyst rating on (DOX) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.

Amdocs Names Shimie Hortig CEO as Shuky Sheffer Plans March 31 Retirement

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’ intent to preserve strategic continuity as it deepens its cloud and generative AI capabilities for telecom clients, reinforcing stakeholder confidence in its positioning for the next phase of industry transformation.

The most recent analyst rating on (DOX) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.

Amdocs Shareholders Back Board, Boost Dividend and Expand Employee Share Plan at 2026 AGM

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 strategic direction. Shareholders also approved an amendment to the 2023 Employee Share Purchase Plan to reserve an additional 2.2 million ordinary shares, endorsed an increase in the quarterly cash dividend from $0.527 to $0.569 per share, approved the consolidated financial statements for the fiscal year ended September 30, 2025, and ratified Ernst & Young LLP as auditor for the fiscal year ending September 30, 2026, collectively reinforcing Amdocs’ capital return policy, employee equity participation, and governance framework.

The most recent analyst rating on (DOX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.

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.

The most recent analyst rating on (DOX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.

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.

The most recent analyst rating on (DOX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.

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.

The most recent analyst rating on (DOX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Amdocs stock, see the DOX Stock Forecast page.