AMDOCS LTD (DOX): Financial results for Q3 2026
AMDOCS LTD (DOX) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Amdocs Limited Reports Third Quarter Fiscal 2026 Results Revenue of $1.17 Billion, up 2.7% YoY as Reported and up 2.2% YoY in Constant Currency (1) Expects Fiscal 2026 Revenue Growth Outlook of 3.2%-4.0% YoY as Reported Reiterates Midpoint of Fiscal 2026 Revenue Grow
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance, a $143M share repurchase, and a strategic 10‑year contract with Liberty Latin America, offering actionable data for short‑term traders.
Market read
The earnings beat and buyback provide a modest bullish catalyst for DOX, while the new contract highlights growth potential in the Latin American telecom market.
What to watch
Restructuring charges reduced GAAP EPS; investors should watch cash flow quality and future margin trends.
Revenue of $1.17 Billion, up 2.7% YoY as Reported and up 2.2% YoY in Constant Currency
Revenue and non-GAAP profitability were at the midpoints of quarterly guidance, managed services reached a record $791 million, and twelve-month backlog grew 2.7% year over year. However, a $106 million restructuring charge reduced GAAP operating income to $105 million and GAAP diluted EPS to $0.59, while fourth-quarter revenue guidance implies a range around third-quarter revenue and full-year GAAP diluted EPS growth guidance was reduced to (5.0)% - (3.0)% from 12.0% - 15.0%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 1,174,895 | – | 2.7% |
| Revenue growth, constant currencynon-GAAP | 2.2% | – | 2.2% |
| Cost of revenueGAAP | 707,740 | – | – |
| Research and developmentGAAP | 86,367 | – | – |
| Selling, general and administrativeGAAP | 149,252 | – | – |
| Amortization of purchased intangible assets and otherGAAP | 20,574 | – | – |
| Restructuring chargesGAAP | 106,424 | – | – |
| Total operating expensesGAAP | 1,070,357 | – | – |
| Operating incomeGAAP | $ 104,538 | – | – |
| Operating marginGAAP | 8.9% | down 670 basis points | down 880 basis points |
| Non-GAAP operating incomenon-GAAP | 253,409 | – | – |
| Non-GAAP operating marginnon-GAAP | 21.6% | up 10 basis points | up 20 basis points |
| Interest and other expense, netGAAP | (14,082 ) | – | – |
| Income before income taxesGAAP | 90,456 | – | – |
| Income taxesGAAP | 27,263 | – | – |
| Net incomeGAAP | $ 63,193 | – | – |
| Net income attributable to Amdocs LimitedGAAP | $ 62,169 | – | – |
| Diluted earnings per share attributable to Amdocs LimitedGAAP | $ 0.59 | – | – |
| Non-GAAP net incomenon-GAAP | 195,940 | – | – |
| Non-GAAP net income attributable to Amdocs Limitednon-GAAP | 194,916 | – | – |
| Non-GAAP diluted earnings per sharenon-GAAP | $ 1.84 | – | – |
| Net cash provided by operating activitiesGAAP | $ 197,217 | – | – |
| Purchases of property and equipment, netother | (25,293 ) | – | – |
| Free cash flownon-GAAP | $ 171,924 | – | – |
| Free cash flow excluding restructuring paymentsnon-GAAP | $193 million | – | – |
| Managed services revenueother | $790.5 million | – | up 2.5% |
| Twelve-month backlogother | $4.26 billion | down $20 million | up approximately 2.7% |
| Cash and cash equivalents as of June 30, 2026GAAP | $ 206,451 | – | – |
| Short-term financing arrangements as of June 30, 2026GAAP | 280,000 | – | – |
| Long-term debt, net of unamortized debt issuance costs as of June 30, 2026GAAP | 647,368 | – | – |
| Nine-month revenueGAAP | $ 3,502,813 | – | – |
| Nine-month operating incomeGAAP | $ 494,075 | – | – |
| Nine-month net incomeGAAP | $ 360,419 | – | – |
| Nine-month diluted earnings per share attributable to Amdocs LimitedGAAP | $ 3.33 | – | – |
| Nine-month non-GAAP operating incomenon-GAAP | 755,184 | – | – |
| Nine-month non-GAAP net incomenon-GAAP | 585,572 | – | – |
| Nine-month non-GAAP diluted earnings per sharenon-GAAP | $ 5.43 | – | – |
| Nine-month net cash provided by operating activitiesGAAP | $ 518,983 | – | – |
| Nine-month free cash flownon-GAAP | $ 440,214 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaNot stated | $ 748.1 million | – | – |
| EuropeNot stated | $ 193.5 million | – | – |
| Rest of the WorldNot stated | $ 233.3 million | – | – |
| Managed ServicesRecord revenue; equivalent to approximately 67% of total revenue | $790.5 million | – | up 2.5% |
Q4 fiscal 2026 and full year fiscal 2026 outlook
- RevenueQ4 - 2026: $1,175 - $1,215
- Tax rateFull year fiscal 2026 non-GAAP effective tax rate: 16% to 19%
- NoteQ4 - 2026 GAAP diluted earnings per share: $1.48 - $1.56
- NoteQ4 - 2026 non-GAAP diluted earnings per share: $1.94 - $2.00
- NoteQ4 revenue guidance assumes a negative $2.5 million sequential impact from foreign currency fluctuations as compared to the third quarter of fiscal 2026
- NoteFY 2026 revenue growth, as reported: 3.2% - 4.0%
- NoteFY 2026 revenue growth, constant currency: 2.6% - 3.4%
- NoteFY 2026 GAAP diluted earnings per share growth: (5.0)% - (3.0)%
- NoteFY 2026 non-GAAP diluted earnings per share growth: 5.5% - 6.5%
- NoteFY 2026 free cash flow: $710-$730, excluding payments related to restructuring charges
- NoteFY 2026 non-GAAP operating margin: 21.3% to 21.9%
- NoteFull year fiscal 2026 revenue guidance incorporates an expected positive impact from foreign currency fluctuations of approximately 0.6% year-over-year and includes some inorganic contribution
Capital returns
- Repurchased $143 million of ordinary shares during the third quarter of fiscal 2026.
- On August 5, 2026, the Board approved the Company’s next quarterly cash dividend payment at the rate of $0.569 per share.
- September 30, 2026 is the record date for the dividend, which will be payable on October 30, 2026.
- Nine months ended June 30, 2026 repurchase of shares: (427,077 ).
- Nine months ended June 30, 2026 payments of dividends: (174,278 ).
What drove it
- Revenue was at the midpoint of the $1,155-$1,195 million guidance range.
- Foreign currency movements had a positive impact of $5 million relative to the third quarter of fiscal 2025 and a negative impact of $1 million relative to the second quarter of fiscal 2026.
- Managed services delivered record revenue of $791 million and represented approximately 67% of total revenue.
- Amdocs announced a new, large-scale 10-year partnership with Liberty Latin America encompassing its end-to-end IT ecosystem.
- The full-year revenue outlook includes some inorganic contribution.
Concerns
- GAAP operating income included a restructuring charge of $106 million.
- GAAP diluted EPS of $0.59 included a restructuring charge of 91 cents per share.
- GAAP operating margin was down 880 basis points compared to last year’s third quarter and down 670 basis points sequentially.
- Twelve-month backlog was down $20 million sequentially.
- The company cited macroeconomic developments, customer spending behavior, geopolitical events, inflation, tariffs and trade restrictions, customer consolidation, and operational uncertainty as factors affecting its outlook.
What to watch
- Execution of the Liberty Latin America 10-year engagement and the broader aOS, Agentic Telco Operating System strategy.
- Fourth-quarter revenue delivery against guidance of $1,175 - $1,215.
- The effect of restructuring charges on GAAP profitability and future GAAP diluted EPS.
- Managed services revenue and its share of total revenue.
- Twelve-month backlog following the $20 million sequential decline.
- Customer spending behavior and macroeconomic conditions underlying the full-year outlook.
Balance sheet and cash flow
- Cash and cash equivalents were $ 206,451 as of June 30, 2026, compared with $ 324,999 as of September 30, 2025.
- Accounts receivable, net, including unbilled were 1,009,645 as of June 30, 2026, compared with 935,751 as of September 30, 2025.
- Short-term financing arrangements were 280,000 as of June 30, 2026, compared with — as of September 30, 2025.
- Long-term debt, net of unamortized debt issuance costs was 647,368 as of June 30, 2026, compared with 646,901 as of September 30, 2025.
- Nine-month net cash provided by operating activities was $ 518,983.
- Nine-month net cash used in investing activities was $ (282,571 ).
- Nine-month net cash used in financing activities was $ (354,960 ).
- Nine-month net decrease in cash and cash equivalents was (118,548 ).
Analysis
Amdocs reported third-quarter fiscal 2026 revenue of $1,174,895, up 2.7% as reported and up 2.2% in constant currency. Revenue was at the midpoint of its $1,155-$1,195 million guidance range. Foreign currency movements added $5 million relative to the third quarter of fiscal 2025 and reduced revenue by $1 million relative to the second quarter of fiscal 2026. The geographic supplementary disclosure showed $ 748.1 million in North America, $ 193.5 million in Europe, and $ 233.3 million in Rest of the World.
Managed services revenue reached a record $790.5 million, equivalent to approximately 67% of total revenue, and was up 2.5%. Twelve-month backlog ended the quarter at $4.26 billion, up approximately 2.7% from the prior-year third quarter but down $20 million sequentially. Management also announced a 10-year Liberty Latin America partnership to manage and transform its end-to-end IT ecosystem using aOS, which management characterized as a flagship engagement under its agentic strategy.
Profitability diverged materially between GAAP and non-GAAP results because of restructuring. GAAP operating income was $ 104,538 and GAAP operating margin was 8.9%, down 880 basis points year over year and 670 basis points sequentially, including a restructuring charge of $106 million. GAAP diluted earnings per share was $ 0.59, including a restructuring charge of 91 cents per share. Non-GAAP operating income was 253,409, non-GAAP operating margin was 21.6%, and non-GAAP diluted earnings per share was $ 1.84, at the midpoint of the $1.81-$1.87 guidance range.
Cash generation moderated from the prior-year quarter. Net cash provided by operating activities was $ 197,217 and free cash flow was $ 171,924, including $21 million of restructuring payments. Excluding restructuring payments, free cash flow was $193 million. The company repurchased $143 million of ordinary shares during the quarter and approved a quarterly dividend of $0.569 per share. Cash and cash equivalents were $ 206,451 at June 30, 2026, while short-term financing arrangements were 280,000 and long-term debt, net of unamortized debt issuance costs, was 647,368.
For the fourth quarter, Amdocs guided revenue to $1,175 - $1,215, GAAP diluted earnings per share to $1.48 - $1.56, and non-GAAP diluted earnings per share to $1.94 - $2.00. Full-year reported revenue growth guidance is 3.2% - 4.0%, constant-currency revenue growth guidance is 2.6% - 3.4%, and non-GAAP operating margin guidance is 21.3% to 21.9%. Full-year free cash flow guidance remains $710-$730 excluding restructuring payments. Full-year GAAP diluted earnings per share growth guidance is (5.0)% - (3.0)%, and the release states that this guidance does not include the impact of future restructuring charges.
Management, verbatim
I’m pleased to report solid Q3 results. Revenue of $1.175 billion was consistent with the midpoint of guidance, and profitability improved from a year ago as we continued to balance growth investments with accelerated internal transformation to become an agentic-first organization. Managed services had a record quarter, contributing 67% of total revenue, and twelve-month backlog grew by 2.7% from a year ago. With these results, we’re on track to achieve our fiscal 2026 financial guidance while closely monitoring macroeconomic developments and customer spending behavior in the current climate.
Shimie Hortig, president and chief executive officer of Amdocs Management Limited
As the first major proof point of our first growth pillar, I’m proud to share an important moment in our agentic journey. We signed a new, large-scale 10-year partnership with Liberty Latin America encompassing their entire end-to-end IT ecosystem.
Shimie Hortig, president and chief executive officer of Amdocs Management Limited
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Quarterly GAAP effective tax rate was not reported.
- Quarterly non-GAAP effective tax rate was not reported.
- Segment year-over-year and sequential percentage changes for North America, Europe, and Rest of the World were not reported.
- Prior-quarter values for most income-statement metrics were not reported on their own line items.
- A previous outlook section was not separately provided; therefore, no reported-results-versus-prior-guidance comparison is included.
- Cash balance comparison to the prior-year quarter was not reported.
- Total debt as a single reported line item was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Amdocs (NASDAQ:DOX) is a leading software and services provider to communications and media companies. The 6‑K filing is the company's official Q3 FY2026 earnings release.
Ticker impact
Amdocs reported Q3 FY2026 results with revenue $1.175B, GAAP EPS $0.59, announced $143M share repurchase and a new 10‑year contract with Liberty Latin America.
Potential short‑term price rise of 3‑5% as investors digest the buyback and contract news.
First‑time disclosure of earnings and material corporate actions provides fresh data for traders; guidance remains in‑line, limiting upside but the buyback and contract are clear catalysts.
Market effects
Strengthens the telecom‑software sector outlook, especially for vendors targeting Latin America.
Positive for Caribbean and Central American telecom operators that may partner with Amdocs.
Limited to the niche telecom‑software space; broader market impact modest.
Counterpoint
Guidance remains modest and EPS missed GAAP expectations; the stock may face pressure if revenue growth stalls.
Key entities
- CompanyAmdocs Ltd
Software and services provider to telecom operators, ticker DOX.
- CompanyLiberty Latin America
Telecom operator signing a 10‑year IT transformation contract with Amdocs.
