Amdocs Q3 Earnings Call Highlights

Amdocs Q3 Earnings Call Highlights Written by MarketBeat August 5, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Q3 performance was solid: Revenue rose 2.7% year over year to approximately $1.175 billion, while non-GAAP EPS reached $1.84 and operating margin improved to 21.6%. GAAP EPS fell to $0.59 because of a $0.91-per-share restructuring charge tied to the company’s internal transformation. Amdocs is accelerating its agentic AI strategy: A new 10-year Liberty Latin America agreement will use Amdocs’ aOS platform to manage and transform the provider’s IT ecosystem. The company said it has secured 10 aOS customer engagements since launching the platform in March. Fiscal 2026 guidance was reaffirmed: Amdocs expects constant-currency revenue growth of 2.6% to 3.4%, non-GAAP EPS growth of 5.5% to 6.5%, and free cash flow before restructuring payments of $710 million to $730 million. Interested in Amdocs? Here are five stocks we like better . Amdocs NASDAQ: DOX reported fiscal third-quarter 2026 revenue of approximately $1.175 billion, up 2.7% from a year earlier on a reported basis and 2.2% in constant currency. Non-GAAP diluted earnings per share totaled $1.84, in line with the midpoint of the company’s guidance. President and CEO Shimie Hortig said the quarter reflected “solid financial and operating performance,” while highlighting the company’s strategy to expand its agentic artificial intelligence offerings. Non-GAAP operating margin rose 20 basis points year over year to 21.6%. Get Amdocs alerts: Sign Up GAAP diluted EPS was $0.59, below the company’s prior guided range, due to a restructuring charge of roughly $0.91 per share. CFO Tal Rozenfeld said the charge resulted from accelerating Amdocs’ internal transformation and its strategy to become an “agentic-first” organization. Excluding the restructuring charge, GAAP diluted EPS would have exceeded the guided range, he said. Managed Services Reach Record Revenue Managed services revenue reached a record $791 million during the quarter, representing about 67% of total company revenue and increasing 2.5% from the prior-year period. Hortig said the company continued to see sales momentum for its core products and services, citing customer wins involving Lumen, Telus, Three Scandinavia, Telefônica Vivo, PLDT and Opteck. The company closed the quarter with 12-month backlog of $4.26 billion, up 2.7% from a year earlier but down $20 million sequentially. Rozenfeld said the measure remains a leading indicator of the company’s business and forward visibility. He added that the Liberty Latin America agreement was partially included in the backlog figure. Amdocs generated free cash flow before restructuring payments of $193 million in the quarter, or $172 million after $21 million in restructuring payments. The company said it had achieved nearly 75% of its fiscal-year free-cash-flow target through the first nine months. At June 30, Amdocs had approximately $206 million in cash, aggregate borrowings of about $930 million, and $520 million available under its revolving credit facility. During the quarter, the company repurchased $143 million of its shares and paid $60 million in cash dividends. It had $560 million remaining under its share-repurchase authorization at quarter-end. Liberty Latin America Signs 10-Year IT Transformation Deal The company’s principal strategic announcement was a new 10-year agreement with Liberty Latin America to manage and transform the provider’s end-to-end IT ecosystem. Hortig characterized the arrangement as a large-scale flagship engagement that will use Amdocs’ aOS, or Agentic Telco Operating System. According to Amdocs, the project moves beyond traditional IT operations to an AI-driven model intended to accelerate time to market, increase product innovation, improve customer and employee experiences, and create cost savings. Hortig said the agreement represen...