Amdocs Limited Reports Fourth Quarter Fiscal 2026 Results & Full Year Fiscal 2026 Results
Key Highlights
- ➤FY2027 revenue guidance down 17.9%-14.3% as reported, reflecting T-Mobile dispute headwinds
- ➤FY2026 revenue $4,697 million, up 3.6% as reported
- ➤FY2026 non-GAAP diluted EPS $7.41, up 6.0%
- ➤Amdocs acquired EIS for approximately $340 million in cash
- ➤Twelve-month backlog $3.50 billion, down 9.6% pro forma year over year
Expert Statements
Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited
“We delivered solid fourth quarter and full year fiscal 2026 results, consistent with our guidance, and I want to thank our employees around the world for their focus and commitment. I took over as CEO two quarters ago, and since then we have moved fast to develop a new growth strategy and are busy executing it. The core pillar of that strategy is aOS, our Agentic Operating System for telco, which is quickly gaining market traction. Today we announced a significant, eight-year strategic agreement with AT&T, our largest customer. It expands our longstanding partnership by pairing aOS with AT&T's AI-enabled delivery framework to modernize its business and customer operations. On top of AT&T, we are also excited to announce another three major strategic aOS deals with VodafoneThree in UK, VEON in Eurasia and Globe in Philippines. Together, these deals are great examples of how aOS is enabling Amdocs to expand its activities and becoming the trusted partner of choice for our customers' agentic journeys.”
Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited
“We are also excited to announce our entry into a new vertical with the acquisition of EIS, a leading provider of an agentic multi-line insurance platform. This is our first step into the insurance industry. It significantly expands our addressable market and establishes insurance as a strategic medium- to long-term growth engine for Amdocs. The rationale is compelling. Insurance shares many of the characteristics that have defined our success in telecommunications: highly regulated environments, complex and mission-critical platforms, and data-intensive workflows. EIS brings an AI-native core platform, an established global customer base, and deep knowledge of both Life & Annuities and Property & Casualty. By combining EIS' assets and deep vertical expertise, with Amdocs aOS, our scale and our accountability-driven business model, we aim to provide a differentiated offering and become their partner of choice to lead their agentic journey.”
Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited
“We believe our growing strategic momentum, expansion into the insurance market and internal transformation will position us for long-term growth and improved profitability. As part of the focus of our new strategy, we also decided to exit certain businesses and activities that aren't strategically relevant to our agentic future, including the recently announced sale of our media business and the exit of non-strategic business activities relating to the resale of hardware activities. Looking into fiscal 2027, our guidance reflects major headwinds from T-Mobile due to a recent dispute, the completion of the integration project of the USCellular customers and reduction in T-Mobile's discretionary spending. That said, the rest of our business remains robust and continues showing growth in fiscal 2027. Moreover, with positive market traction for aOS and an expanding pipeline of significant customer opportunities, our fiscal 2028 expectations position us for mid-single digit revenue growth, high-single digit earnings growth and a steadily rising dividend.”
(All comparisons are against prior year, unless otherwise stated) * Revenue of $4,697 million, up 3.6% as reported and up 3.0% in constant currency((1)) * Managed services revenue of $3,023 million, equivalent to approximately 64% of total revenue * GAAP diluted EPS of $4.68 down 7.3% including a restructuring charge of 130 cents per share; without Q4 restructuring charges GAAP diluted EPS would have been at the higher end of the guidance range of (5.0)%-(3.0)% * Non-GAAP diluted EPS of $7.41, up 6.0% and at the midpoint of the 5.5%-6.5% guidance range * Free cash flow((3)) of $562 million, comprised of cash flow from operations of $673 million, less $111 million in net capital expenditures and other; excluding $167 million of restructuring payments which were not included in the full year free cash flow((3)) guidance of $710-$730 million, free cash flow((3)) would have been $729 million * Repurchased $511 million of ordinary shares during the fiscal year * Twelve-month backlog of $3.50 billion; adjusting comparable periods for the exit of non-strategic business activities relating to the resale of hardware activities, and the divestiture of the media business, twelve-month backlog was down 9.6%((2)) as compared to last year's fourth fiscal quarter, and down approximately $370 million((2)) sequentially Fourth Quarter Fiscal 2026 Highlights
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