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what it is
Amdocs sells the back-end software telecom and media companies use to bill customers, manage accounts, and launch new services.
how it gets paid
Last year Amdocs made $5.0B in revenue. North America was the main engine at $3.25B, or 65% of sales.
why it's growing
Revenue grew 296.0% last year. Revenue for the latest quarter was about $1.3B.
what just happened
Amdocs posted $1.45 EPS versus a $1.23 estimate, a 17.89% beat.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
16.6x trailing p/e — the market's not buying it — or you found a deal
2.6% dividend yield — cash in your pocket every quarter
15.5% return on capital — nothing to write home about
xvary composite: 77/100 — average
What they do
Amdocs sells the back-end software telecom and media companies use to bill customers, manage accounts, and launch new services.
Switching costs → ripping out the software that sends bills and tracks customers → so what: your client risks real revenue leakage if a change goes badly. That is why a boring number matters here: earnings predictability is 90, and price stability is 100/100. When 65% of sales come from North America, being deeply embedded with large operators matters more than flashy demos.
How they make money
$5.0B
annual revenue · their business grew +296.0% last year
North America
$3.25B
Europe
$0.80B
Rest of World
$0.95B
Other / rounding
$0.00B
The products that matter
ongoing telecom IT support
Managed Services
supports the $5.0B revenue base
this is the steady engine. Long-running support work helps explain why earnings predictability reaches 90/100. It is not glamorous. It is the reason the numbers usually arrive on schedule.
core
digital modernization work
Cloud & AI
growth area inside a 4.2% story
this is where management wants growth to come from, but the company does not break out a standalone revenue number here. That matters because when the whole company grows 4.2%, you want clearer proof of what is accelerating.
growth
project-led advisory and build work
Strategic Consulting
project-led revenue within $5.0B
new client relationships often start here before becoming larger delivery work. The opportunity is obvious. The disclosure is not. You know it matters to the $5.0B base, but this page does not give you segment economics.
pipeline
Key numbers
100/100
price stability
This stock barely acts like a stock. You are buying steadiness first, upside second.
22.5%
operating margin
Operating margin → profit after running the business → so what: Amdocs keeps about 23 cents from each dollar of sales before interest and taxes.
$788M
long-term debt
Debt → borrowed money → so what: it is just 8% of capital, which leaves the balance sheet with room to support dividends and buybacks.
15.5%
return on capital
Return on capital → profit earned on the money invested in the business → so what: this is solid, but not high enough to hide a growth slowdown forever.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- long-term debt $788M (8% of capital)
- net profit margin 12.6% — keeps 13 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in DOX 3 years ago → it's now worth $10,000.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Amdocs posted $1.45 EPS versus a $1.23 estimate, a 17.89% beat.
Revenue for the latest quarter was about $1.3B, while fiscal 2025 EPS reached $5.05 after 19% vs. prior year bottom-line growth. The story was not explosive sales. It was better profitability and ongoing capital returns.
$1.3B
revenue
$1.45
eps
17.89%
surprise
the number that mattered
The 17.89% EPS beat mattered most because it showed margins can still do work even while revenue growth slows.
-
amdocs limited posted somewhat softer financial results for the fiscal 2025 fourth quarter (year ends september 30th.) revenues of $1.152 billion slipped about 9% vs. prior year in the september period, owing largely to the phase out of certain businesses.the uncertain macroeconomic landscape may have pressured client spending a bit but, overall, demand for amdocs’ ai and cloud products is proving resilient. meanwhile, earnings of $0.86 per share in the final stanza improved modestly versus the previous-year tally, but came in shy of our call.
-
still, amdocs managed to register 19% vs. prior year bottom-line growth for fiscal 2025, as profitability initiatives and operating margin expansion targets appear to be bearing fruit.to that end, for the current fiscal year, we are reiterating our forecast for revenues of $4.975 billion and earnings of $5.65 per share. increased activity on the client engagement front should get the top line back on a growth trajectory. coming on the heels of a handful of notable customer additions in the third quarter, amdocs’ client roster has continued to swell of late. first, the company was recently selected by e& uae, a telecom operator in the united arab emirates, to implement generative ai into the company’s business systems. likewise, several other enterprises have inked contracts with amdocs to drive overall digital transformations, including vivo, lumen technologies, and telia finland.
-
a good amount of capital is making its way to shareholders.
-
the board of directors recently raised the quarterly dividend payment 8%, to $0.57 per share, which helps keep the yield firmly above the institutional data median.elsewhere, the company bought back more than $550 million worth of stock last fiscal year, and should continue to do so this year. the stock has slipped one notch for timeliness, to 3 (average), and is now pegged as a year-ahead market performer. that said, subsequent to the recent dividend hike, amdocs shares offer worthwhile risk-adjusted total return potential over both the 18-month and 3 to 5-year horizons.
-
thus, buy-and-hold accounts may want to have a look here.
source: company earnings report, 2026
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What could go wrong
amdocs does not need a collapse to disappoint you. At 4.2% growth, a couple of delayed telecom projects or weaker renewals are enough to turn a steady story into a flat one.
med
telecom budget pressure
amdocs ultimately lives on customer IT spend. When carriers pull back, project work slows and managed services expansions get harder to win.
that matters because the $5.0B revenue base depends on customers continuing to fund telecom and media systems work.
med
cloud and ai work stays smaller than the story
the company keeps pointing to ai and cloud demand as the next leg of growth. If those projects stay small or move slowly, 4.2% growth has very little cushion.
at 16.6x earnings, the stock is priced for steadiness. It is not priced for a business that drifts from slow growth to no growth.
med
visibility is thinner than you would like
this page has limited segment disclosure and even a mismatch between quoted Q4 EPS figures. That does not damage the balance sheet. It does reduce your ability to track where the business is actually improving.
when a company wins by being consistent, messy data is not a small problem. It caps how confident you should be in the thesis.
the key insight: DOX is safer than most stocks, but that does not make it immune to disappointment. Slow-growth businesses are often most vulnerable to small misses because there is no extra growth to absorb them.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly revenue print
watch the revenue line after the $1.152B quarter that fell about 9% from a year ago. One weak quarter is noise. A pattern is the thesis changing.
metric
net margin around 12.2%
this is the margin that keeps a low-growth story respectable. If it slips, the 16.6x multiple stops looking conservative.
trend
new telecom and cloud contract momentum
wins like e& uae, vivo, lumen technologies, and telia finland need to keep showing up. Better yet, they need to show up in growth, not just headlines.
risk
customer spending caution
this is a contract-heavy model, but it still depends on telecom IT budgets. Slower client decisions hit results before outright cancellations ever arrive.
Analyst rankings
short-term outlook
average
outlook rank 3 — in human-speak, analysts expect roughly market-level performance in the year ahead.
risk profile
safest 5%
risk rank 1 — lower risk than about 95% of stocks.
chart momentum
bottom 5%
momentum rank 5 — price action has been weak even if the business still looks stable.
earnings predictability
90 / 100
management tends to deliver steady numbers. That matters when you are buying consistency instead of speed.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 277 buyers vs. 258 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$72
$126
$84
current price
$99
target midpoint · +18% from current · 3-5yr high: $130 (+55% · 13% ann'l return)
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