Amdocs Limited reported third‑quarter 2025 results that surpassed consensus estimates, with adjusted earnings per share of $1.83 versus the $1.82 forecast and revenue of $1.15 billion against the $1.14 billion expected by analysts. The company’s earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin cloud and AI services, which helped offset a 9 % year‑over‑year decline in total revenue.
Revenue fell 9 % from the same period a year earlier, largely because Amdocs is phasing out lower‑margin legacy services. However, on a constant‑currency basis revenue grew 2.8 %, reflecting stronger demand for its cloud, digital, and AI‑driven offerings. Cloud‑related activities accounted for more than 30 % of total revenue and grew at double‑digit rates, underscoring the company’s strategic pivot to higher‑margin growth areas.
Operating margin expanded to 21.6 %, a 290‑basis‑point increase from the prior year, as the higher mix of cloud and AI contracts delivered better pricing power and operational leverage. The margin lift also benefited from effective cost controls that mitigated the impact of the revenue decline and the phase‑out of legacy services.
For the first quarter of fiscal 2026, Amdocs guided adjusted EPS of $1.73–$1.79, below the $1.87 consensus, and sales of $1.135–$1.175 billion versus the $1.153 billion expected. The guidance reflects management’s caution amid macroeconomic uncertainty and a specific headwind from T‑Mobile, where reduced discretionary spending is expected to dampen revenue growth.
CEO Shuky Sheffer highlighted that cloud‑related activities delivered double‑digit growth and now represent over 30 % of revenue, while CFO Tamar Rapaport‑Dagim noted the anticipated revenue decline at T‑Mobile. Both executives emphasized continued investment in research and development and a commitment to profitability as the company transitions to a higher‑margin business model.
The board approved an 8 % increase in the quarterly cash dividend, signaling confidence in the company’s financial health. Amdocs also reported a $4.19 billion backlog, indicating sustained demand for its services, and reiterated its focus on cloud, digital, and AI solutions as the primary drivers of future growth.
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