DOX

Amdocs has had a tough run in 2024, and with the stock down sharply year to date, the key issue is whether the current share price still lines up with what its earnings can justify. Recent deal activity and portfolio shifts show the business is trying to refocus, which only sharpens the question of what investors are really paying for in those profits today. - The share price has fallen 26.0% year to date, which puts the spotlight squarely on whether the earnings behind Amdocs now support that lower market value. - A new 10 year agreement with VEON and the sale of Vubiquity both point to Amdocs concentrating on its aOS and AI driven software platform, which can influence how investors think about the durability and growth profile of its earnings stream. - There is a second opinion on Amdocs worth weighing. See what analysts think Amdocs's shares could be worth. The issue now is whether Amdocs' current valuation is adequately supported by the earnings the business is generating today. If you are questioning whether Amdocs' earnings still justify its lower price, it can help to compare that same earnings lens across 32 high quality undervalued stocks. The P/E ratio fits Amdocs because it is already earning solid profits, so the share price can be compared directly with those earnings. On this metric, Amdocs trades on a P/E of 13.6x, which sits well below the wider IT industry average of 22.8x and also under the 19.2x level at which peers cluster. That kind of gap means the market is paying less for each dollar of Amdocs' earnings than for many comparable software and IT services groups. The Fair Ratio model, which adjusts for Amdocs' own mix of profitability, growth profile, size and risk, points to a higher multiple than where the shares change hands today. Because the VEON agreement and the Vubiquity sale both sharpen the focus on the aOS and AI platform, the current P/E discount comes despite the business leaning harder into its core software proposition. For anyone weighing whether the 2024 share price drop has already reset expectations, this P/E gap is a useful reference point to explore in more detail. Explore the numbers behind Amdocs's P/E valuation. Narratives on Simply Wall St pick up where the P/E puzzle leaves off for Amdocs, by spelling out which growth, margin and earnings paths would need to hold for the stock to be worth meaningfully more or less than today's quote on the Community page. Each storyline links its number back to a concrete view of how Amdocs' future growth, profitability and risk profile might shift, giving you something specific to revisit as fresh information emerges. One of the top community narratives on Amdocs: 28% undervalued "As the industry shifts toward cloud-native architectures, Amdocs is leveraging its aOS and amAIz frameworks to drive modernization..." Discover why this Narrative puts Amdocs at 28% undervalued. Before you decide what Amdocs is really worth, it helps to ask who is steering the business and how their rewards line up with your interests. See who runs Amdocs and how they are paid. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DOX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Jack Henry (JKHY). Shares have lost about 2.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Jack Henry due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Jack Henry & Associates, Inc. before we dive into how investors and analysts have reacted as of late. Jack Henry & Associates delivered better-than-expected fourth-quarter fiscal 2026 results. The company reported earnings of $1.57 per share for the fourth quarter, surpassing the Zacks Consensus Estimate by 9%. However, the bottom line declined 10.2% year over year. Revenues rose 4.7% year over year to $644 million, beating the consensus mark by 2.3%. After adjusting for deconversion revenues of $9.3 million and revenues from the acquisition of $1.6 million, non-GAAP revenues were $633.1 million, up 6.6% year over year. Growth in processing, cloud-related data processing and hosting, digital transactions and faster payments supported the top line. Management also highlighted a record 58 competitive core wins for fiscal 2026. Among fiscal 2026's competitive core wins, 14 institutions had more than $1 billion in assets. Management also pointed to a robust sales pipeline as technology spending remains strong. CFO Mimi Carsley highlighted a 23.2% return on invested capital for the full year. Services and Support revenues rose 2.5% year over year to $360.2 million. Growth was driven mainly by data processing and hosting within private and public cloud, which increased 7.4%, along with a 27.3% rise in license and hardware revenues and a 38.6% increase in education, royalty and other revenues. Processing revenues advanced 7.5% to $283.8 million. Card revenues grew 5.4%, Jack Henry digital and transaction revenues increased 8.6%, and faster payments revenues jumped 47%. Segment-wise, Core division’s revenues climbed 1.9% year over year to $191.6 million. Payments revenues rose 4.9% to $240.4 million, while Complementary revenues advanced 4.7% to $188.8 million. Corporate Services revenues increased 30.4% to $23.2 million. GAAP operating income declined 12.2% year over year to $136.8 million, while the operating margin contracted to 21.2% from 25.3% in the year-ago quarter. Fourth-quarter non-GAAP adjusted operating income came in at $133.3 million, down 3.1% from the year-ago period. Non-GAAP adjusted operating margin contracted 210 basis points to 21.1% in the fourth quarter. Higher personnel costs, including compensation, medical costs and benefits tied partly to headcount growth, pressured profitability. Selling, general & administrative expenses surged 19.2% year over year, while research & development costs jumped 17%. As of June 30, 2026, JKHY’s cash and cash equivalents were $12.1 million compared with $21 million as of March 31, 2026. Debt stood at $40 million at the end of the fourth quarter. In fiscal 2026, Jack Henry & Associates generated an operating cash flow of $762 million and free cash flow of $539.3 million. JKHY repurchased $164 million of stock during the fourth quarter and $448 million in full fiscal 2026. It paid $170.4 million in dividends during fiscal 2026. For fiscal 2027, Jack Henry expects GAAP revenues of $2.684-$2.709 billion, calling for growth of 5.5-6.5%. Non-GAAP adjusted revenues are projected at $2.659-$2.684 billion, implying growth of 6.3-7.3%. The outlook assumes $23 million of deconversion revenues and $2 million of acquisition revenues. GAAP operating margin is expected between 24.5% and 24.7%, while the adjusted operating margin is forecast at 24.1-24.3%. Management projects GAAP earnings of $7.33-$7.38 per share, suggesting year-over-year growth of 5-5.7%. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 5.73% due to these changes. Currently, Jack Henry has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Jack Henry is part of the Zacks Computers - IT Services industry. Over the past month, Amdocs (DOX), a stock from the same industry, has gained 2%. The company reported its results for the quarter ended June 2026 more than a month ago. Amdocs reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $1.84 for the same period compares with $1.72 a year ago. Amdocs is expected to post earnings of $1.98 per share for the current quarter, representing a year-over-year change of +8.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Amdocs. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jack Henry & Associates, Inc. (JKHY) : Free Stock Analysis Report Amdocs Limited (DOX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

York Water holds the longest dividend streak in US public markets at 27 consecutive years, while WTW's $1.775B operating cash flow dwarfs its $358M dividend obligation. Amdocs and Ituran both run near-recession-proof revenue models, with DOX posting near-100% managed services renewal rates and ITRN carrying zero debt alongside $103.7M in net cash. All five stocks fund dividends from contracted or recurring revenue streams such as regulated rates, fee income, or subscriptions, insulating payouts from economic cycles. Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) Income investors heading into the fourth quarter want payouts that don't wobble with the business cycle. The five names below share one thing: dividends funded by recurring, contracted, or fee-based revenue streams that keep flowing whether or not the macro cooperates. Each has raised its payout recently, and each trades on Nasdaq. As a grounding data point, Willis Towers Watson (NASDAQ:WTW) alone generated $360 million of first-half free cash flow, roughly double the prior-year period, giving the broker ample room to keep funding both dividends and buybacks. York Water (NASDAQ:YORW) is the small Pennsylvania regulated water utility whose payout streak is the longest in US public markets. The dividend yield sits at 2.73%, with a quarterly rate of $0.228 and the next payment due October 15, 2026. Trailing EPS of $1.60 against an annualized payout implied by that quarterly rate leaves solid earnings coverage, and management flagged its 27th consecutive year of dividend increases in the Q1 summary. The bull case is straightforward regulated rate-base growth. A rate increase that took effect March 1, 2026 drove Q3 revenue up 22.5% year over year to $23.52 million, with EPS of $0.49 beating the $0.40 estimate. Small tuck-ins including CMV Sewage and Pine Run extend the footprint. The caveat: annual capex has run above operating cash flow every year from 2020 through 2025, so growth is debt- and equity-financed, and the absolute yield is modest for the sector. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) WTW is a global insurance broker and HR advisor whose revenue is heavily fee-based and highly recurring. The current yield is 0.6%, with the quarterly dividend raised to $0.96 in 2026 from $0.92 in 2025, extending a multi-year hike cadence that shows quarterly amounts stepping up from $0.48 in 2016 to today. Trailing EPS of $16.16 dwarfs the annualized payout, and 2025 operating cash flow of $1.775 billion against $358 million in dividends leaves the payout well covered. The bull case is capital return on top of margin expansion. Q2 adjusted EPS rose 17% to $3.35, adjusted operating margin expanded 100 basis points to 19.5%, and management reiterated at least $1 billion of buybacks for the year. The Propel program targets an enterprise adjusted operating margin near 30% by 2028. Risk: the Willis Re JV creates a roughly $0.30 EPS headwind and the Newfront transaction is about $0.10 dilutive near term. Mondelez International (NASDAQ:MDLZ) owns Oreo, Ritz, Cadbury, Milka, and Toblerone. The current yield is 3.2%, backed by a quarterly dividend that stepped up to $0.50 beginning with the September 30, 2025 ex-date, extending a run of annual hikes visible in the record from $0.13 in 2013 to today. Full-year 2025 operating cash flow of $4.51 billion against $2.49 billion in dividend payments leaves clear coverage even after $1.28 billion of capex, and management guided FY2026 free cash flow to roughly $3 billion. The bull case is scale in snacking with emerging-market horsepower. Q2 adjusted EPS of $0.73 beat the $0.68 estimate, with Latin America up 15.1% and AMEA up 8.2%. CEO Dirk Van de Put said on the Q2 call that "emerging markets, strong volume-led growth, we expect that to continue," and CFO Luca Zaramella framed the profit trajectory bluntly: "You're going to see an acceleration of the gross profit dollar number, particularly in Q3, but also in Q4." Risk: cocoa cost volatility pressured Q2 adjusted operating margin by 120 basis points, and Europe organic revenue was down 1.0%. Amdocs (NASDAQ:DOX) sells the software and managed services that run telecom operators' billing and customer systems. The dividend yield is 3.6%, with the quarterly rate lifted to $0.569 in fiscal 2026 from $0.527 in fiscal 2025, continuing a hike cadence visible from $0.155 in 2014. Trailing EPS of $4.21 and fiscal 2025 operating cash flow of $749 million against $224 million in dividends and $104 million in capex give the payout wide coverage. The bull case is the annuity-like managed services base. Q3 non-GAAP EPS of $1.84 beat the $1.65 estimate, managed services made up 67% of revenue at $790.5 million with near-100% renewal rates, and 12-month backlog reached $4.26 billion. A new 10-year partnership with Liberty Latin America for the aOS agentic operating system anchors the AI pillar, and roughly $600 million of buyback capacity remains. Risk: shares are down 21% year to date on telco spending caution and a $106 million restructuring charge that pressured GAAP net income. Ituran Location and Control (NASDAQ:ITRN) runs vehicle telematics and stolen-vehicle recovery subscriptions in Israel and Latin America. The regular quarterly dividend is $0.50, alongside a $1.50 special payment tied to the March 30, 2026 ex-date. The regular rate stepped up from $0.39 across 2024 to $0.50 across 2025 and 2026. Trailing EPS of $3.23, a $103.7 million net cash balance sheet with no debt, and Q2 operating cash flow of $32.22 million underwrite the payout. The bull case is a growing recurring subscription book with expanding margins. Q2 revenue rose 20.7% to $104.79 million, subscription revenue was up 25% at $79.82 million, and Ituran added 41,000 net subscribers to reach a base of 2,711,000. Gross margin expanded to 50.9%. Risk: geographic concentration in Israel and Latin America and shekel currency exposure can whipsaw reported results. These five names are stitched together by one idea: dividends paid out of contracted rates, fee income, subscription revenue, or globally diversified snack cash flows rather than cyclical earnings. YORW and WTW anchor the list on multi-decade hike track records (if you want the tier above that, the 50-year club, we ranked ten of them by valuation in a free Dividend Kings report); MDLZ and DOX add mid-single-digit yields with covered cash flows; ITRN brings a debt-free balance sheet and a special payment on top of a rising regular dividend. Heading into year end, that mix of durability and rising payouts is what income investors should be prioritizing. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact [email protected] for any questions or corrections.

It has been about a month since the last earnings report for Amdocs (DOX). Shares have added about 7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Amdocs due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Amdocs Limited before we dive into how investors and analysts have reacted as of late. Amdocs reported third-quarter fiscal 2026 non-GAAP earnings of $1.84 per share, which increased 7% on a year-over-year basis. The figure matched the Zacks Consensus Estimate. Amdocs’ fiscal third-quarter revenues of $1.175 billion missed the consensus mark by 0.04%. The top line increased 2.7% on a reported basis and 2.2% on a constant-currency basis. Managed services delivered record revenues and accounted for 67% of total revenues. Managed services revenues rose 2.5% year over year to a record $791 million. The business continued to provide revenue visibility through multiyear agreements and consistently high renewal rates. Amdocs expanded its managed services relationships during the quarter. The company signed an agreement with a U.S. digital television entertainment provider for a billing migration program and extended its collaboration with Telefonica Vivo to support customer growth and OSS modernization. The company ended the third quarter of fiscal 2026 with a 12-month backlog of $4.26 billion, up 2.7% year over year. Our model estimates for managed services revenues and backlog were pegged at $769.5 million and $4.29 billion, respectively. DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $748.1 million (63.7% of the total revenues), which increased 0.4% year over year. Europe revenues (16.5% of the total revenues) of $193.5 million increased 2.2% year over year. RoW revenues (19.9% of the total revenues) increased 11.3% year over year to $233.3 million. Our model estimates for North America, Europe and RoW were pinned at $765.9 million, $197.2 million and $212.8 million, respectively. Non-GAAP operating income increased to $253.4 million from $244.7 million in the year-ago quarter. The non-GAAP operating margin expanded 20 basis points year over year and 10 basis points sequentially to 21.6%. Amdocs had cash and cash equivalents of $206.5 million as of June 30, 2026, compared with $214.5 million as of March 31, 2026. Long-term debt was $647.4 million as of June 30, 2026, increasing marginally from the March 31, 2026, level of $647.2 million. In the fiscal third quarter, the company generated an operating cash flow of $197.2 million and a free cash flow of $171.9 million. During the quarter, it repurchased shares worth $143 million and paid out $60 million in dividends. For the fourth quarter of fiscal 2026, Amdocs expects revenues between $1.175 billion and $1.215 billion. Amdocs’ Non-GAAP diluted earnings are projected in the range of $1.94-$2 per share. For fiscal 2026, reported revenue growth is now expected between 3.2% and 4% compared with the previous range of 2.6-4.6%. Constant-currency growth is projected between 2.6% and 3.4%, retaining the prior 3% midpoint. Non-GAAP earnings growth is expected between 5.5% and 6.5%, with the 6% midpoint unchanged. The company maintained its non-GAAP operating margin forecast of 21.3-21.9% and free cash flow outlook of $710-$730 million. It turns out, estimates review flatlined during the past month. At this time, Amdocs has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Amdocs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Amdocs is part of the Zacks Computers - IT Services industry. Over the past month, Cognizant (CTSH), a stock from the same industry, has gained 13.6%. The company reported its results for the quarter ended June 2026 more than a month ago. Cognizant reported revenues of $5.48 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.37 for the same period compares with $1.31 a year ago. Cognizant is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +3.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Cognizant has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amdocs Limited (DOX) : Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026, at 5 p.m. ET Head of Investor Relations - Matthew Smith President and Chief Executive Officer - Shimie Hortig Chief Financial Officer - Tal Rozenfeld Operator: Thank you for standing by, and welcome to the Amdocs Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matthew Smith, Head of Investor Relations. Please go ahead, sir. Matthew Smith: Thanks, Jonathan. Before we begin, I need to call your attention to our disclaimer statement on Slide 2 of the presentation. It notes that some of our comments today may be forward-looking statements and are subject to risks, uncertainties and other important factors. Another important factor is including, as described in Amdocs' SEC filings, and that we will discuss certain financial information that is not prepared in accordance with GAAP. For more information regarding our use of non-GAAP financial measures, including reconciliations of these measures, we refer you to today's earnings release, which will also be furnished with the SEC on Form 6-K. Participating on the call with me today are Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited; and Tal Rozenfeld, Chief Financial Officer. To support today's earnings call, we are providing a presentation which can be found on the Investor Relations section of our website. And as always, a copy of today's prepared remarks will also be posted immediately following the conclusion of this call. On today's agenda, some Shimie will recap our financial achievements for the third fiscal quarter 2026 and full year outlook, after which he'll present the future strategy for Amdocs in the Agentic era. Tal will then provide additional details on our third quarter financial performance and guidance for the full fiscal year 2026. So with that, I'll turn it over to Shimie. Shimie Hortig: Yes. Thank you, Matt. Good afternoon to everyone joining Amdocs Fiscal Third Quarter 2026 Earnings Call. I'm pleased to join you today from Amdocs New Jersey offices and provide an update on the significant progress we have made on our strategy as well as the meaningful commercial wins from the past few months. Today, I would like to focus most of my remarks on Amdocs strategy and provide you with more color and insight on our long-term direction. Before that, let me briefly review our solid financial and operating performance for the third fiscal quarter. As shown on Slide 7, Q3 revenue of $1.175 billion and non-GAAP diluted earnings per share of $1.84 were consistent with the midpoint of guidance. Non-GAAP operating margin improved by 20 basis points from a year ago as we balance our growth investments with intentional strategic efforts to reshape our cost structure and drive efficiency. Managed Services delivered a record quarter, accounting for 67% of total revenue, and we closed the quarter with 12-month backlog of $4.26 billion, up 2.7% from a year ago. With these results, I'm happy to say that we are reiterating the midpoint of our full fiscal 2026 financial outlook, including revenue growth of 3% in constant currency and non-GAAP diluted EPS growth of 6%. Additionally, we are on track to generate free cash flow of roughly $720 million before restructuring payments in fiscal 2026, consistent with the midpoint of our target range. Building on our strong financial performance, I'm proud to share an important moment in our Agentic journey. We signed a new large-scale multiyear partnership with Liberty Latin America to manage and transform their entire end-to-end IT ecosystem. This is a true flagship engagement and a major proof point of our Agentic transformation strategy, which I will cover in more detail shortly. Additionally, we continue to see good sales momentum across our core products and services with wins at many of the world's leading providers, including Lumen, TELUS in Canada, Swiss Scandinavia, Telefonica Vivo in Brazil, PLDT and Optage in Japan. At the same time, we remain focused on delivering consistent operational execution in Q3, successfully achieving a high number of milestones in support of project activities for customers such as AT&T, T-Mobile, Optimum, TELUS, Bell, A1 Austria, Globe Telecom and Telkom South Africa. To elaborate on a few of them. At T-Mobile, we have made significant progress with the large U.S. cellular integration project, and we are on schedule to complete it. For A1 Austria, we completed a billing, charging and catalog transformation deployment following a multiyear transformation. At Globe in the Philippines, we completed a major modernization of their network policy to support cloud-native 5G. Now let me provide an update on Amdocs strategy. So over the last few months, we have continued to advance our strategy, and I would like to share more details about the plans to lead Amdocs forward. Last quarter, I shared my excitement about the Agentic era and the long-term opportunity this presents to help out industry and customers fundamentally transform their IT and network domains. Our vision is to be the primary partner of choice to accelerate this Agentic transformation and unlock its value for our customers. Today, I want to introduce our new 4-pillar growth strategy, as shown on Slide 12. Pillar 1 and the core of our strategy is aOS, the Agentic Telco Operating System, designed to fundamentally transform the way our customers operate their business. Pillar 2 is new vertical expansion where we plan to leverage our deep engineering pedigree, combined with our transformational expertise to accelerate Agentic modernization in another industry. Pillar 3 is emerging growth providers, where we intend to capture and solve emerging needs driven by the Gen AI revolution in our customer base and beyond. And Pillar 4, relates to the internal transformation of Amdocs to become an Agentic first organization as a key enabler to support our future growth. Let me take some time to discuss each of these pillars in more detail. Starting with Pillar 1. AOS, the Amdocs Agentic Telco Operating System. In this pillar, our mission is to accelerate the transformation of each and every 1 of our customers to the Agentic era in a risk-mitigated and cost-conscious manner. In doing so, we will enable our customers to unlock the value of the Agentic era by simplifying complexity, reimagining end-to-end workflows, accelerating the launch of new offers from months to hours and significantly reducing their cost structures. To that end, we are bringing to market aOS Amdocs Agentic Telco Operating System, which we have designed to be the leading technological framework for enabling our customers to be successful in their Agentic journey. This framework includes all the components and capabilities needed for our customers to identify their business and IT operations. We plan to continuously enhance this framework and its capabilities to lead our customers to a fully Agentic and autonomous future. We firmly believe that now is the time for our customers to embark on this journey. We also understand that each customer has a different starting point and our role as the market leader is to design a tailored road map for each 1 of them. Giving our deep industry expertise, engineering heritage, transformational capabilities and outcome-based model, we believe our customers will trust us in the -- as their primary partner on this journey. Along these lines, let me share more details about the significant large-scale engagement that we signed with Liberty Latin America. In this 10-year strategic engagement, Liberty Latin America is trusting Amdocs to manage and transform its entire end-to-end IT ecosystem, leveraging aOS, Amdocs Agentic Telco Operating System. These engagements moves beyond traditional IT operation into an AI-driven model designed to accelerate time to market, increase product innovation, enhanced customer and employee experience and deliver significant cost savings. This deal is also a meaningful expansion of Amdocs footprint in CALA region, and it's a major demonstration of our ability to handle high complex mission-critical operations across multiple markets. Beyond this flagship agreement with Liberty Latin America, aOS is gaining encouraging market traction. As highlighted last quarter, AT&T Cricket, Lumen, EchoStar, Bell and PLDT were among the first to adopt aOS which is already in production and delivering value for several of them. More recently, Verizon, TELUS, Sunrise Switzerland, Swiss Scandinavia and a Tier 1 provider in Asia Pacific have signed initial aOS deals. To provide some color, TELUS in Canada has seen encouraging early results of a customer digital twin engagement, demonstrating the power of aOS to deliver personalized experiences across customer service and sales interactions. As another example, Amdocs is partnering with Verizon on an Agentic AI initiative to automate RF design workflows with a program in active development. This reflects the broader industry shift towards AI-driven network operations and showcases Verizon's continued investment in AI and network quality. We believe that these initial engagements are a great indication of the aOS capabilities we are bringing to market, and we expect that will evolve into a larger and more meaningful journeys on which Amdocs will become the primary partner of our customers for their Agentic transformation. Turning to Pillar 2. We believe that our proven track record of successfully executing major core system transformation. Coupled with our Agentic offering, are especially relevant in other high-volume mission critical and strictly regulated industries, where complexity presents a major challenge for core system transformation. We are, therefore, evaluating the potential to expand our addressable market by targeting additional vertical, positioning ourselves as a new market entrant with a disruptive Agentic approach. Moving to Pillar 3 of our strategy, the emerging growth horizons. As we work closely with our telco customer, it is apparent that the Gen AI revolution is creating a clear demand to solve technological gaps and needs that did not exist before. We therefore see the potential to be the first to market with disruptive technologies designed to address these issues and expand our offering. As we scale through these potential opportunities, we plan to incubate and scale the ones with the greatest potential to become future new growth drivers for Amdocs. Finishing up with Pillar 4, we are accelerating our internal transformation to make Amdocs an Agentic-first company with the right foundation to support our future growth. To that end, we are implementing agent capabilities across software development, service delivery and operations. We already see the maturing with high levels of employee adoption. What makes our story unique is that we are transforming internally with the same technology we deliver to our customers. We are our own customer zero and believe that running our operation on Agentic AI, while delivering it commercially at scale will provide the essential foundation to being an Agentic-first organization. To bring it all together, the Agentic revolution presents an exciting opportunity for Amdocs, and I believe we have the right strategy to seize the moment with our Agentic Operating System, aOS. Our flagship deal with Liberty Latin America is an important proof point to show that we can tailor specific Agentic journeys for telco customers, lead large-scale Agentic transformation and expand our addressable market. Our system transformation expertise, coupled with Amdocs Agentic offering present a potential opportunity to expand beyond telco to other vertical and grabs the opportunity of emerging horizons. Although we understand we are dealing with constantly evolving landscape that could present uncertainty, we believe we have the right leadership, talent and skills necessary to quickly adapt and drive us forward. With that, let me hand it over to Tal for his financial review. Go ahead, Tal. Tal Rozenfeld: Thank you, Shimie, and good afternoon, everyone. Thank you for joining us. To Echo Shimie remarks, we are pleased with our solid financial performance for the third fiscal quarter. Q2 revenue was approximately $1.175 billion, up 2.7% year-over-year as reported and in line with the midpoint of our guidance with a negligible impact from foreign currency movement versus our guidance assumptions. In constant currency, revenue was up 2.2% from a year ago. Moving down the income statement. Non-GAAP operating margin was 21.6%, up 20 basis points year-over-year and 10 basis points sequentially as we continue to balance our Agentic growth investments with internal cost and efficiency gains. As a reminder, our non-GAAP operating margin may fluctuate slightly on a quarter-to-quarter basis. Interest and other expenses amounted to roughly $14 million in Q3 and consistent with our prior quarter. On the bottom line, our GAAP diluted EPS of $1.84 was in line with the guidance midpoint. Diluted GAAP EPS of $0.59 was below the guidance range of $1.39 to $1.47. This was due to a restructuring charge of roughly $0.91 per share, resulting from the acceleration of our internal transformation and our strategy to become an Agentic-first organization, as Shimie discussed a moment ago. Adjusting for this charge, GAAP diluted EPS would have been above the guidance range. I'd also like to highlight that we generated free cash flow of $193 million before restructuring payments in Q3. This was driven by a healthy earnings to cash conversion in the period demonstrating that the core business is performing well as we continue to consistently execute for our customers. As we measure our visibility and business resilience, Managed Services delivered record revenue of $791 million in Q3, up 2.5% from the prior year. Managed Services accounted for roughly 67% of our total revenue in Q3 and renewal rates remain consistently high as we continue to expand our engagement under the multiyear agreement. In the U.S., a premier provider of digital television entertainment has signed an agreement with Amdocs to execute its strategic building migration program by leveraging Amdocs Agentic Operating System and AI-driven migration capabilities. The provider is modernizing its billing environment to streamline operations, improve efficiency and support long-term business growth while further strengthening its strategic relationship with Amdocs. In Brazil, Telefonica Vivo expanded its collaboration with Amdocs by extending expanded services agreement to support its customer growth and OSS modernization with Amdocs customer experience fleet. Additionally, we signed a multiyear Managed Services agreement with a leading South American provider, which will leverage Amdocs full OSS stack supported by AI-driven application management, operation services and software factory expertise. Moving to the balance sheet and cash flow highlights, DSO of 78 days increased by 2 days from a year ago and 5 days sequentially. And this receivable net of deferred revenue increased by $98 million versus a year ago and by $68 million sequentially in Q3, aggregating the short-term and long-term balances. As a reminder, the net difference between unbilled receivables and deferred revenue fluctuate from quarter-to-quarter, in line with normal business activities as well as our progress on multiyear engagement. As mentioned, free cash flow before restructuring payment was $193 million in Q3, highlighting strong free cash flow for the year so far, we've already achieved nearly 75% of our fiscal 2026 target. Including restructuring payments of $21 million, reported free cash flow was $172 million in the quarter. Overall, we ended Q3 with a healthy cash balance of approximately $206 million, an aggregate borrowing of roughly $930 million, including our $650 million senior note maturing in June 2030 and short-term financing arrangement of $280 million. As of June 30, 2026, there was a $200 million outstanding notes under the commercial paper program and $520 million remains available on the revolving credit facility. Overall, we have ample liquidity to support our ongoing business needs while retaining the capacity to fund our future strategic growth. Switching to capital allocation, this quarter we repurchased $143 million of our shares, leaving us with $560 million of remainder repurchase authority as of June 30, 2026. We paid cash dividend of $60 million in the third fiscal quarter. Looking to fiscal 2026. We are on track to generate free cash flow of between $710 million to $730 million, not including payments we expect to make under our current restructuring program. Our free cash flow equates to a conversion rate of roughly 90% relative to expected non-GAAP net income. Regarding our capital allocation for this year, we expect to return the majority of our free cash flow to shareholders. Moving on, 12 months backlog was $4.26 billion at the end of Q3, up 2.7% from a year ago, but down $20 million sequentially. We continue to believe 12 months backlog remains a good leading indicator of our business and forward visibility. Now turning to our revenue outlook. We are continuing to closely monitor the preventing level of macroeconomic, geopolitical business and operational uncertainty, including our customer spending behavior in the current business environment. The fourth quarter of fiscal year 2026 financial guidance reflects what we consider to be the most likely outcomes based on the information we have today, but we cannot predict all possible scenarios. For the full fiscal year 2026, we expect revenue growth within a tighter range of between 3.2% and 4% as reported, the midpoint of which is unchanged as compared with our prior outlook of 2.6% to 4.6%. Our guidance assumes foreign currency tailwinds of roughly 0.6%, consistent with our previous assumption. Consistent with our prior guidance, we expect that roughly half of the expected books in fiscal 2026 will be inorganic in nature. On a constant currency basis, we expect revenue growth within a tighter range of between 2.6% and 3.4% for the full fiscal year, the 3% midpoint of which is also unchanged as compared with our previous guidance. As to the fourth fiscal quarter, we expect revenue of between $1.175 billion to $1.215 billion. Moving down the income statement. We are on track to deliver non-GAAP operating margin within our target range of 21.3% to 21.9% in fiscal 2026. The midpoint of which is roughly 20 basis points higher than the prior year of 21.4%. As we discussed last quarter, our profitability outlook reflects a decision to accelerate our investment in Gen AI and our Agentic Operating System, aOS, including R&D, sales and marketing, balanced by our internal transformation initiatives to become an Agentic-first organization. We continue to expect our non-GAAP effective tax rate to be within an annual target range of 16% to 19% for the full fiscal year 2026. Tying everything together, we now expect non-GAAP diluted earnings per share growth within a tightened range 5.5% to 6.5% in fiscal year 2026, the 6% midpoint of which is unchanged. With that, back to you, Shimie. Shimie Hortig: Yes. Thank you, Tal. And I think with that, we are ready to take your questions. Operator? Operator: [Operator Instructions] Our first question for today comes from the line of Timothy Horan from Oppenheimer. . Timothy Horan: Congratulations. I guess the elephant in the room really is Agentic AI, how you deploy both internally to improve your productivity and service offerings and your customers. Can you give us -- it seems like it could be really, really impactful for both internal and for your customers. Could you give us a rough sense of the next few years, what type of productivity improvements or service quality improvements -- you can do both internally and what can you do for your customers? Do you think you can improve productivity 10%, 30%, just a high-level sense of what you're seeing now? Shimie Hortig: Yes. Thank you, Tim. So as I explained, when I described the strategy, the 4-pillar strategy, the main growth pillar that we see going forward for Amdocs is around the Agentic transformation that we are planning to partner with our customers and to lead them in this journey over the next several years. We see that there is a huge opportunity to unlock the potential of, as you mentioned, the Agentic capabilities and fundamentally change the way they run and operate their IT. And for example, we just announced the Liberty Latin America strategic engagement. In this engagement, liberty LatAm is basically giving Amdocs the entire IT operations and partnering with us so we can transform their entire IT leveraging our aOS and to deliver major business benefits and significant cost savings for our customers throughout this year. So definitely, to your question, we believe that we can bring a significant reduction in cost for our customers throughout this transformation. And the main -- the key to do that is mainly by expanding the scope of responsibility that Amdocs will have, because the main benefits are coming from an end-to-end processes, end-to-end Agentic processes, end-to-end operational process with exactly what we're going to do with Liberty LatAm. So I believe there's definitely a potential to improve the cost structure of our customers. The same goes for us internally, and that's the fourth pillar of the strategy. We believe that this Agentic transformation by implementing internally everything that we're also partnering with our customers, the Agentic as you see, the Agentic corporation, changing the way of working and so on, will also provide us with efficiencies within the company. At this stage, we are balancing between the efficiencies that we know that we can gain internally with the investment that we are doing in order to build the airways and the future Agentic offering of the company. We're also monitoring very carefully the cost of the technology and the cost of the token, which is somehow unknown right now for the future. So somehow between the 3 forces, we believe that over time, we will definitely see Amdocs much more profitable going forward in the next several years. Timothy Horan: So you think this will be very, very impactful to your customers like transformational like -- yes, we're trying to get a sense of how transformational you think this can be for your customers and for yourself. I mean can you reduce expenses internally substantially and automate your own internal operations? And where are you in your own process? Shimie Hortig: Yes. So internally, yes, we're making good progress. Again, we are using some of these efficiencies right now to invest in the future and to support the strategy. But long term, we believe it's going to bring us more efficiency. In terms of our customers, it all depends on the appetite of the customers. But yes, customers that will be willing to go all in and to partner with us and to help them to transform their entire IT operations, for example, Liberty LatAm, Latin America, that went all the way, they will definitely see significant service. Other customers will partner with us in a smaller scale because they are not ready at this point to take a broader move. But we believe that over time, you will find us partnering with 200 customers all over the world. And for each and every 1 of them, we're going to tailor a specific transformational program, and we'll take them ahead them to leverage the potential of Gen AI, for sure. Timothy Horan: Yes, that's really encouraging. And for Liberty, are they going to be spending a lot more with you than they were previously? And do you have a sense on the return on invested capital that will be seen for this? Shimie Hortig: Yes. It's again, without going into specific details about specific customers, but it's a major expansion of what we did before with Liberty LatAm. We had a very small footprint. This is a significant expansion of our partnership with Liberty LatAm. Timothy Horan: That's really helpful. And just lastly, on the other 2 pillars. Can you just maybe -- are there any new industries you're thinking of entering? And secondly, I know the -- you highlighted new growth opportunities within the existing industry. Could you just elaborate on that a little bit more examples for both? Shimie Hortig: Yes, sure. So as I mentioned before, we believe that what we do right now in telecommunication and this deep understanding on how to transform to do Agentic transformation of [ Michigan Data Systems ] is something that we can help also additional verticals to support them. We gained a lot of experience transforming the industry, and I think it's going to be very relevant. If you combine it with the new offering that we are coming right now, aOS and tell it could definitely help accelerate this transformation in other verticals. So this is where I had is right now and this is part of our strategy for the future. The other thing that we see that there are many -- and Gen AI is generating completely new needs and challenges that were never there before. And we see it when we talk to our customers about their journey and we see it when we do it internally and implementing the same tools internally with Amdocs, there are new challenges and new opportunities that we have the capability to solve. And what we plan to do is some of them that we are serving right now for our customers to incubate and scale them and it could be potential growth engines for the company going forward, which we didn't have these opportunities before. So there are some specific ideas and specific challenges that we are solving right now for customers that we believe that over time has the potential to become growth engines for the company. Operator: [Operator Instructions] Our next question comes from the line of Devin Au from KeyBanc Capital Markets. Devin Au: Kind of a multipart question to start. It's great to see the new aOS wins that you have secured in the quarter. maybe for the customers that are still hesitant on moving to aOS today or customers that are still in pilot, what are the top reasons or constraints that are preventing them from adopting aOS? And if you could also touch on your internal sales efforts, how are you enabling your sales team to convert more customers from pilots into commercial agreements? Shimie Hortig: Yes, thank you for the question. First of all, very happy with the progress that we have seen. Remember, we launched aOS in the beginning of March, we are in August. 5 months after that, we already -- we have 10 engagements with customers. Some of them is small, of course, but 10 engagement already with customers, which is a great, great momentum. And on top of it, I think the best proof point right now and the biggest, obviously, achievement of aOS right now is this partnership with Liberty Latin America. We could have not taken this challenge to transform the entire IT of Liberty Latin America without the aOS capabilities. So I think, first and foremost, we are very happy with the progress so far. I think it's just a matter of time. To your question, what is slowing us right now, the customers of what is -- it's just a matter of time. Everyone is experimenting, once they see the technology, they see what we can bring them. They're getting excited. We're getting into production. They see the impact. And then the discussion is evolving to something more significant than the initial engagement that we had. And I can tell you that we're having some other meaningful discussions with customers as we speak. So we believe that the small engagement that started a few months ago will soon and over time, evolve to something more meaningful in just a matter of time. Devin Au: Okay. Got it. No, that's helpful. And then maybe just a quick follow-up. Could you provide maybe more context on the sequential downtick in backlog? And does the backlog figure include some of the new aOS deals you have announced and also the big win at Liberty Latin in the quarter? Shimie Hortig: Yes. So overall, the backlog is a snapshot at a certain point of time. So some fluctuation always happen. The large deal with Liberty Latin America is partially included in these numbers already. But overall, we see a good, healthy pipeline right now, especially around the aOS so far. Tal Rozenfeld: Just to add, Shimie, the backlog grew year-over-year by 2.7%. So we are still growing our backlog year-over-year. Yes. Operator: [Operator Instructions] And this does conclude the question-and-answer session of today's program. I'd like to hand the program back to Matt for any further remarks. Matthew Smith: Thanks, Jon, and thanks very much for everyone joining the call. If you do have any other questions, please reach out to us here in the IR team. And with that, have a great evening. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in Amdocs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amdocs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Amdocs. The Motley Fool has a disclosure policy. Amdocs (DOX) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by record Managed Services revenue, which now accounts for 67% of total revenue, providing high visibility and business resilience. Management introduced a new four-pillar growth strategy centered on 'aOS' (Agentic Telco Operating System) to lead customers through AI-driven IT and network transformations. The flagship 10-year engagement with Liberty Latin America serves as a primary proof point for the Agentic strategy, moving beyond traditional IT to an AI-driven operational model. Operational efficiency gains are being balanced against intentional strategic investments in Gen AI R&D and sales to capture the emerging 'Agentic era' market opportunity. Internal transformation is a core strategic pillar, with Amdocs acting as 'customer zero' by implementing Agentic capabilities in its own software development and service delivery. Market traction for aOS is accelerating, with 10 initial engagements signed within five months of launch, including Tier 1 providers like Verizon and TELUS. Fiscal 2026 revenue growth guidance was tightened to a range of 3.2% to 4% as reported, assuming foreign currency tailwinds of approximately 0.6%. Management expects roughly half of the fiscal 2026 growth to be inorganic, reflecting a continued reliance on M&A to supplement organic expansion. The company is on track to generate approximately $720 million in free cash flow for fiscal 2026, representing a 90% conversion rate relative to non-GAAP net income. Future profitability is expected to be influenced by three competing forces: internal efficiencies from AI, the scale of R&D investments, and the currently 'unknown' future cost of AI tokens. The strategy assumes a phased customer adoption of Agentic AI, starting with small pilots that management expects will evolve into larger, multi-year transformation journeys. A significant restructuring charge of $0.91 per share was recorded in Q3 to accelerate the company's internal transition to an 'Agentic-first' organization. Management noted prevailing macroeconomic and geopolitical uncertainties that continue to influence customer spending behavior and operational outcomes. Unbilled receivables net of deferred revenue increased by $98 million year-over-year, reflecting the timing of milestones in large-scale, multi-year engagements. The 12-month backlog saw a slight sequential decrease of $20 million, though it remains up 2.7% year-over-year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes Agentic transformation can significantly reduce customer cost structures by reimagining end-to-end workflows and expanding Amdocs' scope of responsibility. Internally, Amdocs is using current efficiency gains to fund future growth initiatives rather than immediate margin expansion. The company expects to become 'much more profitable' over the next several years as these AI-driven efficiencies mature. Amdocs is evaluating high-volume, strictly regulated industries where core system complexity mirrors the challenges found in the telco sector. The strategy involves positioning Amdocs as a disruptive market entrant leveraging its engineering pedigree and the new aOS framework. Management characterized current hesitation as a 'matter of time' rather than a technological or cost barrier, as customers are currently in the experimentation phase. Initial small engagements are expected to convert into meaningful long-term partnerships once customers see production-level impact and ROI.

Amdocs Limited DOX reported third-quarter fiscal 2026 non-GAAP earnings of $1.84 per share, which increased 7% on a year-over-year basis. The figure matched the Zacks Consensus Estimate. Amdocs’ fiscal third-quarter revenues of $1.175 billion missed the consensus mark by 0.04%. The top line increased 2.7% on a reported basis and 2.2% on a constant-currency basis. Managed services delivered record revenues and accounted for 67% of total revenues. Managed services revenues rose 2.5% year over year to a record $791 million. The business continued to provide revenue visibility through multiyear agreements and consistently high renewal rates. Amdocs expanded its managed services relationships during the quarter. The company signed an agreement with a U.S. digital television entertainment provider for a billing migration program and extended its collaboration with Telefonica Vivo to support customer growth and OSS modernization. Amdocs Limited price-consensus-eps-surprise-chart | Amdocs Limited Quote The company ended the third quarter of fiscal 2026 with a 12-month backlog of $4.26 billion, up 2.7% year over year. Our model estimates for managed services revenues and backlog were pegged at $769.5 million and $4.29 billion, respectively. DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $748.1 million (63.7% of the total revenues), which increased 0.4% year over year. Europe revenues (16.5% of the total revenues) of $193.5 million increased 2.2% year over year. RoW revenues (19.9% of the total revenues) increased 11.3% year over year to $233.3 million. Our model estimates for North America, Europe and RoW were pinned at $765.9 million, $197.2 million and $212.8 million, respectively. Non-GAAP operating income increased to $253.4 million from $244.7 million in the year-ago quarter. The non-GAAP operating margin expanded 20 basis points year over year and 10 basis points sequentially to 21.6%. Amdocs had cash and cash equivalents of $206.5 million as of June 30, 2026, compared with $214.5 million as of March 31, 2026. Long-term debt was $647.4 million as of June 30, 2026, increasing marginally from the March 31, 2026, level of $647.2 million. In the fiscal third quarter, the company generated an operating cash flow of $197.2 million and a free cash flow of $171.9 million. During the quarter, it repurchased shares worth $143 million and paid out $60 million in dividends. For the fourth quarter of fiscal 2026, Amdocs expects revenues between $1.175 billion and $1.215 billion. Non-GAAP diluted earnings are projected in the range of $1.94-$2 per share, while GAAP earnings are forecast between $1.48 and $1.56. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues and earnings is currently pegged at $1.19 billion and $1.98 per share, respectively. For fiscal 2026, reported revenue growth is now expected between 3.2% and 4% compared with the previous range of 2.6-4.6%. Constant-currency growth is projected between 2.6% and 3.4%, retaining the prior 3% midpoint. Non-GAAP earnings growth is expected between 5.5% and 6.5%, with the 6% midpoint unchanged. The company maintained its non-GAAP operating margin forecast of 21.3-21.9% and free cash flow outlook of $710-$730 million. The Zacks Consensus Estimate for fiscal 2026 revenues and earnings is currently pegged at $4.70 billion and $7.42 per share, respectively. Currently, Amdocs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 123% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year. Shares of Applied Materials have jumped 107.9% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, indicating a rise of 28.9% year over year. Analog Devices shares have surged 39.2% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 33.9% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amdocs Limited (DOX) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Amdocs Limited? Here are five stocks we like better. 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. 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%. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 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 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. → 3 Drone Stocks That Should Soar After the Summer Slump 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. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure 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. 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 represents a major expansion of Amdocs’ prior, smaller footprint with Liberty Latin America. Hortig said aOS is designed to help telecommunications providers apply agentic AI across business and IT operations, simplify workflows and reduce operating costs. He said the company had launched aOS in early March and had secured 10 customer engagements within roughly five months, although some were smaller initial projects. Amdocs said AT&T Cricket, Lumen, EchoStar, Bell and PLDT were among the early adopters of aOS. More recently, Verizon, Telus, Sunrise Switzerland, Three Scandinavia and an unnamed Tier 1 Asia-Pacific provider signed initial aOS agreements. Among examples discussed on the call, Hortig said Telus has shown early results from a customer digital-twin engagement designed to personalize service and sales interactions. Amdocs is also working with Verizon on an agentic AI program to automate RF-design workflows, which remains in active development. Hortig outlined a four-pillar growth strategy centered on aOS. The first pillar is expanding aOS as the company’s agentic operating system for telecommunications providers. The second is pursuing potential expansion into additional regulated, high-volume and mission-critical industries where Amdocs believes its core-system transformation experience could be relevant. The third pillar, described as emerging growth horizons, focuses on identifying and scaling technology offerings that address new customer needs arising from generative AI. The fourth calls for Amdocs to transform its own software development, service delivery and operations through agentic capabilities. Hortig said the company is using its own technology internally as “customer zero.” While Amdocs expects internal agentic transformation to create efficiencies over time, he said it is currently balancing those potential gains with investments in aOS, research and development, sales and marketing, as well as uncertainty around future technology and token costs. Amdocs narrowed its full-year revenue outlook while maintaining its midpoint expectations. The company now expects reported revenue growth of 3.2% to 4.0% for fiscal 2026, including an expected foreign-exchange tailwind of roughly 0.6%. Constant-currency revenue growth is projected at 2.6% to 3.4%, maintaining the 3% midpoint of prior guidance. About half of expected fiscal 2026 revenue growth is anticipated to be inorganic, Rozenfeld said. Fourth-quarter revenue is projected to be between $1.175 billion and $1.215 billion. Full-year non-GAAP operating margin is expected to be 21.3% to 21.9%. Non-GAAP diluted EPS growth is expected to be 5.5% to 6.5%, retaining a 6% midpoint. Free cash flow before restructuring payments is expected to be $710 million to $730 million. The company expects to return the majority of its free cash flow to shareholders during fiscal 2026. Rozenfeld said the guidance reflects ongoing monitoring of macroeconomic, geopolitical, business and operational uncertainty, including customer spending behavior. Amdocs (NASDAQ: DOX) is a global software and services provider specializing in solutions for communications, media and entertainment companies. The company designs, develops and integrates revenue management, customer experience and digital services platforms that enable service providers to launch and monetize new offerings, streamline operations and enhance subscriber engagement. Amdocs' product suite encompasses billing and order management, customer relationship management, digital commerce and network function virtualization, supported by professional services for implementation, integration and managed operations. Founded in 1982 and structured as a separate public company in 1998, Amdocs has its corporate headquarters in Chesterfield, Missouri, and maintains major development centers in Ra'anana, Israel. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Amdocs Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Liberty Latin America Ltd.? Here are five stocks we like better. Liberty Latin America returned to operating growth in Q2, with revenue of $1.1 billion, rebased adjusted OIBDA up 3% to $436 million, and a 40% margin. The company added 45,000 mobile postpaid and broadband subscribers. Cash flow improved substantially, with adjusted free cash flow before distributions reaching $83 million in the quarter, while leverage stood at 4.6 times net debt to OIBDA. Management plans to balance share repurchases against deleveraging and acquisitions. Growth initiatives are advancing across key markets: Panama and Puerto Rico showed stronger subscriber trends, Liberty Networks grew revenue 10%, and a new Amdocs AI-driven IT agreement is expected to generate more than $250 million in net present value and reduce costs over time. Liberty Latin America (NASDAQ:LILA) reported second-quarter revenue of $1.1 billion, up 1% on a reported basis and flat on a rebased basis, while adjusted OIBDA rose 3% year over year on a rebased basis to $436 million. The company added 45,000 mobile postpaid and broadband subscribers during the quarter, with positive contributions across its operating segments. CEO Balan Nair said the quarterly performance reflected continued mobile postpaid momentum and improving broadband additions, including progress beyond the company’s recovery efforts in Jamaica. Consolidated adjusted OIBDA margin reached 40%, an increase of approximately 130 basis points from a year earlier, according to CFO Chris Noyes. → 3 Drone Stocks That Should Soar After the Summer Slump “We returned to Adjusted OIBDA growth and delivered substantial year-over-year expansion in cash flow,” Noyes said, adding that both revenue and adjusted OIBDA increased sequentially from the first quarter. Adjusted free cash flow before distributions was $83 million in the second quarter and $19 million for the first half. Those figures represented increases of $124 million and $164 million, respectively, from the comparable periods of 2025. Noyes attributed the improvement to stronger operating cash flow, working-capital performance and vendor-financing timing. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company said free cash flow remains weighted toward the fourth quarter. However, Noyes cautioned that second-half cash flow will likely be less robust than the prior-year period, partly because the company received $81 million of weather-derivative proceeds in the fourth quarter of 2025 following Hurricane Melissa. Property and equipment additions totaled $179 million in the quarter and $289 million year to date, or 16% and 13% of revenue, respectively. The company expects capital spending to be higher in the second half than in the first half, while remaining within the same percentage-of-revenue range as 2025 for the full year. → Jersey Mike's Serves Fresh Gains After IPO Stumble Liberty Latin America had $8.5 billion of total debt, $700 million of cash and consolidated net leverage of 4.6 times at quarter-end, along with approximately $900 million of borrowing capacity. During June, the company distributed roughly $500 million of notional value of preferred stock to common shareholders. The preferred instrument carries a 9% annual dividend, paid quarterly. The company also repurchased more than $60 million of common stock through the third quarter to date and had nearly $140 million remaining under its repurchase authorization. Nair said management intends to remain opportunistic but disciplined with repurchases, noting that the company views its common shares as undervalued. He said the company would weigh repurchases against deleveraging and potential acquisition opportunities, though he added that management currently sees no opportunity offering better value than its own stock. Liberty Caribbean added 11,000 postpaid subscribers during the second quarter, including 6,000 in Jamaica. The company launched 5G service in Jamaica in June, covering about 70% of the population and serving both residential and enterprise postpaid customers. Revenue at Liberty Caribbean was $362 million and adjusted OIBDA was $165 million, both reflecting rebased year-over-year declines. Noyes said Hurricane Melissa reduced revenue and adjusted OIBDA by roughly $6 million combined during the quarter. He said the recovery is progressing and that the business is positioned for “much improved results” in the fourth quarter. Nair said Jamaica’s mobile business has improved following the hurricane, including market share and ARPU gains. The company is approaching pre-hurricane operating levels in fixed services, though he said some homes will not be rebuilt. Its business-to-business operations are largely back, with bad debt “pretty much under control,” he said. Cable & Wireless Panama generated $177 million of revenue and $65 million of adjusted OIBDA. Revenue was flat year over year, while adjusted OIBDA declined 5%, reflecting lower business-to-business revenue and higher professional-services costs. The segment’s adjusted OIBDA margin was 37%. Panama delivered the group’s highest subscriber additions across postpaid mobile and broadband. Postpaid subscribers grew at a double-digit year-over-year rate, while fixed-mobile convergence penetration exceeded 40%. Residential broadband net additions rose to 10,000, aided by commercial efforts and lower churn. The company initiated postpaid price increases in Panama in July, followed by fixed-service increases later in the month and in early August. Nair said early customer feedback was supportive, including lower customer-care contacts and reduced churn compared with historical price actions. In Costa Rica, revenue was flat on a rebased basis at $169 million, while adjusted OIBDA increased 7% on a rebased basis to $64 million. The adjusted OIBDA margin expanded about 200 basis points to 38%, which Noyes said partly reflected the impact of cost-reduction and efficiency initiatives. Mobile revenue rose 6%, offsetting declines in residential fixed and business-to-business revenue. Liberty Puerto Rico reported $288 million in revenue, down 5% on a rebased basis, while adjusted OIBDA increased 7% to $93 million. Its adjusted OIBDA margin expanded to 32% from 29% a year earlier. The unit posted positive postpaid additions for a third consecutive quarter. Nair said postpaid churn improved significantly during the first half, and by the end of July the company had become a net port-in gainer against both competitors for the first time since its migration. He attributed the performance to channel improvements, new talent, network investments, additional spectrum and a mix of subsidized and unsubsidized mobile offers. Liberty Puerto Rico also continued to reduce broadband churn, while video net additions remained positive for a second consecutive quarter. The company implemented a $2 monthly price increase across its television portfolio after growth in video gross additions and stabilization in churn. For near-term liquidity, the Puerto Rico business raised financing through unrestricted subsidiaries, including a $140 million revolving credit facility maturing in 2030 and a $200 million senior secured term loan facility. Of the term loan, $150 million has been drawn and $50 million remains available. Nair said Puerto Rico is self-funded through local operations and that the company continues to work constructively with debt counterparties on its capital structure. A potential spinoff remains among the options being considered, he said. Liberty Networks was the company’s strongest revenue performer, delivering $130 million in revenue and $67 million in adjusted OIBDA. Revenue and adjusted OIBDA increased 10% and 9%, respectively, on a rebased basis. Wholesale revenue rose 14%, supported by a milestone on an El Salvador subsea project and lease-capacity sales, while enterprise revenue increased 3%. The company is also launching Phoenix, a 378-kilometer submarine cable extension into Venezuela through the Americas-II route. Nair said the project will provide 14 terabytes of capacity and direct access to Caracas, which he described as the country’s largest concentration of enterprise and carrier demand. Nair said Liberty Networks has high cash conversion and operating contribution margins, and that the company intends to pursue additional organic and potential inorganic growth opportunities in the business. Separately, Liberty Latin America announced an AI-driven IT services agreement with Amdocs that it estimates has a net present value exceeding $250 million. Nair said the transition is expected to begin in the fourth quarter, with cost savings beginning then as well. The agreement is intended to modernize legacy systems, support AI capabilities and reduce operating and capital expenditures over time. Liberty Latin America is a telecommunications company that provides video, broadband internet, telephony and mobile services across Latin America and the Caribbean. The company's operations span consumer and business markets, offering cable television packages, high-speed broadband connections, fixed-line voice services and wireless data plans. Through its brands, including Flow in several Caribbean territories and VTR in Chile, Liberty Latin America focuses on delivering converged digital solutions designed to meet both residential and enterprise needs. Formed in 2018 as a spin-off from Liberty Global, Liberty Latin America built its initial footprint by integrating legacy assets acquired from Cable & Wireless Communications and Columbus Communications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Liberty Latin America Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Amdocs (DOX) came out with quarterly earnings of $1.84 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this provider of computer systems integration would post earnings of $1.77 per share when it actually produced earnings of $1.78, delivering a surprise of +0.56%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Amdocs, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $1.14 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Amdocs shares have lost about 29.6% since the beginning of the year versus the S&P 500's gain of 13%. While Amdocs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Amdocs was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.98 on $1.19 billion in revenues for the coming quarter and $7.42 on $4.7 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, T Stamp Inc. (IDAI), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents a year-over-year change of +42%. The consensus EPS estimate for the quarter has been revised 68.4% lower over the last 30 days to the current level. T Stamp Inc.'s revenues are expected to be $0.9 million, up 11.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amdocs Limited (DOX) : Free Stock Analysis Report T Stamp Inc. (IDAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research