Amdocs Limited Reports Third Quarter Fiscal 2026 Results

Rhea-AI Summary

Amdocs (NASDAQ: DOX) reported third quarter fiscal 2026 revenue of $1.175 billion, up 2.7% YoY reported and 2.2% in constant currency, at the midpoint of guidance. Managed services reached a record $791 million, about 67% of total revenue. Non-GAAP diluted EPS was $1.84 versus $1.72 a year ago, while GAAP diluted EPS fell to $0.59 due to a $106 million restructuring charge, which reduced GAAP operating margin to 8.9%.

Non-GAAP operating income was $253 million with a 21.6% non-GAAP operating margin. Free cash flow was $172 million (or $193 million excluding restructuring payments). Amdocs announced a 10-year strategic engagement with Liberty Latin America to manage and transform its entire IT domain using its agentic operating system, aOS. The company approved a quarterly dividend of $0.569 per share, repurchased $143 million of shares, reported a $4.26 billion twelve-month backlog, and guided full-year 2026 revenue growth of 3.2%-4.0% reported and non-GAAP EPS growth of 5.5%-6.5%, while GAAP EPS growth is expected at (5.0)%–(3.0)%.

Positive

• Q3 2026 revenue $1.175 billion, up 2.7% YoY as reported
• Non-GAAP diluted EPS $1.84 vs. $1.72 in Q3 2025
• Managed services revenue $791 million, 67% of total revenue
• Non-GAAP operating margin 21.6%, up 20 bps YoY
• Free cash flow outlook reiterated at $710-$730 million for FY 2026 (excluding restructuring payments)
• Twelve-month backlog $4.26 billion, up 2.7% YoY
• 10-year Liberty Latin America engagement to manage and transform entire IT domain using aOS
• Shareholder returns: $143 million in share repurchases and $0.569 quarterly dividend declared

Negative

• GAAP net income declined to $63.2 million from $154.8 million YoY
• GAAP diluted EPS fell to $0.59 from $1.39 YoY
• GAAP operating margin decreased 880 bps YoY to 8.9% due largely to restructuring
• Restructuring charge of $106 million in Q3 2026
• FY 2026 GAAP EPS growth guidance cut to (5.0)%–(3.0)% from prior 12.0%–15.0%
• Twelve-month backlog down $20 million sequentially despite YoY growth

News Explained

The 10-year Liberty Latin America partnership is signed, while fiscal 2026 GAAP EPS guidance now implies a decline.

The disclosure places the Liberty Latin America arrangement at the signed stage: Amdocs says it entered a 10-year partnership to manage and transform Liberty Latin America’s entire IT domain through its aOS operating system.

The company moved its fiscal 2026 GAAP diluted EPS growth outlook from 12.0%–15.0% previously to a projected decline of (5.0)%–(3.0)%.

The current GAAP diluted EPS outlook excludes the impact of future restructuring charges, so the stated range does not quantify that specific line item.

Market Context

DOX had 9.32% short interest in the current risk context, characterized as low. That platform data a...

Analysis

DOX had 9.32% short interest in the current risk context, characterized as low. That platform data adds limited short-positioning pressure to the earnings review; investors can watch guidance delivery, margins, and customer spending disclosures.

Key Figures

Revenue: $1,175 million Revenue growth: 2.7% YoY Managed services revenue: $791 million +5 more

8 metrics

Revenue $1,175 million Q3 fiscal 2026; midpoint of guidance

Revenue growth 2.7% YoY Q3 fiscal 2026, as reported

Managed services revenue $791 million Q3 fiscal 2026; approximately 67% of total revenue

GAAP diluted EPS $0.59 Q3 fiscal 2026; included a restructuring charge

Non-GAAP diluted EPS $1.84 Q3 fiscal 2026; midpoint of guidance

GAAP operating margin 8.9% Q3 fiscal 2026; down 880 basis points year over year

Free cash flow $172 million Q3 fiscal 2026

Strategic partnership duration 10 years New Liberty Latin America partnership

Historical Context

5 past events · Latest: Jun 24 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 24	Customer transformation selection	Positive	-1.3%	Selected by Three Scandinavia for customer engagement and digital transformation across Sweden and Denmark
Jun 23	AI-RAN blueprint	Positive	+1.3%	Completed live multivendor AI-RAN field validation with 1Finity and Supermicro
Jun 23	Agentic AI expansion	Positive	+1.3%	Expanded Store Genie agentic AI solution to PLDT Home broadband operations
May 14	Investor conference schedule	Neutral	-2.2%	Announced participation in technology and telecom investor events from May 18 to June 10
May 13	Technology performance benchmark	Positive	+3.3%	Reported 12,000 transactions per second across three Microsoft Azure regions

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive Amdocs announcements produced mixed reactions, with both aligned gains and negative divergences.

Key Terms

constant currency, non-gaap financial measures, free cash flow, restructuring charge

4 terms

constant currency financial

"up 2.2% YoY in Constant Currency"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

non-gaap financial measures financial

"This release includes non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

free cash flow financial

"reiterates full year fiscal 2026 free cash flow outlook"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

restructuring charge financial

"including a restructuring charge of 91 cents per share"

A restructuring charge is a one-time accounting expense a company records when it reorganizes operations—like closing facilities, laying off staff, or writing down assets—to make the business leaner or change strategy. Think of it as the short-term cost of renovating a house to lower future bills: it reduces reported profit and may use cash now, but investors watch it to judge whether the cleanup will improve future profitability or hide ongoing problems.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Revenue of $1.17 Billion, up 2.7% YoY as Reported and up 2.2% YoY in Constant Currency⁽¹⁾

Expects Fiscal 2026 Revenue Growth Outlook of 3.2%-4.0% YoY as Reported

Reiterates Midpoint of Fiscal 2026 Revenue Growth Outlook of 2.6% to 3.4% YoY in Constant Currency⁽¹⁾

Announces Multi-Year Strategic Engagement with Liberty Latin America to Manage & Transform its Entire IT Domain Through Amdocs' Agentic Operating System, aOS

Third Quarter Fiscal 2026 Highlights

(All comparisons are against same quarter of the prior year, unless otherwise stated)

• Revenue of $1,175 million, up 2.7% as reported and up 2.2% in constant currency⁽¹⁾; revenue was at the midpoint of the $1,155-$1,195 million guidance range and includes a negligible impact from foreign currency movements relative to our guidance assumptions

• Managed services record revenue of $791 million, equivalent to approximately 67% of total revenue and up 2.5%

• GAAP diluted EPS of $0.59, including a restructuring charge of 91 cents per share, without which GAAP diluted EPS would have been above the guidance range of $1.39-$1.47

• Non-GAAP diluted EPS of $1.84, at the midpoint of the guidance range of $1.81-$1.87

• GAAP operating income of $105 million, including a restructuring charge of $106 million; GAAP operating margin of 8.9%, down 880 basis points compared to last year's third quarter and 670 basis points sequentially

• Non-GAAP operating income of $253 million; non-GAAP operating margin of 21.6%, up 20 basis points as compared to last year's third fiscal quarter and up 10 basis points sequentially

• Free cash flow of $172 million, comprised of cash flow from operations of $197 million, including $21 million of restructuring payments, less $25 million in net capital expenditures⁽²⁾; excluding restructuring payments, free cash flow was $193 million; reiterates full year fiscal 2026 free cash⁽²⁾ outlook of $710 million to $730 million, excluding restructuring payments

• Repurchased $143 million of ordinary shares during the third fiscal quarter

• Twelve-month backlog of $4.26 billion, up 2.7% as compared to last year's third fiscal quarter and down $20 million sequentially

^{(1) Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period
(2) Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding)}

JERSEY CITY, NJ / ACCESS Newswire / August 5, 2026 / Amdocs Limited (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today reported operating results for the three months ended June 30, 2026.

"I'm pleased to report solid Q3 results. Revenue of $1.175 billion was consistent with the midpoint of guidance, and profitability improved from a year ago as we continued to balance growth investments with accelerated internal transformation to become an agentic-first organization. Managed services had a record quarter, contributing 67% of total revenue, and twelve-month backlog grew by 2.7% from a year ago. With these results, we're on track to achieve our fiscal 2026 financial guidance while closely monitoring macroeconomic developments and customer spending behavior in the current climate," said Shimie Hortig, president and chief executive officer of Amdocs Management Limited.

Hortig continued, "As we've advanced our strategy over the last few months, I'd like to provide more details about our plans to lead Amdocs forward. Last quarter, I shared my excitement about the agentic era, and the long-term opportunity this presents to help our 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, we are introducing our new four-pillar growth strategy. Pillar 1, and the core of our strategy, is "aOS, Agentic Telco Operating System", designed to fundamentally transform the way our customers operate their business. Pillar II is "New Vertical Expansion" where we plan to leverage our deep engineering pedigree, combined with our transformation expertise, to accelerate agentic modernization in another industry. Pillar III is "Emerging Growth Horizons" where we intend to capture and solve emerging needs driven by the GenAI revolution in our customer base and beyond. Pillar IV relates to the "Internal Transformation" of Amdocs to become an agentic-first organization as a key enabler to support our future growth."

Hortig concluded, "As the first major proof point of our first growth pillar, I'm proud to share an important moment in our agentic journey. We signed a new, large-scale 10-year partnership with Liberty Latin America encompassing their entire end-to-end IT ecosystem. This is a true flagship engagement under which Liberty Latin America is trusting Amdocs to manage and transform its entire IT domain leveraging aOS, Amdocs' agentic telco operating system. The engagement will transform Liberty Latin America's traditional IT operations into an AI-driven operating model designed to accelerate time to market, increase product innovation, enhance customer and employee experience, and deliver significant cost savings. The deal is also a meaningful expansion of Amdocs' footprint in the CALA region and is a major demonstration of our ability to handle highly complex mission critical operations across multiple markets."

Revenue
(All comparisons are against the prior year period)

		In millions
		Three months ended
		June 30, 2026
		Actual				Guidance
Revenue		$	1,175				$1,155 - $1,195
Revenue Growth, as reported			2.7%
Revenue Growth, constant currency(1)			2.2%

• Revenue for the third fiscal quarter of 2026 was at the midpoint of Amdocs' guidance and includes a negligible impact from foreign currency movements compared to our guidance assumptions

• Revenue for the third fiscal quarter includes a positive impact from foreign currency movements of $5 million relative to the third quarter of fiscal 2025 and a negative impact from foreign currency movements of $1 million relative to the second quarter of fiscal 2026

Net Income and Earnings Per Share

		In thousands, except per share data
		Three months ended
		June 30,
		2026				2025
GAAP Measures
Net Income		$	63,193			$	154,802
Net Income attributable to Amdocs Limited		$	62,169			$	154,001
Diluted earnings per share		$	0.59			$	1.39
Non-GAAP Measures
Non-GAAP Net Income		$	195,940			$	192,170
Non-GAAP Net Income attributable to Amdocs Limited		$	194,916			$	191,369
Non-GAAP Diluted earnings per share		$	1.84			$	1.72

• Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, restructuring charges, and other, net of related tax effects. For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below

Capital Allocation & Liquidity

• Quarterly Cash Dividend Program: On August 5, 2026, the Board approved the Company's next quarterly cash dividend payment at the rate of $0.569 per share, and set September 30, 2026 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 30, 2026

• Share Repurchase Activity: Repurchased $143 million of ordinary shares during the third quarter of fiscal 2026

Twelve-month Backlog

Twelve-month backlog was $4.26 billion at the end of the third quarter of fiscal 2026, up approximately 2.7% as compared to last year's third fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

Fourth Quarter Fiscal Year Outlook
		In millions, except per share data
		Q4 - 2026
Revenue		$1,175-$1,215
GAAP Diluted earnings per share		$1.48-$1.56
Non-GAAP Diluted earnings per share		$1.94-$2.00

• Fourth quarter revenue guidance assumes a negative $2.5 million sequential impact from foreign currency fluctuations as compared to the third quarter of fiscal 2026

• GAAP diluted EPS guidance does not include the impact of future restructuring charges

• Fourth quarter non-GAAP diluted EPS guidance excludes primarily equity-based compensation expense of approximately $0.22-$0.24 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.18 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

Full Year Fiscal 2026 Outlook
		FY 2026- Year-over -Year growth
		Current guidance				Previous guidance
Revenue Growth, as reported			3.2%-4.0%				2.6%-4.6%
Revenue Growth, constant currency (1)			2.6%-3.4%				2.0%-4.0%
GAAP Diluted earnings per share			(5.0)%-(3.0)%				12.0%-15.0%
			5.5%-6.5%				5.0%-7.0%
		FY 2026, in millions
		Current guidance				Previous guidance
Free Cash Flow (2)			$710-$730				$710-$730

• Full year fiscal 2026 revenue guidance incorporates an expected positive impact from foreign currency fluctuations of approximately 0.6% year-over-year, unchanged as compared with our previous assumption, and includes some inorganic contribution

• GAAP diluted EPS guidance does not include the impact of future restructuring charges

• Non-GAAP diluted earnings per share growth excludes primarily equity-based compensation expense of approximately $0.95-$0.97 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.60 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

• Non-GAAP operating margin is anticipated to be within a range of 21.3% to 21.9% for the full year fiscal 2026

• Non-GAAP operating margin is comprised of GAAP operating margin, excluding amortization of purchased intangible assets and other, equity-based compensation expense, restructuring charges, and changes in certain acquisitions related liabilities measured at fair value

• Non-GAAP effective tax rate is anticipated to be within a range of 16% to 19% for the full year fiscal 2026

• Reiterates full year fiscal 2026 free cash flow⁽²⁾ outlook of $710 million to $730 million, excluding payments related to restructuring charges; free cash flow⁽²⁾ is comprised of cash flow from operations, less net capital expenditures

The forward-looking statements regarding our fourth fiscal quarter 2026 and full year fiscal 2026 guidance take into consideration the Company's current expectations regarding macroeconomic, geopolitical and industry specific risks and various uncertainties and certain assumptions, some of which we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from certain geopolitical events, the current inflationary environment, changes to trade policies including tariffs and trade restrictions and the resulting impact on economic activities (as our outlook assumes current economic conditions do not deteriorate significantly due to trade policy or other macro factors), global or regional events, and the prevailing level of macro-economic, business and operational uncertainty, including customer spending behavior which have created, and continue to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities. See "Forward-Looking Statements" below.

Conference Call and Earnings Webcast Presentation Details

Amdocs will host a conference call and earnings webcast presentation on August 5, 2026 at 5:00 p.m. Eastern Time to discuss the Company's third quarter of fiscal 2026 results. To participate in the call, please register here to receive the dial-in numbers and unique access PIN. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

Non-GAAP Financial Measures
This release includes non-GAAP financial measures, including non-GAAP diluted earnings per share, free cash flow⁽²⁾, revenue on a constant currency⁽¹⁾ basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:

• amortization of purchased intangible assets and other acquisition-related costs;

• changes in certain acquisition-related liabilities measured at fair value;

• restructuring and unusual charges or benefits;

• equity-based compensation expense;

• other; and

• tax effects related to the above.

Free cash flow⁽²⁾ equals cash generated by operating activities less net capital expenditures. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs' results of operations in conjunction with the corresponding GAAP measures.

Amdocs believes that the presentation of non-GAAP financial measures, including non-GAAP diluted earnings per share, free cash flow⁽²⁾, revenue on a constant currency⁽¹⁾ basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, restructuring and unusual charges or benefits, equity-based compensation expense, other and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

Supporting Resources

• Keep up with Amdocs news by visiting the Company's website

• Follow us on X, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs helps the world's leading communications and media companies deliver exceptional customer experiences through reliable, efficient, and secure operations at scale. We provide software products and services that embed intelligence into how work runs across business, IT, and network domains - delivering measurable outcomes in customer experience, network performance, cloud modernization, and revenue growth. With our talented people, and more than 40 years of experience running mission-critical systems around the globe, Amdocs runs billions of transactions daily. Our technology is relied on every day, connecting people worldwide and advancing a more inclusive, connected world. Together, we help those who shape the future to make it amazing. Amdocs is listed on the NASDAQ Global Select Market (NASDAQ: DOX) and reported revenue of $4.53 billion in fiscal 2025. For more information, visit www.amdocs.com.

Forward-Looking Statements

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' strategy, including with respect to artificial intelligence and agentic opportunities, growth, financial outlook, and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks, uncertainties, and other important factors that may cause future results to differ materially from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, changes to trade policies including tariffs and trade restrictions, as well as the current inflationary environment, and the effects of these conditions on the Company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company's customers, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2025, filed on December 15, 2025, and our Form 6-K furnished for the first quarter of fiscal 2026 on February 17, 2026 and for the second quarter of fiscal 2026 on May 26, 2026.

Contact:
Matthew Smith
Head of Investor Relations
Amdocs
314-212-8328
E-mail: dox_info@amdocs.com

AMDOCS LIMITED
Consolidated Statements of Income
(In thousands, except per share data)

		Three months ended June 30,								Nine months ended June 30,
		2026				2025				2026				2025
Revenue		$	1,174,895			$	1,144,437			$	3,502,813			$	3,382,695
Operating expenses:
Cost of revenue			707,740				711,147				2,152,196				2,091,455
Research and development			86,367				86,851				255,346				252,980
Selling, general and administrative			149,252				127,589				416,650				384,301
Amortization of purchased intangible assets and other			20,574				16,380				56,416				48,137
Restructuring charges			106,424				-				128,130				6,783
			1,070,357				941,967				3,008,738				2,783,656
Operating income			104,538				202,470				494,075				599,039
Interest and other expense, net			(14,082	)			(11,705	)			(31,310	)			(26,579	)
Income before income taxes			90,456				190,765				462,765				572,460
Income taxes			27,263				35,963				102,346				101,805
Net income		$	63,193			$	154,802			$	360,419			$	470,655
Net income attributable to noncontrolling interests			1,024				801				2,869				2,278
Net income attributable to Amdocs Limited		$	62,169			$	154,001			$	357,550			$	468,377
Basic earnings per share attributable to Amdocs Limited		$	0.59			$	1.39			$	3.35			$	4.19
Diluted earnings per share attributable to Amdocs Limited		$	0.59			$	1.39			$	3.33			$	4.17
Cash dividends declared per ordinary share		$	0.569			$	0.527			$	1.665			$	1.533
Basic weighted average number of shares outstanding			105,453				110,614				106,845				111,776
Diluted weighted average number of shares outstanding			105,691				111,188				107,228				112,384

AMDOCS LIMITED
Selected Financial Metrics
(In thousands, except per share data)

		Three months ended June 30,								Nine months ended June 30,
		2026				2025				2026				2025
Revenue		$	1,174,895			$	1,144,437			$	3,502,813			$	3,382,695
Non-GAAP operating income			253,409				244,708				755,184				720,212
Non-GAAP net income			195,940				192,170				585,572				582,064
Non-GAAP net income attributable to Amdocs Limited			194,916				191,369				582,703				579,786
Non-GAAP diluted earnings per share		$	1.84			$	1.72			$	5.43			$	5.16
Diluted weighted average number of shares outstanding			105,691				111,188				107,228				112,384

Free Cash Flows
(In thousands)

		Three months ended June 30,								Nine months ended June 30,
		2026				2025				2026				2025
Net Cash Provided by Operating Activities		$	197,217			$	241,243			$	518,983			$	519,256
Purchases of property and equipment, net (a)			(25,293	)			(29,421	)			(78,769	)			(72,740	)
Free Cash Flow		$	171,924			$	211,822			$	440,214			$	446,516

___________________________________________________

(a) The amounts under "Purchase of property and equipment, net", include immaterial proceeds from sale of property and equipment for the three and nine months ended June 30, 2026 and 2025, respectively.

AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)

	Three Months Ended June 30, 2026
	GAAP			Amortization of purchased intangible assets and other			Equity based compensation expense			Changes in certain acquisitions related liabilities measured at fair value			Restructuring charges			Other			Tax effect			Non-GAAP
Operating expenses:
Cost of revenue	$	707,740		$	-		$	(10,005	)	$	(135	)	$	-		$	-		$	-		$	697,600
Research and development		86,367						(1,796	)														84,571
Selling, general and administrative		149,252						(9,802	)		(135	)											139,315
Amortization of purchased intangible assets and other		20,574			(20,574	)																	-
Restructuring charges		106,424												(106,424	)								-
Total operating expenses		1,070,357			(20,574	)		(21,603	)		(270	)		(106,424	)		-			-			921,486
Operating income		104,538			20,574			21,603			270			106,424									253,409
Interest and other expense, net		(14,082	)														(111	)					(14,193	)
Income taxes		27,263																		16,013			43,276
Net income		63,193			20,574			21,603			270			106,424			(111	)		(16,013	)		195,940
Net income attributable to noncontrolling interests		1,024																					1,024
Net income attributable to Amdocs Limited	$	62,169		$	20,574		$	21,603		$	270		$	106,424		$	(111	)	$	(16,013	)	$	194,916

		Three Months Ended June 30, 2025
		GAAP				Amortization of purchased intangible assets and other				Equity based compensation expense				Changes in certain acquisitions related liabilities measured at fair value				Other				Tax effect				Non-GAAP
Operating expenses:
Cost of revenue		$	711,147			$	-			$	(12,652	)		$	(361	)		$	-			$	-			$	698,134
Research and development			86,851								(2,449	)															84,402
Selling, general and administrative			127,589								(10,860	)			464												117,193
Amortization of purchased intangible assets and other			16,380				(16,380	)																			-
Total operating expenses			941,967				(16,380	)			(25,961	)			103												899,729
Operating income			202,470				16,380				25,961				(103	)											244,708
Interest and other expense, net			(11,705	)																							(11,705	)
Income taxes			35,963																				4,870				40,833
Net income			154,802				16,380				25,961				(103	)							(4,870	)			192,170
Net income attributable to noncontrolling interests			801																								801
Net income attributable to Amdocs Limited		$	154,001			$	16,380			$	25,961			$	(103	)		$	-			$	(4,870	)		$	191,369

AMDOCS LIMITED
Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
(In thousands)

	Nine Months Ended June 30, 2026
	GAAP			Amortization of purchased intangible assets and other			Equity based compensation expense			Changes in certain acquisitions related liabilities measured at fair value			Restructuring charges			Other			Tax effect			Non-GAAP
Operating expenses:
Cost of revenue	$	2,152,196		$	-		$	(32,770	)	$	(629	)	$	-		$	-		$	-		$	2,118,797
Research and development		255,346						(5,723	)														249,623
Selling, general and administrative		416,650						(45,199	)		7,758												379,209
Amortization of purchased intangible assets and other		56,416			(56,416	)																	-
Restructuring charges		128,130												(128,130	)								-
Total operating expenses		3,008,738			(56,416	)		(83,692	)		7,129			(128,130	)		-			-			2,747,629
Operating income		494,075			56,416			83,692			(7,129	)		128,130									755,184
Interest and other expense, net		(31,310	)														(6,175	)					(37,485	)
Income taxes		102,346																		29,781			132,127
Net income		360,419			56,416			83,692			(7,129	)		128,130			(6,175	)		(29,781	)		585,572
Net income attributable to noncontrolling interests		2,869																					2,869
Net income attributable to Amdocs Limited	$	357,550		$	56,416		$	83,692		$	(7,129	)	$	128,130		$	(6,175	)	$	(29,781	)	$	582,703

	Nine Months Ended June 30, 2025
	GAAP			Amortization of purchased intangible assets and other			Equity based compensation expense			Changes in certain acquisitions related liabilities measured at fair value			Restructuring charges			Other			Tax effect			Non-GAAP
Operating expenses:
Cost of revenue	$	2,091,455		$	-		$	(38,258	)	$	(721	)	$	-		$	-		$	-		$	2,052,476
Research and development		252,980						(7,003	)														245,977
Selling, general and administrative		384,301						(32,873	)		12,602												364,030
Amortization of purchased intangible assets and other		48,137			(48,137	)																	-
Restructuring charges		6,783												(6,783	)								-
Total operating expenses		2,783,656			(48,137	)		(78,134	)		11,881			(6,783	)								2,662,483
Operating income		599,039			48,137			78,134			(11,881	)		6,783									720,212
Interest and other expense, net		(26,579	)														5,979						(20,600	)
Income taxes		101,805																		15,743			117,548
Net income		470,655			48,137			78,134			(11,881	)		6,783			5,979			(15,743	)		582,064
Net income attributable to noncontrolling interests		2,278																					2,278
Net income attributable to Amdocs Limited	$	468,377		$	48,137		$	78,134		$	(11,881	)	$	6,783		$	5,979		$	(15,743	)	$	579,786

AMDOCS LIMITED
Condensed Consolidated Balance Sheets
(In thousands)

		As of
		June 30, 2026				September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	206,451			$	324,999
Accounts receivable, net, including unbilled			1,009,645				935,751
Prepaid expenses and other current assets			376,669				331,387
Total current assets			1,592,765				1,592,137
Property and equipment, net			736,393				768,557
Lease assets			165,282				182,088
Goodwill and other intangible assets, net			3,223,852				3,046,962
Other noncurrent assets			697,963				660,086
Total assets		$	6,416,255			$	6,249,830
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable, accruals and other		$	1,243,491			$	1,201,206
Short-term financing arrangements			280,000				-
Lease liabilities			34,677				38,725
Deferred revenue			144,328				118,861
Total current liabilities			1,702,496				1,358,792
Lease liabilities			124,968				140,776
Long-term debt, net of unamortized debt issuance costs			647,368				646,901
Other noncurrent liabilities			613,926				632,681
Total Amdocs Limited Shareholders equity			3,286,514				3,429,453
Noncontrolling interests			40,983				41,227
Total equity			3,327,497				3,470,680
Total liabilities and equity		$	6,416,255			$	6,249,830

AMDOCS LIMITED
Consolidated Statements of Cash Flows
(In thousands)

		Nine months ended June 30,
		2026				2025
Cash Flow from Operating Activities:
Net income		$	360,419			$	470,655
Reconciliation of net income to net cash provided by operating activities:
Depreciation, amortization and impairment			156,177				144,535
Amortization of debt issuance cost			467				453
Equity-based compensation expense			83,692				78,134
Deferred income taxes			11,885				10,898
Loss from short-term interest-bearing investments			-				1,869
Net changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable, net			(101,765	)			57,499
Prepaid expenses and other current assets			(12,622	)			(71,825	)
Other noncurrent assets			6,888				(21,659	)
Lease assets and liabilities, net			(3,049	)			3,483
Accounts payable, accrued expenses and accrued personnel			27,222				(85,590	)
Deferred revenue			12,483				13,813
Income taxes payable, net			8,216				(17,781	)
Other noncurrent liabilities			(31,030	)			(65,228	)
Net cash provided by operating activities		$	518,983			$	519,256
Cash Flow from Investing Activities:
Purchase of property and equipment, net (a)			(78,769	)			(72,740	)
Proceeds from sale of short-term interest-bearing investments			-				94,718
Net cash paid for business and intangible assets acquisitions			(217,644	)			(61,406	)
Net cash from equity investments and other			13,842				16,773
Net cash used in investing activities		$	(282,571	)		$	(22,655	)
Cash Flow from Financing Activities:
Repurchase of shares			(427,077	)			(414,924	)
Proceeds from employee stock option exercises			6,768				18,097
Payments of dividends			(174,278	)			(166,425	)
Distribution to noncontrolling interests			(3,113	)			(2,523	)
Borrowings under financing arrangements			280,000				-
Payment of contingent consideration and deferred payment of business acquisitions			(37,260	)			(9,599	)
Net cash used in financing activities		$	(354,960	)		$	(575,374	)
Net decrease in cash and cash equivalents			(118,548	)			(78,773	)
Cash and cash equivalents at beginning of period			324,999				346,085
Cash and cash equivalents at end of period		$	206,451			$	267,312

___________________________________________________

(a) The amounts under "Purchase of property and equipment, net", include immaterial proceeds from sale of property and equipment for the three and nine months ended June 30, 2026 and 2025, respectively.

AMDOCS LIMITED
Supplementary Information
(In millions)

		Three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
North America		$	748.1			$	754.3			$	764.7			$	762.4			$	745.4
Europe			193.5				191.8				181.7				179.8				189.4
Rest of the World			233.3				225.8				209.5				208.0				209.6
Total Revenue		$	1,174.9			$	1,172.0			$	1,155.9			$	1,150.2			$	1,144.4

		Three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
Managed Services Revenue		$	790.5			$	758.7			$	745.9			$	748.3			$	771.5

		as of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
12-Month Backlog		$	4,260			$	4,280			$	4,250			$	4,190			$	4,150

# # #

SOURCE: Amdocs - IR

View the original press release on ACCESS Newswire

FAQ

How did Amdocs (DOX) perform financially in Q3 2026?

Amdocs reported Q3 2026 revenue of $1.175 billion, up 2.7% year over year. According to Amdocs, non-GAAP diluted EPS was $1.84, while GAAP diluted EPS was $0.59, reflecting a significant restructuring charge that reduced GAAP profitability.

What caused the decline in GAAP EPS for Amdocs (DOX) in Q3 2026?

GAAP EPS fell to $0.59 in Q3 2026 from $1.39 a year earlier mainly due to a $106 million restructuring charge. According to Amdocs, excluding this charge, GAAP diluted EPS would have been above the prior guidance range.

What is included in Amdocs' new 10-year deal with Liberty Latin America announced in August 2026?

Amdocs signed a 10-year partnership with Liberty Latin America to manage and transform its entire IT domain. According to Amdocs, the engagement uses its aOS agentic telco operating system to modernize IT operations, support AI-driven models, and expand Amdocs’ regional footprint.

What is Amdocs' revenue and EPS guidance for full year fiscal 2026?

For fiscal 2026, Amdocs expects revenue growth of 3.2%-4.0% as reported and 2.6%-3.4% in constant currency. According to Amdocs, non-GAAP EPS is projected to grow 5.5%-6.5%, while GAAP EPS is expected to decline (5.0)%–(3.0)% year over year.

What is Amdocs' free cash flow outlook and Q3 2026 cash generation?

Amdocs generated Q3 2026 free cash flow of $172 million, or $193 million excluding restructuring payments. According to Amdocs, it reiterates full-year 2026 free cash flow guidance of $710-$730 million, defined as cash from operations less net capital expenditures, excluding restructuring payments.

How large is Amdocs' twelve-month backlog as of Q3 2026 and what does it include?

Amdocs reported a twelve-month backlog of $4.26 billion at Q3 2026, up 2.7% year over year. According to Amdocs, this backlog includes anticipated revenue from contracts, managed services, letters of intent, maintenance, and estimated ongoing support activities.

What shareholder returns did Amdocs (DOX) announce for Q3 2026?

In Q3 2026, Amdocs repurchased $143 million of ordinary shares and approved a quarterly dividend of $0.569 per share. According to Amdocs, the dividend will be paid on October 30, 2026 to shareholders of record on September 30, 2026.