Amdocs Reports $1.175 Billion in Revenue and Reaffirms Annual Guidance

Amdocs has published its financial results for the third quarter of the 2026 fiscal year, reporting revenue growth alongside the confirmation of its annual forecasts. Simultaneously, the company announced a multi-year strategic agreement with Liberty Latin America, under which it will lead the management and transformation of the company's entire IT infrastructure using its agentic operating system, aOS.

Quarterly revenue totaled $1.175 billion, reflecting a 2.7% increase compared to the same quarter last year. Excluding currency fluctuations, growth stood at 2.2%. The result exceeded the midpoint of the company's guidance range of $1.155 to $1.195 billion.

The managed services sector remains a key operational engine, recording record revenues of $791 million. This accounts for approximately 67% of total revenue, representing a 2.5% increase in activity compared to the same period last year.

Diluted earnings per share (EPS) under U.S. GAAP were $0.59. This figure was impacted by $0.91 per share in reorganization expenses; excluding these, profit would have exceeded the guidance range of $1.39 to $1.47 per share. In non-GAAP terms, diluted EPS reached $1.84, landing at the midpoint of the $1.81 to $1.87 forecast.

Operating profit under U.S. GAAP reached $105 million after accounting for $106 million in reorganization expenses, resulting in an 8.9% operating margin. Conversely, non-GAAP operating profit stood at $253 million, with an operating margin of 21.6%, up 0.2% year-over-year.

Free cash flow totaled $172 million after $25 million in net capital expenditures. The company maintained its free cash flow guidance for fiscal year 2026 in the range of $710 to $730 million, excluding reorganization payments.

During the quarter, Amdocs repurchased $143 million in ordinary shares. The order backlog for the next 12 months reached $4.26 billion, a 2.7% increase compared to the previous year.

Shuky Sheffer, President and CEO of Amdocs, stated:

"I am pleased to report solid third-quarter results. Revenue of $1.175 billion fell at the midpoint of our guidance, and we improved profitability year-over-year while balancing growth investments with our internal transformation into an agentic-led organization. We remain on track to achieve our financial targets for fiscal 2026, while continuing to monitor macroeconomic developments and customer spending patterns closely."