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Amdocs Limited Reports Fourth Quarter Fiscal 2026 Results & Full Year Fiscal 2026 Results

  • Amdocs reported Fiscal 2026 revenue of $4.70 billion, a 3.6% year-over-year increase as reported.
  • The company announced an eight-year strategic agreement with AT&T to modernize operations using its aOS platform.
  • Amdocs entered the insurance industry by acquiring EIS for approximately $340 million in cash.
  • Fiscal 2027 revenue guidance is set between a 17.9% to 14.3% decline as reported, or a 11% to 7% decline in pro forma constant currency.
  • Fiscal 2028 expectations include mid-single digit revenue growth, high-single digit earnings growth, and a steadily rising dividend.
  • Non-GAAP diluted EPS for Fiscal 2026 was $7.41, up 6.0% year-over-year, landing at the midpoint of guidance.
  • GAAP diluted EPS for Fiscal 2026 was $4.68, down 7.3%, impacted by a $130 million restructuring charge.
  • Free cash flow for Fiscal 2026 was $562 million, with $511 million utilized for share repurchases.
  • The Board approved a 3% dividend increase to $0.586 per share, payable starting April 2027 pending shareholder approval.
  • Amdocs faces a legal dispute with T-Mobile involving mutual notices of material breach, which is factored into conservative Fiscal 2027 guidance.
  • Twelve-month backlog stood at $3.50 billion, down 9.6% on a pro forma basis after adjusting for exited non-strategic businesses.
  • Fiscal 2027 non-GAAP operating margin is expected to range between 19.2% to 19.8%, with a non-GAAP effective tax rate of 16% to 19%.