Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $1.16 billion, a 4.1% increase year-over-year and 3.5% in constant currency, slightly above guidance [4][24] - Non-GAAP diluted earnings per share was $1.81, exceeding guidance due to a lower-than-expected tax rate [4][26] - Non-GAAP operating margin improved by 40 basis points year-over-year to 21.6% [24][26] - The 12-month backlog increased to $4.25 billion, up $60 million sequentially and 2.7% from a year ago [5][31] Business Line Data and Key Metrics Changes - Managed services revenue was $746 million, up 2.3% year-over-year, accounting for approximately 65% of total revenue [26] - The acquisition of MATRIXX Software contributed immaterial revenue in Q1 as the deal closed late in the quarter [24][26] Market Data and Key Metrics Changes - North America revenue increased nearly 4% year-over-year, marking the fourth consecutive quarter of sequential growth [24] - Europe saw a 17% year-over-year increase, driven by organic growth and the acquisition of Profinit [24] - The rest of the world experienced a decline year-over-year but showed slight improvement sequentially [24] Company Strategy and Development Direction - The company aims to position itself as a market leader in the GenAI era, focusing on generative AI and data services [4][8] - A new multi-year agreement with T-Mobile includes managed services, software development, and AI innovation [5][6] - The acquisition of MATRIXX Software for $197 million is seen as a strategic move to enhance billing and monetization solutions [7][8] - The company is focused on expanding its global customer footprint and diversifying its market presence [6][16] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth of 1% to 5% in constant currency for fiscal 2026, reiterating guidance despite macroeconomic uncertainties [17][32] - The company is closely monitoring customer demand and spending behavior in the current economic environment [16][32] - Management expressed confidence in the long-term strategy and leadership team, with a planned transition in executive leadership [18][19] Other Important Information - The company repurchased $146 million of its shares during the quarter, with $840 million remaining in repurchase authority [30] - Free cash flow before restructuring payments was $237 million, equating to approximately 33% of the full-year target [28][30] Q&A Session Summary Question: Details on T-Mobile agreement and revenue trajectory - The new agreement with T-Mobile is a five-year contract covering managed services and AI-related activities, but revenue is expected to decline in 2026 due to lower spending [38][41] Question: Strategic value of MATRIXX acquisition - The acquisition adds a tier-two charging engine and a strong customer base, enhancing the company's capabilities in billing and monetization [44][45] Question: Unique aspects of the new agentic operating system (AOS) - AOS is a next-generation platform for GenAI that can operate on any BSS/OSS infrastructure, expected to serve as a new growth engine [53][55] Question: Progress of telcos in AI initiatives - The company is working with customers to develop various use cases, transitioning from opportunistic to strategic AI implementations [58][60] Question: Revenue guidance and T-Mobile milestones - The slight revenue beat was not due to any specific customer, and the T-Mobile agreement involves multiple ongoing activities rather than singular milestones [63][65]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $1.16 billion, a 4.1% increase year-over-year and 3.5% in constant currency, slightly above guidance [4][26] - Non-GAAP diluted earnings per share (EPS) was $1.81, exceeding guidance due to a lower-than-expected tax rate [4][28] - Non-GAAP operating margin improved by 40 basis points year-over-year to 21.6% [28] Business Line Data and Key Metrics Changes - Managed services revenue was $746 million, up 2.3% year-over-year, accounting for approximately 65% of total revenue [28] - The 12-month backlog increased to $4.25 billion, up $60 million sequentially and 2.7% from a year ago [5][31] Market Data and Key Metrics Changes - North America revenue increased nearly 4% year-over-year, while Europe saw a 17% increase driven by organic growth and the acquisition of Profinit [26] - The rest of the world experienced a decline year-over-year but showed slight improvement sequentially [26] Company Strategy and Development Direction - Amdocs aims to position itself as a market leader in the GenAI era, focusing on generative AI and data services [4] - The company announced a multi-year agreement with T-Mobile, which includes software development and AI innovation [5][6] - Amdocs is expanding its global customer footprint and diversifying internationally through organic and inorganic growth [7][8] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth of 1% to 5% in constant currency for fiscal 2026, reiterating guidance despite macroeconomic uncertainties [18][32] - The company is closely monitoring customer demand and spending behavior in the current economic environment [17] Other Important Information - Amdocs completed the acquisition of MATRIXX Software for $197 million, enhancing its capabilities in billing and monetization solutions [8] - The company is developing a next-generation AI platform, AOS, which is expected to be showcased at Mobile World Congress [11][56] Q&A Session Summary Question: Details on the T-Mobile agreement - The agreement is a five-year contract covering managed services, development services, and AI-related activities, but revenue is expected to decline in 2026 due to T-Mobile's lower spending [39][42] Question: Strategic value of the MATRIXX acquisition - The acquisition consolidates a competitor and adds a charging engine for tier-two customers, enhancing Amdocs' market position [45][47] Question: Unique aspects of the new agentic operating system (AOS) - AOS is a next-generation platform that integrates with existing BSS/OSS infrastructures, expected to serve as a growth engine for Amdocs [56][58] Question: Progress of telcos in AI initiatives - Telcos are moving from opportunistic to strategic use of AI, with AOS providing a holistic solution to leverage this technology [60][62]

The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsidiaries. Amdocs Limited NASDAQ: DOX Fiscal Q1 2026 Earnings Presentation February 3, 2026 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO Disclaimer This presentation and the comments made by members of Amdocs m ...

Core Insights - Amdocs has been selected by VIDAA to provide its MarketONE platform for upcoming OTT subscription and streaming bundles [1] - This collaboration aims to enhance consumer access to both standalone and bundled OTT services directly on VIDAA-equipped Smart TVs [1] Company Overview - Amdocs is a leading provider of software and services specifically tailored for communications and media companies [1] - VIDAA is recognized as one of the fastest-growing Smart TV platforms globally [1] Industry Implications - The partnership between Amdocs and VIDAA signifies a strategic move towards improving TV-centric discovery and commerce in the OTT space [1] - This initiative is expected to streamline the user experience for consumers seeking OTT content, potentially increasing subscription uptake [1]

Accelerating generative AI strategies by embedding intelligence into telecom operations to elevate customer and employee experiences, unlock new growth opportunities, and drive measurable efficiency at scale JERSEY CITY, NJ / ACCESS Newswire / February 3, 2026 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today announced aOS, an agentic operating system purpose-built for telecommunications. Designed to help communication service providers (CSPs) ac ...

Core Insights - Amdocs has extended its strategic collaboration with T-Mobile USA through a new multi-year agreement aimed at supporting T-Mobile's growth and operational excellence [1][2] Group 1: Agreement Details - The new agreement includes managed services, software development, AI innovation, and integration activities related to common systems [1][2] - Amdocs will implement GenAI technology to support T-Mobile's consumer and business domains [2] Group 2: Company Statements - Amdocs expresses pride in supporting T-Mobile by providing robust solutions to enhance agility, efficiency, and growth [3] - The collaboration aims to transform T-Mobile's operations and customer experience, setting new industry standards [3] Group 3: Company Background - Amdocs is a leading provider of software and services for communications and media companies, with a reported revenue of $4.53 billion in fiscal 2025 [5] - T-Mobile USA is recognized for its advanced 4G LTE and nationwide 5G network, focusing on delivering reliable connectivity and exceptional service [4]

Core Insights - Amdocs and CSG Systems are both active in the telecom software market but are following distinct strategies as evidenced by their recent earnings reports [1] Company Performance - Amdocs and CSG Systems have demonstrated contrasting financial results, indicating different operational approaches and market strategies [1]

Company Overview - Morris Kahn was a co-founder of Amdocs, a telecom billing company with a market cap of $8.85 billion, recognized as one of Israel's veteran tech companies [1] - Amdocs has played a significant role in the development of Israel's high-tech industry, creating thousands of jobs and influencing generations of tech professionals [4] Business Development - Kahn's business breakthrough occurred in 1968 when he won a tender to produce telephone directories, leading to the establishment of Amdocs, which focused on billing software and customer service systems for telecom companies [3] - Kahn's Aurec Group invested in various prominent businesses, including cable TV and international telecom companies, contributing to the infrastructure of Israel's high-tech industry [5] Financial Acumen - Kahn demonstrated acute business sense, selling his holdings in Amdocs and other companies at peak prices, ultimately realizing holdings worth approximately $1.9 billion [6] - Forbes estimated Kahn's wealth at $1.1 billion in 2025, highlighting his effective tax planning strategies [7] Philanthropy and Legacy - In recent years, Kahn was a major donor and a key figure in the SpaceIL project, which achieved the landing of the first private spacecraft on the moon [9]

Core Viewpoint - Amdocs Inc. (NASDAQ:DOX) has shown short-term stock performance improvement but has experienced a decline over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio for future investment decisions [1]. Group 1: Stock Performance - Amdocs' current share price is $80.35, reflecting a 0.16% decrease in the current market session [1]. - The stock has increased by 5.43% over the past month but has decreased by 7.26% over the past year [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS) [5]. - Amdocs has a lower P/E ratio compared to the IT Services industry average of 27.97, which may suggest that the stock is undervalued [6]. - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability [10]. Group 3: Investment Considerations - Investors should use the P/E ratio cautiously, as it is just one of many metrics to evaluate a company's financial health [9][10]. - A comprehensive approach that includes other financial ratios, industry trends, and qualitative factors is essential for making informed investment decisions [10].

Core Insights - Amdocs has filed its Annual Report on Form 20-F for the fiscal year ended September 30, 2025, with the U.S. Securities and Exchange Commission [1] - The annual report includes the financial statements for the fiscal year [1] - The report is accessible through the company's investor relations website [1]