Amdocs Q3 Earnings Surpass Expectations, Revenues Fall Y/Y

Core Insights - Amdocs Limited (DOX) reported better-than-expected third-quarter fiscal 2025 results with non-GAAP earnings of $1.72 per share, exceeding management's guidance and the Zacks Consensus Estimate [1][10] - The company's revenues for Q3 were $1.14 billion, surpassing the consensus mark but down 8.4% year over year due to the phase-out of certain business activities [2][10] Financial Performance - Non-GAAP operating income increased 5.3% year over year to $244.7 million, with an operating margin expansion of 280 basis points to 21.4% [5] - Managed services revenues rose 4.1% year over year to $771.5 million, while the company ended the quarter with a backlog of $4.15 billion [5] - Amdocs generated operating cash flow of $241.2 million and free cash flow of $211.8 million during the third quarter [7] Revenue Breakdown - North America revenues were $745.4 million, representing 65.1% of total revenues, down 10.1% year over year [3] - Revenues from the Rest of the World (RoW) declined 14.5% year over year to $209.6 million, while Europe revenues increased 7.7% year over year to $189.4 million [3][4] Guidance and Outlook - For Q4, Amdocs expects revenues between $1.125 billion and $1.165 billion, with non-GAAP earnings per share projected between $1.79 and $1.85 [8][9] - The updated guidance for fiscal 2025 indicates a revenue decline rate of 9.0-10.0%, with a mid-point suggesting a decline of 9.5% [11] - Non-GAAP earnings per share growth is now expected in the range of 8.0-9.0%, up from previous forecasts [12]