Amdocs Limited Reports Fourth Quarter Results for Fiscal 2025

Core Insights - Amdocs Limited reported fiscal 2025 revenue of $4.53 billion, a decrease of 9.4% year-over-year as reported, but an increase of 3.1% year-over-year in pro forma constant currency [1][1][1] - The company achieved accelerated profitability improvement targets and reported a 12-month backlog of $4.19 billion, up 3.2% year-over-year [1][1][1] - Amdocs initiated its fiscal 2026 outlook, expecting revenue growth of 1.7%-5.7% year-over-year as reported and 1.0%-5.0% year-over-year in constant currency [1][1][1] Fiscal 2025 Highlights - Total revenue for fiscal 2025 was $4,533 million, down 9.4% due to the phase-out of certain business activities, while pro forma constant currency revenue increased by 3.1% [1][1][1] - Managed services revenue reached a record $2,996 million, accounting for approximately 66% of total revenue [1][1][1] - GAAP diluted EPS was $5.05, an increase of 18.8%, including a restructuring charge of $0.65 per share; without this charge, EPS would have exceeded the guidance range of 31.5%-33.5% [1][1][1] - Non-GAAP diluted EPS was $6.99, up 8.5% and at the midpoint of the 8.0%-9.0% guidance range [1][1][1] - Free cash flow was $645 million, derived from cash flow from operations of $749 million, less $104 million in net capital expenditures [1][1][1] - The company repurchased $551 million of ordinary shares during the fiscal year [1][1][1] Fourth Quarter Fiscal 2025 Highlights - Revenue for the fourth quarter was $1,150 million, down 9.0% as reported, but up 2.8% in pro forma constant currency [1][1][1] - Managed services revenue for the fourth quarter was $748 million, approximately 65% of total revenue, and up 3.7% compared to the previous year's fourth quarter [1][1][1] - GAAP diluted EPS for the fourth quarter was $0.88, including a restructuring charge of $0.60 per share; without this charge, EPS would have been at the high end of the $1.41-$1.49 guidance range [1][1][1] - Non-GAAP diluted EPS was $1.83, slightly above the midpoint of the guidance range of $1.79-$1.85 [1][1][1] - GAAP operating income was $133 million, with a GAAP operating margin of 11.5%, reflecting a 260 basis point increase compared to the previous year's fourth quarter [1][1][1] - Non-GAAP operating income was $248 million, with a non-GAAP operating margin of 21.6%, up 290 basis points year-over-year [1][1][1] Dividend Announcement - The Board of Directors approved an 8% increase in the quarterly cash dividend from $0.527 per share to $0.569 per share, expected to be first paid in April 2026, subject to shareholder approval [1][1][1]