Amdocs Q4 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - Amdocs Limited (DOX) reported better-than-expected fourth-quarter fiscal 2025 results with non-GAAP earnings of $1.83 per share, exceeding management's guidance and the Zacks Consensus Estimate [1][10] - The company's revenues for Q4 were $1.15 billion, surpassing the consensus mark but down 9% year-over-year due to the phase-out of certain business activities [2][10] Financial Performance - Non-GAAP operating income increased 5% year-over-year to $248.1 million, with an operating margin expansion of 290 basis points to 21.6% [5] - Managed services revenues rose 3.7% year-over-year to $748.3 million, and the company ended Q4 with a backlog of $4.19 billion, up $40 million sequentially [5] - Amdocs generated operating cash flow of $229.8 million and free cash flow of $198.6 million during Q4, with full fiscal 2025 figures at $749.1 million and $645.1 million respectively [7] Revenue Breakdown - North America revenues were $762 million (66% of total), down 8.8% year-over-year; Europe revenues were $180 million (16% of total), down 0.8%; and Rest of the World revenues were $208 million (18% of total), down 5% [3][4] Future Guidance - For Q1 FY2026, Amdocs expects revenues between $1.135 billion and $1.175 billion, with a midpoint of $1.155 billion, indicating a year-over-year increase of 3% [8] - The company anticipates non-GAAP earnings per share to be between $1.73 and $1.79, while for fiscal 2026, revenue growth is expected in the range of 1.7-5.7% [9][11] - The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.7 billion, suggesting a year-over-year increase of 3.8% [11]