Why Is Amdocs (DOX) Up 1.3% Since Last Earnings Report?

Core Viewpoint - Amdocs reported better-than-expected Q4 fiscal 2025 results, with non-GAAP earnings per share of $1.83, surpassing management's guidance and the Zacks Consensus Estimate, despite a year-over-year revenue decline of 9% [3][4][10]. Financial Performance - Amdocs' Q4 revenues were $1.15 billion, exceeding the consensus mark of $1.14 billion, but down 9% year-over-year due to the phase-out of certain business activities. Excluding these effects, revenues increased by 2.8% year-over-year in pro forma constant currency [4]. - Revenue breakdown showed North America at $762 million (66% of total revenues), down 8.8% year-over-year; Europe at $180 million (16% of total revenues), down 0.8%; and Rest of the World at $208 million (18% of total revenues), down 5% [5][6]. - Managed services revenues rose 3.7% year-over-year to $748.3 million, with a 12-month backlog of $4.19 billion, up $40 million sequentially [7]. Balance Sheet & Cash Flow - As of September 30, 2025, Amdocs had cash and short-term investments of $325 million, down from $342.5 million as of June 30, 2025. Long-term debt remained stable at $646.9 million [8]. - The company generated operating cash flow of $229.8 million and free cash flow of $198.6 million in Q4, with full fiscal 2025 figures at $749.1 million and $645.1 million, respectively [9]. Guidance - Amdocs provided guidance for Q1 and fiscal 2026, expecting revenues between $1.135 billion and $1.175 billion, with non-GAAP earnings per share between $1.73 and $1.79. For fiscal 2026, revenue growth is anticipated in the range of 1.7-5.7% [10][11]. Market Position - Amdocs has a VGM Score of B for growth, but a D for momentum, indicating mixed performance metrics. The stock is in the top 40% for value investors with an aggregate VGM Score of B [13]. - The overall trend in estimates has been downward, leading to a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [12][14].