Amdocs Stock Rises 4% as Q1 Earnings and Revenues Surpass Estimates

Core Insights - Amdocs Limited (DOX) shares increased by 4% after reporting better-than-expected first-quarter fiscal 2026 results, with non-GAAP earnings of $1.81 per share, exceeding management's guidance and the Zacks Consensus Estimate [1][10] Financial Performance - Amdocs reported first-quarter revenues of $1.156 billion, surpassing the consensus estimate of $1.15 billion and the management's guidance range of $1.135-$1.175 billion, reflecting a 4.1% increase year over year [2][10] - Revenue breakdown showed North America generated $765 million (66% of total revenues), a 3.7% year-over-year increase, while Europe revenues rose 17% year over year to $182 million (16% of total revenues). However, revenues from the Rest of the World (RoW) declined by 3.6% year over year to $209.5 million (18% of total revenues) [3][4] Managed Services and Backlog - Managed services revenues increased by 2.3% year over year to $746 million, with a 12-month backlog of $4.25 billion, up $60 million sequentially [5] Operating Income and Cash Flow - Non-GAAP operating income rose by 6.2% year over year to $249.9 million, with an operating margin expansion of 40 basis points to 21.6% [5] - Amdocs generated an operating cash flow of $220 million and free cash flow of $188 million during the first quarter, repurchasing shares worth $146.2 million and paying $57.2 million in dividends [6] Fiscal Year 2026 Guidance - For fiscal 2026, Amdocs expects revenue growth in the range of 1.5-5.5%, down from the previous guidance of 1.7-5.7%. The Zacks Consensus Estimate for revenues is $4.7 billion, indicating a year-over-year increase of 3.7% [7][10] - Non-GAAP operating margin is anticipated to be between 21.3-21.9%, with non-GAAP earnings per share expected to grow by 4-8%. The Zacks Consensus Estimate for earnings is $7.42 per share, suggesting a year-over-year rise of 6.2% [8] Second Quarter Guidance - Amdocs has initiated guidance for the second quarter of fiscal 2026, expecting revenues between $1.15-$1.19 billion, with a midpoint of $1.17 billion, aligning with the Zacks Consensus Estimate and indicating a year-over-year increase of 3.4% [9]