Financial Data and Key Metrics Changes - Revenue for Q3 was $1,140,000,000, up 3.5% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][21] - Non-GAAP diluted earnings per share was $1.72, slightly above expectations, while GAAP diluted EPS was $1.39, also above guidance [22][18] - Profitability improved by 10 basis points sequentially, driven by internal efficiency improvements [6] Business Line Data and Key Metrics Changes - Managed services revenue reached a record $771,000,000, up 4.1% year-over-year, accounting for roughly two-thirds of total revenue [23] - The company reported a healthy transfer backlog of $4,150,000,000, up 3% from the previous year [6][27] Market Data and Key Metrics Changes - North America saw a 1% sequential improvement, while Europe delivered a record quarter with nearly 8% year-over-year growth [21] - Southeast Asia growth was partially offset by weakness in Latin America [21] Company Strategy and Development Direction - The growth strategy focuses on cloud migration, generative AI, data services, and digital customer experience [9][10] - Amdocs is intensifying its focus on generative AI and data services as key growth pillars, with several significant deals signed [13][14] Management's Comments on Operating Environment and Future Outlook - The company expects slightly better revenue growth of approximately 2.9% in pro forma constant currency for the full fiscal year 2025 [18] - Management is closely monitoring the uncertain global macroeconomic environment and its potential impact on customer spending behavior [17][29] Other Important Information - The company repurchased $135,000,000 of its shares during the quarter, with a remaining repurchase authority of $1,120,000,000 [26] - Free cash flow before restructuring payments was $230,000,000, on track to meet annual targets [25] Q&A Session Summary Question: About the British Telecom win and its potential size - Management indicated that the BT deal is significant and modernizes the commerce domain of Everything Everywhere, which was previously a legacy platform [36][37] Question: Progress on AI proof of concepts - Four customers converted from POCs to actual deals this quarter, with ongoing installations of the MACE platform [41][42] Question: Sequential decline in backlog - Management noted that while there was a small sequential decline in backlog, year-over-year growth remains strong, and new significant deals are being signed [48][49] Question: North American win significance - The North American win is expected to become a larger customer over time [55] Question: SaaS products contribution to revenue - SaaS products are growing double digits and are seen as a growth engine, with ConnectX gaining significant traction [56][60] Question: Cloud migration status among customers - Many customers are in the early stages of cloud migration, with less than a handful having completed the process [62] Question: Sustainability of margin expansion - Management is cautious about committing to future margin expansion but sees ongoing productivity gains and technology integration as positive factors [64][65] Question: Potential for Gen AI to contribute to revenue - Management is optimistic about Gen AI's potential to contribute to revenue, with ongoing proof of concept engagements and commercial deployments [70][71]