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Amdocs (DOX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q2 FY26)· Information Technology· May 13, 2026

Source: earnings call transcript

Executive summary

Amdocs Q2 FY26 — Solid Performance and Agentic Era Vision

Amdocs delivered solid Q2 FY26 results, exceeding revenue and non-GAAP EPS guidance midpoints, driven by strong international growth and backlog expansion. The new CEO outlined a vision for Amdocs to be the primary partner in the 'agentic era' for telcos, leveraging its aOS platform and deep industry expertise. The company is accelerating internal GenAI adoption and focusing on end-to-end customer transformations, while closely monitoring the macroeconomic environment.

Highlights

5

  • Revenue of $1.17 billion, above midpoint of guidance.

  • Non-GAAP diluted EPS of $1.78, $0.02 above guidance midpoint.

  • Record revenue in Europe of $192 million, up over 6% YoY.

  • Rest of the World revenue grew 8% YoY to $226 million.

  • 12-month backlog of $4.28 billion, up $30 million sequentially and 2.6% YoY.

Concerns

3

  • Non-GAAP operating margin declined by 10 basis points sequentially to 21.5%.

  • Interest and other expenses amounted to roughly $14 million, including net losses from equity-related investment activities.

  • Diluted GAAP EPS included a restructuring charge of nearly $0.10 per share, not in guidance.

Guidance & targets

CategoryTargetConfidence
Full-year FY26 Revenue Growth (reported)
2.6% to 4.6%
high materiality
High
Full-year FY26 Revenue Growth (constant currency)
2% to 4%
high materiality
High
Q3 FY26 Revenue
$1.155 billion to $1.195 billion
medium materiality
High
Full-year FY26 Non-GAAP Operating Margin
21.3% to 21.9%
high materiality
High
Full-year FY26 Non-GAAP Effective Tax Rate
16% to 19%
medium materiality
High
Full-year FY26 Non-GAAP Diluted EPS Growth
5% to 7%
high materiality
High
Full-year FY26 Free Cash Flow
$710 million to $730 million
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
North America
Revenue was up year-over-year but slightly lower sequentially due to normal fluctuations in customer activity.
$754 millionup more than 2%slightly lower—
Europe
Delivered record quarterly revenue, driven by a mix of organic growth and the impact of the MATRIXX acquisition.
$192 millionup more than 6%——
Rest of the World
Highest revenue since fiscal Q3 2024, remaining on track to grow in fiscal 2026 due to strong sales momentum.
$226 million8%——

DOX operating KPIs by quarter

DOX operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q2 FY26 Jun 2026 Q3 FY26Change vs prior quarter
12-month backlog
$4.28B Overall, we closed the quarter with 12 months backlog of $4.28 billion, up $30 million sequentially and 2.6% from a year ago. Source: earnings call transcript
$4.26B Managed Services delivered a record quarter, accounting for 67% of total revenue, and we closed the quarter with 12-month backlog of $4.26 billion, up 2.7% from a year ago. Source: earnings call transcript
-0.5%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

12-month backlog $4.28 billion Q2 FY26 end

up $30 million sequentially, up 2.6% YoY

Good leading indicator of business and forward visibility.

Product announcements

ProductTypeDetails
aOS (Amdocs agentic operating system)launch
ConnectXupdate
Amdocs eSIMupdate
Amdocs Resource Managerlaunch

Deals & partnerships

AT&T Cricket Wireless Expanded multiyear extension of managed services agreement for BSS and OSS services, including dealer onboarding modernization and aOS capabilities. multiyear

Expanded and extended managed services contract.

Vodafone Spain 5-year agreement covering CRM and OSS modernization alongside long-term support and enhancement services. 5-year

Secured agreement for modernization and support.

KT (South Korea) Multiyear agreement extension to upgrade, modernize, and operate its charging system. multiyear

Extended agreement for charging system upgrade.

Connect44 Acquisition of a European-based provider of end-to-end network planning, building, and management solutions. $21 million net in cash at closing plus future potential contingent consideration

Acquired in the last week of fiscal Q2.

Risks & headwinds

Global macroeconomic climate Current

Not quantified

Mitigation:Closely monitoring customer demand and spending behavior.

Geopolitical, business and operational uncertainty Current

Not quantified

Mitigation:Closely monitoring customer demand and spending behavior.

Customer spending behavior Current

Not quantified

Mitigation:Closely monitoring and factoring into guidance.

Higher financing costs FY26

Impact on non-GAAP net interest and other expenses

Mitigation:Resulting from reduced cash balance and short-term borrowing to fund working capital.

What to watch in Q3 FY26

aOS commercial engagement and revenue impact

Next couple of quarters
Current Several initial commercial agreements, not yet meaningful for FY26 revenue.
Target Increased number of commercial engagements and growing revenue contribution.

Why it matters

AOS is central to the new CEO's vision for the 'agentic era' and expanding Amdocs' addressable market. Its adoption and monetization are key to future growth.

Those opportunities are starting small but we know that over time, they will grow. So if you ask if we embedded anything right now in this fiscal year, not yet. It's not so meaningful right now but it's definitely going to grow over time.

Find out whether DOX delivers this. Inve re-checks your case every morning.

Q&A highlights

Given the massive investments in data centers and AI, how can Amdocs participate in this growth, either through neo-clouds, cloud, or traditional service providers building their own data centers?

The CEO sees the 'agentic revolution' as a major opportunity for Amdocs to partner with customers in transforming their IT and network ecosystems. He believes Amdocs' deep industry knowledge and transformation capabilities position it as the best partner to bridge the gap between AI technology potential and actual adoption in mission-critical systems.

“We believe that Amdocs with our deep knowledge on this industry, with our capability to transform organization to move through technological shift, position us as the best partner that can take them to this future.”

asked by Tal Liani · answered by Shimie Hortig

2 min read 6 chapters

Detailed narrative

New CEO's Vision for the Agentic Era

Shimie Hortig, the new CEO, outlined his vision for Amdocs to become the primary partner for customers in the 'agentic era.' He emphasized Amdocs' deep industry knowledge, engineering pedigree, and outcome-based approach as key differentiators. The company aims to evolve its product portfolio to be agentic and automated, partner with customers on tailored roadmaps, and collaborate with leading AI and cloud partners.

aOS Launch and Early Commercial Success

Amdocs officially launched aOS (agentic operating system for telco) at Mobile World Congress, receiving positive market feedback. Several initial commercial agreements have been secured with customers like Cricket, Lumen, Bell Canada, EchoStar, and PLDT. In PLDT, aOS has already shown early business success, resolving over 90% of customer requests and improving productivity in retail stores.

Solid Q2 FY26 Financial Performance

The company reported solid second-quarter results with revenue of $1.17 billion and non-GAAP diluted EPS of $1.78, both exceeding the midpoint of guidance. Revenue growth was driven by North America, record revenue in Europe, and strong performance in the Rest of the World. Non-GAAP operating margin improved by 20 basis points year-over-year, reflecting efficiency gains balanced with growth investments.

Significant Deal Wins and Project Execution

Amdocs secured several significant deals, including an expanded multiyear managed services extension with AT&T Cricket Wireless, a 5-year CRM and OSS modernization agreement with Vodafone Spain, and a multiyear charging system upgrade with KT in South Korea. Project execution highlights included servicing AT&T's 5G SA subscribers, commercial launch with Vodafone Germany, and a mainframe to Google Cloud migration milestone for Elisa.

CFO Transition and Succession Plan

Tamar Rapaport-Dagim announced her retirement after 19 years as CFO and COO, with Tal Rosenfeld appointed as the new CFO. The transition is part of a long-term internal succession plan, with Tal having extensive experience across finance and business leadership roles within Amdocs, including leading the APAC division and managing the entire finance organization under Tamar.

Enhanced Financial Flexibility and Capital Allocation

Amdocs established a U.S. commercial paper program of up to $800 million and upsized its revolving credit facility from $500 million to $800 million to enhance financial flexibility. The company repurchased $138 million of shares and paid $57 million in cash dividends during the quarter. Amdocs expects to return the majority of its free cash flow to shareholders in fiscal 2026.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.