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Investing.com - Amdocs Limited (NASDAQ:DOX) reported fourth quarter fiscal 2025 adjusted earnings that slightly exceeded analyst expectations, while also announcing an 8% increase in its quarterly dividend as the company transitions toward higher-margin business activities.
The software and services provider for communications companies posted adjusted earnings per share of $1.83, marginally above the analyst consensus of $1.82. Revenue came in at $1.15 billion, slightly ahead of the $1.14 billion estimate, though down 9.0% YoY as reported due to the company’s strategic phase-out of certain low-margin, non-core business activities.
On a pro forma constant currency basis, revenue increased 2.8% compared to the same period last year.
Amdocs ’ non-GAAP operating margin expanded significantly to 21.6%, up 290 basis points from last year’s fourth quarter, reflecting the company’s focus on operational excellence and higher-margin business. The company’s 12-month backlog reached $4.19 billion, up 3.2% YoY, signaling continued demand for its services.
"Fiscal 2025 was another important year as we delivered financial results consistent with our expectations while serving our global telecommunications customers with cutting-edge cloud, digital and AI-driven solutions," said Shuky Sheffer, president and CEO of Amdocs Management Limited. "Cloud-related activities delivered double-digit growth, reaching over 30% of total revenue."
For the first quarter of fiscal 2026, Amdocs forecasts revenue between $1.135 billion and $1.175 billion, with adjusted EPS of $1.73-$1.79, below the analyst consensus of $1.87. The company’s full-year fiscal 2026 outlook projects revenue growth of 1.7%-5.7% as reported.
The Board of Directors approved an 8% increase in the quarterly cash dividend from $0.527 to $0.569 per share, which is expected to be first paid in April 2026, subject to shareholder approval.
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