Amdocs (DOX) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue reached $1.175 billion, up 2.7% year-over-year and at the midpoint of guidance, with non-GAAP diluted EPS of $1.84.

• Managed services delivered a record quarter, accounting for 67% of total revenue.

• Major multi-year partnership signed with Liberty Latin America to manage and transform its IT ecosystem using the agentic operating system (aOS).

• Twelve-month backlog rose 2.7% year-over-year to $4.26 billion, supporting future revenue visibility.

• Continued strong sales momentum with new wins and project milestones at leading global providers.

Financial highlights

• Q3 revenue: $1,174.9 million, up 2.7% year-over-year as reported and 2.2% in constant currency.

• Non-GAAP operating margin improved to 21.6%, up 20 basis points year-over-year.

• Non-GAAP diluted EPS was $1.84; GAAP diluted EPS was $0.59, impacted by a $0.91/share or $106 million restructuring charge.

• Free cash flow before restructuring payment was $193 million in Q3; $172 million after restructuring.

• Repurchased $143 million in shares during the quarter.

Outlook and guidance

• Fiscal 2026 revenue growth expected at 3.2%-4% as reported and 2.6%-3.4% in constant currency, with a 3% midpoint.

• Non-GAAP diluted EPS growth guided to 5.5%-6.5% for fiscal 2026, midpoint unchanged at 6%.

• Free cash flow for fiscal 2026 projected at $710-$730 million, excluding restructuring payments.

• Non-GAAP operating margin expected within 21.3%-21.9% for fiscal 2026.

• Q4 revenue guidance: $1,175-$1,215 million; non-GAAP EPS: $1.94-$2.00.