Key Highlights

  • Fiscal 2027 reported Revenue is guided to fall 14.3% to 17.9%, against 3.6% growth in fiscal 2026.
  • Non-GAAP diluted EPS for fiscal 2027 is guided to drop 26% to 30% from USD 7.41.
  • Twelve month Backlog ended September 30, 2026 at USD 3.50 billion, down about USD 370 million sequentially.
  • Fiscal 2026 free Cash Flow was USD 562 million, and fiscal 2027 guidance is USD 440 million to USD 500 million before restructuring payments.
  • Cash fell to USD 197.0 million from USD 325.0 million a year earlier.

What Moved Amdocs Shares Before the Open (down USD 25.04, 40.12%)

Amdocs (NASDAQ:DOX) was down 40.12% to USD 37.38 in pre-market trading on November 4, 2026, a fall of USD 25.04 from the Tuesday, November 3, 2026 close, which implies a prior close of about USD 62.42 (calculated). The company published fiscal 2026 results on November 3, 2026, and the stock reacted to the outlook rather than the quarter.

Quarterly revenue of USD 1.194 billion rose 3.8% and non-GAAP diluted EPS of USD 1.98 compared with USD 1.83 a year earlier. The shock came from a fiscal 2027 forecast that points to a steep contraction.

What the Guidance and the T-Mobile Dispute Say

According to the company press release, fiscal 2027 reported revenue is expected to decline 14.3% to 17.9%, or 7% to 11% on a pro forma constant currency basis. Non-GAAP Operating Margin is guided to 19.2% to 19.8%, below the 21.6% reached in the fourth quarter.

On the earnings call, management tied most of the weakness to T-Mobile (NASDAQ:TMUS), its largest customer, citing reduced discretionary spending, the integration of UScellular customers and a contract dispute. The company said each side has sent notices alleging material breach, that it will defend its position including in arbitration, and that the guidance allows for a scenario in which the agreements are terminated. Management said the rest of the Business should grow at a mid single digit rate and did not disclose the customer's revenue share.

Business Background and Recent Results

Amdocs supplies billing, customer experience and network software and services to communications and media companies worldwide. It announced an eight year agreement with AT&T (NYSE:T) for its agentic AI platform on November 3, 2026.

The company also announced the Acquisition of EIS, an insurance software provider, for about USD 340 million in cash plus possible performance based consideration.

For the full fiscal year, revenue was USD 4.697 billion, up 3.6%, and non-GAAP diluted EPS was USD 7.41, up 6.0%. GAAP diluted EPS was USD 4.68, down 7.3%, which included a restructuring charge of 130 cents per share. Fiscal 2026 free cash flow was USD 562 million, with restructuring payments of USD 167 million.

Balance Sheet, Capital Returns and Risks

Cash and equivalents stood at USD 197.0 million on September 30, 2026, with USD 299.5 million of short term financing arrangements. The company secured two term loans totaling USD 500 million in October 2026.

Share repurchases totaled USD 511 million in fiscal 2026, including USD 83 million in the fourth quarter, and management expects a slower pace in fiscal 2027 as it prioritizes investment. The board proposed a 3% Dividend increase to USD 0.586 per quarter, subject to Shareholder approval in January 2027.

Key risks include the arbitration outcome, early fiscal 2027 margin pressure and the EIS integration.

What to Watch Next

Developments to follow include any filing or statement on the T-Mobile dispute, the first quarter fiscal 2027 report, and progress on the company's stated aim of mid single digit revenue growth in fiscal 2028.