Amdocs Limited (DOX) AI Stock Analysis

Amdocs Limited provides software and services solutions tailored for service providers across various industries. Its modular cloud portfolio includes CES21, enabling service providers to deliver and monetize 5G and cloud-native services. The company offers customer experience management and engagement through its Commerce and Care suite, alongside charging and billing via its Monetization suite. Amdocs also provides Intelligent Networking solutions for network automation, the MarketONE platform, the Digital Brands Suite, and eSIM Cloud solutions. Beyond software suites, Amdocs delivers AI-powered systems, data intelligence, media services, and end-to-end application development, testing, and IT infrastructure managed services.

Amdocs delivered a 5-year revenue CAGR of 1.7% from FY2020 to FY2025. Annual revenue grew from $4.29B in FY2021 to $5.00B in FY2024 before declining 9.4% to $4.53B in FY2025. Despite lower revenue in FY2025, gross margin expanded to 36.6% and operating margin rose to 18.2%, lifting net income to $564.7M and EPS to $6.99. In the trailing twelve months ending June 30, 2026, revenue stood at $4.65B with an operating margin of 18.0% and EPS of $4.21. For the latest quarter ending June 30, 2026, quarterly revenue grew 2.7% year-over-year, while quarterly earnings declined 57.4%.

As of June 30, 2026, Amdocs held $206.5M in cash and short-term investments against total debt of $1.09B, resulting in net debt of $880.6M. Shareholders' equity was $3.29B, yielding a debt-to-equity ratio of 0.33 and a current ratio of 0.94. In FY2025, operating cash flow reached $749.1M and free cash flow was $645.1M. Capital allocation in FY2025 included $104.0M in capital expenditures, $551.3M directed toward share buybacks, and $224.4M distributed as dividends, contributing to a 14.5% reduction in share count over 5 years.

Amdocs trades at a trailing P/E of 14.3x and a forward P/E of 7.1x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. The company holds an enterprise value of $6.98B and a market cap of $6.27B, with an EV/EBITDA of 8.4x compared to the peer median of 16.6x, and a price-to-sales multiple of 1.3x versus the peer median of 2.8x. Over the past year, the stock fell 24.5%, trailing the S&P 500 return of 16.8%, and over five years it fell 15.7% against an 83.0% gain for the index.

Amdocs offers a forward annual dividend of $2.28 per share, representing a dividend yield of 3.79% and a payout ratio of 31.5%. The dividend is paid on a quarterly frequency and has been paid for 15 consecutive years, delivering a 5-year annualized dividend growth rate of 9.9%. The most recent ex-dividend date was September 30, 2026.

Wall Street coverage includes 3 Strong Buy and 3 Hold ratings, with 0 Buy, Sell, or Strong Sell recommendations. The mean price target is $79.25, representing an upside of 32.0% from the last close of $60.06. For the current fiscal year ending September 30, 2026, consensus estimates project EPS of $7.42 on revenue of $4.70B. For the next fiscal year, 6 analysts anticipate EPS of $8.03 and revenue of $4.85B. Amdocs beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 10, 2026.

This page is an AI-written research summary of Amdocs Limited (DOX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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