Amdocs (DOX) investor relations material

Executive summary

• Q3 FY2025 revenue reached $1.14B, up 3.5% year-over-year pro forma constant currency, exceeding guidance midpoint and driven by strong cloud, digital, and AI-based solutions adoption.

• Record managed services revenue of $771M, accounting for 67% of total revenue, with high renewal rates and sequential growth in all regions.

• Europe delivered a record quarter with $189M revenue, up 7.7% year-over-year, aided by new deals and acquisitions.

• Twelve-month backlog reached $4.15B, up 3% year-over-year pro forma, providing strong forward visibility.

• Profitability improved with non-GAAP diluted EPS at $1.72 and GAAP diluted EPS at $1.39, both above guidance.

Financial highlights

• Q3 revenue: $1.14B, up 3.5% year-over-year pro forma constant currency; reported revenue declined 8.4% due to phase-out of low-margin activities.

• Non-GAAP operating margin at 21.4%, up 280 bps year-over-year and 10 bps sequentially; GAAP operating margin at 17.7%, up 360 bps year-over-year.

• Free cash flow for Q3 was $212M; cash balance at $342M with $500M available credit facility.

• Managed services revenue hit a record $771M, up 4.1% year-over-year, representing two-thirds of total revenue.

• Net income attributable to shareholders: $154M GAAP, $191M non-GAAP.

Outlook and guidance

• FY2025 revenue growth expected at 2.4–3.4% pro forma constant currency, midpoint at 2.9%, up 20 bps from prior outlook.

• Double-digit cloud revenue growth expected for FY2025.

• Non-GAAP operating margin guidance: 21.1%–21.7%, with midpoint up ~300 bps year-over-year.

• Non-GAAP EPS growth expected in the 8–9% range for FY2025; free cash flow guidance $710–$730M before restructuring payments.

• Q4 FY2025 revenue expected between $1,125M–$1,165M; non-GAAP EPS guidance is $1.79–$1.85.