Amdocs (DOX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.172 billion, up 3.9% year-over-year, exceeding guidance midpoint, with strong international growth and record revenue in Europe and Rest of the World.

• Non-GAAP diluted EPS was $1.78, above guidance midpoint; GAAP EPS was $1.28, including restructuring charges and investment gains.

• The company advanced its agentic strategy, launching the aOS platform with initial commercial agreements and positive market feedback.

• Leadership transition: Tamar Rapaport-Dagim retired as CFO, succeeded by Tal Rozenfeld, ensuring continuity and deep internal experience.

• Positioned as a primary partner for agentic transformation, leveraging industry expertise and innovation.

Financial highlights

• Q2 revenue grew 3.9% year-over-year as reported, 2.2% in constant currency; North America up 2.2%, Europe up 6.2%, Rest of the World up 8%.

• Non-GAAP operating margin improved by 20 basis points year-over-year to 21.5%, reflecting efficiency gains and automation.

• Free cash flow before restructuring was $97 million; reported free cash flow was $80 million.

• 12-month backlog reached $4.28 billion, up $30 million sequentially and 2.6% year-over-year.

• Managed services revenue was $759 million, up 1.6% year-over-year, accounting for 65% of total revenue.

Outlook and guidance

• Fiscal 2026 revenue growth guidance tightened to 2.6%-4.6% as reported, 2.0%-4.0% in constant currency, with a 3% midpoint.

• Non-GAAP diluted EPS growth guidance reiterated at 5%-7% for fiscal 2026.

• Non-GAAP operating margin expected within 21.3%-21.9% for fiscal 2026, reflecting increased GenAI and aOS investments.

• Free cash flow for fiscal 2026 projected at $710-$730 million, with a 90% conversion rate relative to non-GAAP net income.

• Q3 FY26 revenue guidance is $1,155–$1,195 million; non-GAAP EPS $1.81–$1.87.