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.

• Signed a major 10-year partnership with Liberty Latin America to manage and transform its IT ecosystem using the agentic operating system (aOS).

• Strong sales momentum with new wins and project milestones at major global telecom providers.

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

Financial highlights

• Q3 revenue: $1,174.9 million, up from $1,144.4 million in Q3 2025.

• Non-GAAP operating margin was 21.6%, up 20 basis points year-over-year and 10 basis points sequentially.

• Non-GAAP net income: $195.9 million; non-GAAP diluted EPS: $1.84 (up from $1.72 year-over-year); GAAP diluted EPS: $0.59, impacted by a $0.91 per share restructuring charge.

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

• Repurchased $143 million in shares during Q3.

Outlook and guidance

• Fiscal 2026 revenue growth expected between 3.2% and 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 at 6.0%.

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

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

• Majority of free cash flow expected to be returned to shareholders.