Key Highlights

  • Fiscal 2027 reported Revenue is guided to decline 14.3% to 17.9%, following 3.6% growth in fiscal 2026.
  • Non-GAAP diluted EPS for fiscal 2027 is guided to fall 26% to 30% from USD 7.41.
  • The twelve month Backlog at September 30, 2026 stood at USD 3.50 billion, down about USD 370 million from the prior quarter.
  • Fiscal 2026 free Cash Flow was USD 562 million, while fiscal 2027 guidance is USD 440 million to USD 500 million before restructuring payments.
  • Cash declined to USD 197.0 million from USD 325.0 million a year earlier.

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

Amdocs (NASDAQ:DOX) fell 40.12% to USD 37.38 in pre-market trading on November 4, 2026, a drop 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 responded to the outlook rather than the quarter.

Quarterly revenue of USD 1.194 billion rose 3.8%, and non-GAAP diluted EPS was USD 1.98 against USD 1.83 a year earlier. The shock came from a fiscal 2027 forecast that signals a steep contraction.

What the Guidance and the T-Mobile Dispute Indicate

The company press release says fiscal 2027 reported revenue is expected to fall 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 attributed most of the weakness to T-Mobile (NASDAQ:TMUS), its largest customer, citing lower 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.

Company Background and Recent Performance

Amdocs provides billing, customer experience and network software and services to communications and media companies around the world. On November 3, 2026, it announced an eight year agreement with AT&T (NYSE:T) for its agentic AI platform.

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 reached USD 4.697 billion, up 3.6%, and non-GAAP diluted EPS was USD 7.41, up 6.0%. GAAP diluted EPS came to USD 4.68, down 7.3%, reflecting 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 Risk Factors

Cash and equivalents stood at USD 197.0 million on September 30, 2026, alongside 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. Management expects a slower buyback pace in fiscal 2027 as it puts priority on 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.

Next Steps to Track

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