Amdocs shares climbed 4% in early trading following the release of first quarter fiscal 2026 results. Investor enthusiasm was driven by both top- and bottom-line beats, lifting market confidence in the company’s reacceleration strategy underpinned by generative AI initiatives.

For the quarter ended December 31, 2025, Amdocs reported revenue of $1,156 million, up 4.1% year-over-year as reported and 3.5% in constant currency, above the midpoint of its $1,135–$1,175 million guidance range. GAAP diluted EPS was $1.45, topping the $1.36–$1.44 outlook, while non-GAAP diluted EPS reached $1.81, surpassing the guidance range of $1.73–$1.79 and prior year’s $1.66 per share.

Managed services revenue totaled $746 million, representing roughly 65% of total sales and marking a 2.3% year-over-year increase. European revenue jumped 17.1% to $182 million. Operating margins improved, with non-GAAP operating income at $250 million (21.6% margin). Free cash flow was $188 million, driven by $220 million of cash from operations less $32 million in capex, supporting a $146 million share repurchase in the quarter.

Amdocs reiterated its fiscal 2026 revenue growth outlook of 1.5%–5.5% on a reported basis and 1.0%–5.0% in constant currency. The twelve-month backlog rose 2.7% year-over-year to $4.25 billion, up $60 million sequentially, underpinning the company’s projected free cash flow target of $710 million–$730 million (excluding restructuring payments) and expected total shareholder return combining EPS growth and dividend yield.