Amdocs Q1 Revenue Up 4.1% to $1.156B, EPS $1.81 Beats, $146M Buyback
Amdocs reported Q1 fiscal 2026 revenue of $1.156B, up 4.1% YoY (3.5% in constant currency), and non-GAAP EPS of $1.81 exceeded the $1.73-$1.79 guidance range. It repurchased $146M of shares, secured a multi-year T-Mobile agreement, won VIDAA’s MarketONE OTT deployment and forecasts 1.5%-5.5% revenue growth.
1. Amdocs Q1 EPS and Revenue Outperformance
Amdocs reported non-GAAP diluted earnings of $1.81 per share for the fiscal first quarter ended December 31, 2025, surpassing the Zacks Consensus Estimate of $1.75 and marking a 9.0% improvement from $1.66 a year earlier. GAAP diluted EPS came in at $1.45, exceeding the guidance range of $1.36–$1.44, driven by a lower-than-expected effective tax rate. Total revenue reached $1.156 billion, up 4.1% year-over-year on reported basis and up 3.5% in constant currency, topping the midpoint of the company’s $1.135–$1.175 billion guidance range despite a $3 million headwind from foreign exchange variance.
2. Margin Expansion and Cash Generation
Non-GAAP operating income of $250 million yielded a 21.6% operating margin, a 40 basis-point increase from the prior‐year quarter and flat sequentially. GAAP operating income stood at $207 million, representing a 17.9% margin, unchanged year-over-year but up 640 basis points sequentially thanks to lower restructuring charges. Free cash flow totaled $188 million, comprising $220 million of operating cash flow less $32 million of net capital expenditures and $49 million in restructuring outlays. The company reiterated its full-year free cash flow outlook of $710 million to $730 million, excluding restructuring payments.
3. Strategic Wins and Backlog Growth
Amdocs signed a multi-year strategic agreement with T-Mobile USA to enhance customer experience and operational excellence, highlighting continued telecom operator traction. The services backlog expanded to $4.25 billion, up 2.7% year-over-year and roughly $60 million sequentially, underpinning revenue visibility in managed services, which represented 65% of total revenue at $746 million and grew 2.3% year-over-year. In Europe, revenue surged 17.1% to $182 million, reflecting successful regional deal closures and expansion of cloud-native offerings.
4. New OTT Partnership with VIDAA
In a move to capture streaming commerce opportunities, Amdocs’ MarketONE platform was selected by VIDAA, a leading Smart TV operating system, to power subscription and bundled OTT services directly on TV screens. This partnership positions Amdocs to monetize its commerce capabilities across the fast-growing connected TV sector and to drive recurring software revenue streams tied to consumer spend on streaming content.