Amdocs reported revenue of $1,156 million for the quarter ended December 31, 2025, representing a 4.1% increase year-over-year as reported and a 3.5% gain on a constant-currency basis. The company exceeded the midpoint of its guidance range ($1,135–$1,175 million) despite a $3 million headwind from unfavorable currency movements. GAAP diluted EPS came in at $1.45, above the guidance band of $1.36–$1.44, driven by a lower-than-expected effective tax rate. Non-GAAP diluted EPS was $1.81, topping the $1.73–$1.79 forecast, also reflecting favorable tax treatment. Free cash flow reached $188 million, supported by $220 million of operating cash flow, offset by $32 million in capital expenditures. Share repurchases totaled $146 million for the quarter, while the twelve-month backlog grew to $4.25 billion, up 2.7% year-over-year and up approximately $60 million sequentially.

Managed services revenue climbed 2.3% to $746 million, accounting for roughly 65% of total sales and underscoring the strength of Amdocs’ recurring-revenue stream. European operations delivered standout growth, with revenue of $182 million, marking a 17.1% increase compared with the prior-year quarter. GAAP operating margin expanded by 640 basis points sequentially to 17.9%, primarily due to lower restructuring charges, while non-GAAP operating margin held steady at 21.6%, a 40 basis-point improvement on a year-ago basis.

During the quarter, Amdocs announced a multi-year strategic agreement with T-Mobile USA to support its customer experience and operational excellence initiatives, reinforcing Amdocs’ position in the U.S. wireless market. The company also introduced aOS, an agentic operating system designed to accelerate generative AI deployment in telecommunications, positioning Amdocs to capture incremental market share as carriers pursue network automation and AI-driven customer service capabilities.

Amdocs reaffirmed its full-year revenue growth outlook of 1.5%–5.5% as reported and 1.0%–5.0% in constant currency. The company projects free cash flow of $710 million to $730 million, excluding restructuring payments, and expects non-GAAP EPS growth consistent with the midpoint of its guidance, supplemented by a dividend yield to drive total shareholder return. Management emphasized its focus on reaccelerating long-term growth by leveraging its expanded generative AI offerings and deepening strategic relationships with key communications and media customers.