Amdocs (DOX) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue reached $1.16 billion, up 4.1% year-over-year and slightly above guidance midpoint, with strong performance in North America and Europe.

• Non-GAAP diluted EPS was $1.81, exceeding guidance due to a lower-than-expected tax rate; GAAP diluted EPS was $1.45, also above guidance.

• 12-month backlog grew to $4.25 billion, up $60 million sequentially and 2.7% year-over-year, supporting future revenue visibility.

• Announced CEO succession: Shimie Hortig to succeed Shuky Sheffer as CEO effective March 31, 2026.

• Announced new multi-year agreements with T-Mobile and Vodafone Germany, and closed the $197 million acquisition of MATRIXX Software.

Financial highlights

• North America revenue grew nearly 4% year-over-year and sequentially for the fourth consecutive quarter.

• Europe revenue increased 17% year-over-year, driven by organic growth and the Profinit acquisition.

• Managed services revenue was $746 million, up 2.3% year-over-year, maintaining a 65% share of total revenue and high renewal rates.

• Free cash flow before restructuring was $237 million; reported free cash flow was $188 million after $49 million in restructuring payments.

• Cash balance at quarter-end was $248 million, with aggregate borrowings of $780 million.

Outlook and guidance

• Fiscal 2026 revenue growth expected between 1% and 5% in constant currency; reported growth guidance is 1.5%-5.5%.

• Non-GAAP diluted EPS growth projected at 4%-8% for fiscal 2026.

• Non-GAAP operating margin guidance: 21.3%-21.9%, with a 21.6% midpoint.

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

• Q2 2026 revenue guidance: $1,150 million-$1,190 million; non-GAAP EPS: $1.73-$1.79.