Amdocs (DOX) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $1.175 billion, up 2.7% year-over-year and at the midpoint of guidance, with non-GAAP diluted EPS of $1.84.

• Managed services delivered a record quarter, accounting for 67% of total revenue.

• Secured a major 10-year partnership with Liberty Latin America to manage and transform its IT ecosystem using the agentic operating system (aOS).

• The company is advancing a four-pillar growth strategy centered on agentic transformation, vertical expansion, emerging growth horizons, and internal transformation.

• Achieved key project milestones and customer wins with global telecom clients.

Financial highlights

• Q3 revenue: $1,174.9 million, up from $1,144.4 million in Q3 2025, with 2.7% year-over-year growth as reported and 2.2% in constant currency.

• Non-GAAP operating margin was 21.6%, up 20 basis points year-over-year and 10 basis points sequentially.

• Free cash flow before restructuring was $193 million in Q3, with nearly 75% of the FY 2026 target already achieved.

• 12-month backlog stood at $4.26 billion, up 2.7% year-over-year.

• Managed services revenue was $791 million, up 2.5% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue growth expected between 3.2% and 4% as reported, and 2.6%-3.4% in constant currency, with a 3% midpoint.

• Non-GAAP diluted EPS growth projected at 5.5%-6.5% for FY 2026, with a 6% midpoint.

• Free cash flow for FY 2026 expected between $710 million-$730 million, excluding restructuring payments, with ~90% earnings-to-cash conversion.

• Non-GAAP operating margin targeted at 21.3%-21.9% for FY 2026.

• Q4 revenue guidance: $1,175 million-$1,215 million; non-GAAP EPS: $1.94-$2.00.