A maker of software that runs billing, customer care, and network operations for the world's biggest phone and cable companies, serving customers like Comcast, Verizon, and Singtel. Founded in Israel in 1982 as an offshoot of the Golden Pages phone directory, its name blends "Automated Data Processing" and "Modular Systems." After St. Louis's Southwestern Bell bought a stake in 1985, the company moved its headquarters to Missouri while keeping Israel as its research hub.
Amdocs shed $600M in low-margin revenue, shrinking the top line 9.4% while operating margin expanded to 16.1% and net income rose 14.5%.
Amdocs deliberately shrank its to raise profitability. Revenue fell 9.4% to $4.53 billion as the company completed the phase-out of roughly $600 million in low-margin, non-core business, but widened to 16.1% from 12.6% and rose 18.8% to $5.05. The company is now smaller at the top line but more profitable, with the restructuring program that weighed on the last two years substantially behind it.
Key takeaways
fell 9.4% to $4.53 billion entirely because of the planned exit from approximately $600 million in low-margin, non-core activities; excluding that impact, revenue grew 3.1%.
expanded to 16.1% from 12.6%, driven by the exit from low-margin work, operational efficiencies, and a $50.6 million reduction in restructuring charges to $80.5 million.
Cost of fell to 62.0% of revenue from 64.9%, reflecting the phase-out of non-core activities and efficiency improvements.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Amdocs manages foreign currency and interest rate risk with a U.S. dollar functional currency, hedging significant net exposures in major currencies.
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Approximately 70–80% of and 50–60% of operating expenses were in U.S. dollars or linked to it in fiscal 2025, with a potential decrease if more customers seek non-USD contracts.
The company hedges significant net exposures in major foreign currencies, primarily using foreign exchange contracts for in Canadian dollars and Euros and costs in New Israeli Shekels and Indian Rupees.
rose 14.5% to $564.7 million and rose 18.8% to $5.05, aided by share repurchases that reduced the share count.
increased to $749.1 million from $724.4 million, while the company returned $775.7 million to shareholders through $551.3 million in repurchases and $224.4 million in dividends.
Customer concentration eased slightly: AT&T and T-Mobile together accounted for 45.8% of , down from 47.1% a year ago.
What changed
The $600 million low-margin phase-out flagged in fiscal 2024 was substantially completed in the first quarter of fiscal 2025, and the margin benefit materialized as management expected: rose 3.5 points to 16.1%.
Restructuring charges, which appeared in both fiscal 2023 and 2024, fell to $80.5 million from $131.1 million, suggesting the cost-optimization program is winding down.
conversion improved: rose to $749.1 million from $724.4 million, reversing the prior year's decline, though cash returned to shareholders still exceeded free cash flow generated.
The AT&T and T-Mobile concentration flagged as a watch item declined from 47.1% to 45.8% of , a modest reduction but still a material dependency.
What to watch
Whether the 3.1% underlying growth rate can be sustained or accelerated now that the $600 million phase-out is complete and the base is reset.
Whether the 16.1% is the new baseline or whether further efficiency gains can push it higher without the of restructuring-charge reductions.
The trajectory of relative to shareholder returns: $775.7 million was returned against $618.9 million in free cash flow, drawing down cash reserves to $325.0 million.
Any change in the AT&T and T-Mobile relationship, as 45.8% concentration remains a material single-customer risk.
Hedging also covers balance sheet items such as and employee accruals in New Israeli Shekels, Indian Rupees, Euros, Canadian dollars, Philippine Pesos, and British Pounds.
As of September 30, 2025, the total of foreign exchange contracts was $1,523 million with a of $29.8 million.
Interest rate risk arises from cash investments and some borrowings, with short-term investments placed in conservative instruments like bank deposits, money market funds, corporate bonds, and U.S. government treasuries.
Amdocs faces material risks from customer concentration, AI/GenAI execution, cybersecurity threats, and evolving global tax and privacy regulations.
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AT&T and T-Mobile together accounted for 45.8% of fiscal 2025 , making the loss of either a material risk.
The company warns that its GenAI offerings, including the amAIz suite, carry significant product, legal, and competitive risks with limited commercial track record.
Cybersecurity incidents, including ransomware and state-sponsored attacks, could compromise customer data and disrupt and cloud operations.
New global minimum tax rules under OECD Pillar 2 are taking effect and may adversely impact the company's .
Intense competition from larger IT services firms, software vendors, and network equipment providers could erode market share as the company expands into 5G, fiber, and cloud.
Amdocs provides software and services to ~400 communications, media, and other service providers globally, enabling digital transformation, cloud migration, and AI-driven customer experiences.
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Amdocs serves leading telecom and media companies (e.g., AT&T, T-Mobile, Vodafone, Comcast) with a portfolio spanning customer engagement, monetization, network automation, and .
The CES25 suite, released in fiscal 2025, is a telco-native, GenAI-led platform embedding AI agents across business, operations, and network domains, including the new amAIz telco-intelligence suite.
and multi-year managed transformations provide predictable by operating and modernizing customers' IT and network environments, often migrating them to the cloud.
The company is executing a cloud strategy, evidenced by the fiscal 2024 acquisition of mainframe-to-cloud specialist Astadia and strategic collaborations with AWS, Microsoft Azure, Google Cloud, and Oracle Cloud.
Amdocs is expanding geographically, noting growth in Europe (e.g., Finland, Poland) and Rest of World (e.g., UAE, Japan), while North America still accounted for 65.8% of fiscal 2025 .
Competitors include providers (e.g., Netcracker, Oracle), system integrators (e.g., Accenture, Infosys), network equipment vendors (e.g., Ericsson, Nokia), and niche players, with Amdocs differentiating through industry specialization and end-to-end accountability.
Revenue fell 9.4% to $4.53B after phasing out ~$600M in low-margin activities, but operating margin expanded to 16.1% and net income rose 14.5%.
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Total decreased 9.4% to $4.53 billion, driven by the phase-out of approximately $600 million in low-margin, non-core business activities; excluding this impact, revenue grew 3.1%.
improved to 16.1% from 12.6%, primarily due to the exit from low-margin activities, operational excellence, and lower ($80.5M vs. $131.1M).
Cost of fell to 62.0% of revenue from 64.9%, largely reflecting the phase-out of non-core activities and efficiency improvements.
attributable to Amdocs increased 14.5% to $564.7 million, and rose 18.8% to $5.05, aided by share repurchases.
Cash and equivalents decreased to $325.0 million, mainly due to $551.3 million in share repurchases and $224.4 million in dividends, partially offset by $749.1 million in .
The company expects current liquidity, , and access to capital markets to meet operational needs, debt repayments, share repurchases, and dividends for at least the next fiscal year.