Amdocs Posts $4.7 Billion in Annual Revenue but Forecasts 2027 Drop
Amdocs reported Q4 revenues of $1.19 billion and $4.7 billion for the full fiscal year 2026, meeting expectations. However, the company projected a 14% to 18% revenue drop for 2027 due to project completions, non-core divestments, and a dispute with T-Mobile.
Amdocs released its financial results for the fourth quarter and the full fiscal year 2026, reporting quarterly revenues of $1.19 billion, representing a 3.8% increase compared to the same period last year. Total revenues for the full year reached $4.7 billion. Non-GAAP diluted earnings per share stood at $1.98 for the fourth quarter and $7.41 for the full year, meeting the company's prior forecasts.
Alongside the earnings report, Amdocs announced an eight-year extension of its strategic contract with its largest customer, AT&T, aimed at deploying the aOS platform, alongside major strategic wins in the United Kingdom and Eurasia. Furthermore, the company's board of directors approved a 3% increase in the quarterly dividend, raising it to $0.586 per share.
However, the company's outlook for fiscal year 2027 points to a downturn, with Amdocs projecting a revenue decline of approximately 14% to 18%. This projected drop is attributed to the completion of a major project, a strategic decision to exit non-core operations—such as the sale of Vubiquity and hardware resale businesses—and a complex, public legal dispute with major US client T-Mobile involving mutual breach of contract claims and threats of agreement termination.
