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Mar 31
Amdocs Q2 2025 Earnings Report
Amdocs reported a revenue decline on a reported basis for Q2 2025, while achieving growth on a pro forma constant currency basis and improved margins.
Key Takeaways
In Q2 2025, Amdocs generated $1.13 billion in revenue, down 9.4% as reported but up 4.0% on a pro forma constant currency basis. The company posted strong profitability and record managed services revenue, despite macroeconomic challenges.
Revenue totaled $1.13 billion, reflecting a 9.4% YoY decline due to the phase-out of non-core business, but grew 4.0% on a pro forma constant currency basis.
GAAP net income reached $164 million and GAAP EPS was $1.45, both above expectations.
Free cash flow was $156 million, with solid cash collections supporting operations.
Managed services revenue hit a record $747 million, comprising 66% of total revenue.
Amdocs
Amdocs
Amdocs Revenue by Segment
Amdocs Revenue by Geographic Location
Revenue by Segment
Managed Services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of the World Revenue
CapyFin.com Forward Guidance
Amdocs reiterated its pro forma constant currency revenue growth outlook for FY25, anticipating robust earnings and cash generation amid macroeconomic uncertainty.
Positive Outlook
- Midpoint of FY25 pro forma revenue growth guidance reiterated.
- Expected full-year free cash flow between $710M and $730M, excluding restructuring.
- Third quarter non-GAAP EPS guidance of $1.68 to $1.74 reflects strong profitability.
- Continued cloud and GenAI partnership momentum, including Microsoft Azure and NVIDIA.
- Share repurchase program expanded by $1 billion, supporting shareholder returns.
Challenges Ahead
- Full-year reported revenue guidance reflects a decline of 10.9% to 9.1%.
- Foreign currency fluctuations expected to reduce FY25 revenue by 0.5%.
- Macroeconomic uncertainty may indirectly impact customer spending behavior.
- Customer consolidation and strategic shifts could affect long-term contracts.
- Restructuring charges previously impacted profitability and may recur.