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Jun 30, 2025
Amdocs Q3 2025 Earnings Report
Amdocs reported solid financial results for the third quarter of fiscal 2025, with revenue exceeding guidance and strong performance in managed services and Europe.
Key Takeaways
Amdocs delivered robust third-quarter fiscal 2025 results, with revenue reaching $1.14 billion, surpassing the midpoint of its guidance. The company saw record revenue in Europe and achieved a record performance in managed services, which accounted for approximately 67% of total revenue. GAAP diluted EPS was $1.39, and non-GAAP diluted EPS was $1.72, both exceeding guidance ranges. Operating income and free cash flow also showed strong year-over-year growth.
Revenue for Q3 Fiscal 2025 was $1.144 billion, exceeding the midpoint of guidance, despite an 8.4% year-over-year decrease as reported due to the phase-out of certain business activities.
Managed services revenue reached a record $771 million, representing approximately 67% of total revenue and growing 4.1% year-over-year.
GAAP diluted EPS was $1.39 and non-GAAP diluted EPS was $1.72, both above their respective guidance ranges, reflecting enhanced profitability.
The 12-month backlog stood at $4.15 billion, showing a 3.0% year-over-year increase on a pro forma basis, indicating a healthy pipeline of opportunities.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amdocs expects fiscal year 2025 revenue to be between (10.0)% and (9.0)% year-over-year as reported, and 2.4% to 3.4% year-over-year in pro forma constant currency. The company reiterates its target for double-digit total shareholder returns for fiscal 2025 and anticipates full-year free cash flow between $710 million and $730 million.
Positive Outlook
- Reiterated target for double-digit total shareholder returns for fiscal 2025.
- Improved fiscal 2025 revenue growth outlook in pro forma constant currency to 2.4%-3.4%.
- Anticipated full year fiscal 2025 free cash flow of $710-$730 million, consistent with previous guidance.
- Expected double-digit growth target in cloud for the current fiscal year.
- Non-GAAP diluted EPS growth for FY2025 is expected to be 8.0%-9.0%.
Challenges Ahead
- Fiscal 2025 revenue outlook as reported is a decline of (10.0)%-(9.0)% year-over-year.
- Uncertain macroeconomic environment could impact customer spending behavior.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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