Amdocs Q3 GAAP EPS Plunges 58% on $106M Restructuring Charge
DOX sits 16% above its 52-week low of $49.74.
Summary
Amdocs' Q3 FY2026 GAAP EPS fell 58% to $0.59 due to a $106.4 million restructuring charge, while revenue grew 2.7% to $1.175 billion. The company also disclosed a $217 million acquisition and new short-term borrowings.
Key Events · Earnings and Guidance · DOX
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GAAP EPS Plunges 58%
Q3 FY2026 diluted EPS was $0.59, down from $1.39 a year ago, due to a $106.4 million restructuring charge. Excluding the charge, EPS would have been $1.50.
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Restructuring Charge Hits Profitability
The $106.4 million charge is part of a program focused on operational excellence, automation, and GenAI deployment. Total restructuring charges for the nine months were $128.1 million.
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Revenue Growth Remains Modest
Revenue increased 2.7% to $1.175 billion, with growth across all regions. Twelve-month backlog was $4.26 billion, up 2.7% year-over-year.
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Acquisition of Matrixx Software
Amdocs completed the acquisition of Matrixx Software for approximately $217 million, adding $74.5 million in goodwill and $106 million in intangible assets.
Analysis · DOX · Technology
Amdocs reported Q3 FY2026 GAAP net income of $62.2 million, down 59.6% year-over-year, driven by a $106.4 million restructuring charge. Excluding that charge, diluted EPS would have been $1.50, but the GAAP result of $0.59 is a sharp decline from $1.39 a year ago. The company also disclosed a $217 million acquisition of Matrixx Software and a new $800 million commercial paper program, adding $200 million in short-term debt. The restructuring charge reflects a strategic shift toward automation and GenAI, but it significantly impacts near-term profitability.
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At the time of this filing, DOX was trading at $57.88 on NASDAQ in the Technology sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $49.74 to $88.46. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.