Amdocs (DOX) Is Down 5.6% After CEO Transition, AI Push and Capital Return Moves - What's Changed

• Amdocs recently reported first-quarter fiscal 2026 results showing revenue of US$1.16 billion and GAAP diluted EPS of US$1.45, updated its full-year 2026 guidance, announced a new quarterly dividend of US$0.569 per share, and completed a share repurchase of about 1.98 million shares for US$159.6 million.
• The company also confirmed a planned CEO transition to Shimie Hortig by March 31, 2026, while pushing further into AI-powered telecom software and expanding relationships with major operators in Europe and North America, developments that could influence how investors view its growth, capital returns, and leadership continuity.
• Next, we’ll examine how the CEO transition and refreshed guidance shape Amdocs’ investment narrative and perceived long-term earnings resilience.

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Amdocs Investment Narrative Recap

To own Amdocs, you need to believe telecom and media clients will keep investing in complex IT modernisation, AI and cloud platforms where Amdocs is already embedded. The most important short term catalyst remains execution on AI-powered offerings and large transformation projects; the lowered full year 2026 earnings guidance slightly softens that near term earnings story, while macro and spending risks for big carrier customers still loom large.

Among the recent announcements, the reduced 2026 GAAP EPS growth guidance to 10.0% to 17.0% stands out, because it directly affects how resilient investors may see Amdocs’ earnings amid slower reported revenue growth of 1.5% to 5.5%. Against this backdrop, the ongoing dividend increase and completion of a US$159.6 million buyback support the capital return narrative, but they sit alongside a CEO transition and continued dependence on a concentrated group of large telecom customers.

Yet behind the steady dividend increases, customer concentration and changing capex patterns could still surprise investors who are not watching...

Read the full narrative on Amdocs (it's free!)

Amdocs' narrative projects $5.0 billion revenue and $970.1 million earnings by 2028.

Uncover how Amdocs' forecasts yield a $95.50 fair value, a 38% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span roughly US$95 to US$135 per share, underlining how far apart individual views can be. Against that diversity, the recent trimming of Amdocs’ 2026 earnings guidance puts extra focus on how quickly AI and cloud projects translate into durable profits, so it is worth comparing several viewpoints before forming your own conclusion.

Explore 2 other fair value estimates on Amdocs - why the stock might be worth as much as 95% more than the current price!

Build Your Own Amdocs Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amdocs research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Amdocs research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amdocs' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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