Amdocs Ltd (DOX) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Macroeconomic ...

GuruFocus News

Thu, May 8, 2025, 12:34 AM 4 min read

• Revenue: $1.13 billion, up 4% year-over-year successful pro forma changeless currency.

• Free Cash Flow: $181 million, excluding restructuring-related payments.

• Non-GAAP Earnings Per Share (EPS): $1.78, supra guidance range.

• 12-Month Backlog: $4.17 billion, up 3.5% pro forma from a twelvemonth ago.

• Non-GAAP Operating Margin: 21.3%, improved by 10 ground points sequentially.

• Managed Services Revenue: $747 million, up 3.7% year-over-year.

• Cash Balance: Approximately $324 million.

• Share Repurchase: $135 cardinal repurchased; caller $1 cardinal stock repurchase program authorized.

• Dividend Payments: $54 cardinal successful the 2nd fiscal quarter.

• Warning! GuruFocus has detected 4 Warning Sign with DGII.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Amdocs Ltd (NASDAQ:DOX) reported gross of $1.13 cardinal for the 2nd quarter, exceeding the midpoint of their guidance and marking a 4% summation from the erstwhile twelvemonth successful pro forma changeless currency.

• The institution achieved a 10 ground constituent betterment successful profitability sequentially, reflecting ongoing interior ratio gains.

• Amdocs Ltd (NASDAQ:DOX) generated robust escaped currency travel of $181 million, excluding restructuring-related payments, supported by steadfast lawsuit currency collection.

• The 12-month backlog accrued to $4.17 billion, up by 3.5% pro forma from a twelvemonth ago, indicating beardown aboriginal gross visibility.

• Amdocs Ltd (NASDAQ:DOX) continues to spot beardown income momentum successful unreality services, with important projects involving large partners similar Microsoft and AWS, and expects double-digit maturation successful cloud-related gross for fiscal 2025.

• Despite the affirmative gross growth, reported gross declined by 9.4% from a twelvemonth agone owed to the phaseout of definite low-margin concern activities.

• The institution is facing a challenging macroeconomic situation with rising planetary uncertainty, which could interaction lawsuit spending behavior.

• There is simply a imaginable hazard of overseas currency fluctuations impacting fiscal results, arsenic indicated by a $2 cardinal antagonistic interaction successful the 2nd quarter.

• Amdocs Ltd (NASDAQ:DOX) is intimately monitoring the indirect interaction of macroeconomic conditions connected lawsuit spending, which could impact aboriginal growth.

• The institution has yet to spot important worldly contributions from AI-related projects, with galore initiatives inactive successful the proof-of-concept stage.

Q: Can we absorption connected AI a minute? Are you starting to spot worldly contributions to gross maturation from AI oregon improvements to the product? How are you moving with NVIDIA connected AI? Is unreality maturation accelerating, and is AI helping that growth? A: We spot GenAI activities powerfully connected with data, which overlaps with unreality arsenic information moves to platforms similar Microsoft and AWS. This supports gross growth. We spot bully signs of POCs maturing into existent deals, which volition beryllium much evident successful aboriginal quarters. Our collaboration with NVIDIA has progressed, particularly successful web automation, gathering connected NVIDIA tools.