Fiscal 2025

Dear Fellow Shareholders,

Fiscal year 2025 was a defining year for Amdocs and for our industry. The emergence of generative AI (GenAI) is not just another technology wave – it is ushering in a new agentic era, transforming the way businesses operate, how industries evolve, and how billions of people connect.

In this context, Amdocs executed with consistency and focus in a complex environment, delivering on our guidance and demonstrating the stability and discipline of our operations.

Revenue reached $4.53 billion, a decrease of 9.4% as reported due to the phase out of low-margin, non-core business activities(1). Adjusting for this, revenue increased by 3.1% in pro forma(1) constant currency(2), with non-GAAP operating margin expanding 300 basis points to 21.4%(3).

Following our decision in FY24 to phase out approximately $600 million of low-margin, non-core activities, FY25 marked the benefits of this disciplined shift, with profitability and business visibility strengthening significantly. We generated $645 million in free cash flow(4) (or $735 million excluding restructuring payments) and returned $776 million to shareholders through share repurchases and dividends, while recommending to shareholders an 8% increase in our quarterly dividend – a clear vote of confidence in our business strength and cash generation.

(1) For comparison purposes, pro forma adjusts fiscal year 2024 revenue by approximately $600 million to reflect the end of certain low-margin, non-core business activities; these activities substantially ceased in the first quarter of fiscal 2025 and are not included in the full-year fiscal 2025 revenue.

(2) Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period.

(3) For further details of reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables on pages 14-15.

(4) Free cash flow is calculated as cash flow from operating activity less net capital expenditures and other. Please refer to the Selected Financial Metrics tables on page 12.

FY25 highlights at a glance

Over the past year, we deepened customer relationships, sharpened execution, and advanced our strategic priorities across AI, cloud, and digital transformation.

Highlights include:

  • Double-digit cloud revenue growth for the fourth consecutive year, with cloud-related activities now representing over 30% of total revenue.
  • Continued adoption of our GenAI and data offerings, moving from pilots to production with leading providers.
  • Record managed services revenue of $2.996 billion, approximately two-thirds of total revenue, underscoring the resilience and predictability of our model.
  • 12-month backlog of $4.19 billion, up 3.2% year-over-year, representing approximately 90% of our forward 12-month revenue and providing strong visibility into FY26.

FY25 also reflected the continued diversification of our business and the growing strength of our international operations. We expanded our footprint across key global markets through new modernization engagements in Europe, Asia-Pacific, and Latin America, while deepening relationships with long-standing customers in North America. This broadened mix strengthens our resilience, supports balanced growth across regions, and enhances our long-term visibility.

These results reflect the professionalism and dedication of our employees and the trust our customers place in Amdocs to deliver impact at scale.

Positive cloud momentum

Cloud has become the foundation of telecom transformation, and Amdocs continues to lead this shift as service providers move from migration to large-scale modernization. In FY25, cloud-related activities grew at a double-digit rate and accounted for more than 30% of total revenue.

Across regions, we strengthened our leadership through major cloud programs. In the U.S., Lumen Technologies selected us to drive its enterprise-wide cloud transformation, while Bell and Telus in Canada chose Amdocs to migrate key systems and wireless monetization operations to the cloud. In Europe, Orange Belgium adopted our cloud-native connectX platform to enhance efficiency and transform the prepaid experience with modern, digital-first journeys.

We also advanced large-scale migrations for AT&T on Microsoft Azure, partnered with Elisa in Finland on Google Cloud, and enabled PLDT in the Philippines to transform on AWS. Together, these initiatives show how Amdocs is helping service providers modernize their infrastructure, accelerate innovation, and deliver seamless experiences to millions of customers worldwide.

Driving digital transformation

Digital transformation remains central to every service provider’s strategy, and Amdocs continues to play a vital role in driving these initiatives forward.

Over the past year, we advanced major programs with Bell, Rogers, and Comcast in North America, while in Europe, BT-EE, Altice SFR, and Telia selected Amdocs for modernization initiatives that strengthen digital operations and elevate the customer experience. In Asia-Pacific, PLDT and Optus continued to expand their digital transformation programs, and in Latin America, Vivo and Claro Brazil signed new agreements to modernize their networks.

At Mobile World Congress, we announced the launch of Amdocs Studios – our new offering that unites our expertise in quality engineering, experience design, and system integration to help customers innovate faster, simplify complexity, and grow at scale. In a landmark collaboration, DreamWorks Animation is working with Amdocs Studios to streamline production workflows and manage vast digital assets, demonstrating the power of our expertise beyond telecom.

At the same time, Telkom South Africa is leveraging Amdocs Studios to build unified digital commerce and care journeys that bring greater agility and speed to market. Together, these collaborations highlight how Amdocs empowers organizations to operate with greater flexibility, creativity, and growth potential.

Monetization & next-generation networks

Service providers worldwide are accelerating investments in 5G standalone, fiber, and converged offerings that bundle broadband and mobile.

This momentum is driving demand for new monetization platforms, advanced network design, and digital infrastructure management – areas where Amdocs is a well-established leader. This past year we were recognized as the global market leader in monetization platforms, collaborating with customers including Bell Canada, Movistar El Salvador, Botswana Telecommunications Corporation, Odido in the Netherlands, A1 Bulgaria, and A1 Macedonia to modernize billing systems and accelerate service innovation.

In networks, we expanded our involvement in next-generation OSS and network design, achieving key milestones with Bell Canada, Claro Brazil, and Globe Telecom in the Philippines.

We also deepened our partnership with AT&T as its connectivity design partner for fiber expansion across most of its markets, and we expanded our Canadian footprint through the acquisition of Mobia’s telco network engineering business. Together, these steps reinforce Amdocs’ leadership in enabling next-generation networks that deliver new value for end-users.

Managed services: resilient growth engine

Proof of our resilience, visibility, and strength sits in the model. Managed services delivered another record year in FY25, generating $2.996 billion in revenue, or roughly 66% of total revenue, with near-100% renewal rates.

This foundation remains the backbone of Amdocs’ consistency and long-term growth, providing highly recurring revenue streams and stability year after year.

Current momentum provides clear visibility into the year ahead, reflected in our 12-month backlog of $4.19 billion, up 3.2% year over year.

This progress was driven by key wins and expansions, as we extended long-term agreements with PLDT, Telia Norway, Comcast, M1 Singapore, and Telstra in Australia. We also signed new agreements with VodafoneZiggo in the Netherlands and expanded our footprint with Fidium through a multi-year software and IT services agreement to modernize IT operations and advance its digital transformation. In Japan, we deployed a scalable cloud platform for NTT InfraNet that automates IT operations and accelerates service launches. Together, these long-term engagements underscore Amdocs’ role as a trusted, long-term partner in running the mission-critical systems that power the world’s leading service providers.

GenAI & data: leading the agentic era

FY25 marked a defining step in our GenAI journey. We moved from proof of concept to commercial deals, demonstrating Amdocs’ pivotal role as a technology partner helping service providers accelerate GenAI adoption and realize measurable impact.

Our amAIz suite of data and AI solutions is now at the heart of how service providers are reimagining customer and business operations. In FY25, companies such as Telefónica Germany, Altice Optimum, and e& UAE began using our GenAI capabilities to transform sales, billing, and customer experience journeys – showing how Amdocs’ technology is now powering the next wave of intelligent operations across the industry.

With strategic partnerships across the ecosystem – including NVIDIA, Microsoft, Google, and Amazon Web Services (AWS) – we are well positioned to help organizations capture the opportunities of this new era. To further strengthen our capabilities, we acquired Profinit, a data science engineering and intelligence company that expands our reach in AI and analytics, helping us address the rapidly growing demand for data and GenAI services in telecom and beyond.

Inside Amdocs, we are investing with discipline and confidence, strengthening the foundations of our business, and positioning the company to innovate and grow at scale. GenAI is now embedded across our operations, driving measurable efficiencies in software development and delivery.

FY25 demonstrated how GenAI is beginning to evolve into a future growth driver for Amdocs. We enter FY26 confident in our ability to guide the industry into the next generation of intelligent, connected experiences, as we expand amAIz with our new cognitive core that enables agentic experiences across our products and services.

Impact-driven progress: creating sustainable value

We continue to prioritize sustainability, environmental stewardship, and social impact, creating long-term value for our stakeholders. ESG principles are embedded in how we operate, guiding the actions that drive progress toward our sustainability goals.

In FY25, for the sixth consecutive year, Amdocs was included in the Dow Jones Best-in-Class North America Index and again in S&P Global’s CSA Yearbook. We also achieved strong ESG ratings from CDP and EcoVadis while maintaining top-tier results from ISS and Sustainalytics.

We expanded our use of renewable energy and continued programs to reduce the environmental impact of our operations. Our newest campuses in Gurgaon, India, and Ra’anana, Israel, are LEED Platinum and Gold certified, supporting our climate objectives.

Equally important is our commitment to our people – the foundation of our success. We continue to enhance wellbeing, inclusion, and internal mobility, and invest in reskilling and upskilling for the GenAI era, empowering employees to adapt to change and lead it.

Across our global footprint, employees also played an active role in their communities – championing digital inclusion and partnering with NGOs, customers, and local organizations to create positive change. Together, they volunteered across programs that leverage Amdocs’ skills, technology, and passion to make a lasting impact.

As the global ESG landscape evolves, we remain focused on ethical, impact-driven progress as a responsible corporate citizen, creating sustainable value for our stakeholders and the communities we serve.

 

Looking ahead

GenAI marks the beginning of a new era – one that is already reshaping how businesses operate and how industries evolve.

With proven expertise in AI, cloud, and digital transformation, Amdocs is well positioned for this next chapter as service providers scale GenAI from pilots to real business impact. We enter FY26 with a healthy and diverse pipeline across our growth pillars: advancing cloud modernization, digitally transforming customer experience, monetizing next-generation networks, and delivering dynamic, connected experiences.

Our outcomes-based accountability model, which ties value directly to measurable results, strengthens our ability to scale GenAI with confidence while maintaining predictable performance. As we execute on this strategy, we expect revenue growth of 1.7%–5.7% as reported and 1.0%–5.0% in constant currency(2). Coupled with our continued focus on profitability, we expect GAAP EPS up 13.5%–20.5% and non-GAAP EPS up 4.0%–8.0% in FY26. With record managed services, our robust 12-month backlog, and a resilient recurring base, Amdocs is positioned for sustained growth and expanding our key role in the AI era.

Guided by this ambition, we remain focused on strengthening our core, deepening our partnerships, and creating long-term value for our stakeholders. To our shareholders, customers, partners, and employees – thank you for your trust and commitment. Together, we are shaping the future of our industry and making connected experiences amazing for billions of people around the world.

Shuky Sheffer
President & Chief Executive Officer
Eli Gelman
Chairman of the Board
 

This letter includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing levels of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events, as well as the current inflationary environment, and the effects of these conditions on Amdocs' customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of Amdocs' customers, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render Amdocs' products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2025, filed on December 15, 2025, and our Form 6-K furnished for the first quarter of fiscal 2025 on February 18, 2025, for the second quarter of fiscal 2025 on May 19, 2025, and for the third quarter of fiscal 2025 on August 18, 2025.