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    What Amdocs (DOX)'s New Cloud And AI Deals Amid Softer EPS Guidance Mean For Shareholders

    Simply Wall St·12/25/2025 12:28:22
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    • Earlier this week, Amdocs reported earnings that narrowly beat backlog expectations but missed next-quarter EPS guidance, while unveiling new cloud migration and digital transformation deals with major telecom operators across North America, Europe, Latin America, and Asia.
    • A key takeaway is Amdocs’ ability to win large, long-term modernization and generative AI projects even as near-term profitability guidance softens.
    • We’ll now examine how these new cloud and generative AI transformation wins may influence Amdocs’ existing investment narrative.

    Find companies with promising cash flow potential yet trading below their fair value.

    Amdocs Investment Narrative Recap

    To own Amdocs, you need to believe large telecoms will keep investing in complex cloud, automation, and AI upgrades that require long-term partners. The latest quarter reinforces this demand with new multi-region wins, but the EPS guidance miss and flat backlog trend keep the main near term catalyst (cloud and GenAI projects scaling into revenue) and the biggest risk (muted telco spending and delayed transformations) firmly in focus rather than materially changing them.

    Among the new deals, Amdocs’ cloud migration and digital transformation agreement with tier 1 operators such as TELUS and British Telecom stands out, because it ties directly to the core modernization and GenAI catalyst investors are watching. These multi-year wins support the view that Amdocs can deepen its role in telecom IT stacks even as overall industry capex and backlog growth remain under pressure.

    Yet while new AI and cloud wins are encouraging, investors also need to be aware that...

    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 $104.00 fair value, a 28% upside to its current price.

    Exploring Other Perspectives

    DOX 1-Year Stock Price Chart
    DOX 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span roughly US$104 to US$131 per share, underscoring how differently individual investors view Amdocs’ potential. Set this against the risk that telecom clients keep tightening or deferring digital transformation budgets, which could limit how quickly those optimistic scenarios play out.

    Explore 2 other fair value estimates on Amdocs - why the stock might be worth just $104.00!

    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 4 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.