Amdocs stock plunges 44% after hours on T-Mobile dispute

What happened. On 3 November Amdocs published results for the fourth quarter and fiscal 2026, which ended on 30 September. Revenue for the year was $4,697 million, up 3.6% from a year earlier. Non-GAAP earnings per share (adjusted for one-off items) rose to $7.41 from $6.99. GAAP earnings per share fell to $4.68 from $5.05.

The guidance. For fiscal 2027 the company expects revenue to fall 14.3% to 17.9% as reported. If you take about $360 million of fiscal 2026 revenue out of the base for non-strategic activities (hardware resale and the media business sale) and use constant currency, the fall is 7% to 11%. Non-GAAP earnings per share are guided down 26% to 30%. First quarter fiscal 2027 revenue is guided at $955 million to $995 million, against $1,194 million in the fourth quarter of fiscal 2026.

The T-Mobile dispute. In Amdocs' own words, the two companies have sent each other notices. Each says the other materially breached one or more of the agreements under which Amdocs provides software and services to T-Mobile. Both notices threaten to terminate the agreements or to seek money and other relief, including in arbitration. Amdocs says it is prepared to pursue its claims and defend itself against T-Mobile's assertions, and that the outcome is not assured. These are the positions of the two sides. We did not find T-Mobile's own words in the sources we opened, only Amdocs' account of them.

How it fed into the guidance. CEO Shimie Hortig said the guidance reflects major headwinds from T-Mobile: the recent dispute, the end of the USCellular customer integration project and a cut in T-Mobile's discretionary spending. He said the rest of the business remains robust and keeps growing in fiscal 2027. In the release Amdocs calls its guidance assumptions conservative and includes the case where either party terminates the agreements.

Market reaction. CTech reports the stock fell 44% in after-hours trading on Wall Street. Investing.com says Oppenheimer cut its rating on Amdocs to Perform from Outperform because of the weak guidance and the dispute with a major customer. The bank points to a risk that operators may build or upgrade their OSS/BSS systems (the software operators use to run services and billing) in-house with agentic AI.

A new purchase. The same day Amdocs announced it is buying EIS, an insurance software provider, for about $340 million in cash. More may be paid if EIS hits performance targets. CTech calls it Amdocs' first step into insurance. For context, about six months ago the company announced layoffs of around 3,000 people, roughly 10% of its staff. In Israel, hundreds were laid off from a local workforce of about 5,000.

What we do not know. How the dispute ends and whether it goes to arbitration. What T-Mobile will say. What share of Amdocs revenue comes from this customer: the pages we opened give no figure. Where the stock trades once the market opens. This is an overview, not a forecast or advice.

已确认的事实

• Amdocs published results for the fourth quarter and fiscal 2026 on 3 November 2026 (the year ended on 30 September).^[1]
• Fiscal 2026 revenue was $4,697 million (up 3.6%). Non-GAAP earnings per share were $7.41 against $6.99, and GAAP earnings per share were $4.68 against $5.05.^[1]
• Fourth quarter fiscal 2026 revenue was $1,194 million.^[1]
• Fiscal 2027 guidance: revenue down 14.3% to 17.9% as reported, down 7% to 11% in pro forma constant currency, and non-GAAP earnings per share down 26% to 30%.^[1]
• The pro forma adjustment reduces fiscal 2026 revenue by about $360 million because of the exit from hardware resale and the sale of the media business.^[1]
• First quarter fiscal 2027 revenue is guided at $955 million to $995 million.^[1]
• Amdocs and T-Mobile have sent each other notices: each side says the other materially breached one or more of the agreements under which Amdocs provides software and services to T-Mobile.^[1]
• Both sides' notices threaten to terminate the agreements and/or to pursue monetary and other relief, including in arbitration.^[1]
• Amdocs says it is prepared to pursue its claims and defend itself against T-Mobile's assertions, including in arbitration, and that there is no assurance as to the outcome.^[1]
• The fiscal 2027 guidance takes into account the case where either party terminates the agreements with T-Mobile.^[1]
• CEO Shimie Hortig named the recent dispute with T-Mobile, the completion of the USCellular customer integration project and lower discretionary spending by T-Mobile as reasons for fiscal 2027 headwinds. He said the rest of the business remains robust and keeps growing.^[1][2]
• According to CTech, Amdocs shares fell 44% in after-hours trading on Wall Street.^[2]
• CTech describes T-Mobile as one of Amdocs' biggest customers.^[2]
• Oppenheimer downgraded Amdocs to Perform from Outperform, citing weak fiscal 2027 guidance and the dispute with a major customer.^[3]
• Oppenheimer notes a risk that operators may build or upgrade their OSS/BSS systems in-house using agentic AI.^[3]
• Amdocs announced on 3 November that it is buying EIS, an insurance software provider, for about $340 million in cash. Additional payments are possible if performance targets are met.^[1][2]
• About six months ago Amdocs announced layoffs of around 3,000 people (roughly 10% of its staff). In Israel, hundreds were laid off from a local workforce of about 5,000.^[2]

影响

• 已确认Amdocs itself expects lower revenue and earnings per share in fiscal 2027.
• 已确认Amdocs says actual developments could differ materially from its guidance, including because of any proceeding or settlement with T-Mobile.
• 已确认Oppenheimer sees a risk that other operators go the same way and build their own systems.
• 我们的解读Reliance on one big customer is now the main risk in the Amdocs story. That is our reading.

仍未知

• How the T-Mobile dispute ends and whether arbitration starts
• What T-Mobile will say
• What share of Amdocs revenue comes from T-Mobile
• Where the stock trades once the market opens

影响到谁

United States, Israel. Readers who follow Amdocs stock and telecom software, and people who work in the industry

来源

1. Amdocs Investor Relations: Fourth Quarter Results for Fiscal 2026 2026年11月3日 · 官方
2. CTech by Calcalist: Amdocs shares plunge 44% as T-Mobile dispute threatens revenue 2026年11月4日 · 媒体
3. Investing.com: Oppenheimer downgrades Amdocs stock rating on weak guidance 2026年11月4日 · 媒体