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DATE

Wednesday, May 13, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Shimie Hortig
  • Chief Financial and Operating Officer — Tamar Rapaport-Dagim
  • Incoming Chief Financial Officer — Tal Rosenfeld
  • Head of Investor Relations — Matthew E. Smith

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TAKEAWAYS

  • Revenue -- $1.172 billion, reflecting 3.9% reported and 2.2% constant-currency growth, both above the guidance midpoint.
  • Non-GAAP Diluted EPS -- $1.78, exceeding the guidance midpoint by $0.02, aided by items below the operating line and a lower share count.
  • Non-GAAP Operating Margin -- 21.5%, up 20 basis points year over year, but down 10 basis points sequentially from the previous quarter.
  • Regional Revenue Mix -- North America generated $754 million (over 2% YOY growth but sequentially lower); international sales reached a record $192 million (over 10% YOY growth, including Matrix acquisition); "Rest of World" delivered $226 million (8% YOY increase).
  • 12-Month Backlog -- $4.28 billion, up $30 million sequentially and 2.6% YOY, providing increased business predictability.
  • Managed Services Revenue -- $759 million, up 1.6% YOY and representing around 65% of total revenue.
  • Cash Flow -- Free cash flow before restructuring payments totaled $97 million; after $17 million in restructuring payments, reported free cash flow was $80 million.
  • Shareholder Returns -- $138 million in share repurchases and $57 million in dividends paid during the quarter; $72 million of repurchase authority remains as of March 31, 2026.
  • Liquidity Position -- Ended with $214 million in cash and $900 million in aggregate borrowings, with $630 million available on the revolving credit facility.
  • AOS (Amdocs Operating System) Launch -- Initial commercial agreements signed with Cricket, Lumen, Bell Canada, EchoStar, and PLDT; PLDT reported more than 90% customer requests resolved through AOS.
  • Significant New Contracts -- Multi-year extensions and new agreements signed with AT&T Cricket Wireless (managed services), Vodafone Spain (CRM/OSS modernization), and KT South Korea (charging system upgrade).
  • Acquisition -- Closed the acquisition of Connect44, a European network solutions provider, for approximately $21 million in cash plus potential future contingent consideration.
  • Guidance for fiscal 2026 -- Non-GAAP revenue growth outlook tightened to 2%-4% constant currency and 2.6%-4.6% as reported; non-GAAP diluted EPS growth reiterated at about 6%, within a narrowed range of 5%-7%.
  • Capital Structure Enhancements -- Established a U.S. commercial paper program of up to $1.08 billion and increased the revolving credit facility from $100 million to $800 million.
  • Leadership Transition -- Succession plan executed with Tal Rosenfeld named incoming CFO, following Tamar Rapaport-Dagim’s retirement after nearly 20 years as CFO.

SUMMARY

Amdocs Limited (DOX 3.87%) reported second-quarter results above the midpoint of guidance across revenue and earnings, supported by improved margins and year-over-year increases in international and managed services business. Strategic focus remains on accelerating adoption of GenAI-native solutions, as reflected in the launch and initial commercial uptake of the Amdocs Operating System (AOS) with key telecom customers. The company enhanced its liquidity by establishing a substantial commercial paper program and expanding its revolving credit facility to bolster financial flexibility.

  • Shimie Hortig said, We are leading by example. And deploying GenAI-native technologies and capabilities across our own engineering, delivery, and operations.
  • Amdocs’ pipeline for GenAI-native deals is building, but we embedded anything right now in this fiscal year, not yet, it is not so meaningful right now. Indicating ramp potential is weighted toward future periods.
  • Management characterized the 12-month backlog as a good leading indicator of our business and its predictability.
  • Ongoing capital allocation strategy remains to return the majority of our free cash flow to shareholders, supported by a targeted free cash flow conversion rate of roughly 90% relative to expected non-GAAP net income for the year.
  • Leadership stated the operational transition to GenAI-native business models is an iterative process underway both internally and in their customer engagements.

INDUSTRY GLOSSARY

  • GenAI-native: Refers to solutions, platforms, or organizations that are fundamentally built around Generative Artificial Intelligence as a core design principle rather than as an add-on.
  • AOS (Amdocs Operating System): Amdocs’ new GenAI-native, purpose-built operating system platform for telecommunications service providers.
  • Managed Services: Ongoing, multi-year service contracts in which Amdocs operates, supports, and sometimes modernizes customers' IT and network infrastructure.
  • SDLC (Software Development Lifecycle): The process and methodology by which software is planned, developed, tested, deployed, and maintained; here referred to Amdocs’ internal use of AI-native SDLC processes.

Full Conference Call Transcript

Matthew E. Smith: Thank you, John. Before we begin, I need to call your attention to our disclaimer statement on slide 2 of the presentation. It notes that some of our comments today may be forward looking statements and are subject to risks, uncertainties, and other important factors including as described in Amdocs' SEC filings, and that we will discuss certain financial information that is not prepared in accordance with GAAP. More information regarding our use of non GAAP financial measures, including reconciliations of these measures, we refer you to today's earnings release, Which will also be furnished with the SEC on Form 6-K.

Participating on the call with me today are Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited and Tamar Rapaport-Dagim, Chief Financial and Operating Officer. To support today's earnings call, we are providing a presentation, which can be found on the Investor Relations section of our website And as always, a copy of today's prepared remarks will also be posted immediately following the conclusion of this call. On today's agenda, Shimie will recap our business and financial achievements for the second fiscal quarter 26. He will also present his vision as Amdoc's new CEO for the GenAI-native era.

Shimie will finish by addressing our financial and business outlook, after which Tamar will provide additional details on our second quarter financial performance and guidance for the full fiscal year 2026. So with that, I will turn it over to Shimie.

Shimie Hortig: Thank you, Matthew, and good afternoon to everyone joining us today for Amdocs' fiscal second quarter 26 earnings call. I am pleased to join you today live from our Amdocs' New Jersey offices. When I spoke to you in February, I talked about my excitement to lead Amdocs in its next chapter. Several weeks into the CEO role and after spending more time with our partners, and global teams, I am even more excited and convinced about the opportunity ahead of us. As laid out on slide 6, today, I will divide my comments into 2 parts.

First, I will begin by laying out some initial thoughts on the future vision for Amdocs where we plan to become the primary partner of choice for our customers in their authentic journey. Leveraging our unique domain expertise and deep industry knowledge. From there, I will highlight the company's solid second quarter performance including new deals we have won and the operations milestones achieved for our customers that reflect the strength and discipline of our global teams. To begin, on slide 8, I want to spend a few minutes sharing my initial view For now, I am thinking about mDocs in the GenAI-native era.

What is changing in our industry What I believe Amdocs is uniquely positioned to do and my vision on how we plan to turn this opportunity into meaningful outcomes for our customers. The GenAI-native era is an exciting opportunity for industry and for our customers. For communication service providers globally, the dense the GenAI-native revolution is unique moment in time to fundamentally transform their IT and network ecosystems in a nonlinear fashion. Simplifying complexity rethinking critical workflows end to end, and unlocking the ability to accelerate the launch of new of-voice. I strongly believe that mDocs is in the best position to lead our customers and turn this gigantic opportunity into reality. Let me break down the reasons why.

First, we have in Amdocs decades Of deep industry knowledge and domain expertise. We have an industry context based on our telco taxonomy, ontology, and the core business workflows that will power the GenAI-native era. This is our native language. Second, Amdocs has a strong engineering pedigree. A commitment to innovation, and a long history of leading our customers through major technological shifts. Third, we understand what it takes to design, build, deliver, and operate mission critical systems. And we are, therefore, best place to lead our customers to the complex, agentic transformation. Fourth, we have always been and will continue to be an outcome based company.

Amdocs has long supported customers under long term engagement, committed to predefined KPIs, and this remains highly relevant as our customers look for measurable, general driven outcomes. To support this vision, our focus will be on the following areas highlighted on slide 9. We will evolve our product portfolio to be GenAI-native and automated. Our portfolio is already moving in this direction with Amdocs AOS, our authentic operating system for telco. We will partner with each customer to design a tailored GenAI-native roadmap We recognize that every service provider has a unique baseline and we will guide each to a fully GenAI-native operation that unlocks meaningful value.

We will also continue to work closely with leading AI and cloud partners to accelerate this vision. Taking a strategic ecosystems approach in support of our customers' journey. And we will accelerate our internal transformation to become a GenAI-native organization. We are leading by example. And deploying GenAI-native technologies and capabilities across our own engineering, delivery, and operations. We will adjust our way of working and become a more agile organization. This vision sets the foundation for a stronger future at mDocs in the GenAI-native era, 1 defined by a sharper technology focus and greater agility. It positions Amdocs to expand our addressable market in telco. It also presents a potential opportunity to extend our reach into a new industry.

With that said, we are still in the process of refining our strategy. And we will continue to update you as things progress over the next couple of quarters. I also realized that this is going to be a journey. But in this context, I am glad to report that we have already made initial progress. I will explain more on slide 10. At Mobile World Congress last quarter, we officially launched AOS, Amdocs' GenAI-native operating system purpose built for telco. So far, we have received excellent feedback from the market I am happy to share that we already have several initial commercial agreement agreements with customers to launch and to implement AOS. This includes the following customers.

Cricket, Lumen, Bell Canada, EchoStar, and PLDT. In PLDT, we can already report early signs of business success where more than 90% of customer requests are now resolved through the AOS platform. Enabling faster handling times and higher productivity in the retail stores. Now let me turn to part 2 and address the key financial highlights significant deals, and operational milestones we achieved for the second fiscal quarter. Starting with slide 12, our second quarter results were solid with revenue of $1.17 billion and non GAAP diluted earnings per share of $1.78 both above the midpoint of our guidance.

Our results included year over year revenue growth in North America, as well as record revenue in Europe and a strong revenue performance in rest of the world. Non GAAP operating margin improved by 20 basis points from a year ago as we continue to balance our investment for growth with a focus on operational excellence. Overall, we closed the quarter with a 12-month backlog of $4.28 billion up $30 million sequentially and 2.6% from a year ago. Beyond the already mentioned AOS wins, this quarter we secured several significant deals which demonstrate wide ranging demand for our products and services.

And the confidence customers have in Amdocs. slide 13 highlights many of these deal wins but here are a few examples. In AT&T Cricket Wireless, we signed an expanded multi year extension of our managed services agreement including dealer onboarding modernization to enhance partner experience and drive faster market expansion. In Vodafone Spain, We secured a 5-year agreement covering CRM and OSS modernization alongside long term support and enhancement services. And in South Korea, KT, has extended its multi year agreement with Amdocs to upgrade, modernize, and operate its charging system empowering faster service rollout, and advanced 5G monetization. Our cloud based platform solution also generated significant customers momentum in Q2.

ConnectX, added multiple new names, including Vanta Wireless, which will launch a unique mobile service with AT and T using AI-driven connectivity. BattleMobile, a US based MVNO servicing Hispanic communities. And in Singapore, a leading operator went live with the platform to accelerate the digital modernization. Additionally, Amdocs eSIM was chosen by Clio in Brazil to support payment terminal connectivity and by mobile phone in Vietnam, for seamless zero touch customer activation. Our project execution was another highlight for the company in Q2. We achieved a high number of project milestones across different programs for key customers, such as AT and T, Optimum, Vodafone Germany, Elisa, and PLDT.

To highlight a few of them, in AT&T, Amdocs is now servicing significant part of AT&T's 5G SA subscribers in our next-gen charging platform. And we played a key role in the recent launch of AT&T's new OneConnect plan. In Vodafone Germany, we marked the pivotal milestone in our journey as we reach commercial launch. At Elisa in Finland, we delivered the key milestones in support of its mainframe to Google Cloud migration. I am also pleased to share that BrightSpeed a US based fiber broadband and telecommunication provider has gone live with Amdocs resource manager. This smooth deployment enables Brightspeed to strengthen its network inventory management and streamline operational processes. Now moving back to the outlook on slide 15.

We are reiterating the midpoint of our revenue growth guidance of 3% in constant currency, for the full year fiscal 26. Which is within a tightened range of 2% to 4%. Likewise, we are reiterating the midpoint of our guidance for non GAAP diluted earnings per share growth of roughly 6% in fiscal 26. Which is within a tightened range of 5% to 7%. That said, we are of course closely monitoring customer demand and spending behavior within the current global macroeconomic climate. To wrap it up, we believe Amdocs is best position to turn GenAI-native vision into reality for our customers. We are shaping our strategy direction based on the vision and direction I discussed with you today.

And we will continue to share more over the next couple of quarters. We know this is going to be a journey for us and for our customers. But in this context, well, we already have initial commercial engagement on AOS. We are building our strategy on strong business foundations. Demonstrated by our solid Q2 results and we are on track to hit our full financial targets while monitoring our customer spending behavior within the current microeconomics climate. Before we move to, the financial overview, I would like to spend a few minutes talking about the CFO transition.

First and foremost, I would like to thank Tamar for her remarkable contribution to Amdocs over the last 18, 19 years as CFO, including the past 8 years serving as both CFO and COO, and 22 years overall with the company. I have known her for a long time. And I can say that she has been an exceptional business partner and a personal friend. Tamar played an instrumental role in the evolution of Amdocs and I know she will be missed by the entire Amdocs family. On behalf of all of us, Tamar, please accept our sincere appreciation for your endless dedication and service to Amdocs.

Through the years and we wish you nothing but the best on your well deserved retirement. I am excited. I turn to you, to Tal Rosenfeld, And welcome him as Amdocs' next CFO. Tal has played a major part of Amdoc's finance organization over his impressive 20 years career with us. During which he has acquired extensive experience across senior and management roles in accounting and finance. Tal is also a proven business performer He has served as a division business leader for APAC, and he is currently general manager, head of finance where he has responsibility for managing the entire finance organization reporting directly to Tamar. I have known Tal for his entire career in Amdocs.

And having worked closely with him on many occasions, I am well aware of his great leadership qualities. I strongly believe he is the best fit for this role. Congratulations, Tal. And welcome to my leadership team I look forward to working together to take Amdocs to the next chapter. Tal will say a few words in a moment? But first, let me hand the floor to Tamar.

Tamar Rapaport-Dagim: Thank you, Shimie, for your kind words, and hello to everybody on the call today. Amdocs indeed has been a family to me. But as Shimie said, I have decided to retire and finally take some time for myself. As you can appreciate, making this decision was neither quick nor easy. But after almost 20 years as CFO, felt that now was the appropriate time for me to retire. My decision was made easier by how seamlessly Shimie has transitioned into this CEO position over the past few months and by the strong team he has built around him. This includes Tal, of whom I could not be prouder.

I personally recruited Tal to Amdocs Finance 20 years ago and I have been preparing him for CFO as part of an internal succession plan for some time. I believe he is undoubtedly the best person for this role. Congratulations on your appointment, Tal.

Analyst (Tal): Shimie and Tamar, thank you both for your kind words. Tamar? I want to thank you personally for your mentorship guidance, and partnership over the years. Your leadership and friendship, have meant a great deal to me. I wish you only the best. Shimie, I am very excited by the opportunity to step into the CFO role I am looking forward to building on Amdoc's strong foundation and supporting you and the leadership team as we lead the company forward. Thank you, Tal.

Shimie Hortig: Now, let's get back to business. Tamar, would you like to take us through the quarterly financial summary, please?

Tamar Rapaport-Dagim: Yes of course. Thanks, Shimie. Q2 revenue of approximately $1.172 billion was 3.9% year over year as reported Revenue was above the midpoint of our guidance, including a positive impact from foreign currency movements of approximately $2 million compared to our guidance assumptions. In constant currency, revenue was up 2.2% from a year ago. On a regional basis, North America revenue of $754 million was up more than 2% from a year ago, but was slightly lower on a sequential basis due to a normal fluctuations in customer activity. Outside North America, our international growth continued.

We delivered record quarter revenue of $192 million, up more than 10% year over year on a mix of organic growth and the impact of Matrix acquisition. Rest of the World revenue grew by 8% year over year, to $226 million, the highest since fiscal Q3 24. Rest of the world remains on track to grow in fiscal 26, driven by the strong sales momentum of recent quarters. As a reminder, quarterly trends in both euro and rest of the world may fluctuate given project orientation of our customer activities in these regions.

Shifting down the income statement, non GAAP operating margin of 21.5% was up by 20 basis points from a year ago reflecting internal cost and efficiency gains resulting from focus on operational excellence, automation, and the deployment of AI based tools. Balanced against long term growth investments. and the development and go to market costs of our next generation AOS platform. On a sequential basis, non GAAP operating margin declined by 10 basis points. As a reminder, our non GAAP operating margin may fluctuate slightly on a quarter to quarter basis.

Net interest and other expenses amounted to $14 million in Q2, which included a few million dollars for the accounting of net loss of equity related investment activities in the quarter. On the bottom line, non GAAP diluted EPS of $1.78 was $0.02 above the guidance midpoint, primarily due to items below the operating line and a lower share count. Diluted GAAP EPS of $1.28 exceeded the guidance midpoint, also due to items below operating line and lower share count. Diluted GAAP EPS included a restructuring charge of nearly $0.10 per share, which was not included in our guidance for the quarter, and the positive impact of realized and unrealized gains from equity investments, among other.

Turning to slide 20, managed services revenue of $759 million was up 1.6% from the prior year in the second fiscal quarter. As a share of total revenue, managed services accounted for roughly 65%, consistent with the last several quarters. Renewal rates remain typically high during Q2, underpinning our business resiliency as we signed expanded multiyear engagements, with multiple customers. In North America, for instance, we expanded and extended our managed services contract with Cricket Wireless. For BSS and OSS services, including AOS capabilities, driving faster time to market, and improved customer experience. Moving to the balance sheet and cash flow highlights, on slide 21.

DSO of 73 days decreased by 4 days from a year ago and 3 days sequentially. Unbilled receivable net of deferred revenue, decreased by $42 million versus a year ago and by $2 million sequentially in Q2, aggregating the short and the long term balances. As a reminder, the net difference between unbilled receivables and deferred revenue fluctuates from quarter to quarter in line with normal business activities, as well as our progress on multiyear engagements. Free cash flow before restructuring payments was $97 million in Q2. This includes the seasonal timing of bonus payments for the prior fiscal year, which typically occurs in the second fiscal quarter.

Highlighting strong free cash flow for the year so far, we have already achieved nearly 10% of our fiscal 26 target. After restructuring payments of $17 million, reported free cash flow was $80 million in the quarter. As a further update, in fiscal Q2, we established a U. S. Commercial paper program of up to $1.08 billion to further enhance our financial flexibility and optimize Amdoc's short term funding mix. Proceeds from issuance under the program will be used for general corporate purposes. We also upsized our revolving credit facility from $100 million to $800 million which supports the commercial paper program and further enhances our overall funding flexibility.

Overall, we ended Q2 with a healthy cash balance of $214 million and aggregate borrowings of roughly $900 million, including our $650 million senior notes maturing in June 2030, and short term financing arrangements of $250 million. As of 03/31/2026, there was no outstanding borrowing amount under the commercial paper program. And $630 million remains available on the revolving credit facility. Overall, we have ample liquidity to support our own ongoing business needs while retaining the capacity to fund our future strategic growth. Switching to capital allocation, on slide 22, this quarter we repurchased $138 million of our shares. Leaving us with up to $72 million of remaining repurchase authority as of 03/31/2026.

We paid cash dividends of $57 million in the second fiscal quarter. In the last week of fiscal Q2, we acquired the business of Connect44, a European based provider of end to end network planning, building, and management solutions for approximately $21 million net in cash at closing. Plus future potential contingent consideration. Looking to fiscal 26, we are on track to generate free cash flow between $710 million to $730 million, not including payments we expect to make under our current restructuring. Our free cash flow outlook equates to a conversion rate of roughly 90% relative to expected non GAAP net income, and translates to healthy free cash flow yield of roughly 10% relative to Amdocs' current market capitalization.

Regarding our capital allocations for the coming year, we expect to return the majority of our free cash flow to shareholders. Moving to slide 23, 12 months backlog was $4.28 billion at the end of Q2, up $30 million sequentially and 2.6% from a year ago. We believe 12 months backlog remains a good leading indicator of our business and its predictability. Now turning to our revenue outlook on slide 24. We are continuing to closely monitor the prevailing level of macroeconomic, geopolitical, business, operational certainty, including our customer spending behavior in the current business environment.

The third quarter and full fiscal year 2026 financial guidance reflect what we consider to be the most likely outcome based on the information we have today but we cannot predict all possible scenarios. For the full fiscal year 2026, we have tightened our revenue growth outlook to between 2.6% to 4.6% as reported, the mid point of which is 10 basis points better than our prior outlook of 1.5% to 5.5%. Due to foreign currency tailwinds, which are now expected to benefit by roughly 0.6% this year as compared to 0.5% previously.

Consistent with our prior guidance, we expect that roughly half of the expected growth in fiscal 26 will be inorganic in nature, On a constant currency basis, we are reiterating the 3% midpoint of our revenue growth outlook, which we have tightened to a new range of between 2% to 4% for the full fiscal year, as compared to prior outlook of 1% to 5%. As to the third fiscal quarter, we expect revenue of between $1.155 billion to $1.195 billion. Moving down the income statement, as we anticipated in the 21.3% to 21.9% in fiscal 26, the midpoint of which is roughly 20 basis points higher than prior fiscal year of 21.4%.

Our profitability outlook reflects an intentional decision to accelerate our investment in GenAI and our next-generation GenAI-native operating system, including R&D, sales, and marketing, while balancing this with our focus on operational excellence, and initiatives to drive efficiencies. Below the operating line, we expect non GAAP net interest and other expenses to be impacted by higher financing costs this year, resulting from a reduced cash balance and short term borrowing to fund working capital. As anticipated in the beginning of the year, we expect our non GAAP effective tax rate to be within an annual target range of 16% to 19%, for the full fiscal year 2026.

As summarized on slide 26, we are reiterating the midpoint of our guidance for non GAAP diluted earnings per share growth of roughly 6% in fiscal 26 which is within a tightened range of 5% to 7% as compared to 4% to 8% previously. With that, back to you, Shimie.

Shimie Hortig: Thank you, Tamar. Thank you for everything. And, again, best of luck in your future retirement. With that, we are happy to take your questions. Operator?

Operator: Certainly. And our first question for today comes from the line of Tal from Bank of America. Your question please.

Analyst (Tal Liani): Tamar, First Suki, now you. what is going to happen? Good luck with your retirement. Thank you. My heart. I am sorry. I want to ask you a few things. First, when I collectively look at your space, without the details of where you are playing and etcetera, but collectively look at your space, there is tremendous investment in data centers. And, companies are even buying customers are even buying more now because, buying ahead of demand because of supply constraints. So Cisco just reported, you know, 19% order growth outside of AI. And the environment is not that good. Some of it has to be some forward ordering.

And the question is when I look at your revenues, I see some acceleration of growth, a little bit of acceleration of growth. But the question is, do you have a way to participate in this massive growth we are seeing whether it is through Neoclouds or cloud or whether it is through service providers, your traditional customers who are also taking some of traffic, and they also have to build data centers. So can you talk about your ability to play and benefit from the current cycle? Maybe we will start with that. I have another question, but I will take it 1 by 1.

Shimie Hortig: Hi, Tal. it is Shimie, and thank you for, the question. Maybe to try to explain what I was trying to paint in the vision that I described at the beginning of the call. We see the GenAI-native revolution that is happening right now. As an amazing opportunity for Amdocs. You know, we believe that we are the right partner for our customers to help them transform from where they are today to the future, then agentic and leveraging all the great capability that this technology can bring.

As you know, as of today, there is a major gap between the technology and the potential and the actual adoption that we see among our customers in general in enterprise software and customers around the world. So we believe that Amdocs, with our deep knowledge on this industry, with our capability to transform organization to move through technological shifts position us as the best partner that can take them to this future. So definitely, a major opportunity for us going forward.

Analyst (Tal Liani): Got it. So what changes, Shimie, what changes are you bringing to the You have been there less than 100 days. How do you know, what are your focus areas in terms of growth acceleration and addressing new opportunities and things How long do you think also it will take you to show an impact on growth?

Shimie Hortig: Yeah. So as again, as I mentioned, I think we are trying to accelerate everything that we do in the company. In order to help our customers transform in this amazing technological transformation that is happening right now all over the world. So the thing that I wanna focus is the following. First, we want to evolve, as I mentioned, our portfolio to be GenAI-native and automated. Is an effort that we started already, and we continue to focus on that. As we provide our customers with the right solutions. The other thing is engage with the customers.

We want to tailor to each 1 of them the specific roadmap, how we take them from where they are today, to this future GenAI-native where they can enjoy all the benefits of this technology. The third thing that we wanna do is to partner strategically with the ecosystem, you know, leading AI and cloud partners that will help us and our customers. To transform in this industry And last but not least, I mentioned the internal transformation. We wanna accelerate our internal transformation and to make sure that Amdocs is a GenAI-native organization. Which means we are changing the way we operate. We implementing the GenAI-native SDLC within the company. We change the structure of the teams.

We wanna become a much more agile organization. And to lead by example this year. Got it.

Analyst (Tal Liani): Last question. Tamar is leaving the CFO position and for some companies, I think, pretty well. The CFO position is extremely important, just because of timing of recognition of revenues, timing of recognition of expenses, managing operating margins, etcetera. Can you give us a little bit of details on the succession plan? I know if you nominated someone with a great first name to be the successor of Tamar. So can you give us some you have a good taste.

Tamar Rapaport-Dagim: I have the first name being Tal, yeah, which is great name. So first of all, I fully agree with you and I think that the fact that experience is very deep in terms of not only the professional, you know, with a CPA. He was an expert in revenue recognition in his early days. in his career. He did the SEC filing.

Like, he handled the core basic things you would expect from, a strong finance professional. he is also done different roles that included field support, the business support, and including several years in my management team leading all of the finance of the business, being the very strong bridge between, let's call it, the professional finance domain and driving the business of the company and structuring the deals in the right way, recognizing the revenue in the right way, etcetera.

Plus as a leader, as someone who has definitely built strong teams around him and have been able to build not just you know, it is not the leader, it is just about you. it is about how you really bring the right talent develop the right talent, create a sense of purpose. Like, I have seen him again and again doing that in an amazing way. And in some years that I call it, I loaned the business side to lead the APAC division, I mean, I have been talking about the APAC growth for some time now. You know who is the person behind it. Tal did amazing job as leading the business there.

And then when he came back to finals to lead finals under me, definitely, there is been a big part of the succession planning. So I feel while I am sorry, Tal, that I need to say goodbye as I am retiring, and of course, we can stay in touch beyond the Amdocs capacity. I feel very comfortable that we have the best person for the job, and it has been a very thorough succession process overall. You are in good hands.

Analyst (Tal Liani): Good. Thank you.

Operator: Thank you. And our next question comes from the line of Timothy Horan from Oppenheimer. Your question please.

Analyst (Timothy Horan): Hi, guys. And, Tamar, congratulations, and good luck. Would you like to focus on the GenAI-native business a little bit more? Can you give us any color on the deals and what the pipeline is looking like? Also, maybe where is kind of the low hanging fruit for customers you know, to adopt, AOS? And, you know, when do you think it starts to move the needle on revenue growth? Thank you.

Shimie Hortig: Yeah. Hi, Tim. Look, as we started to see, we are quite happy with the initial reaction from the market on our AOS launch. We just launched it in Mobile World Congress. And since then, we have quite a lot of engagement with customers. Some of them already translate into concrete opportunities or concrete deals that we are implementing right now with our customer base. You know, those opportunities are starting small, but we know that over time they will grow. So if you ask if we embedded anything right now in this fiscal year, not yet, it is not so meaningful right now. But it is definitely gonna grow over time.

And as I mentioned before, we are starting to have detailed discussion with each and every 1 of our customers on the journey. How we take them from where they are today into the future, here, we are evolving with a lot of interesting discussions based on AOS plus, Now some of our customers would like to collaborate with us and to do things together and to implement our tools. Some of them are even discussing with us broader responsibility to move to m docs and to help them to transform the organization and to deliver the business benefits and the savings that they are looking for forward.

So I hope that in the next few quarters, can share more about those but we are having some meaningful discussion with customers these days. Mean, so The US telcos seem to be or at least they are talking about adopting AI much, much more rapidly than what you are describing. And I think, you know, they are talking about slashing expenses, improving services, Are they doing this in house? Are they using other you know, AI companies? Are they using other competitors of yours? Or are they using you? But, you know, the commentary that they are laying out is that you know, they are adopting AI now, and they are slashing expenses as a result of it.

Yeah. it is true that they are implementing AI. I think in our domain, in the area that you need to deal with mission critical systems, and to transform them into the future to become agentic and autonomous everything that we wanna achieve together with them we are the best partner to do them. They are not using it with competitors. They are having those discussions with us. You know, our claim for fame was always to help our customers to transform them. In the past, it was the cloud that, you know, we moved them we are still moving them from on prem to cloud. Now, obviously, the opportunity around agentic is front and center.

But they understand that in order to do it in Michigan critical systems and the complex of what we do for them, they wanna partner with us. And these are exactly the discussions that we are having right now.

Analyst (Timothy Horan): Very helpful. Thank you, and good luck.

Operator: Thank you. A reminder, if you do have a question at Our next question comes from the line of George Notter from Wolfe Research. Your question please.

Analyst (George Notter): Hey, guys. This is Timothy Horan on for George Notter. Congrats Tamar on the retirement. I just wanted to ask Thank you. If you could talk a little more about how you expect to progress in implementing AI internally to get efficiencies going forward? Are there any incremental new areas where you are finding use case And then as a follow-up, can you give more detail in terms of how customer conversations are progressing as you drive those gains internally?

Shimie Hortig: Yep. So internally, again, it is a process. We have been in this process for quite some time. My goal right now in the team is mainly to accelerate. We are accelerating everything We are done with the pilot, experimenting, trying it here and there. I am moving it to full blown implementation across the entire company. It includes, as I mentioned, changing the way we operate, implementing GenAI-native SDLC, changing the way we operate our systems, leveraging the agentic tools. And, you know, we are going all the way to try to accelerate this trans the internal transformation. And become a more agile organization going forward.

Now, the discussions that we are having with the customers are exactly along the same line of how we can help them do the same for their organization, in our domain. And some of the discussions everyone understand that you know, we the best way to help them is if we look at the flows end to end.

So if you look at the end to end business flows around those these areas, from the business requirements all the way down to the provisioning, the best way to get the out the best outcome of implementing those agentic tools is when you have an end to end workflow So they are engaging us right now in discussions with which we are basically expanding the footprint of what we do today going to areas that are not done today by Amdocs, But everyone realized right now that in order to get those benefits, it is better that we will get involved and help them in the end to end processes.

So those discussions along this end to end responsibility to transform things for our customers are evolving And as I mentioned before, I hope we can share some more updates over the next couple of quarters.

Tamar Rapaport-Dagim: Just wanna add on that to remind you, we have been a company pushing for an outcome based business model forever. it is like we that was 1 way of showing confidence to our customers that we believe that we can bring them the right innovative engineering solutions as well as a commitment to deliver on certain KPIs. And so we want to take conceptually the same idea and build, you know, based on what Jimmy mentioned, this end-to-end ability to take business processes and push it forward with the customer to show accountability. To bring the results that they need to see.

Practically, what is it that they consider and how do we design it into the deals we are going to sign?

Analyst (George Notter): Thank you. Thank you.

Operator: This does conclude the question and answer session of today's program. I would like to hand the program back to Matthew E. Smith for any further remarks.

Matthew E. Smith: All right, John. Thanks very much. Thanks, everyone, for joining the call tonight. If you do have any other questions, please give us a call here in the IR group. And with that, have a great evening.

Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.