Amdocs Limited

Thank you for standing by and welcome to the Amdoc's fourth quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matt Smith, Head of Investor Relations. Please go ahead, sir.

Thanks, Operator. Before we begin, I need to call your attention to our disclaimer statement on slide two of the presentation. It notes that some of our comments today may be forward-looking statements and are subject to risks and uncertainties, including as described in Amdox's SEC filings, and that we will discuss certain financial information that's not prepared in accordance with GAAP. For 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 Shuki Shaffer, President and Chief Executive Officer of Andox Management Limited, and Tamar Rappaporty-Yim, Chief Financial and Operating Officer. To support today's earnings call, we are providing a presentation, which you can find on the investor relations section of our website. And as always, a copy of today's prepared remarks will be posted immediately following the conclusion of this call. On today's agenda, Shuki will recap our business and financial achievements for the fourth quarter and full fiscal year 2025. And we'll update you on our strategic progress, including our continued sales momentum in cloud and recent commercial developments in generative AI and data services. Shuki will finish by previewing our financial outlook for the full fiscal year 2026, after which Tamar will provide additional details on our Q4 financial performance and our forward guidance. As we communicated previously, Shuki and Tamar will compare certain financial metrics on a pro forma basis, which adjust prior fiscal year 2024 revenue by about $600 million to reflect the phase out of certain low margin non-core business activities, which was substantially already ceased in the first quarter of fiscal 2025. With that, I'll send it over to Shuki.

Thank you, Matt, and everyone joining us on the call today. Starting on slide six, I want to express my sincere appreciation to our global team as we close out another year of important progress. Your dedication and commitment have derived solid financial results consistent with our guidance, and you did it while executing our strategy to support our telco customers with cutting-edge cloud, digital, and AI-based solutions. To briefly recap fiscal 2025, revenue grew up by 3.1% in a pro forma constant currency, which adjusts for our decision a year ago to phase out certain low margin non-core business activities to sharpen Amdoc's strategic focus, while also resulting in a stronger business visibility. Among the many highlights, we deliver double digit growth in cloud, which contributes over 30% of total revenue this year. Share of revenue for long-term managed services reached a record 66%, further supporting Amdoc's already strong business resilience. Profitability improved by 300 basis points, including 60 basis points from ongoing business transformation and efficiency gains. And we maintain our commitment to technology, innovation, and product leadership, tailoring our investments to serve our customer key business imperatives. These include B2B modernization, next-gen monetization, fiber networks, and of course, generative AI, where this year I'm proud to say we made a successful transition from proof-of-concept tries to winning actual generative AI-related deals. Overall, we delivered non-GAAP diluted earnings per share growth of 8.5% in fiscal 2025 and achieved our target to deliver double-digit expected total sharehold return, including our dividend yield. Now, let's take a close look at our fourth quarter performance, beginning with the financial slide seven. Revenue of 1.15 billion was above the midpoint of guidance and up 2.8% from a year ago in performa constant currency. Profitability improved by 20 basis points equationally. Non-GAAP diluted earning per share was 1.83, slightly above the guidance midpoint. And we finished the quarter with 12-month backlog of 4.19 billion, up 40 million sequentially, and 3.2% from a year ago. Gross in 12-month backlog was driven by strong sales momentum this quarter, contributing to overall long-term book of business. As slide 8 shows, pipeline-to-deal conversion was well-balanced across our key operating regions and strategic domains. showcasing Amdoc's proven ability to scale our customer activities by continuously delivering fresh innovation over time. In cloud, we signed a multi-year managed services SaaS agreement with AT&T to deliver entitlement server capabilities via our eSIM cloud platform, and we won new cloud monetization and migration awards at Lumen Technologies in the US and Telus in Canada. We expected a recent momentum in a generative AI domain. We extended our recent momentum in a generative AI domain with an exciting new award at Telefonica Germany. And we expanded our international front range with new monetization and digital modernization awards at BTE in the UK, Altice Cefar in France, Telia in Finland, KT in South Korea, and Claro Brazil. Several business quarters were struck among under long-term managed services agreements, further deepening our customer relationship. This includes an exciting landmark multi-year strategic agreement with PDT in the Philippines, which expands our long-term standing managed service engagement to accelerate its IT modernization and streamline business processes through AI and generative AI capabilities. Rounding out operational highlights, Amdocs is engaged in the execution of complex mission-critical transformation projects, closely working with our customers as key partners. Q4 was another quarter of consistent execution in which we achieved important project milestones at AT&T, Comcast, Bell Canada, BT Everything Everywhere, Vodafone and Vodafone 3, PLDT, and EN at the UE. I'm also proud to say that Amdocs ensures smooth customer operation during the high-volume launch on Apple's iPhone 17 in September. Now turning to slide 9, I would like to provide some additional color with respect to our growth strategy, which is designed to deliver the test-leg product and services our customer needs to accelerate the journey to the cloud, maximize the value of generative AI and data across our customer footprint, detailize customer experiences for consumer and B2B, monetize next-generation network investments, and streamline and automate complex network ecosystems. Beginning with cloud on slide 10, demand for a cloud-native solution and proven ability to accelerate public, private, and hybrid cloud migration remains strong as we continue our strategy of moving mission-critical systems, workloads, and applications that enable innovation, agility, and cost saving for all our customers. In the US, Lumen Technologies selected Amdocs to support its cloud transformation, moving mission-critical BSS application to Google Cloud to strengthen its digital foundation. Telus in Canada expanded its multi-year managed service agreement with Amdocs to migrate on-premise wireless monetization operation to Google Cloud, enabling the faster launch of new consumer and enterprise offerings, improve customer experience and reliability, and reduce operational costs. And Bell Canada, in collaboration with Amdocs, is migrating existing systems to the cloud to enhance scalability, strengthen resiliency, and achieve operational efficiencies. Our SaaS-based platforms, including Amdocs eSIM, Amdocs MarketOne, and Amdocs ConnectX, are also contributing to growth with rising customer adoption. To provide, for example, we signed a multi-year managed services SaaS agreement with AT&T to deliver entitlement server capabilities via our eSIM cloud platform. This continued to expand our eSIM SaaS platform momentum, adding over 100 million devices to it. Additionally, Amdocs ConnectX has already more than 15 customers. including Consumer Cellular and PLDT, who are deploying the generative AI native platform to quickly launch existing new digital brands. Adding to the list, I'm pleased to announce that Orange Belgium has selected Amdocs to lead key modernization initiative on the prepaid stack. Leverage our connected platform. This project includes real-time charging and next generation scalable architecture designed to support their needs It will drive efficiency while transforming the user experiences with modern, these are fair journeys that will redefine engagement for all the Belgian prepaid subscribers. Looking forward, cloud will remain a primary focus for Amdocs. As we continue to support our global Telco customer base, many of which are only just getting started on their multi-year cloud journeys. Now, let's talk about generative AI and data on slide 11. Following the generative AI related deals we recently announced with EN, UAE, Altice Optimum, and Consumer Cellular, I'm excited to report that Telefonica Germany, one of the country's largest quad place service providers, has selected Amdocs to extend its billing platform for both consumer and enterprise services. As part of this expanded multi-year collaboration agreement, Telefonica Germany will deploy new generative AI use cases, leveraging Amdocs Amaze sales agent to enable the efficient promotion of new products and to automate the upsell of personalized offers to drive higher output. This award with Telefonica Germany is another proof point that shows that we are starting to see trial POC conversion to actual generative AI projects. And we are excited about the initial results we are seeing. For example, one of the first service provider to integrate generative AI was E-end UAE, a customer which is already achieving double GDIT improvement in net promoter scores after deploying image agents. Such progress reflect M.score Telco platform and data services expertise built on our vectorized AMAZE platform, which we have deployed in collaboration with NVIDIA and other generative AI leaders. Moreover, I believe our recent success demonstrating the pivotal role Amdocs is playing as an IT player in helping accelerate generative AI adoption in telecom industry. In addition to cloud and generative AI, we secured important wins in the strategic domain this quarter as highlighted on slide 12. As previously announced, we finalized a significant 10-year digital modernization and managed service agreement with BTE in the UK to deliver a modern B2C mobile platform for its prepaid and postpaid segments. We signed a multi-year strategic agreement with Telia Finland to build its next generation digital BSS enhanced and with advanced AI capabilities. And AT&T Mexico closed a new digital program with Amdocs to enhance self-service experiences, expanding its digital selling capabilities. Here in the U.S., we signed a multi-year software and IT service agreement with Fiduum, a next-generation American fiber internet and network service provider, and a new logo for which Amdocs will modernize and manage its IT operation while supporting its broader digital transformation strategy. Elsewhere in the U.S., A leading tier two operator selected Amdocs for additional five-year renewal of their BSS ecosystem. Service providers are also adopting next generation monetization solution to support the wireless and fiber infrastructure elements. Amdocs recently signed an expanded multi-year billing transformation agreement with Altiste Francis SFR to consolidate multiple billing operations to a unified cloud-ready platform. And we signed a new agreement with South Korea's telecom operator, KT, to upgrade and modernize its charging system to accelerate time to market and to boost operational efficiency. This quarter, we also expanded our activities with the two largest operators in Brazil. First, Amdos entered an agreement with Clouro Brazil to implement a real-time billing platform designed to enable full-scale conversion across its multiple line of business. Clara also extended its multi-year service contract with Amdocs. Second, in the network domain, we signed a modernization agreement with Telefonica Vivo to provide a future-ready foundation for ongoing operation by deploying our latest OSS products. Further underlying Amdocs expertise and growth potential in the network domain, we have expanded our managed services agreement with Globe in the Philippines to include network strategy and planning mobile access engineering, and optimization to enhance service quality and operational agility. Additionally, we deliver the successful go-live of Amdoc's advanced network inventory platform for Vodafone Ireland and continue to expand our network activities with Vodafone Greece. Before discussing our fiscal 2026 outlook, I wanted to circle back on generative AI to share our thoughts with respect to our strategy and investment plans as presented on slide 14. Over the past couple of years, we've shared our belief that generative AI holds immense potential to transform the telecom industry. We've been working closely with our customers to deliver tangible improvement in critical areas such as customer care and network operation, while building out generative AI capabilities in our image platform. As the technology matures, the industry advances and we see the progression from POCs to production, we believe there is now the potential to unlock even greater opportunities to enhance experiences, agility, and efficiency. To fully capture this potential for Amdocs and for our customer, we are accelerating our generative AI investment, which we expect will open new pathways for future growth across our entire customer base, irrespective of the BSS or SS version. This includes fast-tracking the development of what we call a cognitive core, a next-generation platform built on the solid foundation of Amdocs Amaze. It integrates advanced generative AI capabilities such as agent-to-agent MCP technologies, our vectorless telecom expertise, and the enablement of agentic services. In the coming quarter, we'll share more about our vision for AI-powered telecom operating systems. For our customer, this investment in generative AI may represent a substantial shift in how they will adopt future software and services. Notably, we believe it promises to simplify and accelerate their digital transformation and journey to the cloud delivered under our outcome-based model. Overall, with focused and intentional investment, we expect Cognitive Core to emerge as a long-term growth engine for Amdocs, by enabling us to better serve our full spectrum of customers, from those running current platforms seeking cost-effective line of business modernization to top-tier innovators already modernizing on Amdoc's next-gen platform to lead with future-ready digital experiences. Now let me comment on the current operating environment and our outlook for fiscal year 2026. We are entering fiscal 2026 with a healthy 20-month backlog, visibility, and a strong overall book of long-term business supported by a recent win momentum. With our unique tech-led and outcome-based accountability model, Amdoc is strongly positioned within our serviceable addressable market of nearly $60 billion to monetize a rich pipeline of opportunities across cloud, digital network, and generative AI and data. That said, We are closely watching for any impact of the uncertain global macroeconomic environment on us and our customers' demand and spending behavior. Tying everything together with our outlook on fiscal on site 16. We expect revenue growth in the range of 1.7% to 5.7% as reported, and 1.0% to 5.0% in constant currency for the full year fiscal 2026. As to our profitability, we expect a non-GAAP operating margin to increase by roughly 20 basis points year-over-year at the midpoint on our target range as we balance our strategic long-term growth investment with the benefits of ongoing cost and efficiency gains across the business. All up, we expect to deliver a non-GAAP diluted earning per share growth of between 4% to 8% in fiscal 2026. the midpoint of which equates to an expected total shareholder return in the high single digits, including our dividend deeds. With that, let me turn the call over to Tamar for remarks.