Amdocs Limited

Thank you for standing by and welcome to the Andoc's third quarter 2026 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 this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matthew Smith, Head of Investor Relations. Please go ahead, sir.

Thanks, Jonathan. 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, uncertainties, and other important factors, and other important factors including as described in Amdoc's SEC filings, and that we will discuss certain financial information that is not prepared in accordance with GAAP. For more information regarding our use of non-dapt 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 6K. Participating on the call with me today are Shimie Hortig, President and Chief Executive Officer of Amdocs Management Limited, and Tal Rozenfeld, Chief Financial 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 financial achievements for the third fiscal quarter 2026 and four-year outlook, after which he'll present the future strategy for Amdocs in the agentic era. Tal will then provide additional details on our third quarter financial performance and guidance for the fall fiscal year 2026.

So with that, I'll turn it over to Shimie. Thank you, Matt. Good afternoon to everyone joining Amdoc's fiscal third quarter 2026 earning call. I'm pleased to join you today from Amdoc's New Jersey offices and provide an update on the significant progress we've made on our strategy, as well as the meaningful commercial wins from the past few months. Today, I would like to focus most of my remarks on MBOC strategy and provide you with more color and insight on our long-term direction. Before that, let me briefly review our solid financial and operating performance for the third fiscal quarter. As shown on slide seven, QC revenue of $1.175 billion, a non-GAAP diluted earning per share of $1.84, were consistent with the midpoint of guidance. Non-GAAP operating margin improved by 20 basis points from a year ago as we balanced our growth investment with intentional strategic efforts to reshape our cost structure and drive efficiency. Managed services delivered a record quarter accounting for 67% of total revenue and we closed the quarter with 12 months backlog of 4.26 billion up 2.7% from a year ago. With these results, I'm happy to say that we are reiterating the midpoint of a full fiscal 2026 financial outlook, including revenue growth of 3% in constant currency and non-GAAP diluted EPS growth of 6%. Additionally, We are on track to generate free cash flow of roughly $720 million before restructuring payment in fiscal 2026, consistent with the midpoint of our target range. Building on our strong financial performance, I'm proud to share an important moment in our genetic journey. We signed a new, large-scale, multi-year partnership with Liberty Latin America to manage and transform their entire end-to-end IT ecosystem. This is a true flagship engagement and a major proof point of our gigantic transformation strategy, which I will cover in more detail shortly. Additionally, we continue to see good sales momentum across our core products and services, with wins at many of the world's leading providers, including Lumen, Telus in Canada, Swiss Scandinavia, Telefonica Vivo in Brazil, PLDT, and OpTech in Japan. At the same time, we remain focused on delivering consistent operational execution in Q3, successfully achieving a high number of milestones in support of project activities for customers such as AT&T, T-Mobile, Optimum, Telus, Bell, A1 Austria, Glove Telecom, and Telecom Staff Africa. To elaborate on a few of them, at T-Mobile, we've made significant progress with the large US cellular integration project and we are on schedule to complete it. For A1 Austria, we completed the billing, charging and catalog transformation deployment following a multi-year transformation. At Globe, in the Philippines, we completed a major modernization of the network policy to support cloud-native 5G.