Amdocs Forecasts 7% to 11% Revenue Decline in 2027 Amid T-Mobile Dispute

Key Facts

Amdocs forecast fiscal 2027 revenue to decline 7% to 11% on a pro forma, constant-currency basis, and adjusted diluted earnings per share to fall 26% to 30%, as its dispute with T-Mobile escalated into a legal conflict. In its results statement issued on November 3, the company said the parties had exchanged notices accusing each other of materially breaching one or more agreements. The notices threaten termination of the agreements and/or claims for damages or other remedies, including arbitration. Chief Executive Shuky Sheffer said the agreement had not been terminated and that Amdocs continues to support T-Mobile’s business. Sheffer said the company is prepared to pursue its claims and defend itself, "including through arbitration."

Sheffer said on the earnings call that the dispute related to the recently signed agreement escalated into a legal conflict during the previous quarter, and that its details are confidential. He said Amdocs’ fiscal 2027 financial assumptions take into account the possibility that either party could terminate the agreements. The new outlook therefore includes the potential impact of losing the contractual relationship with T-Mobile, although the company did not specify the value of the disputed agreements. Sheffer described the dispute as involving one customer and said the company views it as an isolated case. He added that the rest of Amdocs’ business is expected to grow at a mid-single-digit rate in 2027.

The outlook follows a fiscal year in which Amdocs recorded revenue of $4.697 billion, up 3.6% year over year. Revenue in the fourth quarter ended September 30, 2026, reached $1.194 billion, up 3.8% from the same period. But managed services revenue, which totaled $728 million and accounted for about 61% of quarterly revenue, fell 3% year over year. Backlog expected to be completed within 12 months stood at $3.50 billion at quarter-end, down about 9.6% on a pro forma basis compared with the fourth quarter of the previous fiscal year, after the company’s comparative adjustments. These figures put the 2027 outlook in the context of a potential slowdown following revenue growth in the fiscal year just ended, while managed services continue to represent a large share of the business.

Amdocs and T-Mobile announced on February 3, 2026, an extension of their long-standing collaboration under a multi-year agreement. The agreement covered managed services, software development, artificial intelligence innovation and the integration of UScellular’s business, according to an Amdocs announcement reported by Nasdaq. The current dispute puts a commercial relationship described at the time as strategic and long-term at risk of termination, while the company has not disclosed details of the claims or the agreement’s financial consideration. Sheffer confirmed that operational support for T-Mobile continues during the dispute and that the agreement had not been terminated as of the time he spoke. Amdocs said it could not guarantee the outcome of the dispute and was prepared to defend its position and pursue its claims.

Amdocs shares, which trade under the ticker DOX, closed at $62.47 in regular trading on November 3, down 1.68%, before falling 42.65% to $35.80 in after-hours trading. The move followed the release of fourth-quarter results and the financial outlook for the coming year, which included the possibility of terminating the agreements with T-Mobile. In the November 2 session, the shares had closed at $63.54, according to EL7 data. The comparison between the two closes shows that the session before the results announcement saw a different price, while the sharp drop came in after-hours trading on November 3. The company did not explain the share move in its statement, while Sheffer linked the dispute to the assumptions underlying next year’s financial guidance.

For the first quarter of fiscal 2027, Amdocs expects revenue of $955 million to $995 million and adjusted diluted earnings per share of $1.27 to $1.33. For the full fiscal year, it expects revenue to decline 7% to 11% on a pro forma, constant-currency basis, with adjusted diluted earnings per share down 26% to 30%. The company said the estimates represent its best estimate as of the announcement date and include the possibility that either party may terminate the agreements with T-Mobile. Details of the dispute remain confidential, while Amdocs said it would pursue its claims and defend itself, including in arbitration. The company is presenting the outlook to investors after annual and quarterly results showed revenue growth, but it has not broken out the potential financial impact attributable to the dispute alone.