Amdocs Forecasts 14%–18% Revenue Fall as T-Mobile Dispute Weighs on Outlook

Amdocs forecast a 14.3% to 17.9% decline in reported revenue for fiscal 2027 as it released its annual results on November 3. The company disclosed a dispute with T-Mobile in which each side has accused the other of materially breaching software and services agreements. According to Amdocs, both companies have issued notices threatening termination or monetary and other relief, including arbitration. Its forecast incorporates the possibility that either side terminates the agreements. Chief executive Shimie Hortig also identified the completion of USCellular customer integration and reduced discretionary spending by T-Mobile as headwinds. Hortig said: “That said, the rest of our business remains robust and continues showing growth in fiscal 2027.” The outlook follows fiscal 2026 revenue of $4.697 billion, up 3.6% on a reported basis. Fourth-quarter revenue rose 3.8% to $1.194 billion. Amdocs expects pro forma constant-currency revenue to decline 7% to 11% in fiscal 2027, a separate measure from its reported revenue forecast. In a separate November 3 announcement, Amdocs said it had acquired San Francisco-based EIS for approximately $340 million in cash, with an additional payment contingent on performance metrics. EIS supplies insurance software covering policies, billing, claims and customer engagement. The acquisition marks Amdocs’ entry into the insurance industry. The board also proposed raising the quarterly dividend by 3%, from $0.569 to $0.586 per share. Shareholders are due to consider the increase at the January 2027 annual meeting. If approved, the first increased payment is anticipated in April 2027.