Amdocs Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Notter - Wolfe Research LLC - Analyst : Hi guys, thanks very much. I guess I wanted to start just by asking about the British Telecom win. Looking back, I don't think you guys did much business there. I guess I'm just wondering how big that opportunity is for you if you could size it, that would be very interesting. Also, if I go back in the last three or six months, you guys talked about some bigger deals kind of working through your pipeline. I assume you're referencing the BT transaction. And then also, I'm just curious if that BT situation is in backlog at this point or not. Thanks.

Question: George Notter - Wolfe Research LLC - Analyst : Got it. That's great. And then I guess I'd also just ask you about AI. I know you guys, I think, had around a dozen POCs going on with the amAIz product I think, mainly in call center types of applications. So I was just curious about what kind of progress you're making there? Have you had customers convert from trial to production rollouts, anything you can say there would be interesting too. Thanks a lot.

Question: George Notter - Wolfe Research LLC - Analyst : Okay. Thank you very much.

Question: Shlomo Rosenbaum - Stifel, Nicolaus & Company Inc - Analyst : Hi, thank you very much. It's good to hear about all the deals. And I just wanted to follow on a comment that you made, Tamar, about the June 30 being kind of just a cut out point in time. So the first time in many years that we've seen a sequential ticked down even albeit small in backlog, it's down $20 million. Can you talk a little bit about that and what's contributing to that? And then afterwards, I just want to ask a little bit more following up on the AI deals. If you could just help kind of dimensionalize then? And do you think that that's going to -- at what point in time will we help see that be incremental to revenue growth, so kind of lifting up the expectation for

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : Thanks guys. The North American win, is that a relatively smaller customer that's going to become larger? Or can you give us some sense of how meaningful and material that is? And then on --

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : Got it. On the SaaS products, can you tell us how meaningful that is to overall revenue or maybe just incremental revenue growth at this point? And I know you talked a lot about ConnectX. Are there other SaaS products that are doing well?

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : And do you have a sense of where we are in the cloud migration by your customers? Maybe what percentage or what inning we're in and -- do they recognize that they have to migrate to the cloud to really use GenAI? And are they thinking that GenAI is going to really help them move the needle fundamentally?

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : And last for Tama, the margin expansion you sold this year, 60 basis points, 70 basis points. Do you think that's sustainable or repeatable? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:00PM, DOX.OQ - Q3 2025 Amdocs Ltd Earnings Call

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : Thank you.

Question: Kevin Brunner - Bank of America - Analyst : Hi guys, this is Kevin [Brunner], on for Tal Liani of Bank of America. I have two questions for you. The first one is about GenAI. I know we already had some questions about GenAI, but I wanted to ask you in a little bit of a different sense in the terms of -- what are you guys thinking about the potential for GenAI to contribute meaningfully to revenue over time, whether it's a stand-alone opportunity or an accelerator of the existing service lines. And directionally speaking, is it crazy to think that in a year from now, that GenAI is a meaningful contributor to revenues? Or is it still a few years out?

Question: Kevin Brunner - Bank of America - Analyst : Got it, thank you. And then again, I'm not asking for any number, but just again, directionally, as we get towards the end of the year and into fiscal year '26, can you maybe speak to some of the broader demand trends you're seeing across your service lines? Is there anything structural or secular drivers or anything that's really sticking out that would make you believe that the current fiscal year growth rate of fiscal year '25 growth rate could differ up or down in fiscal year '26 or are we seeing kind of more consistent trends?

Question: Kevin Brunner - Bank of America - Analyst : Got it. Thank you guys.