What Happened?

Shares of telecom software provider Amdocs (NASDAQ: DOX) fell 6.2% in the morning session after the company's third-quarter earnings report pointed to a weaker profit outlook. The company's revenue for the third quarter of 2025 came in at $1.15 billion, a 9% decline year-over-year, though it slightly beat Wall Street's expectations. Adjusted earnings per share of $1.83 were in line with analyst consensus. However, investors were more concerned with the company's forecast. While Amdocs guided for fourth-quarter revenue that was slightly ahead of estimates, its adjusted earnings per share guidance of $1.76 at the midpoint fell short of the $1.87 analysts were expecting. This weaker profit forecast signaled potential pressure on profitability, overshadowing the modest revenue beat and prompting a negative reaction from the market.

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What Is The Market Telling Us

Amdocs’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Amdocs is down 6.9% since the beginning of the year, and at $78.31 per share, it is trading 16.8% below its 52-week high of $94.08 from June 2025. Investors who bought $1,000 worth of Amdocs’s shares 5 years ago would now be looking at an investment worth $1,261.

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