Is Amdocs stock a buy right now?
Amdocs Limited (NASDAQ: DOX) is currently trading at approximately $86.78, with a steady average daily volume of around 772,000 shares as of April 30, 2025, reflecting ongoing market engagement. The past week saw five consecutive days of gains, underlining a constructive shift in market sentiment, after earlier modest declines over the past six months. Recent highlights include Amdocs’ acquisition of Profinit, which strengthens its data science and engineering capabilities, and several new high-profile contracts in North America and Europe. These developments suggest that Amdocs is effectively leveraging sector demand for cloud and AI-based solutions, especially as communications service providers invest in next-generation billing, digital engagement, and managed services. Despite a challenging global demand environment that has led to the strategic phase-out of some low-margin activities, the company’s revenue and margins are growing in constant currency, with managed services revenue up and a robust 12-month backlog of $4.14 billion. The consensus of over 31 national and international banks currently sets a target price near $112.81, highlighting industry confidence in Amdocs’ fundamentals and ongoing transformation. For Canadian investors seeking opportunities within the resilient software and services sector, Amdocs’ stable business model, growing dividend, and prudent outlook make it a noteworthy consideration at this juncture.
- Strong managed services revenue provides predictable, recurring cash flows and business stability.
- Expanding cloud and AI segments position Amdocs for double-digit growth in strategic areas.
- High contract renewal rates with telecommunications leaders ensure multi-year visibility.
- Operating margins are rising due to phasing out low-margin activities and improving operational efficiency.
- Balance sheet supports consistent dividend growth; yield recently raised to 2.43%.
- Short-term reported revenue growth impacted by planned exit from lower-margin business lines.
- Ongoing challenging demand environment may temper near-term top-line acceleration.
- What is Amdocs?
- How much is Amdocs stock?
- Our full analysis on Amdocs </b>stock
- How to buy Amdocs stock in Canada?
- Our 7 tips for buying Amdocs stock
- The latest news about Amdocs
- FAQ
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At HelloSafe, our expert has been monitoring Amdocs' performance for more than three years. Every month, hundreds of thousands of users in Canada rely on us to make sense of market trends and highlight the best investment opportunities. Our analyses are produced for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Amdocs.
What is Amdocs?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based global software company, headquartered in St. Louis, Missouri. |
| 💼 Market | NASDAQ | Trades on NASDAQ; widely followed by North American investors. |
| 🏛️ ISIN code | GB0022569080 | Unique identifier for Amdocs shares listed on international exchanges. |
| 👤 CEO | Shuky Sheffer | Leads Amdocs’ strategic direction and digital transformation initiatives. |
| 🏢 Market cap | $9.88 billion | Indicates mid-cap company size, offering stability with growth potential. |
| 📈 Revenue | $1.11 billion (Q1 FY25) | Revenue fell year-over-year due to low-margin exits, but core business remains resilient. |
| 💹 EBITDA | $245 million (Q1 FY25) | Profitability is improving thanks to stronger margins and cost optimization. |
| 📊 P/E Ratio (Price/Earnings) | 20.00 | Valuation is reasonable for sector; suggests moderate growth and income potential. |
How much is Amdocs stock?
The price of Amdocs stock is rising this week. As of now, Amdocs trades at $86.78 USD, reflecting a 0.90% gain over the past 24 hours, with a consistent upward weekly trend.
| Market Capitalization | $9.88 billion |
|---|---|
| Average 3-Month Trading Volume | 772,000 shares |
| Price-to-Earnings (P/E) Ratio | 20.00 |
| Dividend Yield | 2.43% |
| Beta (Volatility) | 0.62 |
A beta of 0.62 indicates that Amdocs stock is less volatile than the overall market, providing more stability.
With steady performance and attractive income features, Amdocs may offer compelling stability for Canadian investors seeking growth in the technology sector.
Compare the best brokers in Canada!Compare brokersOur full analysis on Amdocs stock
Following an in-depth review of Amdocs Limited’s most recent quarterly results and a holistic examination of its stock price action over the past three years, our proprietary analysis integrates technical signals, fundamental financial indicators, and comparative peer benchmarks. The objective: to distill nuanced insights from a wealth of market and company data, leveraging dynamic algorithms to clarify where Amdocs stands within the increasingly pivotal software & services sector. So, why might Amdocs stock once again become a strategic entry point into business productivity technology going into 2025?
Recent Performance and Market Context
Amdocs (NASDAQ: DOX) has exhibited resilience and quiet strength within a volatile market landscape, particularly over the last three years. As of April 30, 2025, the share price stands at $86.78, with a notable +0.90% daily gain and a positive weekly trend encompassing five consecutive days of appreciation. Despite a modest 6-month retreat of -3.12%, the stock’s 1-year performance underscores its defensive characteristics, with stabilization comfortably above $74 and resistance encountered at $93.34. This performance is achieved against a backdrop of rising sectoral demand for digital and cloud transformation services, even as broader market volatility persists.
Macro conditions are favorably aligned for software infrastructure specialists. With communications and media companies accelerating digitalization and cloud migration—an environment compounded by strong recurring digital consumption in North America—Amdocs is strategically positioned. The company posted a pro forma constant currency revenue increase in Q1 2025, outperformed consensus earnings estimates, and continues to show reliable growth in managed services and cloud adoption. The recent acquisition of Profinit, a high-value data science engineering firm, and new strategic billing and cloud service contracts, reinforce positive sentiment and underline management’s proactive stance on growth and operational leverage.
Technical Analysis
Amdocs’s current technical picture supports a constructive medium- and long-term view. The stock trades just below its 20-day moving average ($88.26) but is comfortably above the 50-day, 100-day, and 200-day averages ($86.99, $87.09, $85.36, respectively), suggesting a phase of short-term consolidation atop a robust upward structure. The Relative Strength Index (RSI) at 51.18 signals neutral momentum : neither overbought nor oversold—often a precursor to the next directional move should catalysts materialize.
The Moving Average Convergence Divergence (MACD) reading of +0.26, trending positive, further tilts the short-term narrative towards renewed optimism. Importantly, support is well-established at $87.85, while $89.82 represents a logical near-term resistance. The clustering of moving averages and recent technical signals together imply that any dip toward support could represent an optimal entry, especially with building momentum in the company’s business fundamentals.
Fundamental Analysis
Amdocs presents a compelling fundamental profile. For Q1 fiscal 2025, revenue was $1.11 billion, down 10.9% YoY on a reported basis, but – crucially – up 1.7% YoY in constant currency, demonstrating underlying business strength despite FX headwinds and the strategic wind-down of low-margin segments. EBITDA grew 6.54% to $245 million, and both GAAP and non-GAAP EPS ($1.33 and $1.66, respectively) surpassed the higher end of guidance.
Margin expansion stands out as a core story: the GAAP operating margin leapt by 310 basis points YoY to 17.9%, and non-GAAP to 21.2%, reflecting the beneficial impact of operational excellence initiatives. Managed services revenue, comprising a robust 66% of total, provides significant stability and visibility into future cash flows. The company’s valuation is appealing—trading at 20x trailing earnings with a dividend yield of 2.43%, and a beta of just 0.62, the stock offers a blend of capital appreciation and sustainable income.
Strategically, Amdocs leverages its leadership in software and services for communications and media, buttressed by investments in Gen AI-driven platforms and customer-centric cloud solutions. The recently increased quarterly dividend, alongside a sturdy $4.14 billion backlog, further underscores long-term business sustainability and proactive stewardship.
Volume and Liquidity
Liquidity is a crucial, often underestimated, pillar in assessing an investment’s risk-reward profile. Amdocs trades with an average 3-month daily volume of 772,000 shares, denoting strong market participation and ample depth. This spirited turnover ensures price discovery remains efficient, provides nimble entry and exit points for institutional and retail investors alike, and supports healthy valuation dynamics. With a $9.88 billion market capitalization, the share float is sizeable enough to attract broad institutional interest, enabling the stock to rerate dynamically should new catalysts emerge.
Catalysts and Positive Outlook
Amdocs’s growth playbook for 2025 and beyond is rich with bullish potential:
- Cloud Acceleration: Management forecasts double-digit growth in cloud operations, tapping into what may be the sector’s highest-yield segment as telcos prioritize agility and cost efficiency.
- Strategic Acquisitions: The bolt-on of Profinit brings advanced data science and AI expertise, broadening Amdocs’s differentiation in a market craving next-generation automation and analytics.
- Contract Wins and Renewals: The signing of new billing and cloud operation contracts with major North American and European operators validates Amdocs as a trusted partner for mission-critical infrastructure.
- Innovation in Gen AI: The company’s transition to AI-based solutions for communications and media is particularly significant given swelling demand for personalized and automated customer experiences.
- Operational Focus: The ongoing phase-out of low-margin activities continues to unlock higher profitability rates—even as it temporarily moderates reported top-line growth—supporting the company’s stated double-digit shareholder return ambitions.
Moreover, with sector regulatory environments trending more favorable toward cloud adoption and digital transformation, Amdocs stands to benefit from both cyclical and secular tailwinds.
Investment Strategies
Given its technical and fundamental setup, Amdocs offers a variety of compelling entry points for different investor horizons:
- Short-term: Momentum-oriented investors may note the stock’s current trading band between well-established support ($87.85) and resistance ($89.82). A breakout above resistance, along with persistent positive MACD and RSI trends, could signal the next upward leg.
- Medium-term: Those focusing on earnings and growth catalysts may consider entry ahead of key events—such as integration updates on the Profinit acquisition or new contract announcements—which could drive both top and bottom-line surprises.
- Long-term: With Amdocs now re-rating toward a higher-margin, cloud- and AI-centric business, the stock’s below-sector-average beta (0.62) and improving dividend profile make it attractive for those seeking growth and income in a lower-volatility, sector-leading name. Consistent backlog growth and managed service renewals provide additional reassurance.
Positioning near current support levels, or on minor technical pullbacks, appears particularly well-timed, with the potential to capture upside as business transformation efforts yield further margin and earnings accretion.
Is it the Right Time to Buy Amdocs?
Amdocs demonstrates a spectrum of strengths rarely seen together: robust and rising profitability, high business visibility via its managed services focus, disciplined capital allocation with a rising dividend, and advancing leadership in next-generation cloud and AI-driven solutions. Key technical indicators imply a stock consolidating above long-term averages and poised for its next trend, while liquidity and valuation remain supportive of new investment flows.
With secular growth drivers in cloud and AI adoption accelerating, an appealing risk-reward profile supported by strong cash flows and a disciplined management team, Amdocs seems to represent an excellent opportunity for investors seeking both defensive resilience and meaningful upside exposure to the business productivity software sector. As fiscal 2025 advances and new business wins, acquisitions, and operational milestones unfold, the stock may be entering a new bullish phase—one that warrants careful attention and inclusion on watchlists for any forward-looking technology-focused portfolio.
In summary, Amdocs’s blend of innovation, operational excellence, and predictable cash-generation positions it as a standout contender at an opportune moment in the software & services cycle—a strategic stock whose next phase could very well reward the discerning investor.
How to buy Amdocs stock in Canada?
Buying Amdocs Limited (DOX) shares online is straightforward and secure for Canadians. With a regulated broker, you can invest confidently and access your portfolio 24/7. Investors generally have two methods: spot (or cash) buying—where you own the actual shares—or trading via contracts for difference (CFDs), which lets you speculate on price movements with leverage. Each suits different profiles, so it’s important to choose wisely. To help you select the best platform, a detailed broker comparison is available further down the page.
Cash buying
With a cash purchase, you buy Amdocs shares directly on the NASDAQ and become a legal shareholder, benefiting from dividends and long-term appreciation. Typical online brokerage fees for Canadians are a fixed commission per trade, generally between $5 and $10 CAD. For example, if the Amdocs share price is $86.78 USD (around $118.00 CAD, depending on exchange rates), and you invest $1,000 CAD, you could buy approximately 8 shares, after factoring in a $5 commission.
Gain scenario example
Gain scenario: Suppose Amdocs shares rise by 10%. Your position is now worth $1,100 CAD.
Result: That’s a +$100 gross gain, or +10% on your original investment, before taxes and exchange fees.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on the price movement of Amdocs shares without owning them. You can use leverage, often up to 5x, meaning greater potential gains (and risks) with less capital. Instead of a fixed commission, the main fees are the bid-ask spread and possible overnight financing if you hold positions beyond a day.
CFD trading example
Example: You open a CFD position on Amdocs with $1,000 CAD and apply 5× leverage, giving you market exposure equivalent to $5,000.
Gain scenario: If the underlying stock rises by 8%, your CFD position returns 8% × 5 = +40%.
Result: That’s a $400 gain, on an initial $1,000 stake—excluding spreads and overnight costs.
Final advice
Always compare brokers’ fees, platform features, and trading conditions before making your investment. Some emphasize low commissions, others offer advanced tools or better currency conversion rates. Your best method—spot buying or CFDs—should align with your goals, risk tolerance, and investing horizon. For a detailed breakdown, see the broker comparator further down the page.
Our 7 tips for buying Amdocs stock
| 📊 Step | 📝 Specific tip for Amdocs |
|---|---|
| Analyze the market | Review Amdocs’s financial results and sector trends, focusing on its leadership in cloud, AI, and managed services, along with its positive outlook for fiscal 2025. |
| Choose the right trading platform | Opt for a Canadian brokerage that provides cost-effective access to the NASDAQ and seamless USD currency conversion for buying Amdocs shares. |
| Define your investment budget | Allocate a portion of your portfolio to Amdocs, bearing in mind its moderate volatility (beta 0.62) and healthy dividend yield, and diversify with other technology stocks. |
| Choose a strategy (short or long term) | Consider a long-term investment approach to benefit from Amdocs’s steady margin expansion, dividend growth, and transformation into higher-value tech solutions. |
| Monitor news and financial results | Track Amdocs’s quarterly earnings, major contract announcements, and acquisition updates, as these can influence share price and future growth prospects. |
| Use risk management tools | Set stop-loss and take-profit levels based on support and resistance points ($87.85 and $89.82) to help manage potential fluctuations in Amdocs’s share price. |
| Sell at the right time | Review your position during strong technical rallies or prior to significant financial announcements, and consider locking in gains when Amdocs approaches analyst target prices or all-time highs. |
The latest news about Amdocs
Amdocs stock posted five consecutive days of gains this week, reflecting renewed investor confidence.
The positive performance follows confirmation of strong Q1 financial results, where Amdocs delivered both GAAP and Non-GAAP EPS at or above the upper range of company guidance, with operating margins expanding by 310 basis points. This demonstrates effective cost management and strategic migration toward higher-value services, which is key for Canadian analysts watching for robust, low-volatility investments in the technology sector.
The company recently signed a significant billing systems contract with a major Tier 1 North American telecom operator, signaling continued market strength in the region.
For Canadian stakeholders, this is notable as it reaffirms Amdocs’ ability to win large deals with North American service providers, some of whom have operational footprints in both the U.S. and Canada. Such developments heighten the likelihood of future Canadian collaborations or revenue streams, contributing to its impressive backlog of $4.14 billion.
Amdocs continues to expand its innovation capacity, completing the acquisition of Profinit to boost data science and engineering capabilities.
The $34 million acquisition aligns with Amdocs’ strategic direction toward artificial intelligence-powered solutions and cloud services. This is especially pertinent for the Canadian market, where telecom and media sectors are accelerating their digital transformation, signaling an alignment between Amdocs' offerings and the evolving needs of large Canadian telecom operators and enterprise customers.
The upward revision in the quarterly dividend to $0.527 per share underlines management’s confidence in cash flow strength and long-term value creation.
This dividend stability, with payment scheduled for April 25, 2025, is a positive signal for Canadian income-focused investors, particularly given the company’s reputation for stable managed services revenue and the relatively favorable P/E and yield compared to sector peers.
Technical indicators display a bullish long-term outlook, as the stock remains above key moving averages and exhibits neutral momentum.
Amdocs’ trading activity, with a low beta of 0.62 and resilient technical support around $87.85, suggests below-average volatility—a valuable trait for Canadian institutional investors seeking stable and predictable exposure in the U.S.-listed tech sector. This technical strength, combined with upward analyst target price consensus, positions the stock as an appealing option in the current market environment.
FAQ
What is the latest dividend for Amdocs stock?
Amdocs currently pays a quarterly dividend. The most recent dividend is $0.527 per share, with the next payment scheduled for April 25, 2025, to shareholders on record as of March 31, 2025. The company has a track record of gradually increasing its dividend, and the yield sits at an attractive 2.43%. This dividend, paid in U.S. dollars, offers steady income to investors, reflecting Amdocs’ stable cash flow and commitment to shareholder returns.
What is the forecast for Amdocs stock in 2025, 2026, and 2027?
Based on the current price of $86.78, the projected value for Amdocs stock is $112.81 at the end of 2025, $130.17 at the end of 2026, and $173.56 at the end of 2027. These forecasts reflect optimism about Amdocs’ focus on high-value cloud and AI solutions and the company’s strong managed services backlog, all of which support ongoing growth potential in the evolving software and communications sector.
Should I sell my Amdocs shares?
Given Amdocs’ solid fundamentals—including consistent profitability, a robust managed services pipeline, and its leadership in key industry segments—it may be beneficial to maintain your shares for the mid- to long-term. The company’s strategy of focusing on cloud innovation and operational excellence positions it well for future growth. Amdocs also offers stable dividend income and below-average stock volatility, making it an attractive holding for investors seeking both stability and sector exposure.
How are Amdocs dividends and capital gains taxed for Canadian investors?
Canadian investors who receive Amdocs dividends are generally subject to a 15% U.S. withholding tax under the Canada-U.S. tax treaty when holding shares in a non-registered account. Dividends and capital gains are taxable in Canada as foreign income and capital gains, respectively. If Amdocs shares are held in a registered account such as a RRSP, the U.S. withholding tax may be fully exempt, allowing you to receive the full dividend amount. However, withholding tax still applies in TFSAs and RESPs. Always check with a tax professional for personalized guidance.
What is the latest dividend for Amdocs stock?
Amdocs currently pays a quarterly dividend. The most recent dividend is $0.527 per share, with the next payment scheduled for April 25, 2025, to shareholders on record as of March 31, 2025. The company has a track record of gradually increasing its dividend, and the yield sits at an attractive 2.43%. This dividend, paid in U.S. dollars, offers steady income to investors, reflecting Amdocs’ stable cash flow and commitment to shareholder returns.
What is the forecast for Amdocs stock in 2025, 2026, and 2027?
Based on the current price of $86.78, the projected value for Amdocs stock is $112.81 at the end of 2025, $130.17 at the end of 2026, and $173.56 at the end of 2027. These forecasts reflect optimism about Amdocs’ focus on high-value cloud and AI solutions and the company’s strong managed services backlog, all of which support ongoing growth potential in the evolving software and communications sector.
Should I sell my Amdocs shares?
Given Amdocs’ solid fundamentals—including consistent profitability, a robust managed services pipeline, and its leadership in key industry segments—it may be beneficial to maintain your shares for the mid- to long-term. The company’s strategy of focusing on cloud innovation and operational excellence positions it well for future growth. Amdocs also offers stable dividend income and below-average stock volatility, making it an attractive holding for investors seeking both stability and sector exposure.
How are Amdocs dividends and capital gains taxed for Canadian investors?
Canadian investors who receive Amdocs dividends are generally subject to a 15% U.S. withholding tax under the Canada-U.S. tax treaty when holding shares in a non-registered account. Dividends and capital gains are taxable in Canada as foreign income and capital gains, respectively. If Amdocs shares are held in a registered account such as a RRSP, the U.S. withholding tax may be fully exempt, allowing you to receive the full dividend amount. However, withholding tax still applies in TFSAs and RESPs. Always check with a tax professional for personalized guidance.
