Amdocs Hits Stride: Q2 2025 Highlights Record Revenue and Robust Growth
Amdocs, a leading provider of software solutions for the telecommunications industry, has reported impressive financial results for its second quarter of 2025. According to the company's recent conference call transcript, revenue hit $1.13 billion, up 4% from the same period last year and above the midpoint of their guidance. This growth is a testament to Amdocs' successful execution of its strategic growth framework.
One of the key highlights of the quarter was the company's continued momentum in cloud services. Amdocs has been working with Microsoft to migrate both internal and external applications to the Microsoft Azure platform for a leading Tier 1 European operator. The company also signed an agreement to support the next phase of PLDT's cloud monetization project in the Philippines.
Amdocs' relationships with major telecommunications operators have also strengthened during the quarter. The company has been working with AT&T Cricket Wireless, providing payment solutions, dealer commission, and other services. Consumer Cellular, a new logo for Amdocs in the US, has selected the company's Connected XS solution to introduce new digital brands.
The 12-month backlog closed at $4.17 billion, up 3.5% pro forma from last year, demonstrating strong pipeline conversion rates and customer demand for Amdocs' services. The company successfully achieved a high number of major milestones for many of its world's largest operations, including the mainframe to cloud migration using Amdocs' agenting migration power deal with AT&T.
In Japan, a strategic market for Amdocs, the company delivered an advanced cloud-native platform to enable NTT Infranet to modernize and migrate its IT operation system to the cloud. This achievement continues Amdocs' momentum in Japan, where it now supports three flagship customers, including JCOM and Paramount, in addition to NTT Internet.
The company's operational highlights also included a record quarter in Managed Services, which contributes roughly 2/3 of total revenue. Profitability improved by 10 basis points sequentially, reflecting ongoing internal efficiency gains. Non-GAAP earnings per share were $1.78, above the guidance range, primarily due to lower-than-expected non-GAAP effective tax rate.
Amdocs' Chief Executive Officer Shuky Sheffer praised the company's global base of employees for executing the strategy that delivered these results. He noted that Amdocs is committed to delivering NextGen cloud, digital, and AI best solutions to its customers, ensuring amazing experiences and seamless connectivity for billions of people each day.
