DOX

Amdocs signed an 8-year strategic agreement with AT&T to deploy its new AI-powered Agentic Operating System and acquired insurance software company EIS for $340 million to diversify beyond telecommunications. However, a legal dispute with T-Mobile, a key customer, has forced management to issue conservative guidance with fiscal 2027 revenue expected to decline 7-11% pro forma. The company expects recovery in fiscal 2028 with mid-single-digit revenue growth.

Amdocs reported Q3 2026 earnings of $1.98 per share, meeting consensus estimates, with revenues of $1.19 billion slightly missing expectations. The stock has underperformed the S&P 500 by 31.3% year-to-date and carries a Zacks Rank #3 (Hold) rating. Meanwhile, peer Telos Corporation is expected to report a 55.6% year-over-year earnings decline when it releases results on November 9.

Dynatrace reported Q3 2026 earnings of $0.54 per share, beating consensus estimates of $0.49, with revenues of $579.92 million exceeding expectations by 2.08%. The stock has gained 27.2% year-to-date, outperforming the S&P 500's 10.2% gain.

However, the company received a Zacks Rank #3 (Hold) rating due to mixed estimate revisions, suggesting near-term performance in line with the market. Amdocs, another IT services company, is expected to report earnings of $1.98 per share with revenues of $1.19 billion.