Amdocs Shares Crash 43% After Weak 2027 Outlook and T-Mobile Dispute

What happens when a key customer dispute rewrites a company's forecast overnight? Amdocs shares fell roughly 43 percent in after-hours trading after the telecom software firm guided fiscal 2027 reported revenue down 14.3 to 17.9 percent. The stock had closed at 62.47 dollars before the results landed. Investors were stunned by the scale.

The company said it and T-Mobile have each sent notices alleging the other materially breached agreements, with termination and arbitration threatened. Its guidance includes a scenario where either side ends the relationship. Non-GAAP earnings per share are forecast to fall 26 to 30 percent, with free cash flow of 440 to 500 million dollars.

Yet fiscal 2026 itself looked healthy, with revenue of 4.697 billion dollars, up 3.6 percent, and non-GAAP earnings per share of 7.41 dollars. Fourth-quarter revenue reached 1.194 billion dollars. Investors now face a stark question about how much of the business depends on one customer and how the legal fight will end.