Amdocs crashes ~40-45% after T-Mobile legal dispute forces bleak FY2027 guidance; Oppenheimer downgrades
What happened
Amdocs (DOX) shares collapsed in Tuesday after-hours trading to ~$34.50 from a $62.43 close, a level not seen since early 2013, and were down ~30-42% in Wednesday's session. The crash followed a fiscal 2027 guidance cut driven by a legal dispute with largest customer T-Mobile: revenue could fall 14.3-17.9% on a reported basis (7-11% pro forma in constant currency excluding exited businesses), with non-GAAP EPS down 26-30% to ~$5.19-5.48 vs $7.41 in FY2026. Q1 revenue guidance of $955-995M and EPS of $1.27-1.33 both missed consensus by wide margins (~$1.2B and ~$1.93). The drop erased roughly $2-3B of market value. Following the results, Oppenheimer analyst Timothy Horan downgraded Amdocs to Perform from Outperform, citing the weak forecast and uncertainty over the dispute.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Amdocs (DOX, -40-45% — roughly half its ~$6.5B market cap)
- T-Mobile (TMUS) — the dispute's other side, with read-through to carrier IT-spending priorities; telecom software/services peers (possible concern about carriers insourcing or switching to agentic-AI-built systems, per Oppenheimer's warning)
- AT&T named as a recent Amdocs win, a mild offset.