- Amdocs' new CEO had the unpleasant task of revealing a major dispute with its big customer T-Mobile
- Given the size of the challenge at T-Mobile, Amdocs expects fiscal 2027 revenue to decline between 7% to 11%
- Amdocs also announced that it's getting into the insurance vertical to expand outside of telecom
Six months ago, Amdocs replaced its long-time CEO Shuky Sheffer with Shimie Hortig, who was previously group president of Amdocs’ Americas Business. On the company’s fiscal Q4 2026 earnings call this week, Hortig disclosed that Amdocs is involved in a dispute with T-Mobile. And his comments indicated it’s a pretty serious threat to Amdocs’ financials.
“We are facing major headwinds due to the situation we have with T-Mobile, resulting in a significant decline in our revenue and profitability outlook for next year," Hortig said.
He said T-Mobile has reduced its discretionary spending with Amdocs. In addition, in August, Amdocs completed a large-scale onetime integration project of UScellular customers into T-Mobile. The company is now facing a legal dispute with the Un-Carrier.
“Due to the confidential nature of the dispute, I'm not going to get into details other than to say that we are prepared to fiercely defend our positions, including in arbitration,” said Hortig.
Given the size of the challenge at T-Mobile, Amdocs expects fiscal 2027 revenue to decline between 7% to 11%. The T-Mobile situation will also impact the company’s profitability. It now expects non-GAAP diluted earnings per share to decline by between 26% and 30%.
Outside of T-Mobile, the rest of Amdocs' business is robust and expected to grow mid-single digits in fiscal 2027.
Of course, analysts on the call were laser focused on the troubles with T-Mobile. And one of them asked if the dispute could spill over into troubles with its other major telecom customers.
Hortig said no, T-Mobile is an isolated case.
Prior to the earnings call, Amdocs’ stock was trading at $62.43, and it’s trading at $43.83 today.
Getting into the insurance business?
As if Amdocs’ Q4 2026 call wasn't already shocking enough, Hortig announced that the company is getting into the insurance vertical.
He said, “Insurance is a large and growing market and shares many of the same characteristics that have defined Amdocs' success in telecommunications: highly regulated operating environments, complex and mission-critical platforms and data-intensive workflows.”
Amdocs is on a big push to integrate AI into everything that it does via its Agentic Operating System (aOS) platform. Hortig said, “Similar to telco, insurance providers will also need to transform and adapt AI capabilities across their core operations and business workflows. We intend to become their partner of choice, leading them in this agentic journey.”
To kick off Amdocs’ entrance into a new vertical, Hortig announced that it has acquired EIS for $340 million in cash. EIS is a provider of agentic insurance core systems platforms spanning policy, billing, claims and customer engagement. Headquartered in San Francisco, EIS serves dozens of leading insurance carriers globally, including Aflac, Allstate, AAA, BNP Paribas Cardif and more.
Amdocs plans to combine EIS's technology and customer base with its aOS.
Read more about Amdocs and T-Mobile on Fierce Network:
T-Mobile closes $4.3B acquisition of UScellular
Amdocs says aOS can help telcos take control of their AI roadmap