Amdocs shares fell 6.3% last Thursday, with U.S. markets closed on Friday, leaving the stock down 35.5% since the start of 2026. It ended the week at its lowest level in more than six years, after trading briefly at similar prices during the early days of the COVID-19 panic. The stock had previously surged with the broader tech market and hit an all-time high near $100 about three years ago, but it has since lost almost half its value. Amdocs now has a market capitalization of $5.5 billion.
The company provides technology solutions for telecom and media companies. No company-specific news was reported last week to explain the latest drop, but several factors have likely hurt sentiment in recent months. Amdocs is now led by newly appointed CEO Shmuel Hertig, who replaced Shuki Sheffer after eight years in the role. Chief Financial and Operating Officer Tamar Rapaport-Dagim also announced she is stepping down after 19 years and will be replaced by Tal Rosenfeld. SEC filings show that since the CEO change was disclosed, Sheffer sold Amdocs shares worth $17.5 million in three separate trading days. Rapaport-Dagim said the leadership changes should not be overread, telling Globes, “There is always an executive transition, we do not ignore that. But there is a long-term preparation process, and two internal appointments of very senior people.”
Amdocs is also facing pressure from market fears that AI could reshape its business model, even as the company invests in AI and analysts see opportunity there. Oppenheimer recently said Amdocs’ new AI platform, aOS, is still in early penetration stages and that the long-term AI and automation opportunity is not reflected in the current share price. The company has also cut about 10% of its workforce, including, by estimates, hundreds of employees in Israel, saying the move was meant to adapt processes for the AI era and make Amdocs more flexible.
Growth is another concern. In the first half of fiscal 2026, which ended in March, revenue rose 4%, and the company now expects full-year growth of 2.6% to 4.6%. That follows a 9.4% revenue decline last year after Amdocs exited less profitable activities. Even so, it continues to pay dividends and buy back shares. In the first half it generated about $2.3 billion in revenue, $297 million in net profit and $322 million in operating cash flow, repurchased $138 million of stock in the second quarter, and will pay a dividend of about 57 cents per share, or roughly $61 million, this month. Seven firms cover the stock, five are positive, one neutral and one negative, and the average target price is 64.5% above the current Nasdaq price. Oppenheimer’s $105 target is the highest, more than double the current price, and the firm called Amdocs “a value investment.”
