Amdocs (DOX) shares plunged 5.04% in pre-market trading on Wednesday following the release of its fourth-quarter 2025 financial results and subsequent analyst actions. The software and services provider for communications, media, and financial services industries faced a significant sell-off as investors digested the latest financial data and revised outlooks from Wall Street analysts.
The company announced its Q4 2025 results on November 11, which apparently failed to meet market expectations. While specific details of the results were not provided, the market reaction suggests that the figures or guidance may have fallen short of analyst projections. Adding to the downward pressure, both Bank of America Global Research and Stifel lowered their price targets for Amdocs stock. BofA cut its target to $97 from $100, while Stifel similarly reduced its target to $97 from $100.
Despite the price target reductions, it's worth noting that analysts maintain a relatively positive outlook on Amdocs. Both BofA and Stifel kept their Buy ratings on the stock, indicating their continued confidence in the company's long-term prospects. However, BofA analysts noted that growth remains constrained, which could be a key factor in the stock's sharp decline. The market's reaction suggests investors are recalibrating their expectations for Amdocs' near-term performance and growth trajectory.
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