"Amdocs is playing a margin expansion game. Revenue declined from $1.26 billion in Q4 2024 to $1.15 billion in Q4 2025, but net income climbed from $86.4 million to $97.1 million. Operating margin hit 17.9% for the trailing twelve months. Management is prioritizing profitability over top-line growth, likely by exiting lower-margin contracts and focusing on higher-value digital transformation deals tied to AI and cloud infrastructure."
"CSG took a different path. The company delivered $1.31 in Q3 2025 earnings per share against a $1.12 estimate, a 17% beat that followed similar outperformance in Q2 and Q1. Revenue grew 2.9% year-over-year. CSG's business centers on billing and customer engagement platforms for telecom providers, and the company appears to be capturing share or deepening wallet share with existing clients. Gross margin sits at 46.7%, well above Amdocs' 37.4%, though operating margin trails at 13.9% versus Amdocs' 17.9%."
Amdocs posted Q4 2025 revenue of $1.15 billion, down from $1.26 billion a year earlier, while operating income rose 83% to $205.7 million and net income increased to $97.1 million. Operating margin for the trailing twelve months reached 17.9%. Management is prioritizing profitability by exiting lower-margin contracts and targeting higher-value digital transformation deals tied to AI and cloud infrastructure. CSG reported Q3 2025 revenue of $303.6 million, up 2.9% year-over-year, and delivered $1.31 earnings per share versus a $1.12 estimate, marking a fourth consecutive quarter of positive surprises. CSG shows a 46.7% gross margin and 13.9% operating margin, indicating stronger gross efficiency but lower operating leverage versus Amdocs. Amdocs serves larger service providers with longer sales cycles and offers a 2.55% dividend yield and a forward P/E of 11.0x.
Read at 24/7 Wall St.
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