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Research Alert: Dox Posts In-line Quarter, Modest Backlog Growth; Maintains Fy 26 Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

DOX's Mar-Q results slightly exceeded expectations, with sales of $1.172B (+3.9% Y/Y) and non-GAAP EPS of $1.78 beating consensus views of $1.166B and $1.76, respectively. Constant currency sales growth again decelerated, coming in at 2.2% from the prior quarter's 3.5% rate, with managed services (65% of sales) slowing to 1.6% growth from 2.3% growth in Q1. Management narrowed its FY 26 guidance ranges, with sales growth now expected at 2.6%-4.6% (vs. prior 1.5%-5.5%) and EPS growth expected at 5%-7% (vs. prior 4%-8%). 12-month backlog grew 2.6% Y/Y to $4.28B, offering strong support for the company's modest sales growth outlook with minimal reliance on shorter-term discretionary work (which has been under pressure amid the uncertain macro environment). CFO Tamar Rapaport-Dagin will be leaving the company, with Tal Rozenfeld (Head of Finance) taking over effective June 2026, though we expect no material operating impact from the change.

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