The Israeli company that is replacing its CEO, and the two companies that fell to the bottom after the reports

Amdocs – changes at the top

After trading on Tuesday, Amdox published its financial statements for the first fiscal quarter of fiscal year 2026 (the quarter that ended in December), and at the same time announced a change at the top of the company: after approximately 8 years in the position of president and CEO, Shuki Shafer is expected to retire at the end of March, and in his place is appointed Shemai Hortig, who has over two decades of experience in various positions at Amdox and currently serves as president of the Americas group in the company. Amdocs is a solution provider for telecom and media companies.

The chairman of Amdocs, Eli Gelman (who previously served as CEO of Amdocs) admitted to improving his leadership and dedication and said that “Shoki successfully led the company during periods of significant changes during a global epidemic and technological revolutions. Under his leadership, Amdocs became a powerhouse based on cloud services and driven by artificial intelligence, while maintaining its position as the most reliable partner in the industry for digital transformation.”

Gelman added that Hurtig is the “obvious and natural choice to lead Amdocs into its next chapter”, and that he is a reputable leader in the industry who is appreciated by clients and partners, and a key member of the company’s management for many years. According to Gelman, “His proven ability to lead the company’s strategy, drive growth and adapt to changing market trends, while creating significant value for our customers, places him in a unique position to lead the company in the new and exciting GenAI era. The board of directors places full trust in Shemai’s leadership and the continuity that this planned change provides.”

Amdocs shares fell 8.6% yesterday as part of the general negative trend in the market, but after the reports were published it climbed 4% in late trading. The company reported a 4.1% growth in revenue to $1.16 billion and a Non-GAAP net profit of $1.81 per share, higher than the forecast it provided. According to GAAP rules, net income attributable to shareholders amounted to $158 million, up from $151 million in the corresponding quarter, and non-GAAP net income reached $196 million, up from $188 million in the corresponding quarter. Amdocs generated free cash flow of $188 million during the quarter and continues to expect annual free cash flow of $710-730 million in fiscal year 2026.

Shafer stated with the publication of the reports that Amdocs continues to focus on its main goal, the re-acceleration of long-term growth while deepening its position as a market leader in the era of Generative AI. “I am proud to announce that Amdocs has extended its long-standing relationship with T-Mobile under a new multi-year agreement, which includes managed services, software development and innovation in the field of artificial intelligence,” said Shaffer.

Veronis – the negative trend continues

The Veronis share fell yesterday (Tuesday) by 9.3% and continued its negative trend from the last few months. At the end of the trading day, even before the reports were published, the stock reached a low of over two years. After the reports were published, in late trading, the stock continued to fall at a double-digit rate of over 18% to a low of over three years. Varonis, a cyber security company managed by one of its founders, Yaki Feitelson, provides solutions for the protection and management of data in organizations. Its market value at the end of the trading day was 3.1 billion dollars.

The results in the fourth quarter and for the entire year were higher than the forecasts that were lowered in the previous quarter: Veronis reported revenues of $173 million in the fourth quarter, a growth of 9.4%, and at the annual level the growth was 13.2% for revenues of approximately $624 million. According to GAAP rules, a quarterly net loss of $27.8 million and an annual loss of $129 million were recorded, high numbers compared to the losses of the corresponding periods. On a Non-GAAP basis the company is profitable but the profit shrank compared to the corresponding periods, amounting to $11.1 million in the quarter and $24 million in the year. The ARR (annual recurring revenue) amounted to 745 million dollars.

In the first quarter, Varonis expects revenues of 164-166 million dollars, growth of 20%-22%, with a non-GAAP net loss of 5-6 cents per share. In 2026, the expectation is for free flow of 100-105 million dollars, revenue growth of 16%-17% to 722-730 million dollars and net profit of 6-10 cents per share. Varonis is currently transitioning its customers from on-prem contracts to SaaS licenses and the expectation is for a growth of 26%-32% in the specific ARR of the SaaS field this year. Jefferies stated that the ARR will grow by 10% this year while the market forecasts were for 14% and wrote that the company is doing a “reset” to expectations.

At the same time, Veronis announced another acquisition, after recently acquiring SlashNext: the company will acquire AllTrue.ai, an AI security company that provides visibility and control and strengthens Veronis’ ability to help customers adopt AI. According to a report in the Wall Street Journal, the amount of the purchase is 125 million dollars.

Audiocodes at a two-year low

Another stock that fell to a low of over two years is Audiocodes, which fell 13.7% on the Nasdaq after the reports were published (and accordingly also fell at the end of the trading day yesterday in Tel Aviv). The company, under the management of the founder Shabtai Adlersberg, is now traded at a value of 211 million dollars. Audiocodes provides communication solutions for organizations and it ended the year 2025 with revenues of 246 million dollars, a growth of 1.4% compared to 2024, with the fourth quarter contributing 62.6 million dollars to the revenue line, a growth of 1.7%.

According to GAAP rules, net income fell both quarterly and annually, totaling $1.9 million in the quarter and $9 million in the year. On a non-GAAP basis, the quarterly net profit amounted to 4.5 million dollars, a decrease of 61.7% from the corresponding quarter, and 18.1 million dollars for the entire year. Net income per share was 61 cents, compared to 87 cents in 2024.

In the conference call, the company said that it expects annual revenues of 247-255 million dollars in 2026, which means a growth of 0.6%-3.8% compared to 2025, and the Non-GAAP net profit will be 60-75 cents (as mentioned compared to 61 cents in 2025).

According to Adlersberg, the fourth quarter’s performance highlights the company’s success in its transformation process into a Voice AI company based on cloud software and services. “With the growing demand for our Voice AI applications in the corporate market, we are confident in the success of this new growth engine in the coming years. The course of investments in the Live and Conversational AI services over the past few years have contributed significantly to the strong operational momentum, and we anticipate that they will contribute to stable and healthy revenue growth in 2026 and beyond.”