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Accenture Reports Third-Quarter Fiscal 2025 Results

1. Accenture reported Q3 FY25 revenue of $17.7 billion, up 8%. 2. New bookings decreased by 6%, but Generative AI bookings reached $1.5 billion. 3. Operating margin rose to 16.8%, indicating effective cost management. 4. Earnings per share increased by 15%, reflecting strong profitability. 5. The company raised free cash flow guidance to $9.0 billion-$9.7 billion.

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$306.3806/20 06:49 AM EDTEvent Start
$285.3706/23 06:40 AM EDTLatest Updated
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FAQ

Why Bullish?

Strong revenue growth and improved margins historically lead to positive stock performance. Similar past quarterly results led to an upward trend in ACN's stock.

How important is it?

The significant increase in earnings and free cash flow enhances investor confidence and financial health. High performance in the Generative AI sector can influence market perception and demand for ACN's services.

Why Short Term?

Immediate investor sentiment may respond to these positive results in the coming weeks. Earnings surprises have historically impacted short-term stock prices for Accenture.

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Accenture’s Q3 FY25 results reflect broad-based revenue growth and strong margin expansion and free cash flow; Company updates fiscal 2025 outlook NEW YORK--(BUSINESS WIRE)--Accenture (NYSE: ACN) reported financial results for the third quarter of fiscal 2025 ended May 31, 2025. All comparisons are to the third quarter of fiscal 2024, unless noted otherwise. Accenture Chair and CEO Julie Sweet “I am very pleased with our third quarter fiscal 2025 results, including our 30 clients with quarterly bookings greater than $100 million, broad-based growth and continued expansion of our leadership in Gen AI. Companies need resilience and results, and we are laser-focused on delivering measurable value for our clients, which is fueling our growth and making a difference for us in the market. I want to thank our more than 790,000 people for all they do every day to deliver on the promise of technology and human ingenuity as only Accenture can.” Third Quarter Fiscal 2025 Key Metrics New bookings of $19.7 billion, a decrease of 6% in U.S. dollars and 7% in local currency Generative AI new bookings of $1.5 billion Revenues of $17.7 billion, an increase of 8% in U.S. dollars and 7% in local currency Operating margin of 16.8%, an increase of 80 basis points, and an increase of 40 basis points compared to adjusted1 operating margin Diluted earnings per share of $3.49, a 15% increase, and a 12% increase over adjusted EPS Free cash flow of $3.5 billion Quarterly cash dividend of $1.48 per share, representing a 15% increase; repurchases or redemptions of 6.0 million shares for a total of $1.8 billion Fiscal 2025 Business Outlook Highlights Company now expects full-year revenue growth to be 6% to 7% in local currency Updates foreign exchange impact to positive 0.2% Now expects operating margin to be 15.6%, an expansion of 10 basis points over adjusted operating margin Now expects diluted earnings per share to be in the range of $12.77 to $12.89 Raises free cash flow to be in the range of $9.0 billion to $9.7 billion 1Adjusted financial measures presented in this release are non-GAAP financial measures that exclude business optimization costs recorded in fiscal 2024 as further described in this release. Conference Call and Webcast Details Accenture will host a conference call at 8:00 a.m. EDT today to discuss its third quarter fiscal 2025 financial results. To participate in the teleconference, please dial +1 (877) 883-0383 [+1 (412) 317-6061 outside the U.S., Puerto Rico and Canada] and enter access code 6485273 approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live via webcast on the Investor Relations section of the Accenture website at accenture.com. A replay will be available on this website following the call. About Accenture Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 791,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. Our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at accenture.com.

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