Accenture plc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.72%.
Did ACN Beat Earnings? Q3 2025 Results
Accenture posted a convincing fiscal third-quarter 2025 beat, with earnings of $3.49 per share clearing the $3.32 consensus estimate by 5.03% and revenue of $17.73 billion topping expectations by 2.33% on growth of 7.7% year over year. The outperformance was anchored by broad-based momentum across all geographic markets and industry groups, with Financial Services emerging as the standout segment, growing 13% in local currency to $3.28 billion, while operating margin expanded 80 basis points to 16.8% as SG&A costs fell sharply as a share of revenue. Generative AI bookings contributed $1.50 billion to the quarter's $19.70 billion in total new bookings, though that bookings figure declined 6% year over year, a trend that rattled investors and sent shares down more than 8% despite the headline strength. Looking ahead, Accenture narrowed its full-year local-currency revenue growth outlook to 6% to 7% and raised its free cash flow guidance to $9.00 billion to $9.70 billion, with full-year diluted EPS expected in the range of $12.77 to $12.89.
- Broad-based revenue growth across all geographic markets and industry groups
- 30 clients with quarterly bookings greater than $100 million
- Generative AI new bookings of $1.5 billion
- Operating margin expansion of 80 basis points driven by SG&A leverage
- Lower effective tax rate of 24.0% vs 25.4% year-over-year
- Financial Services industry group grew 13% in U.S. dollars and local currency
- Managed Services grew 9% in local currency, outpacing Consulting at 6%
“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.”
Accenture CEO, on the earnings call
Forward Guidance & Outlook
Accenture updated its full-year fiscal 2025 outlook: local-currency revenue growth narrowed to 6%–7% (previously 5%–7%), with FX impact updated to positive 0.2% (previously approximately negative 0.5%). Operating margin now expected at 15.6%, an expansion of 10 basis points over FY24 adjusted operating margin. Full-year diluted EPS guided to $12.77–$12.89, representing 12%–13% increase over FY24 GAAP and 7%–8% over FY24 adjusted EPS. Free cash flow guidance raised to $9.0B–$9.7B (from $8.8B–$9.5B). Annual effective tax rate expected at 23.0%–24.0%. Operating cash flow expected at $9.6B–$10.3B. Capital return of at least $8.3B. For Q4 FY25, revenues expected at $17.0B–$17.6B with 1%–5% local-currency growth and approximately positive 2.5% FX impact.
ACN YoY Financials
ACN Revenue by Segment
ACN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.