Accenture plc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.13%.
Did ACN Beat Earnings? Q4 2025 Results
Accenture closed out fiscal 2025 on a strong note, posting Q4 adjusted EPS of $3.03 against a consensus estimate of $2.97, a 2.02% beat, while revenue of $17.60 billion topped the $17.36 billion estimate by 1.38% and grew 7.3% year over year. The standout driver behind the quarter's momentum was generative AI, with bookings reaching $1.80 billion in Q4 alone and $5.90 billion for the full year, reinforcing AI as the company's most consequential growth catalyst. Total new bookings of $21.31 billion in the quarter produced a book-to-bill ratio of 1.2, even as a $615.32 million business optimization charge, covering severance costs and asset impairments tied to two Americas divestitures, weighed on GAAP results. Adjusted operating margin held at 15.1% for Q4 and 15.6% for the full year. Despite the earnings strength, the market's reaction was measured, with Accenture's fiscal 2026 revenue guidance of 2% to 5% local-currency growth landing below some analyst expectations, though management noted underlying growth of 3% to 6% when excluding an estimated 1% to 1.5% drag from its U.S. federal business. Adjusted EPS for FY26 is guided at $13.52 to $13.90.
- 7% revenue growth in USD and 4.5% in local currency for Q4
- Generative AI bookings of $1.8 billion in Q4 and $5.9 billion for the full year
- Financial Services industry group grew 15% in USD (12% local currency) in Q4
- Strong Managed Services growth of 8% in USD (6% local currency) in Q4
- Adjusted operating margin expanded 10 basis points year-over-year in both Q4 and full year
- Free cash flow increased to $10.87 billion for the full year from $8.61 billion in FY24
- EMEA revenues grew 10% in USD and Asia Pacific grew 11% in USD in Q4
“I am very pleased with our 7% growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with AI. As clients continue to embrace reinvention to create value and drive financial results and business outcomes, they need help to build their digital core, prepare data and reimagine processes, all while training their people to work in entirely new ways. This is what Accenture does best and our strong results this year clearly illustrate our impact. I am grateful to the Reinventors of Accenture who bring their unique talents, together with our proprietary tools and leading partnerships, to bear as we deliver value to our clients with certainty and speed.”
Accenture CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY26, Accenture expects revenues of $18.1B–$18.75B, representing 1%–5% local-currency revenue growth with approximately +1% foreign-exchange impact. For full-year FY26, the company expects local-currency revenue growth of 2%–5%, or approximately 3%–6% excluding an estimated 1%–1.5% impact from its U.S. federal business, with approximately +2% FX impact. GAAP operating margin is guided at 15.3%–15.5% (60–80 bps expansion over FY25), and adjusted operating margin at 15.7%–15.9% (10–30 bps expansion). GAAP diluted EPS is expected at $13.19–$13.57 (9%–12% increase), and adjusted EPS at $13.52–$13.90 (5%–8% increase). Annual effective tax rate is expected at 23.5%–25.5%. Operating cash flow is guided at $10.8B–$11.5B, with free cash flow of $9.8B–$10.5B. The company expects to return at least $9.3 billion in cash to shareholders. An additional ~$250 million in business optimization costs is expected in Q1 FY26.
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Figures from SEC filings and company reports. Not investment advice.