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May 31, 2025
Accenture Q3 2025 Earnings Report
Accenture reported strong Q3 2025 results with higher-than-expected revenue and improved profitability.
Key Takeaways
Accenture posted robust third-quarter earnings with revenue exceeding guidance, solid EPS growth, and strong free cash flow, despite a decline in new bookings.
Revenue reached $17.73 billion, exceeding the top end of the guided range.
EPS rose to $3.49, up from $3.04 in Q3 FY24.
Net income increased to $2.24 billion from $1.98 billion a year earlier.
Free cash flow stood at $3.52 billion, demonstrating strong operational efficiency.
Revenue by Geographic Location
Forward Guidance
Accenture expects FY25 revenue growth of 6–7% in local currency, with improved operating margin and higher EPS guidance.
Positive Outlook
- Full-year revenue growth expected at 6–7% in local currency.
- Operating margin forecast raised to 15.6%.
- EPS expected between $12.77 to $12.89.
- Free cash flow guidance raised to $9.0B–$9.7B.
- Foreign exchange impact revised to a slight positive (0.2%).
Challenges Ahead
- New bookings declined 6% YoY.
- Consulting bookings underperformed compared to Managed Services.
- Gross margin slightly decreased to 32.9% from 33.4%.
- Slight increase in DSOs to 47 days.
- Bookings decline impacted by lower large deal volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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