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Accenture sees strong Q3 with $17.7 billion revenue, ups FY25 guidance

Accenture delivered a robust performance in the third quarter of fiscal year 2025, with revenue rising 8 per cent year-on-year to $17.7 billion—surpassing Wall Street expectations of $17.3 billion. Earnings per share (EPS) increased 15 per cent to $3.49, while operating margin improved to 16.8 per cent, reflecting strong execution across the business. Buoyed by the solid Q3 results, Accenture raised its full-year local currency revenue growth forecast to a range of 6–7 per cent, up from its earlier guidance of 5–7 per cent. Free cash flow guidance was also revised upward and is now expected to fall between $9 billion and $9.7 billion. Full-year EPS is projected in the range of $12.77 to $12.89. Gen AI drives momentum despite bookings decline New bookings for the quarter totalled $19.7 billion, marking a 6 per cent decline in US dollar terms. Consulting contributed $9.08 billion, while managed services accounted for $10.62 billion. Notably, generative AI-related bookings reached $1.5 billion, indicating growing enterprise demand in emerging technologies. Despite the overall dip in bookings, Accenture recorded 30 clients with quarterly bookings exceeding $100 million, reflecting the strength of its client relationships. '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,' said Chair and CEO Julie Sweet. 'Companies need resilience and results, and we are laser-focused on delivering measurable value for our clients,' she added. Growth spans services, industries and geographies Managed services revenue climbed 9 per cent year-on-year to $8.72 billion, while consulting revenue rose 7 per cent to $9.01 billion. Regionally, the Americas led with $8.97 billion in revenue, followed by EMEA at $6.23 billion and Asia Pacific at $2.53 billion. From an industry standpoint, the Products segment remained a significant contributor with $5.34 billion in revenue. Financial Services led growth with a 13 per cent increase in local currency, while Health & Public Service posted 7 per cent growth. Accenture generated $3.5 billion in free cash flow during the quarter and declared a quarterly dividend of $1.48 per share. (With agency inputs)