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Accenture (NYSE: ACN) has released its financial results for the third quarter of fiscal year 2025, showcasing substantial revenue growth and strong earnings per share. This article delves into the company’s performance for the current quarter, comparing it against market expectations, and provides insights into their updated guidance for the fiscal year.

Accenture Reports Strong Third-Quarter Fiscal 2025 Results

Accenture’s third-quarter fiscal 2025 results demonstrated impressive performance, with revenues reaching $17.73 billion, marking an 8% increase in U.S. dollars and a 7% rise in local currency. This performance exceeded the company’s adjusted revenue guidance range of $17.0 billion to $17.6 billion, reflecting a positive foreign-exchange impact of approximately 0.5%. The company’s diluted earnings per share (EPS) stood at $3.49, a 15% increase over the previous year, significantly surpassing the market expectation of $3.31.

New bookings for the quarter amounted to $19.7 billion, although this represented a 6% decrease in U.S. dollars and a 7% decline in local currency compared to the same quarter last year. Despite this decline, the company reported substantial growth in generative AI new bookings, which reached $1.5 billion. The operating margin for the quarter improved to 16.8%, an increase of 80 basis points from the previous year, highlighting the company’s effective cost management and operational efficiency.

Accenture’s performance was driven by broad-based growth across its segments. Consulting revenues grew by 7% to $9.01 billion, while Managed Services saw a 9% increase, reaching $8.72 billion. Geographically, the Americas led the charge with an 8% revenue increase, followed by EMEA and Asia Pacific, which grew by 8% and 5%, respectively. These results illustrate Accenture’s ability to deliver value across different markets and industries, reinforcing its position as a leader in the professional services sector.

Accenture Updates 2025 Fiscal Outlook

Looking ahead, Accenture has updated its fiscal 2025 outlook, projecting full-year revenue growth of 6% to 7% in local currency. The company anticipates a positive foreign exchange impact of 0.2%, contributing to its optimistic revenue projections. The operating margin is expected to expand to 15.6%, reflecting a 10 basis point increase over the adjusted operating margin from fiscal 2024. This guidance suggests continued operational efficiency and profitability for the remainder of the fiscal year.

Accenture has also revised its diluted EPS guidance for the full year, now expecting it to be in the range of $12.77 to $12.89. This represents a 12% to 13% increase over the fiscal 2024 GAAP EPS, underscoring the company’s strong financial performance. Free cash flow is projected to be between $9.0 billion and $9.7 billion, an increase from previous estimates, indicating healthy cash generation capabilities.

The company’s robust guidance is supported by its strategic focus on technology and innovation, particularly in areas like generative AI, which has shown promising growth. Accenture’s ability to adapt to changing market conditions and leverage its technological expertise positions it well for sustained success. As the company continues to execute its strategy, stakeholders can expect Accenture to maintain its growth trajectory and deliver value to its clients and shareholders alike.

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