Accenture Q3FY25: Revenue Jumps By 8% Driven By AI-Led Growth; FY25 Guidance Upgraded

Accenture Q3FY25 Result: Global IT firm, Accenture, on Friday, reported an 8% increase in its revenue to 17.7 billion dollars in the third quarter, driven by AI-led services. Accenture's operating margin increased by 80 basis points to 18.6% during the quarter, which ended May 31, 2025.

Accenture also announced a quarterly cash dividend of $1.48 per share. The Accenture dividend announcement, according to the company's press release, was 15% higher and included repurchases or redemption of 6.0 million shares for a total of $1.8 billion.

"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," said Accenture Chair and CEO Julie Sweet.

Accenture Q3 Result: Revenue and New Bookings

Accenture reported a revenue of $17.7 billion for the third quarter, which was higher than the Wall Street estimate for the third quarter revenue, reported news agency Reuters. The company's revenue was higher than the analysts' average estimates of $17.30 billion, Reuters cited the data compiled by LSEG.

Accenture's share price was trading 1.81% lower during the pre-market trading session after the company announced a decline in its new bookings. The company is currently struggling to hold ground amid a weak US federal contracting environment. The development follows that the Trump administration has slowed new contracts and cut existing agreements in a bid to reduce federal spending.

The Dublin-headquartered IT services firm reported an 8% (in US dollars) and 7% increase (in its local currency) in its revenue to $17.73 billion. Similarly, the revenue for the quatter reflected a foreign-exchange impact of approximately positive 0.5%. The company's third quarter fiscal 2025 revenues were above the adjusted range, noted Accenture in its latest press release.

Despite a decent increase in its revenue and profit, Accenture's new bookings declined by 6% in US dollars and 7% in local currency against the corresponding period to $19.70 billion. Apart from this, the company's new consulting bookings stood at $9.08 billion and managed services new bookings were at $10.62 billion.

Accenture FY25 Outlook and Growth

Given the present economic conditions, Accenture has hinted that it expects a full-year revenue growth to be at 6% to 7% in local currency for the financial year 2024-25. The company, while announcing its third quarter earnings, has hinted that it expects its operating margin to expand by 10 basis points and remain at 15.6%. The diluted earnings per share for FY25 is likely to fall in the range of $12.77 to $12.89. The outlook for operating cash flow has been revised and increased to $9.6B - $10.3B for FY25. Whereas, the free cash flow is likely to be at $9.0B - $9.7B.