Accenture (ACN) reported better-than-expected earnings and income for the third quarter of fiscal 12 months 2025. Nevertheless, the inventory fell round 4 per cent in premarket buying and selling on Friday, as whole bookings got here in effectively beneath analyst estimates — dampening investor sentiment regardless of an in any other case stable quarter.
The worldwide skilled companies agency posted income of $17.73 billion, up 8 per cent year-over-year in US {dollars} and seven per cent in native foreign money. Diluted earnings per share (EPS) stood at $3.49, beating Wall Avenue expectations of $3.29, in keeping with estimates compiled by Seen Alpha. Analysts had anticipated income of $17.33 billion.
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Nevertheless, whole new bookings for the quarter got here in at $19.7 billion — lacking the $21.5 billion consensus estimate. Each consulting and managed companies bookings fell wanting analyst forecasts. Inside that, generative AI-related bookings accounted for $1.5 billion, pointing to continued consumer curiosity in AI transformation initiatives.
Working margin expanded to 16.8 per cent, up 80 foundation factors from the prior 12 months and 40 foundation factors above the adjusted working margin. Free money stream for the quarter was reported at $3.5 billion. The corporate additionally declared a quarterly money dividend of $1.48 per share.
Accenture raised the decrease finish of its full-year steering for a second consecutive quarter. It now expects income development of 6 to 7 per cent in native foreign money, in comparison with the earlier vary of 5 to 7 per cent. International change is predicted to contribute a slight 0.2 per cent tailwind. Working margin for the complete 12 months is projected at 15.6 per cent — up 10 foundation factors over the adjusted margin.
Full-year EPS is now forecast within the vary of $12.77 to $12.89, up from the prior $12.55 to $12.79. Free money stream steering stays sturdy at $9.0 billion to $9.7 billion.
Regardless of the earnings and income beat, Accenture shares stay underneath strain. The inventory is down roughly 13 per cent year-to-date, and Friday’s decline displays considerations over the weaker-than-expected bookings.
“I’m very happy with our third quarter fiscal 2025 outcomes,” stated Julie Candy, Chair and CEO of Accenture. “We proceed to increase our management in Gen AI and stay laser-focused on delivering measurable worth to our shoppers.”
