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Core Insights - Accenture's stock fell 8% despite exceeding earnings expectations for Q2 2025, with earnings of $2.82 per share on sales of $16.7 billion compared to analyst forecasts of $2.81 per share on $16.6 billion in sales [1][2] Financial Performance - Revenue grew 5% year over year, but new bookings declined by 3%, indicating potential future revenue challenges [2] - Operating profit margin expanded by 50 basis points to 13.5%, contributing to a 7% year-over-year increase in per-share profits [2] - Free cash flow for the quarter was strong at $2.7 billion, up 35% from the previous year's fiscal Q2 [3] Guidance and Valuation - Accenture narrowed its revenue guidance to a growth range of 5% to 7% for the year, while also narrowing earnings guidance to a full-year profit of $12.55 to $12.79 per share [4] - The midpoint of the earnings guidance is slightly below Wall Street's forecast of $12.72 per share, which has negatively impacted investor sentiment [5] - Accenture's market capitalization stands at $203 billion, with a valuation of over 20 times trailing free cash flow and more than 26 times trailing earnings, while long-term earnings growth is forecasted at only about 9% annually [6]

Core Insights - Accenture reported revenue of $16.66 billion for the quarter ended February 2025, reflecting a year-over-year increase of 5.4% and surpassing the Zacks Consensus Estimate of $16.58 billion by 0.50% [1] - The company's EPS for the quarter was $2.82, slightly below the consensus estimate of $2.84, resulting in an EPS surprise of -0.70% [1] Financial Performance - New Bookings totaled $20.91 billion, slightly below the estimated $21.30 billion [4] - Managed Services New Bookings were $10.44 billion, compared to the estimated $11.36 billion [4] - Consulting New Bookings reached $10.47 billion, exceeding the estimated $9.94 billion [4] Geographic Revenue Breakdown - Revenue from the Americas was $8.55 billion, surpassing the average estimate of $8.23 billion, with a year-over-year increase of 16% [4] - Asia Pacific revenue was $2.30 billion, below the estimate of $2.46 billion, reflecting a year-over-year decline of 18.5% [4] - EMEA revenue was $5.80 billion, slightly below the estimate of $5.88 billion, with a year-over-year increase of 3.7% [4] Revenue by Type of Work - Consulting revenue was $8.28 billion, marginally below the estimate of $8.31 billion, representing a year-over-year increase of 3.3% [4] - Managed Services revenue was $8.38 billion, exceeding the estimate of $8.22 billion, with a year-over-year increase of 7.7% [4] Revenue by Industry Groups - Product revenue was $5.05 billion, slightly above the estimate of $5.01 billion, reflecting a year-over-year increase of 6.1% [4] - Health & Public Service revenue was $3.61 billion, below the estimate of $3.67 billion, with a year-over-year increase of 8.2% [4] - Financial Services revenue was $3.01 billion, exceeding the estimate of $2.86 billion, with a year-over-year increase of 7.2% [4] - Communications, Media & Technology revenue was $2.73 billion, slightly above the estimate of $2.69 billion, reflecting a year-over-year increase of 2.9% [4]

Core Insights - Accenture's fiscal Q2 2025 results showed strong performance with revenue and earnings per share exceeding Wall Street expectations, driven by robust demand for consulting and tech modernization services [3][6]. Financial Performance - Revenue increased from $15.8 billion in Q2 FY24 to $16.7 billion in Q2 FY25, marking a 6% year-over-year growth [2]. - Earnings per share rose from $2.63 to $2.82, reflecting a 7% increase [2]. - Free cash flow surged by 35%, from $2.0 billion to $2.7 billion [2]. Market Demand and Bookings - Accenture reported $1.4 billion in new bookings related to generative AI during the quarter, indicating a significant growth driver [3]. - New bookings totaled $20.9 billion, a decrease of 3% year-over-year but flat when adjusted for currency fluctuations [7]. Sector Performance - The financial services sector led growth with an 11% increase year-over-year, while health and public service revenue rose by 10% [4]. - The Western Hemisphere showed the strongest performance with an 11% increase, Europe grew by 8%, and Asia-Pacific saw a modest 1% growth [4]. Shareholder Returns - Accenture generated $3.6 billion in free cash flow in the first half of fiscal 2025, with $2.3 billion used for share repurchases and a 15% increase in dividend payouts totaling $1.9 billion [5]. Future Outlook - The company narrowed its full-year fiscal 2025 guidance, projecting earnings between $12.55 and $12.79 and revenue growth of 5% to 7% [7]. - Accenture's commitment of over $6 billion to acquisitions in fiscal 2024 is expected to enhance its tech capabilities and capitalize on the AI revolution [8].

Accenture (ACN) came out with quarterly earnings of $2.82 per share, missing the Zacks Consensus Estimate of $2.84 per share. This compares to earnings of $2.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.70%. A quarter ago, it was expected that this consulting company would post earnings of $3.38 per share when it actually produced earnings of $3.59, delivering a surprise of 6.21%.Over the last four quarters, the compa ...

Accenture demonstrated solid revenue growth in its recent earnings, outpacing estimates, but faced marginal EPS pressures.Professional services and consulting specialist Accenture (ACN 0.11%) reported fiscal 2025 second-quarter results on Thursday, March 20, that topped analysts' consensus expectations. Revenue of $16.66 billion narrowly beat estimates of $16.62 billion and rose 5% year over year while earnings per share (EPS) came in just ahead of estimates at $2.82. Accenture's quarter was marked by robus ...

Financial Performance - Revenues for the second quarter of fiscal 2025 were $16.7 billion, representing a 5% increase in U.S. dollars and an 8.5% increase in local currency compared to the second quarter of fiscal 2024[73]. - Diluted earnings per share increased by 7% to $2.82, compared to $2.63 in the second quarter of fiscal 2024[73]. - Operating margin improved to 13.5%, up from 13.0% in the second quarter of fiscal 2024[73]. - Operating income for the second quarter of fiscal 2025 increased by $198 million, or 10%, compared to the same period in fiscal 2024, with an operating margin of 13.5%[101]. - For the six months ended February 28, 2025, operating income rose by $582 million, or 13%, with an operating margin of 15.1%[101]. - Interest income for the second quarter of fiscal 2025 was $76 million, an increase of $11 million, or 17%, compared to the second quarter of fiscal 2024[108]. - Interest expense for the second quarter of fiscal 2025 was $65 million, an increase of $54 million compared to the same period in fiscal 2024[109]. - The effective tax rate for the second quarter of fiscal 2025 was 20.4%, up from 18.4% in the same quarter of fiscal 2024[111]. Revenue Breakdown - Consulting revenues grew by 3% in U.S. dollars and 6% in local currency, driven by strong growth in the Americas and EMEA[75]. - Managed services revenues increased by 8% in U.S. dollars and 11% in local currency, supported by demand for application modernization and cloud enablement[76]. - Revenues in the Americas increased by 9% in Q2 fiscal 2025 compared to Q2 fiscal 2024, driven by growth in Insurance and Utilities[87]. - Revenues for Q2 fiscal 2025 increased to $16.659 billion, a 5% increase from $15.800 billion in Q2 fiscal 2024[85]. Bookings and Workforce - New bookings totaled $20.9 billion, reflecting a 3% decrease in U.S. dollars and flat growth in local currency[73]. - Total new bookings for Q2 fiscal 2025 were $20.9 billion, a decrease of 3% compared to $21.6 billion in Q2 fiscal 2024[82]. - The workforce increased to approximately 801,000, up from approximately 742,000 a year earlier, reflecting hiring to meet demand[78]. - For Q2 fiscal 2025, annualized attrition was 13%, consistent with Q2 fiscal 2024[79]. Expenses and Margins - Operating expenses for Q2 fiscal 2025 increased by $662 million, or 5%, totaling $14.415 billion[90]. - Cost of services for Q2 fiscal 2025 increased by $763 million, or 7%, and represented 70.1% of revenues[93]. - Gross margin for Q2 fiscal 2025 decreased to 29.9% from 30.9% in Q2 fiscal 2024[93]. - Sales and marketing expenses for Q2 fiscal 2025 increased by $46 million, or 3%, totaling $1.677 billion[95]. - General and administrative costs for Q2 fiscal 2025 decreased by $32 million, or 3%, totaling $1.053 billion[96]. Shareholder Returns - Cash returned to shareholders amounted to $2.4 billion, including $929 million in dividends and $1.4 billion in share repurchases[73]. - During the six months ended February 28, 2025, Accenture plc repurchased a total of 6,527,646 shares for $2,342 million, including 4,611,999 shares purchased in open-market transactions for $1,656 million[123]. - The company plans to continue utilizing a significant portion of cash generated from operations for share repurchases throughout fiscal 2025, with the number of shares repurchased depending on various market conditions[125]. Cash and Liquidity - As of February 28, 2025, cash and cash equivalents totaled $8.5 billion, up from $5.0 billion as of August 31, 2024[117]. - Net cash provided by operating activities for the six months ended February 28, 2025 was $3,876 million, an increase of $1,276 million from the prior year[117]. Corporate Governance and Risk - Accenture's management has evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective at the reasonable assurance level as of the end of the reporting period[129]. - There have been no changes in internal control over financial reporting that materially affected the company during the second quarter of fiscal 2025[130]. - There were no material changes to market risk exposure during the six months ended February 28, 2025, as disclosed in the Annual Report for the year ended August 31, 2024[128]. - The company has not been required to make significant payments under indemnification arrangements with clients[127].

Accenture Reports Second-Quarter Fiscal 2025 Results Accenture's strong Q2 FY25 results reflect broad-based revenue growth across geographic markets, industry groups and types of work; Company updates fiscal 2025 outlook NEW YORK; March 20, 2025 — Accenture (NYSE: ACN) reported financial results for the second quarter of fiscal 2025 ended February 28, 2025. All comparisons are to the second quarter of fiscal 2024, unless noted otherwise. Accenture Chair and CEO Julie Sweet "Our second quarter results demons ...

I had a ‘Strong Buy’ rating on Accenture (NYSE: ACN ) in September 2024, favoring its AI and cloud computing capabilities. Accenture’s stock price has been under pressure amid the border sell-off in growth stocks, on top of the concerns overMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a so ...

Accenture plc (ACN) is set to report second-quarter fiscal 2025 results on March 20, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.The Zacks Consensus Estimate for earnings is pegged at $2.84 per share, indicating 2.5% growth from the year-ago quarter’s reported level. The consensus estimate for revenues is $16.6 billion, indicating 4.9% year-over-year growth.Two consensus estimates for earnings per share in the second quarter of fiscal 2025 moved north in the past 60 da ...