Accenture Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Core Insights - Accenture plc (ACN) reported better-than-expected first-quarter fiscal 2025 results, with earnings per share of $3.6, exceeding the Zacks Consensus Estimate by 6.2% and increasing 28.7% year-over-year [2][3] - Total revenues reached $17.7 billion, surpassing the consensus estimate by 3.1% and showing a year-over-year growth of 9.1% [2] Revenue Breakdown - Managed services revenues were $8.6 billion, up 11% year-over-year, exceeding the estimate of $8.2 billion [4] - Consulting revenues increased 7% year-over-year to $9 billion, beating the projection of $8.9 billion [4] - Health and public service revenues grew 13% year-over-year to $3.8 billion, surpassing expectations of $3.7 billion [5] - Resources segment revenues were $2.4 billion, rising 6% year-over-year, meeting estimates [5] - Product segment revenues reached $5.4 billion, increasing 12% year-over-year, outpacing the estimate of $5.2 billion [5] - Communications, media, and technology revenues were $2.9 billion, up 7% year-over-year, meeting estimates [6] - Financial services revenues grew 4% year-over-year to $3.2 billion, surpassing the estimate of $3.1 billion [6] Geographic Performance - Revenues from the Americas were $8.7 billion, up 9% year-over-year, beating projections of $8.6 billion [7] - EMEA revenues reached $6.4 billion, gaining 10% year-over-year, exceeding estimates of $6 billion [7] - Asia Pacific revenues were $2.5 billion, increasing 6% year-over-year, meeting projections [7] Booking Trends - Total bookings for the first quarter were $18.7 billion, rising 1% year-over-year [8] - Consulting bookings were $9.2 billion, while managed services bookings were $9.5 billion [8] Operating Results - Gross margin for the first quarter was 32.9%, down 70 basis points year-over-year [9] - Adjusted operating income rose 9% year-over-year to $2.7 billion, with an adjusted operating margin of 16.7% [9] Financial Position - Cash and cash equivalents at the end of the quarter were $8.3 billion, up from $5 billion at the end of the previous quarter [10] - The company generated $1 billion in cash from operating activities, with capital expenditure of $152.2 million [10] - Free cash flow was reported at $870 million, with share repurchases totaling 2.5 million shares for $898 million [11] Guidance - For fiscal 2025, Accenture raised its revenue growth guidance to 4-7% in local currency, up from the previous guidance of 3-6% [12] - Expected operating cash flow is projected between $9.4 billion and $10.1 billion, with free cash flow anticipated between $8.8 billion and $9.5 billion [12]