Core Viewpoint - Accenture reported quarterly earnings of $3.03 per share, exceeding the Zacks Consensus Estimate of $2.98 per share, and showing an increase from $2.79 per share a year ago, indicating a positive earnings surprise of +1.68% [1] Financial Performance - The company achieved revenues of $17.6 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 1.56% and up from $16.41 billion year-over-year [2] - Over the last four quarters, Accenture has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Accenture shares have declined approximately 32% since the beginning of the year, contrasting with the S&P 500's gain of 12.9% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $3.59 on revenues of $18.5 billion, and for the current fiscal year, it is $13.62 on revenues of $73.2 billion [7] - The estimate revisions trend for Accenture was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computers - IT Services industry, to which Accenture belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Accenture's stock may also be influenced by the overall outlook for the industry [8]

Core Insights - Accenture Plc reported stronger-than-expected fourth-quarter results, indicating resilience amid investor concerns regarding federal spending cuts and a broader slowdown in the consulting sector [1] Company Performance - The fourth-quarter results exceeded market expectations, showcasing the company's ability to navigate challenging economic conditions [1] Industry Context - The consulting sector is experiencing a slowdown, yet Accenture's performance suggests it is managing to maintain stability despite these industry-wide challenges [1]

Financial Performance - Q4 FY25 - Total revenues reached $176 billion, a 45% increase in local currency and 7% in USD[4] - Adjusted earnings per share (EPS) increased by 9% to $303, excluding business optimization impacts[6] - Adjusted operating margin increased by 10 bps to 151%, excluding business optimization impacts[7] Financial Performance - Full Year FY25 - Total revenues reached $697 billion, a 7% increase in both local currency and USD[13] - Adjusted earnings per share (EPS) increased by 8% to $1293, excluding business optimization impacts[13] - Adjusted operating margin increased by 10 bps to 156%, excluding business optimization impacts[14] - Free cash flow was $109 billion[15] Strategic Priorities & Growth Areas - Cloud revenue reached approximately $39 billion with 12% growth[17] - Industry X revenue reached $9 billion with 10% growth[17] - Security revenue reached $10 billion with 16% growth[17] - GenAI bookings almost doubled to $59 billion, and revenues tripled to $27 billion[22, 31] Returning Value to Shareholders - Dividends paid totaled $37 billion, or $592 per share, a 15% increase over the fiscal year 2024 quarterly dividend rate[15] - Share repurchases amounted to $46 billion[21] - The company plans to return at least $93 billion of cash to shareholders in FY26, a 12% or $1 billion increase compared to FY25[25] FY26 Outlook - Revenue growth in local currency is projected to be between 2% and 5%[23] - Adjusted earnings per share are expected to be between $1352 and $1390, a 5% to 8% increase over FY25[23]

Interest Rate Outlook - Fed Chair Jerome Powell expressed caution regarding lower interest rates, following a rate-cutting stance from two fellow Fed governors earlier in the week [2][3] - The federal funds rate has been relatively high, ranging from 3.13% to 5.38% between September 2022 and September 2024, as the Fed attempts to control inflation [4] Market Reaction - Stock prices fell, with the S&P 500 and Nasdaq Composite both declining by 0.3%, and the Dow Jones Industrial Average retreating by 0.4% [3] - Stock futures for major indices are slightly down ahead of the market open [5] Economic Indicators - Initial jobless claims for the week of September 20 are expected to rise to 235,000 from 231,000 in the prior week [6] - Existing home sales are projected to decrease to 3.96 million in August from 4.01 million in July [6] - Corporate earnings reports are anticipated, with Costco expected to report EPS of $5.81 for the August quarter, up from $5.29 in the prior year [6] and Accenture's consensus EPS estimate at $2.98, up from $2.66 [6] Company Earnings Expectations - CarMax is expected to report EPS of $1.03 for the August quarter, an increase from $0.85 in the same period last year [7]

Accenture said it expects US federal spending cuts on consultants to slow its growth next year after it beat expectations for revenue in the fourth quarter. https://t.co/54aY3340hE ...

Core Insights - The global consulting company reported adjusted earnings and revenue that exceeded analysts' expectations [1] Financial Performance - The company's adjusted earnings surpassed analyst forecasts, indicating strong financial health [1] - Revenue figures also topped expectations, reflecting robust business performance [1]

Revenue and Earnings - Fiscal 2025 revenues were $69.67 billion, reflecting a 7% increase in both U.S. dollars and local currency compared to fiscal 2024[28]. - Fourth quarter revenues reached $17.60 billion, a 7% increase in U.S. dollars and 4.5% in local currency, at the top end of the company's guidance[10]. - New bookings for fiscal 2025 totaled $80.62 billion, a decrease of 1% in both U.S. dollars and local currency compared to fiscal 2024[26]. - Generative AI new bookings for the fourth quarter were $1.8 billion, contributing to a total of $5.9 billion for the year[6]. - Full-year GAAP diluted EPS was $12.15, a 6% increase, while adjusted EPS was $12.93, an 8% increase compared to fiscal 2024[6]. - The company expects full-year revenue growth of 2% to 5% in local currency for fiscal 2026, with adjusted EPS guidance of $13.52 to $13.90, representing a 5% to 8% increase[6]. - GAAP diluted EPS for fiscal 2025 were $12.15, a 6% increase over $11.44 for fiscal 2024[41]. - Full year fiscal 2026 GAAP diluted EPS is expected to be between $13.19 and $13.57, representing a 9% to 12% increase over fiscal 2025[45]. Cash Flow and Shareholder Returns - Free cash flow for the fourth quarter was $3.8 billion, and $10.9 billion for the full year[6]. - The company returned $8.3 billion to shareholders in fiscal 2025, including $4.6 billion in share repurchases and $3.7 billion in cash dividends[39]. - The company repurchased 14.1 million shares for a total of $4.6 billion in fiscal 2025, with an outstanding authority of approximately $7.9 billion[46]. - A quarterly cash dividend of $1.63 per share has been declared, representing a 10% increase over the previous quarterly dividend[42]. - Cash dividends paid increased to $921,725 for the three months ended August 31, 2025, from $807,869 in the same period of 2024[63]. Operating Performance - The company recorded a GAAP operating margin of 14.7% for the full year, a decrease of 10 basis points, while the adjusted operating margin was 15.6%, an increase of 10 basis points[6]. - GAAP operating income for fiscal 2025 increased 7% to $10.23 billion compared to $9.60 billion in fiscal 2024[35]. - Operating cash flow for fiscal 2025 was $11.47 billion, up from $9.13 billion in fiscal 2024[37]. - Operating income for the year ended August 31, 2025, was $10,840,988, with a 15.6% operating margin, compared to $10,034,287 and a 15.5% margin for the previous year[59]. - Total operating income for the three months ended August 31, 2025, was $2,665,015, representing a 15.1% operating margin, compared to $2,459,615 and a 15.0% margin for the same period in 2024[57]. Assets and Equity - The total cash balance at August 31, 2025, was $11.5 billion, up from $5.0 billion a year earlier[25]. - Total current assets increased to $28,900,689 as of August 31, 2025, from $20,857,781 in 2024, driven by a rise in cash and cash equivalents to $11,478,729[62]. - Total assets reached $65,394,897 as of August 31, 2025, up from $55,932,363 in 2024, indicating strong growth in the company's asset base[62]. - Total shareholders' equity increased to $32,240,967 as of August 31, 2025, from $29,168,248 in 2024, reflecting a solid increase in equity[62]. Regional Performance - The Americas region generated revenues of $8,804,391 for the three months ended August 31, 2025, reflecting a 5% increase from $8,423,447 in the prior year[55]. - Operating income in the Americas for the three months ended August 31, 2025, was $987,032, down from $1,295,736 in the prior year, with a margin of 11%[56]. - The Americas region contributed $1,407,501 to operating income for the three months ended August 31, 2025, with a 16% margin, compared to $1,320,561 and a 16% margin in 2024[57]. - The Asia Pacific region's operating income for the three months ended August 31, 2025, was $462,846, with an 18% margin, compared to $420,494 and an 18% margin in 2024[57]. Costs and Expenses - The company initiated a business optimization program with a charge of $615 million in Q4 FY25, expecting total costs of approximately $865 million over six months[16]. - The company recorded $344 million in employee severance costs and $271 million in asset impairments related to business optimization actions initiated in fiscal 2025[59]. - Depreciation, amortization, and other expenses for the three months ended August 31, 2025, were $758,932, up from $596,405 in the same period of 2024[63]. - Share-based compensation expense rose to $439,547 for the three months ended August 31, 2025, compared to $402,788 in the same period of 2024[63]. Income and Taxation - Net income attributable to Accenture plc for the three months ended August 31, 2025, was $1,413,963, down 16% from $1,684,301 in the same period last year[53]. - Net income for the three months ended August 31, 2025, was $1,449,806, a decrease from $1,718,666 in the same period of 2024, while the year-end net income increased to $7,832,400 from $7,419,197[63]. - The effective tax rate for the three months ended August 31, 2025, was 27.9%, compared to 26.2% for the same period in 2024[59].

Group 1 - The company, Accenture, exceeded fourth-quarter revenue estimates [1] - Accenture announced a six-month restructuring plan worth $865 million to realign its workforce and operations [1] - The restructuring aims to address the rising demand for digital and AI services [1]

Core Insights - Accenture reported strong financial results for fiscal year 2025, with revenues, adjusted EPS, and free cash flow exceeding expectations, driven by early investments in AI [1][3]. Financial Performance - Fourth quarter revenues reached $17.6 billion, marking a 7% increase in U.S. dollars and a 4.5% increase in local currency compared to the previous year [7]. - Full year revenues totaled $69.7 billion, an increase of $4.8 billion or 7% in both U.S. dollars and local currency [7]. - Fourth quarter GAAP diluted EPS was $2.25, a 15% decrease, while adjusted EPS was $3.03, a 9% increase [7]. - Full year GAAP diluted EPS increased by 6% to $12.15, and adjusted EPS rose by 8% to $12.93 [7]. - Free cash flow for the fourth quarter was $3.8 billion, and for the full year, it was $10.9 billion [7]. Business Outlook - The company anticipates full-year revenue growth of 2% to 5% in local currency, with an expected growth of 3% to 6% when excluding a 1% to 1.5% impact from its U.S. federal business [7]. - Expected full-year GAAP diluted EPS is projected to be between $13.19 and $13.57, reflecting a 9% to 12% increase, while adjusted EPS is expected to be between $13.52 and $13.90, indicating a 5% to 8% increase [7]. - Accenture plans to return at least $9.3 billion in cash to shareholders in fiscal year 2026 [7]. Strategic Focus - The company emphasizes its role in helping clients reinvent their operations through AI, digital transformation, and process reimagination [3]. - Accenture's leadership attributes the strong results to the unique talents of its workforce and its proprietary tools, which enhance client value delivery [3]. New Business Developments - Accenture secured new bookings of $21.3 billion for the quarter and $80.6 billion for the year, with generative AI new bookings amounting to $1.8 billion for the quarter and $5.9 billion for the year [7].

Group 1 - Accenture plc is a global professional services company based in Dublin, specializing in consulting, technology, and outsourcing services, with a price target of $315 set by UBS, indicating a potential increase of 32.43% from its current price of $237.87 [1][6] - The company is expected to release its fourth-quarter earnings on September 25, with analysts forecasting earnings of $2.96 per share and revenue of $17.35 billion, reflecting strong performance and strategic initiatives [2][6] - Accenture's planned acquisition of the French advisory firm Orlade Group aims to enhance its management capabilities for large capital projects, strengthening its position in sectors like nuclear energy, transportation, defense, and space [3][6] Group 2 - Recently, Accenture's stock price saw a slight increase, closing at $239.99, with a market capitalization of approximately $148.24 billion [4] - The trading volume for Accenture on the NYSE is 1,128,211 shares, indicating investor interest possibly driven by the upcoming earnings report and strategic acquisitions [5]