Accenture's GenAI pivot is gaining traction, with $5.1B in bookings, but still only 4% of total revenues—progress, but not yet transformative. Q3 earnings and revenue beat expectations, yet bookings contracted 6% year-over-year, signaling persistent macro headwinds and project cancellations. Interestingly, management is increasingly prioritizing share buybacks over acquisitions, reflecting rising confidence in the stock's value and a shift in capital allocation strategy.
CEO Julie Sweet said Accenture is doubling down on AI in an earnings call on Friday. She said the firm is creating a new business division focused on AI called "reinvention services.
ACN tops third-quarter fiscal 2025 estimates with 11.5% y/y EPS growth and 7.7% revenue gain, lifting the FY25 guidance across key financial metrics.
The headline numbers for Accenture (ACN) give insight into how the company performed in the quarter ended May 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Accenture PLC (NYSE:ACN) shares moved lower before Friday's opening bell after the professional services firm reported a 7% year-over-year drop in bookings to $19.7 billion. This overshadowed an earnings beat for the fiscal third quarter and boosted full-year sales and profit guidance.
Accenture (ACN) came out with quarterly earnings of $3.49 per share, beating the Zacks Consensus Estimate of $3.30 per share. This compares to earnings of $3.13 per share a year ago.
Accenture said it was combining several of its services into one business unit, part of a change of a broader effort tied to the time of growing artificial intelligence adoption, effective Sept. 1.
Accenture (ACN) stock fell in premarket trading Friday as the professional services firm's fiscal third-quarter bookings fell short of analysts' estimates.
ACN is set to report third-quarter fiscal 2025 results, with growth across all segments and a 5.1% y/y EPS increase.
Beyond analysts' top -and-bottom-line estimates for Accenture (ACN), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended May 2025.
I maintain my Hold rating on Accenture plc, as growth remains modest, and the stock appears overvalued despite recent share price declines. Q3 expectations are for slight beats on revenue and EPS, but I don't expect these to drive meaningful upside in the share price. I'm watching for sustained momentum in new bookings, especially in GenAI, and want to see more aggressive top-line growth and operational improvements.
Accenture's Julie Sweet discusses the growth of AI, macro uncertainty, the UK market and DEI policy