01—Abstract
Summary
Summary of the 10-Q filed June 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) reported strong financial performance for the third quarter and first nine months of fiscal year 2025.
Revenues saw a notable increase, growing 8% in U.S. dollars (7% in local currency) for the quarter and 7% in U.S. dollars (8% in local currency) for the nine-month period, indicating continued demand for its services across key markets and industry groups. The company demonstrated improved profitability, with operating margin increasing to 16.8% in the quarter and 15.7% year-to-date, up from 16.0% and 14.9% respectively in the prior year periods. Diluted Earnings Per Share (EPS) also showed significant growth, up 15% for the quarter to $3.49a and 12% for the nine months to $9.90.
This growth was supported by effective cost management and increased operational efficiency. Financially, Accenture maintains a strong liquidity position, with cash and cash equivalents rising to $9.6 billionb from $5.0 billion at the prior fiscal year-end. The company also returned substantial capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value.
02—Key points
Key Highlights
- Revenue growth of 8% in USD (7% in local currency) for Q3 FY2025, reaching $17.7 billion, and 7% in USD (8% in local currency) for the nine months, reaching $52.1 billion.
- Operating margin improved to 16.8% for the quarter and 15.7% for the nine months, up from 16.0% and 14.9% respectively in the prior year periods.
- Diluted EPS increased by 15% year-over-year to $3.49 for the quarter and by 12% to $9.90 for the nine months.
- Cash and cash equivalents increased significantly to $9.6 billion as of May 31, 2025, from $5.0 billion as of August 31, 2024.
- New bookings of $19.7 billion for the quarter and $59.3 billion for the nine months, reflecting continued client engagement, although down from the prior year.
- Shareholder returns remain a priority, with $2.7 billion returned in Q3 FY2025 through dividends and share repurchases.
- The company's workforce grew to approximately 791,000 as of May 31, 2025, reflecting investments in talent to meet demand.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Accenture plc kept $0.12.
- Revenue$17.73B100.0%
- Cost of revenue−$11.90B67.1%
- Gross profit$5.83B32.9%
- Operating costs−$2.84B16.0%
- Operating income$2.98B16.8%
- Interest, other & tax−$785.3M4.4%
- Net income$2.20B12.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed June 20, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $17.73B$16.47B | +7.7% |
| Cost of Revenue | $11.90B$10.97B | +8.5% |
| Gross Profit | $5.83B$5.50B | +6.0% |
| Operating Expenses | $14.75B$13.84B | +6.6% |
| Operating Income | $2.98B$2.63B | +13.4% |
| Interest Expense | $67.60M$11.33M | +496.4% |
| Net Income | $2.20B$1.93B | +13.7% |
| EPS (Basic) | $3.52$3.07 | +14.7% |
| EPS (Diluted) | $3.49$3.04 | +14.8% |
| Shares Outstanding (Basic) | 624.34M628.35M | −0.6% |
| Shares Outstanding (Diluted) | 630.46M635.61M | −0.8% |
05—Questions
Frequently Asked Questions
How did Accenture's revenue perform in the third quarter of fiscal year 2025 compared to the prior year?
Accenture's revenue for the third quarter of fiscal year 2025 increased by 8% in U.S. dollars and 7% in local currency, reaching $17.7 billion, compared to $16.5 billion in the same period last year. This growth was driven by strong performance in the Americas and EMEA, and across various industry groups such as Financial Services and Products.
What was the profitability trend for Accenture in this quarter?
Accenture demonstrated improved profitability, with its operating margin increasing to 16.8% for the third quarter of fiscal 2025, up from 16.0% in the prior year's third quarter. This improvement was attributed to revenue growth and effective cost management, leading to higher operating income.
How is Accenture managing its cash and capital allocation?
Accenture reported a strong liquidity position with cash and cash equivalents increasing to $9.6 billion as of May 31, 2025. The company actively returns capital to shareholders, having returned $2.7 billion in the third quarter of fiscal 2025 through dividends and share repurchases, indicating a balanced approach to investing in growth and returning value.
What is the outlook for Accenture's bookings and future revenue?
New bookings for the third quarter were $19.7 billion. While this represents a decrease from the prior year, Accenture's extensive backlog of remaining performance obligations, approximately $33 billion as of May 31, 2025, suggests continued revenue generation potential. The company expects to recognize about 34% of these obligations in fiscal 2025 and an additional 36% in fiscal 2026.
06—Continue