10-QPeriod: Q3 FY2025

Accenture plc Quarterly Report for Q3 Ended May 31, 2025

Filed June 20, 2025For Securities:ACN

Summary

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 $3.49 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 billion 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.

Financial Highlights

55 data points
Beta

Revenue

$17.73B

32.9% Gross Margin

Net Income

$2.20B

12.4% Net Margin

EPS (Diluted)

$3.49

Total Assets

$63.36B

Cash & Equivalents

$9.63B

Free Cash Flow

$3.52B

Financial Statements
Beta
Revenue$17.73B
Cost of Revenue$11.90B
Gross Profit$5.83B
Operating Expenses$14.75B
Operating Income$2.98B
Interest Expense$67.60M
Net Income$2.20B
EPS (Basic)$3.52
EPS (Diluted)$3.49
Shares Outstanding (Basic)624.34M
Shares Outstanding (Diluted)630.46M

Key Highlights

  • 1Revenue 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.
  • 2Operating 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.
  • 3Diluted EPS increased by 15% year-over-year to $3.49 for the quarter and by 12% to $9.90 for the nine months.
  • 4Cash and cash equivalents increased significantly to $9.6 billion as of May 31, 2025, from $5.0 billion as of August 31, 2024.
  • 5New 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.
  • 6Shareholder returns remain a priority, with $2.7 billion returned in Q3 FY2025 through dividends and share repurchases.
  • 7The company's workforce grew to approximately 791,000 as of May 31, 2025, reflecting investments in talent to meet demand.

Frequently Asked Questions

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.

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.

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.

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.