Accenture Q3 2025 Performance Driven by AI, Acquisitions and Strong Demand

Accenture posted Q3 2025 net sales of $17.7bn, a 7.7% y/y increase, driven by strong demand and Gen AI momentum. Operating income rose 10% to $3bn, with a margin of 16.8%. The company completed 46 strategic acquisitions in FY 24, investing $6.6bn to bolster digital, AI, cloud, and industry-specific capabilities. Accenture has reported a revenue CAGR of 8.7% over FY 21-24, reaching $64.9bn, with EBIT rising at a CAGR of 9.4% to $10bn.

Accenture plc (NYSE: ACN) has reported robust financial performance for Q3 2025, with net sales of $17.7 billion, representing a 7.7% year-over-year (y/y) increase. The company's operating income rose by 10% to $3 billion, with an operating margin of 16.8% [1]. This strong performance was driven by sustained demand and the company's leadership in generative artificial intelligence (Gen AI) services.

Accenture's revenue growth has been consistent, with a compound annual growth rate (CAGR) of 8.7% over fiscal years 2021 to 2024, reaching $64.9 billion. The company's earnings before interest, taxes, depreciation, and amortization (EBIT) rose at a CAGR of 9.4% to $10 billion over the same period [1].

The company completed 46 strategic acquisitions in fiscal year 2024, investing $6.6 billion to bolster its digital, AI, cloud, and industry-specific capabilities. These acquisitions have helped Accenture expand its service offerings and strengthen its position in the rapidly growing IT consulting market [1].

The company's revenue growth is expected to continue, with management raising full-year FY 2025 revenue guidance to 6%–7% growth in local currency. Key growth drivers include continued digital and AI transformations, cloud migration, industry-specific platforms, geographic expansion in Asia-Pacific, and targeted acquisitions in AI, cybersecurity, and industry-X capabilities [1].

However, Accenture faces several challenges, including government spending cuts, booking misses, and potential margin pressure. The company's stock has been volatile, with a beta of 1.24 indicating above-average stock volatility [1]. Despite these challenges, Accenture's strong financial performance and leadership in AI services make it a compelling play for long-term investors with a multi-year horizon.

References:
[1] https://finimize.com/content/acn-asset-snapshot