Accenture 2025 Q3 Earnings Strong Performance as Net Income Grows 13.3%
Daily EarningsFriday, Jun 20, 2025 11:03 am ET
4min readAccenture, ranked 62nd by market capitalization, reported its fiscal 2025 Q3 earnings on June 19th, 2025. The earnings per share (EPS) of $3.49 exceeded estimates of $3.32, reflecting a robust performance. Revenue for the quarter reached $17.7 billion, surpassing the anticipated $17.3 billion. also raised its full-year fiscal 2025 revenue growth guidance to 6% to 7% and increased its EPS guidance to a range of $12.77 to $12.89. These adjustments indicate a positive outlook for the company moving forward.
Revenue
Accenture's total revenue for the third quarter of fiscal 2025 increased by 7.7% to $17.73 billion, compared to $16.47 billion in the same period last year. The Communications, Media & Technology segment generated $2.91 billion, while Financial Services contributed $3.28 billion. The Health & sector achieved $3.78 billion, and Products led with $5.34 billion. Resources added $2.41 billion to the total revenue, showcasing broad growth across all segments.
Earnings/Net Income
Accenture's EPS grew by 14.7% to $3.52, up from $3.07 in the previous year’s Q3. Net income increased by 13.3% to $2.24 billion from $1.98 billion in Q3 2024, indicating strong earnings performance.
Post Earnings Price Action Review
The strategy of purchasing Accenture shares following quarterly earnings reports and holding for 30 days has shown mixed results over the past three years. Overall, this approach has yielded an average gain of 2.6% per quarter, suggesting a generally favorable market response to Accenture's earnings announcements. However, gains have varied across different quarters, with the highest return of 5.1% seen in the third quarter of 2024. This might reflect a particularly positive market reaction to specific aspects of the earnings that quarter. Conversely, returns were lower in other periods, such as a 1.2% gain in the first quarter of 2025, indicating potential volatility in stock response to earnings news. Recently, the stock price fell by 4% immediately following the Q3 FY2025 earnings report, possibly due to broader market concerns or company-specific issues like bookings falling short of estimates. Investors should also consider broader market sentiment and sector-specific factors, such as cryptocurrency market instability, which may influence Accenture's technology services and impact investor sentiment. While historically profitable, this strategy may be susceptible to short-term fluctuations, urging investors to closely monitor both company performance and broader market dynamics.
CEO Commentary
Julie Sweet, CEO of Accenture, expressed satisfaction with the third-quarter fiscal 2025 results, emphasizing broad-based growth and the addition of 30 clients with quarterly bookings exceeding $100 million. She highlighted the company's focus on delivering measurable value for clients, which is driving growth and market impact. Sweet acknowledged the workforce's commitment to leveraging technology and human ingenuity as key success drivers.
Guidance
Accenture has revised its full-year revenue growth forecast to 6% to 7% in local currency, with an anticipated positive foreign exchange impact of 0.2%. The company has elevated its diluted earnings per share guidance to between $12.77 and $12.89. Additionally, Accenture projects free cash flow to range from $9.0 billion to $9.7 billion, underscoring strong cash generation and operational efficiency for the remainder of the fiscal year.
Additional News
Accenture announced significant changes to its growth model and leadership, effective September 1, 2025. The company will consolidate services into a new integrated business unit, Reinvention Services, led by Manish Sharma as Chief Services Officer. This strategic shift aims to enhance service delivery speed and integrate AI more seamlessly. Leadership changes include John Walsh becoming CEO of the Americas, succeeding Sharma, and Kate Hogan taking over as global Chief Operating Officer. These restructuring efforts are designed to better serve clients and technology partners, creating new growth opportunities for all stakeholders. Accenture's strategic focus on AI and client-centric solutions aligns with its ambition to be a leading professional services firm, leveraging technology to drive change.
Revenue
Accenture's total revenue for the third quarter of fiscal 2025 increased by 7.7% to $17.73 billion, compared to $16.47 billion in the same period last year. The Communications, Media & Technology segment generated $2.91 billion, while Financial Services contributed $3.28 billion. The Health & sector achieved $3.78 billion, and Products led with $5.34 billion. Resources added $2.41 billion to the total revenue, showcasing broad growth across all segments.
Earnings/Net Income
Accenture's EPS grew by 14.7% to $3.52, up from $3.07 in the previous year’s Q3. Net income increased by 13.3% to $2.24 billion from $1.98 billion in Q3 2024, indicating strong earnings performance.
Post Earnings Price Action Review
The strategy of purchasing Accenture shares following quarterly earnings reports and holding for 30 days has shown mixed results over the past three years. Overall, this approach has yielded an average gain of 2.6% per quarter, suggesting a generally favorable market response to Accenture's earnings announcements. However, gains have varied across different quarters, with the highest return of 5.1% seen in the third quarter of 2024. This might reflect a particularly positive market reaction to specific aspects of the earnings that quarter. Conversely, returns were lower in other periods, such as a 1.2% gain in the first quarter of 2025, indicating potential volatility in stock response to earnings news. Recently, the stock price fell by 4% immediately following the Q3 FY2025 earnings report, possibly due to broader market concerns or company-specific issues like bookings falling short of estimates. Investors should also consider broader market sentiment and sector-specific factors, such as cryptocurrency market instability, which may influence Accenture's technology services and impact investor sentiment. While historically profitable, this strategy may be susceptible to short-term fluctuations, urging investors to closely monitor both company performance and broader market dynamics.
CEO Commentary
Julie Sweet, CEO of Accenture, expressed satisfaction with the third-quarter fiscal 2025 results, emphasizing broad-based growth and the addition of 30 clients with quarterly bookings exceeding $100 million. She highlighted the company's focus on delivering measurable value for clients, which is driving growth and market impact. Sweet acknowledged the workforce's commitment to leveraging technology and human ingenuity as key success drivers.
Guidance
Accenture has revised its full-year revenue growth forecast to 6% to 7% in local currency, with an anticipated positive foreign exchange impact of 0.2%. The company has elevated its diluted earnings per share guidance to between $12.77 and $12.89. Additionally, Accenture projects free cash flow to range from $9.0 billion to $9.7 billion, underscoring strong cash generation and operational efficiency for the remainder of the fiscal year.
Additional News
Accenture announced significant changes to its growth model and leadership, effective September 1, 2025. The company will consolidate services into a new integrated business unit, Reinvention Services, led by Manish Sharma as Chief Services Officer. This strategic shift aims to enhance service delivery speed and integrate AI more seamlessly. Leadership changes include John Walsh becoming CEO of the Americas, succeeding Sharma, and Kate Hogan taking over as global Chief Operating Officer. These restructuring efforts are designed to better serve clients and technology partners, creating new growth opportunities for all stakeholders. Accenture's strategic focus on AI and client-centric solutions aligns with its ambition to be a leading professional services firm, leveraging technology to drive change.
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