Accenture Plc (NYSE:ACN) stock declined on Friday following the release of its third-quarter 2025 results.
The company reported quarterly earnings of $3.49 per share, topping the analyst consensus estimate of $3.31.
The company reported sales of $17.7 billion, slightly exceeding the analyst consensus estimate of $17.30 billion. Sales increased 8% in U.S. dollars and 7% in local currency.
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Consulting revenues were $9.01 billion, an increase of 7% in U.S. dollars and 6% in local currency. Managed Services revenues reached $8.72 billion, an increase of 9% in U.S. dollars and local currency.
Products revenues reached $5.34 billion, up 7% both in U.S. dollars and local currency. Health & Public Service revenues increased by 7% in U.S. dollars and local currency to $3.78 billion.
Financial Services revenue reached $3.28 billion, up 13% in U.S. dollars and local currency. Resources revenue was $2.41 billion, up 5% in U.S. dollars and 4% in local currency.
Communications, Media & Technology revenue was $2.91 billion, up 5% both in U.S. dollars and in local currency.
New bookings for the quarter were $19.7 billion, a decrease of 6% in U.S. dollars and 7% in local currency. This total comprised $9.08 billion in Consulting new bookings and $10.62 billion in Managed Services new bookings.
Generative AI new bookings reached $1.5 billion in the quarter versus $1.4 billion in the second quarter.
Operating margin of 16.8%, an increase of 80 basis points, and a rise of 40 basis points compared to adjusted operating margin.
Accenture held $9.64 billion in cash and equivalents as of May 31. It generated $3.52 in free cash flow during the quarter.
Accenture has declared $1.48 per share dividend, payable on August 15, 2025. During the third quarter of fiscal 2025, Accenture repurchased or redeemed 6 million shares for a total of $1.8 billion, including 5.7 million shares acquired through open market transactions. As of May 31, 2025, Accenture had approximately $3.3 billion remaining in its share repurchase authority and about 623 million total shares outstanding.
Accenture announced a strategic overhaul of its growth model, effective September 1, 2025, with a sharpened focus on AI. As part of this change, the company will launch a new Reinvention Services unit.
Leadership changes associated with this new structure include Manish Sharma, Accenture’s current CEO of the Americas, transitioning to Chief Services Officer. John Walsh, Accenture’s current global COO, will succeed Sharma as CEO of the Americas. Kate Hogan, currently COO of the Americas, will become the global COO, succeeding Walsh.
Guidance: Accenture narrowed its fiscal year 2025 revenue growth outlook to 6%-7% (prior 5%-7%) in local currency. The company forecasts 2025 diluted earnings of $12.77-$12.89 (prior $12.55-$12.79) per share compared to the consensus of $12.75.
Price Action: ACN stock was trading lower by 5.19% to $290.47 premarket at last check Friday.
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