Executive Summary
Accenture delivered a robust QQ1 2025 performance, underscoring the company’s strategic shift toward large-scale reinventions and AI-enabled transformations. Revenue of $17.69 billion rose 8% in local currency, and was approximately $240 million above the top end of the guided range, driven by broad-based demand across geographic regions and industry verticals. New bookings totaled $18.7 billion, including about $1.2 billion in GenAI bookings and roughly $500 million in GenAI-related revenue, signaling meaningful traction in GenAI-driven engagements. Operating margin stood at 16.7% for the quarter, largely flat against the prior-year adjusted result, reflecting continued investments in talent and platforms as Accenture scales its AI-enabled solutions. Diluted EPS was $3.59, up ~10% year over year on an adjusted basis, and free cash flow was $870 million. The balance sheet remained robust, with cash and cash equivalents of about $8.31 billion and a net cash position of roughly $0.16 billion, enabling acquisitions (five deals totaling ~$242 million) and a strong capital return program (share repurchases of $898 million and a $926 million dividend in the quarter). Management highlighted GenAI as a core growth catalyst and reiterated a capital-return framework supported by a flexible balance sheet. Looking ahead, management maintained a full-year revenue growth target of 4% to 7% in local currency, with around 3% inorganic contribution, and an operating margin target of 15.6% to 15.8%, signaling a deliberate, disciplined growth stance anchored by AI-driven core transformations and cloud-enabled platforms.
Key Performance Indicators
Key Insights
Revenue: $17.6895B (+8% LC YoY; +9.0% YoY in reported terms) | Gross Margin: 32.9% (vs 33.6% prior-year) | Operating Margin: 16.7% | Net Income: $2.279B | EPS (Diluted): $3.59 | DPS: $1.48 paid in Nov 2024; forward dividend of $1.48 per share announced for Feb 14, 2025 | Free Cash Flow: $0.870B | Cash at End: $8.306B | Net Debt: -$0.160B | New Bookings: $18.7B; Book-to-Bill: 1.1 | Consulting Revenue: $9.0B; Managed Services Revenue: $8.6B | Geographic Growth LC: Americas +11%; EMEA +6%; APAC +4%...
Financial Highlights
Revenue: $17.6895B (+8% LC YoY; +9.0% YoY in reported terms) | Gross Margin: 32.9% (vs 33.6% prior-year) | Operating Margin: 16.7% | Net Income: $2.279B | EPS (Diluted): $3.59 | DPS: $1.48 paid in Nov 2024; forward dividend of $1.48 per share announced for Feb 14, 2025 | Free Cash Flow: $0.870B | Cash at End: $8.306B | Net Debt: -$0.160B | New Bookings: $18.7B; Book-to-Bill: 1.1 | Consulting Revenue: $9.0B; Managed Services Revenue: $8.6B | Geographic Growth LC: Americas +11%; EMEA +6%; APAC +4%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.69B |
9.03% |
7.82% |
| Gross Profit |
5.82B |
6.88% |
9.09% |
| Operating Income |
2.95B |
14.96% |
25.27% |
| Net Income |
2.28B |
15.48% |
35.30% |
| EPS |
3.64 |
15.92% |
36.84% |
Key Financial Ratios
operatingProfitMargin
16.7%
operatingCashFlowPerShare
$1.63
freeCashFlowPerShare
$1.39
dividendPayoutRatio
40.6%
Management Commentary
Context from management on QQ1 outcomes and AI strategy:
- GenAI momentum: “GenAI continues to be a catalyst for reinvention across the enterprise and building out the data foundation necessary to capitalize on AI.” (Julie Sweet)
- Demand pattern and market positioning: “Our clients are focused on reinvention, which means large-scale transformations… we did deliver on our strategy to be the reinvention partner of choice.” (Julie Sweet)
- Financial execution and capital allocation: “Revenues grew 8% in local currency above the top end of our guided range… operating margin was 16.7% for the quarter… EPS grew 10% over adjusted FY24.” (Angie Park, with Julie adding strategic context)
- AI and cloud investments: “GenAI… data foundation… cloud double-digit growth” and “invested $242 million across five acquisitions” to scale capabilities.
- Outlook and visibility: “For the full year, revenue growth in local currency 4% to 7% with an inorganic contribution of a bit more than 3%… free cash flow guidance of $8.8B to $9.5B.” (Angie Park)
GenAI continues to be a catalyst for reinvention across the enterprise and building out the data foundation necessary to capitalize on AI, as an increasing part of that growth.
— Julie Sweet
Revenues grew 8% in local currency above the top end of our guided range with six of our 13 industries growing double digits, and we continue to take market share.
— Angie Park
Forward Guidance
Outlook and achievability:
- Q2 guidance: Revenues expected to be $16.2B to $16.8B with FX ~-2.5% YoY and 5%–9% local currency growth.
- Full-year guidance (FY2025): Revenue growth 4%–7% in LC, including ~3% inorganic, with a roughly 4% organic contribution in H1 and ~2% in H2. Acquisitions planned around $3B for the year.
- Margin and cash flow: Operating margin projected at 15.6%–15.8%; Effective tax rate 22.5%–24.5%; Free cash flow of $8.8B–$9.5B; Capex ~ $0.6B; FCF/net income ratio of 1.1–1.2.
- Capital allocation: Ongoing return of capital to shareholders via dividends and buybacks, with at least $8.3B expected in 2025; flexibility to pursue opportunistic M&A if value-creating opportunities arise.
- Key monitoring points for investors: pace of AI/data foundation deployments, enterprise cloud migrations, inflationary/wage pressures in key talent markets, and visibility into client budgets in January–February signaling discretionary IT spend dynamics.