Executive Summary
Accenture reported a solid Q4 FY2025, finishing a year marked by sustained AI-driven investments and a continued shift toward higher-value, multi-service transformations. Revenue of $17.60B in Q4 rose 4.5% in local currency (LC) and 6% excluding the federal headwind, with adjusted operating margin expanding 10 basis points to 15.1% and adjusted diluted EPS of $3.03, up 9% YoY. Free cash flow generated in the quarter was an impressive $3.8B, supporting a robust annual cash return to shareholders and a strong balance sheet, including $11.5B in cash at August 31. Management emphasized Accenture's strategic focus on Gen AI, Agentic AI, and AI-enabled reinvention across industries, noting a record 129 quarterly bookings above $100M in FY2025 and a full-year book-to-bill of 1.2. The year also featured a $865M six-month business optimization program (with an approximate $615M charge in Q4 and ~$250M expected in Q1) to accelerate talent rotation and divest non-core assets, with anticipated cost savings to be reinvested in growth initiatives. Looking ahead, Accenture provided FY2026 guidance calling for 2-5% LC revenue growth (3-6% ex federal), adj operating margin of 15.7-15.9%, adjusted EPS of $13.52-$13.90, and free cash flow of $9.8B-$10.5B, supported by roughly $3B of acquisitions and at least $9.3B returning to shareholders (dividends and buybacks). Management’s commentary underscores AI as a growth and productivity amplifier, not a deflationary force, with strategic emphasis on digital core modernization, ecosystem partnerships, and sustaining disciplined investment in people and platforms. Overall, Accenture remains positioned to monetize AI-driven enterprise transformations while managing near-term margin pressures and financing a scalable growth agenda.
Key Performance Indicators
QoQ: -31.28% | YoY:-12.92%
QoQ: -35.66% | YoY:-16.05%
QoQ: -35.51% | YoY:-14.66%
Key Insights
Revenue (Q4 2025): $17.596B; YoY revenue growth (LC): 4.5% (6% ex federal). Gross margin: 31.9% (vs. 32.5% prior-year). Operating margin: GAAP 11.65% (adjusted 15.1%); Adjusted EPS: $3.03 (YoY growth 9% on adjusted basis). Net income: $1.414B; Net income margin: 8.04%. Free cash flow: $3.8B in Q4; Cash balance: $11.5B as of Aug 31, 2025. Bookings (quarter): $21.3B; New bookings >$100M in Q4: 37; FY2025 bookings: $80.6B; Book-to-bill: 1.2 for the year. Revenue mix: Consulting $8.8B (up 6% USD,...
Financial Highlights
Revenue (Q4 2025): $17.596B; YoY revenue growth (LC): 4.5% (6% ex federal). Gross margin: 31.9% (vs. 32.5% prior-year). Operating margin: GAAP 11.65% (adjusted 15.1%); Adjusted EPS: $3.03 (YoY growth 9% on adjusted basis). Net income: $1.414B; Net income margin: 8.04%. Free cash flow: $3.8B in Q4; Cash balance: $11.5B as of Aug 31, 2025. Bookings (quarter): $21.3B; New bookings >$100M in Q4: 37; FY2025 bookings: $80.6B; Book-to-bill: 1.2 for the year. Revenue mix: Consulting $8.8B (up 6% USD, 3% LC); Managed services $8.8B (up 8% USD, 6% LC). Geographic highlights: Americas +5% LC; EMEA +3% LC; Asia Pacific +6% LC. FY2024-25 strategic highlights include Gen AI revenue of $2.7B for FY25 and Gen AI bookings of $5.9B; capital projects revenue ($1.2B) grew 49% YoY. FY25 adjusted operating margin: 15.6% (up 10 bps); FY25 adjusted EPS: $12.93 (8% YoY).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.60B |
7.26% |
-0.74% |
| Gross Profit |
5.61B |
5.12% |
-3.70% |
| Operating Income |
2.05B |
-12.92% |
-31.28% |
| Net Income |
1.41B |
-16.05% |
-35.66% |
| EPS |
2.27 |
-14.66% |
-35.51% |
Management Commentary
Themes from management call: (1) AI strategy and execution: Julie Sweet emphasized AI as expansionary, not deflationary, noting the jump from mindshare to enterprise adoption and the need for tech, data, and org readiness to realize AI value. Quote: 'We do not see AI as deflationary. We see it as expansionary... AI is becoming a part of everything we do.' (2) AI-enabled growth engine and partnerships: The company highlighted a deep ecosystem and partnerships driving AI-enabled transformations; Gen AI/Bot solutions and digital core modernization are core growth vectors, including case studies like Bank of England and UOB. (3) Talent strategy and optimization program: Six-month business optimization program included severance-related talent rotation and divestitures, with expected ~$1B in savings to be reinvested in growth. Quote: 'On CapEx, we expect about $1 billion this year, which is about $400 million more than FY2025. This is really about us expanding our real estate and leasehold improvements in certain geographies, certain major markets for us.' (4) Frontiers in AI adoption: Management noted that AI deployment is often ‘lumpy’ and adjacent work follows large-scale transformations; prioritization of proactive upskilling and the Reinvention Services model to simplify selling and delivery across capabilities.
We do not see AI as deflationary. We see and are seeing it as expansionary, similar to every tech evolution we've been through. The move from analog to digital, from on-prem to cloud and SaaS, and as many of you who've been with us over the course of the years have known, in every successive tech evolution, we've become stronger.
— Julie Sweet
On CapEx, we expect about $1 billion this year, which is about $400 million more than FY2025. This is really about us expanding our real estate and leasehold improvements in certain geographies, certain major markets for us.
— Angie Park
Forward Guidance
Q1 FY2026 revenue guidance: $18.1B to $18.75B; FX tailwind ~1%; organic growth implied 1-5% with about 1.5% impact from federal; FY2026 revenue growth target: 2-5% in LC (3-6% excluding federal), with ~1.0-1.5% from federal; inorganic contribution ~1.5%; capex ~ $1B; acquisitions guidance of ~$3B; adjusted operating margin target: 15.7% to 15.9% (expanding 10-30 bps vs FY2025 adjusted). Tax rate: 23.5%-25.5%; adjusted EPS: $13.52-$13.90 (5-8% growth). Free cash flow: $9.8B-$10.5B; operating cash flow: $10.8B-$11.5B; dividends and buybacks: at least $9.3B (up 12%). Key factors for investors to monitor include AI-driven productivity vs growth, cadence of large multi-service deals, the pace of AI adoption across clients, FX volatility, federal backlog and AFS exposure, and Accenture’s ability to integrate acquisitions and realize optimization savings.