Executive Summary
Accenture reported a solid Q3 FY2025, with revenue of $17.7 billion, up 7% in local currency, and bookings of $19.7 billion, underscoring robust demand for large-scale reinventions and Gen AI-enabled solutions. Gen AI bookings reached $1.5 billion in the quarter, contributing to YTD Gen AI bookings of $4.1 billion and revenue of $1.8 billion, reinforcing Accenture’s leadership in AI-enabled services. Operating margins expanded 40 basis points to 16.8%, and diluted EPS rose about 12% year-over-year to $3.49 on a trailing basis, while free cash flow of $3.5 billion supported a strong capital return program (share repurchases of $1.8 billion and $0.92 billion in dividends). The quarter also featured meaningful investments in talent and capabilities (75,000 AI workforce, 38 million training hours year-to-date) and a strategic reorganization into Reinvention Services to accelerate AI-enabled delivery. This performance occurred despite heightened macro uncertainty, with management noting a resilient model driven by diversified services, broad geographic exposure, and a large installed base of relationships. For Q4, Accenture guided revenue of $17.0–$17.6 billion with 1–5% local-currency growth and an expected 2% headwind from federal programs, implying continued, though uneven, market activity. The company reaffirmed its longer-term growth framework: organic growth roughly 3–4% in FY26 with ~2% annual inorganic contribution and about $1.0–$1.5 billion in acquisitions in FY25.
Key Performance Indicators
Key Insights
Revenue: $17.7279B; YoY +7.66%, QoQ +6.41%
Gross Profit: $5.82665B; YoY +5.77%, QoQ +17.12%
Operating Income: $2.98278B; YoY +9.72%, QoQ +32.88%
Net Income: $2.19750B; YoY +13.73%, QoQ +22.90%
EPS (Diluted): $3.49; YoY +14.29%, QoQ +23.08%
Gross Margin: 32.87%
Operating Margin: 16.83%
Tax Rate: 24.0%
Days Sales Outstanding: 47 days (vs 48 prior quarter, 43 year-ago Q3)
Free Cash Flow (FCF): $3.516B; Operating Cash Flow: $3.684B; Capital Expenditures: $0.169B; Free Cash Flow Margin ~19.8%
Cash an...
Financial Highlights
Revenue: $17.7279B; YoY +7.66%, QoQ +6.41%
Gross Profit: $5.82665B; YoY +5.77%, QoQ +17.12%
Operating Income: $2.98278B; YoY +9.72%, QoQ +32.88%
Net Income: $2.19750B; YoY +13.73%, QoQ +22.90%
EPS (Diluted): $3.49; YoY +14.29%, QoQ +23.08%
Gross Margin: 32.87%
Operating Margin: 16.83%
Tax Rate: 24.0%
Days Sales Outstanding: 47 days (vs 48 prior quarter, 43 year-ago Q3)
Free Cash Flow (FCF): $3.516B; Operating Cash Flow: $3.684B; Capital Expenditures: $0.169B; Free Cash Flow Margin ~19.8%
Cash and Equivalents: $9.6316B at period-end; Total Assets: $63.362B; Total Liabilities: $31.8125B; Shareholders’ Equity: $30.5547B
Debt: Total Debt $5.875B; Net Debt: -$3.756B (net cash position)
Share Repurchases: 6.0M shares for ~$1.8B at $302.35/share; Dividend per share: $1.48 (quarterly); Dividend payout y/y: +15%
Bookings: $19.7B total; Gen AI bookings $1.5B in Q3; YTD Gen AI bookings $4.1B; Gen AI revenue YTD $1.8B
Geographic Growth (Q3): Americas +9% local currency; EMEA +6%; APAC +4%
Utilization: 92%; Headcount: ~790,000; Training hours year-to-date: 38M; AI workforce ~75,000 (goal ~80,000 by FY26)
Acquisition Activity: ~4 strategic investments totaling ~$297M; acquisitions include Talent Print (India), Ascendiant (US), Umami (Japan), and an additional Europe-based capability expansion; FY25 inorganic contribution guide ~3%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.73B |
7.66% |
6.41% |
| Gross Profit |
5.83B |
5.77% |
17.12% |
| Operating Income |
2.98B |
9.72% |
32.88% |
| Net Income |
2.20B |
13.73% |
22.90% |
| EPS |
3.52 |
14.29% |
23.08% |
Management Commentary
Strategy and AI leadership
- Julie Sweet emphasized Accenture's reinvention leadership and Gen AI as a catalyst for reinvention: Gen AI bookings of $1.5B in Q3, with YTD Gen AI bookings of $4.1B and revenue of $1.8B (Q3 YTD). Quote: Gen AI has been a catalyst for reinvention because the power of Gen AI has created the opportunity to meet challenges in new ways and is creating new opportunities to achieve even better results than any single technology in the Internet era. (Julie T. Sweet)
Operations and growth model
- Strong bookings pipeline across industries, with 30 clients posting quarterly bookings >$100M; geographic strength in Americas, EMEA, APAC; management highlighted a diversified demand mix including cloud, data and AI-driven transformations. Quote: Starting September 1, we are bringing all of our services... into a single integrated business unit called reinvention Services. (Julie T. Sweet)
Acquisition and talent investment
- Management highlighted acquisitions totaling ~$297M across 4 strategic investments and ongoing investments in Learn Vantage, with talent expansion to ~75,000 AI workers as progress toward 80,000 by FY26; headcount growth supported by strong utilization. Quote: Our acquisition strategy remains exactly the same. We target about 2% inorganic contribution annually. (Angie Park)
Market environment and guidance
- Management acknowledged heightened uncertainty but stressed resilience and willingness to reinvest in growth; Q4 guidance anticipates FX tailwinds (~+2.5% USD impact) and 1–5% local-currency growth; expectations of a 2% federal headwind in Q4; vision for organic growth return in FY26 alongside measured inorganic contributions. Quote: The growth model is driven by market dynamics to fuel growth, not just cost-cutting. (Julie T. Sweet; paraphrased from remarks)
Cash flow and capital returns
- The company generated robust operating cash flow and free cash flow, enabling $1.8B of share repurchases and $0.924B of quarterly dividends in Q3; balance sheet remains highly liquid with a net cash position and ample buyback authority remaining (~$3.3B as of May 31). Quote: We repurchased or redeemed 6 million shares for $1.8 billion at an average price of $302.35 per share. (Angie Park)
Gen AI has been a catalyst for reinvention because the power of Gen AI has created the opportunity to meet challenges in new ways and is creating new opportunities to achieve even better results than any single technology in the Internet era.
— Julie T. Sweet
Our acquisition strategy remains exactly the same. We've been doing acquisitions to scale and expand our capabilities now for over a decade. And what's really important is the discipline that we use. We target about 2% year in and year out in inorganic contribution, but that could ebb and flow.
— Angie Park
Forward Guidance
Near-term outlook centers on Q4 revenue of $17.0–$17.6B with approximately +2.5% FX impact and 1–5% local-currency growth, reflecting a continued but uneven demand environment, including a ~2% federal headwind. For FY25, revenue growth is guided at 6–7% in local currency, with inorganic contribution around 3% and acquisitions totaling $1.0–$1.5B. Operating margin is guided at 15.6% for the full year, a modest 10bp expansion versus FY24 adjusted results, and the full-year effective tax rate is expected to 23–24%. Diluted EPS is guided to be $12.77–$12.89 (7–8% growth). Free cash flow is forecast at $9.0–$9.7B, with capex around $0.6B, and a continued objective to return at least $8.3B to shareholders via dividends and buybacks. Management emphasized the strategic rationale for Reinvention Services and AI-enabled platforms as the core growth engine, with FY26 organic growth expected to be roughly 3–4% as the company cycles through year-to-year variances. Key risks to monitor include: macro uncertainties and geopolitical tensions affecting IT demand, government (federal) budget cycles, FX fluctuations, and potential further shifts in client spend toward or away from large-scale reinvention programs. Investors should watch: (1) execution of the Reinvention Services restructuring, (2) progression of Gen AI-driven engagements and productized platforms (Gen Wizard, AI refinery, SynOps), (3) cadence of acquisitions and integration progress, (4) government-related headwinds and procurement cycles, and (5) changes in macro conditions that could alter client discretionary spending and bookings momentum.