Accenture Earnings Beat Estimates in Q3, Revenues Increase Y/Y

Accenture plc ACN has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.ACN’s earnings were $3.49 per share, beating the Zacks Consensus Estimate by 5.8%. The metric increased 11.5% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 2.6% and rose 7.7% on a year-over-year basis.The company’s shares have declined marginally in the past year compared with the industry’s and Zacks S&P 500 composite’s 8.3% and 10.3% growth, respectively.Accenture PLC Price, Consensus and EPS Surprise  Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC QuoteACN’s Revenues in DetailBased on the type of work, managed services’ revenues of $8.7 billion increased 9% from the year-ago quarter on a reported basis and in local currency, surpassing our estimate of $8.5 billion. Consulting revenues gained 7% year over year on a reported basis and 6% in local currency to $9 billion, beating our estimate of $8.7 billion.Segment-wise, health and public service revenues of $3.8 billion grew 7% from the year-ago quarter on a reported basis and in local currency. The figure beat our estimation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 5% from the year-ago quarter on a reported and 4% on a local currency basis. The figure met our estimate. Revenues from the product segment amounted to $5.3 billion, increasing 7% year over year on a reported basis and a local currency basis. The figure outpaced our estimation of $5.2 billion.Communications, media and technology revenues of $2.9 billion increased 5% year over year on a reported basis and in terms of local currency, outpacing our estimate of $2.8 billion. Financial services revenues of $3 billion grew 13% from the year-ago quarter on a reported basis and in local currency. The figure met our projected figure.Geographically, revenues of $8.9 billion from the Americas rose 8% from the year-ago quarter on a reported basis and 9% on a local currency basis. The figure beat our estimation of $8.7 billion. Revenues of $6.2 billion from the EMEA gained 8% on a reported basis and 6% in local currency, beating our estimate of $6 billion. Revenues of $2.5 billion from the Asia Pacific increased 5% year over year on a reported basis and gained 4% in local currency, surpassing our estimate of $2.4 billion.Booking Trends of AccentureThe company reported bookings worth $19.7 billion in the third quarter of fiscal 2025, decreasing 6% from the year-ago quarter on a reported basis and 7% in local currency. Consulting bookings were $9.1 billion and managed services bookings were $10.6 billion.ACN’s Operating ResultsThe gross margin (gross profit as a percentage of net revenues) for the third quarter of fiscal 2025 was 32.9%, down 50 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.2 billion, flat with the year-ago quarter. The adjusted operating margin of 16.8% moved down 40 bps from third-quarter fiscal 2025.Balance Sheet & Cash Flow of AccentureACN exited third-quarter fiscal 2025 with cash and cash equivalents of $9.6 billion compared with $8.5 billion at the end of first-quarter fiscal 2025. The company generated $3.7 billion in cash from operating activities. Capital expenditure in the reported quarter was $169.1 million.The free cash flow was $3.5 billion. Accenture repurchased 6 million shares for $1.8 billion, including 5.7 million shares repurchased in the open market. The company paid out a dividend of $924 million in the third quarter of fiscal 2025.ACN’s Q4 & FY25 GuidanceFor the fourth quarter of fiscal 2025, the company hiked its revenue guidance to $17-$17.6 billion from the preceding quarter’s view of $16.9-$17.5 billion. The mid-point ($17.3 billion) of the guided range is higher than the Zacks Consensus Estimate of $17.1 billion.For fiscal 2025, ACN updated its revenue growth guidance to 6-7% compared with the preceding quarter’s view of 5-7% in local currency. The company's expectation for operating cash flow is raised to $9.6 billion to $10.3 billion from the previous quarter’s view of $9.4-$10.1 billion. The free cash flow expectation is raised to $9 billion to $9.7 billion compared with the preceding quarter’s view of $8.8 billion and $9.5 billion.Accenture carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotFiserv, Inc. FI posted mixed first-quarter 2025 results.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.Corpay, Inc. CPAY reported mixed first-quarter 2025 results.CPAY’s earnings per share of $4.51 surpassed the consensus estimate by a slight margin and increased 10% year over year. The total revenues of $1 billion missed the consensus estimate by a slight margin but gained 7.5% from the year-ago quarter.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report Corpay, Inc. (CPAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks