Accenture Earnings Beat Estimates in Q4, Revenues Increase Y/Y

Accenture plc ACN has reported impressive fourth-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.ACN’s earnings were $3.03 per share, beating the Zacks Consensus Estimate by 1.7%. The metric increased 8.6% from the year-ago quarter. Total revenues of $17.6 billion beat the consensus estimate by 1.6% and rose 7.3% on a year-over-year basis.The company’s shares have declined 29% in the past year compared with the industry's 11.3% fall and the Zacks S&P 500 composite’s 18% jump.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 $8.8 billion increased 6% from the year-ago quarter on a reported basis and 3% in local currency, surpassing our estimate of $8.5 billion. Consulting revenues gained 8% year over year on a reported basis and 6% in local currency to $8.8 billion, beating our estimate of $8.6 billion.Segment-wise, health and public service revenues of $3.6 billion declined 1% from the year-ago quarter on a reported basis and 3% in local currency. The figure missed our estimation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 8% from the year-ago quarter on a reported basis and 5% on a local currency basis. The figure surpassed our estimate of $2.3 billion. Revenues from the product segment amounted to $5.4 billion, increasing 9% year over year on a reported basis and 5% on a local currency basis. The figure beat our estimate $5.2 billion.Communications, media and technology revenues of $3 billion increased 7% year over year on a reported basis and 5% in terms of local currency, meeting our estimate. Financial services revenues of $3.3 billion grew 15% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.1 billion.Geographically, revenues of $8.8 billion from the Americas rose 5% from the year-ago quarter on a reported basis and on a local currency basis. The figure beat our estimation of $8.6 billion.Revenues of $6.2 billion from the EMEA gained 10% on a reported basis and 3% in local currency, beating our estimate of $6 billion. Revenues of $2.6 billion from the Asia Pacific increased 11% year over year on a reported basis and gained 6% in local currency, surpassing our estimate of $2.4 billion.Booking Trends of AccentureThe company reported bookings worth $21.3 billion in the fourth quarter of fiscal 2025, increasing 6% from the year-ago quarter on a reported basis and 3% in local currency. Consulting bookings were $8.9 billion and managed services bookings were $12.4 billion.ACN’s Operating ResultsThe gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2025 was 31.9%, down 60 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, up 8% from the year-ago quarter. The adjusted operating margin of 15.1% moved down 10 bps from the fourth quarter of fiscal 2025.Balance Sheet & Cash Flow of AccentureACN exited fourth-quarter fiscal 2025 with cash and cash equivalents of $11.5 billion compared with $9.6 billion at the end of third-quarter fiscal 2025. The company generated $3.9 billion in cash from operating activities. Capital expenditure in the reported quarter was $107.9 million.The free cash flow was $3.8 billion. Accenture repurchased 1.6 million shares for $474 million. The company paid out a dividend of $921.7 million in the fourth quarter of fiscal 2025.ACN’s Q1 & FY26 GuidanceFor the first quarter of fiscal 2026, the company expects revenues of $18.10-$18.75 billion. The guided range exceeds the Zacks Consensus Estimate of $17.33 billion.For fiscal 2026, ACN expects revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow expectation is $9.8-$10.5 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 SnapshotABM ABM reported mixed third-quarter fiscal 2025 results.ABM’s EPS (excluding 16 cents from non-recurring items) was 82 cents, which missed the Zacks Consensus Estimate by 13.7% and declined 12.8% year over year. Total revenues of $2.2 billion surpassed the consensus mark by 2.8% and increased 6.2% from the year-ago quarter.FactSet FDS posted mixed results for the fourth quarter of fiscal 2025.FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 ABM Industries Incorporated (ABM): Free Stock Analysis Report FactSet Research Systems Inc. (FDS): 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