Accenture (ACN) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenues reached $17.7B, up 9% in USD and 8% in local currency year-over-year, with broad-based growth across all markets and industry groups, gaining market share and outperforming global competitors.

• Adjusted EPS increased 10% to $3.59, GAAP EPS up 16%, and net income rose to $2.32B.

• New bookings totaled $18.7B, with 30 clients booking over $100M each and $1.2B in generative AI-related bookings.

• Continued investment in talent, acquisitions, and technology, including 14M training hours, five acquisitions, and workforce expansion to 798,781.

• Quarterly dividend increased 15% to $1.48 per share; $1.8B returned to shareholders via dividends and repurchases.

Financial highlights

• Consulting revenues were $9.05B (+7% USD, +6% local currency); managed services revenues were $8.64B (+11% in both USD and local currency).

• Gross margin was 32.9%, down from 33.6% a year ago; GAAP operating margin improved to 16.7% from 15.8%, flat on an adjusted basis.

• Free cash flow was $870M; operating cash flow $1.02B; cash and cash equivalents at $8.3B.

• Book-to-bill ratio was 1.1 overall; consulting 1.0, managed services 1.1.

• Net income attributable to Accenture plc was $2.28B, up from $1.97B year-over-year.

Outlook and guidance

• FY25 revenue growth outlook raised to 4–7% in local currency, with inorganic contribution just over 3% and FX impact of -0.5%.

• Q2 FY25 revenue expected at $16.2B–$16.8B, with 5–9% local currency growth and -2.5% FX impact.

• FY25 GAAP EPS guidance: $12.43–$12.79, up 4–7% over adjusted FY24.

• FY25 operating margin expected at 15.6–15.8%, a 10–30 bps expansion over adjusted FY24.

• Plans to return at least $8.3B to shareholders in FY25 via dividends and repurchases.