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.

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

• GAAP EPS rose 16% to $3.59, adjusted EPS up 10% year-over-year; operating margin was 16.7% (flat adjusted, up 90 bps GAAP).

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

• Maintained strong market positioning and gained market share, with broad-based growth across geographies and industries.

Financial highlights

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

• Gross margin was 32.9% (down from 33.6% prior year); sales and marketing expense 10.2%; G&A expense 6%.

• Free cash flow was $870M; $1.8B returned to shareholders via repurchases and dividends.

• Cash balance at quarter-end was $8.3B, up from $5B after a $5B debt offering.

• 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; FX impact expected at -0.5%.

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

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

• FY25 EPS guidance $12.43–$12.79 (4–7% growth); free cash flow $8.8–$9.5B; at least $8.3B to be returned to shareholders.

• Inorganic contribution to FY25 revenue just over 3%.