Accenture Beats Expectations as Q3 Revenue Climbs to $17.7 Billion

Accenture's third-quarter results came in better than expected, as the IT company's revenue figure stood at $17.7 billion. The reported figure exceeded the analysts' average estimate of $17.30 billion, according to LSEG data cited in a Reuters report.

The company reported an operating margin of 16.8%, indicating a surge of 80 basis points (bps) compared to the corresponding quarter of the previous fiscal year. The better-than-anticipated earnings were largely owing to the growing demand for the IT giant's AI-driven services.

“I am very pleased with our third quarter fiscal 2025 results, including our 30 clients with quarterly bookings greater than $100 million, broad-based growth and continued expansion of our leadership in Gen AI. Companies need resilience and results, and we are laser-focused on delivering measurable value for our clients, which is fueling our growth and making a difference for us in the market," said Accenture chair and CEO Julie Sweet.

The company recorded a gross margin of 32.9% as compared to 33.4% recorded in the same period last year. Selling, general and administrative (SG&A) expenses for the quarter stood at $2.84 billion or 16.0% of revenues. In the third quarter of the previous fiscal, the figure stood at $2.79 billion, or 16.9% of revenues.

Accenture is now expecting its full-year revenue growth for fiscal 2025 to be in the range of 6% to 7% in local currency. The company has also updated its foreign exchange impact forecast, projecting a positive 0.2% effect. The consulting giant is expecting an operating margin of 15.6% for the full year, signalling a 10 bps expansion over the previous year’s adjusted operating margin.

The company also reported diluted earnings per share (EPS) of $3.49 for the quarter, indicating a 15% YoY increase. The company also generated a free cash flow of $3.5 billion during the period.