Accenture's FY25 Revenue Up 7% YoY, AI Deal Bookings Double to $5.9 Billion

Dublin-based information technology (IT) services giant Accenture reported a 7% year-on-year rise in revenue for the financial year ending 31 August 2025. Revenue stood at $69.7 billion, up from about $65 billion in FY24. The company’s financial year runs from 1 September to 31 August.

In the post-earnings conference, Accenture CEO Julie Sweet noted that the adverse business environment, which began in FY24, persisted through FY25.

The IT giant said its advanced AI project bookings nearly doubled in FY25 to $5.9 billion. The number of projects deploying AI has also expanded sharply, from just a handful in 2023 to 6,000, while revenue rose from negligible levels to $2.7 billion, tripling year-on-year. Since the start of FY23, Accenture’s AI and data workforce has grown from about 40,000 to nearly 77,000.

The company is among the few IT services firms that report earnings from AI projects separately. In the latest results, Accenture has started using the term “Advanced AI” instead of “GenAI revenue,” as used previously.

Accenture’s total headcount rose 1% in the fourth quarter to 779,273, compared to 774,303 in Q4 FY24. However, sequentially the headcount declined 1% as the annualised attrition rate remained high at 15%. Management said it plans to increase hiring across all three markets in FY26.

For FY26, Accenture expects revenue growth of 2–5% in local currency, or about 3–6% when excluding the impact of its federal business (AFS), with 1.5% expected from inorganic contributions. For Q1 FY26, revenues are projected at $18.1–$18.75 billion, reflecting 1–5% local currency growth.

The adjusted operating margin is forecast at 15.7–15.9%, an improvement of 10–30 basis points over FY25. Adjusted earnings per share (EPS) are projected in the range of $13.52–$13.90, a 5–8% year-on-year increase. Free cash flow (FCF) is expected between $9.8–$10.5 billion, with an FCF/net income ratio of 1.2, compared to $10.9 billion and 1.4 in FY25.

Geographically, Accenture’s revenue in the Americas grew 9% to $35.1 billion, while EMEA rose 6% to $24.6 billion and Asia Pacific advanced 4% to $10 billion. Management noted that although the US business was impacted by a decline in the public service segment, it remained the key growth driver. By industry, financial services grew 10% to $12.8 billion, products rose 8% to $21.2 billion, health and public service increased 6% to $14.8 billion, and communications, media & technology climbed 6% to $11.5 billion.

For the full year, the adjusted operating margin stood at 15.6%, up 10 basis points from FY24, while adjusted EPS rose 8% to $12.93. New bookings reached $80.6 billion, with a book-to-bill ratio of 1.2, reflecting strong demand in both consulting ($35.1 billion, up 5%) and managed services ($34.6 billion, up 9%). Strategic priorities remained key growth drivers: cloud revenue rose 12% to $39 billion, Industry X grew 10% to $9 billion, security surged 16% to $10 billion, and Song increased 8% to $20 billion.

On a quarterly basis, Accenture reported revenues of $17.6 billion, up 7% year-on-year in US dollars, supported by growth across all geographies. Revenue rose 5% in the Americas, 3% in EMEA, and 6% in Asia Pacific. By industry, financial services led with 12% growth, while health and public service declined 3%. Quarterly EPS rose 9% to $3.03, and operating margin improved slightly to 15.1%.

In the August quarter, new bookings stood at $21.3 billion, with a book-to-bill ratio of 1.2. By type of work, consulting revenue fell 3% to $8.8 billion, while managed services grew 6% to $8.8 billion. Strategic areas showed strong momentum: cloud and security delivered double-digit growth, while Industry X and Song recorded high- to mid-single-digit gains.

Management noted that quarterly results were impacted by the business optimisation programme launched last year. In the Q4 FY25 earnings presentation, Accenture disclosed that FY24 optimisation costs totalled $438 million.