Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $17.7 billion, reflecting a 9% increase in U.S. Dollars and 8% in local currency, approximately $240 million above the top end of the guided range [20][21] - EPS for the quarter was $3.59, representing a 10% growth over adjusted EPS from the previous year [18][24] - Operating margin was 16.7%, consistent with adjusted results from the previous year [24] - Free cash flow for the quarter was $870 million, with cash generated from operating activities of $1 billion [25] Business Line Data and Key Metrics Changes - Consulting revenues were $9 billion, up 7% in U.S. Dollars and 6% in local currency [21] - Managed services revenue was $8.6 billion, up 11% in both U.S. Dollars and local currency, driven by double-digit growth in technology-managed services [21] - New bookings for the quarter were $18.7 billion, with consulting bookings at $9.2 billion and managed services bookings at $9.5 billion [19] Market Data and Key Metrics Changes - In the Americas, revenues grew 11% in local currency, led by industrial, software and platforms, banking and capital markets, and consumer goods [22] - EMEA revenues grew 6% in local currency, with growth in public service and life sciences, partially offset by a decline in banking and capital markets [22] - Asia Pacific revenues grew 4% in local currency, driven by growth in utilities and health, with Japan leading the growth [22][23] Company Strategy and Development Direction - The company aims to be the reinvention partner of choice for clients, focusing on large-scale transformations and leveraging GenAI as a catalyst for growth [10][29] - Continued investment in acquisitions and workforce training, with $242 million deployed primarily across five acquisitions and approximately 14 million training hours [12][54] - The company is committed to returning cash to shareholders, with plans to return at least $8.3 billion through dividends and share repurchases [58] Management's Comments on Operating Environment and Future Outlook - Management noted that while the demand environment remains stable, they are well-positioned to capitalize on future spending increases as clients prioritize critical programs [28][66] - The company expects revenue growth for the full fiscal year 2025 to be in the range of 4% to 7% in local currency, with an inorganic contribution of over 3% [56] - Management emphasized the importance of building a strong digital core for clients, which is essential for leveraging AI and driving efficiencies [30][120] Other Important Information - The company was recognized by Fortune as one of the world's best workplaces, improving its ranking from 10 to 6 [13] - The brand value increased to $21.9 billion, ranking 31 on Interbrand's Best Global Brands List [14] - The company is actively involved in community initiatives, such as partnering with NGOs to provide digital skills to low-income youth [14] Q&A Session Summary Question: What attributed to the revenue exceeding guidance? - Management attributed the revenue exceeding guidance to a strategic pivot towards larger deals, focusing on becoming the reinvention partner of choice [63][64] Question: How is the company positioned regarding U.S. federal government exposure? - Management expressed confidence in their positioning, emphasizing their core competencies in driving efficiencies and securing critical infrastructure for federal agencies [70][72] Question: Is there an expectation of improvement in consulting? - Management indicated that the revenue guidance reflects a stable outlook, with no significant changes expected in consulting performance [77][78] Question: What is the outlook for the Financial Services industry? - Management noted mixed results in the Financial Services sector, with some areas showing strength while others, like Banking & Capital Markets, faced challenges [90][95] Question: When will visibility into budgets improve? - Management expects to gain better visibility into client budgets in January and February [100] Question: Are there any trends in hiring practices? - Management noted that hiring remains concentrated in India, with a focus on acquiring the right skills to meet demand [81][107]

Core Insights - Accenture's shares surged after reporting first-quarter results that exceeded analysts' expectations, driven by strong AI bookings and an increase in revenue and profits year-over-year [1][2] - The company reported $17.7 billion in revenue for the quarter, up from $16.2 billion a year ago, surpassing the projected $17.1 billion [2] - Net income for the quarter was $2.28 billion, or $3.59 per share, compared to $1.98 billion, or $3.10 per share, from the previous year, also beating analysts' estimates [3] Revenue Growth Projections - Accenture anticipates second-quarter revenue between $16.2 billion and $16.8 billion, with analysts expecting approximately $16.66 billion [4] - The full-year revenue growth forecast has been lifted to 4% to 7% compared to fiscal 2024, up from a previous estimate of 3% to 6% [4] Earnings Per Share (EPS) Outlook - The company lowered its full-year EPS projection due to anticipated negative impacts from exchange rates, now expecting EPS between $12.43 and $12.79, down from a previous range of $12.55 to $12.91 [5] - Despite the adjustment, this still represents a growth of 9% to 11% from the previous year [5] Market Reaction - Following the announcement, Accenture's shares rose by 7%, bringing them back into positive territory for the year after recovering from prior losses [6]

Shares are on track for their best day since JuneInformation technology services firm Accenture Plc (NYSE:ACN) reported better-than-expected fiscal first-quarter revenue and hiked its full-year outlook. The shares are up 7.3% to trade at $373.24 at last glance, on track for their best single-day percentage win since June and trading at their highest level since October. ACN is staging a bounce off familiar support at the $350 level, and added 21% in the last six months.Options traders are already chiming in ...

For the quarter ended November 2024, Accenture (ACN) reported revenue of $17.69 billion, up 9% over the same period last year. EPS came in at $3.59, compared to $3.27 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $17.16 billion, representing a surprise of +3.08%. The company delivered an EPS surprise of +6.21%, with the consensus EPS estimate being $3.38.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

On Thursday, Accenture Plc ACN reported first-quarter fiscal 2025 sales of $17.69 billion compared with the analyst consensus estimate of $17.12 billion, up 9% year-over-year in U.S. dollars and 5% in local currency. Revenues were approximately $240 million above the top end of the company's guided range of $16.85 billion to $17.45 billion. The adjusted EPS of $3.59 topped the analyst consensus estimate of $3.39.Also Read: Accenture Lands $1.6B US Air Force Deal To Elevate Cloud One: DetailsConsulting reven ...

Accenture (ACN) came out with quarterly earnings of $3.59 per share, beating the Zacks Consensus Estimate of $3.38 per share. This compares to earnings of $3.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.21%. A quarter ago, it was expected that this consulting company would post earnings of $2.77 per share when it actually produced earnings of $2.79, delivering a surprise of 0.72%.Over the last four quarters, the compan ...

Financial Performance - Revenues for Q1 fiscal 2025 were $17.7 billion, a 9% increase in U.S. dollars and 8% in local currency compared to Q1 fiscal 2024[47] - New bookings reached $18.7 billion, reflecting a 1% increase in both U.S. dollars and local currency[47] - Operating margin improved to 16.7%, up from 15.8% in Q1 fiscal 2024[47] - Diluted earnings per share increased by 16% to $3.59, compared to $3.10 in Q1 fiscal 2024[47] - Revenues for the first quarter of fiscal 2025 were $17.69 billion, a 9% increase from $16.22 billion in the first quarter of fiscal 2024[55] - Operating income for the first quarter of fiscal 2025 increased by $384 million, or 15%, reaching $2,948 million, with an operating margin of 16.7% compared to 15.8% in the prior year[57] - Operating income for the Americas increased to $1,377 million, with an operating margin of 16% for Q1 fiscal 2025, compared to $1,293 million and 16.7% in Q1 fiscal 2024[58] - Interest income decreased by $26 million, or 25%, to $76 million in Q1 fiscal 2025, primarily due to lower interest rates and a reduced average cash balance[58] - Diluted earnings per share rose to $3.59 in Q1 fiscal 2025, up from $3.10 in Q1 fiscal 2024, driven by higher revenue and lower effective tax rates[60] Shareholder Returns - Cash returned to shareholders totaled $1.8 billion, including $926 million in dividends and $898 million in share repurchases[47] - The company plans to continue using a significant portion of cash generated from operations for share repurchases during the remainder of fiscal 2025[62] Revenue Growth by Segment - Consulting revenues grew by 7% in U.S. dollars and 6% in local currency, driven by strong demand for technology and AI-led transformations[49] - Managed services revenues increased by 11% in both U.S. dollars and local currency, supported by demand for application modernization and cloud services[49] - Americas revenues increased by 11% in local currency, driven by growth in Industrial, Software & Platforms, Banking & Capital Markets, and Consumer Goods, Retail & Travel Services[53] - EMEA revenues increased by 6% in local currency, led by growth in Public Service and Life Sciences, with total revenues of $6,412 million[55] - Asia Pacific revenues increased by 4% in local currency, totaling $2,544 million, driven by growth in Utilities and Health[55] Workforce and Attrition - The workforce expanded to approximately 799,000, up from 743,000 a year earlier, reflecting increased demand for services[49] - Annualized voluntary attrition rose to 12%, compared to 11% in the same quarter last year[49] Operating Expenses - Operating expenses for the first quarter of fiscal 2025 increased by $1,082 million, or 8%, totaling $14,741 million, while decreasing as a percentage of revenues to 83.3% from 84.2%[56] - Cost of services increased by $1,090 million, or 10%, totaling $11,867 million, with a gross margin decrease to 32.9% from 33.6%[56] - Sales and marketing expenses rose by $101 million, or 6%, totaling $1,811 million, while decreasing as a percentage of revenues to 10.2%[56] Cash Flow and Liquidity - Cash and cash equivalents increased to $8.3 billion as of November 30, 2024, compared to $5.0 billion as of August 31, 2024[60] - Operating cash flows increased by $524 million to $1,022 million in Q1 fiscal 2025, attributed to higher net income and changes in operating assets and liabilities[61] - The company reported a net increase in cash and cash equivalents of $3,302 million for Q1 fiscal 2025, compared to a decrease of $1,904 million in Q1 fiscal 2024[61] - Long-term debt as of November 30, 2024, amounted to $5 billion, with maturities ranging from 2027 to 2034[62] Taxation - The effective tax rate for Q1 fiscal 2025 was 21.6%, down from 23.2% in Q1 fiscal 2024, primarily due to higher benefits from adjustments to prior year tax liabilities[58] - Business optimization costs of $140 million in Q1 fiscal 2024 had an immaterial impact on the adjusted effective tax rate[58] Business Optimization - The company initiated business optimization actions, recording $1.5 billion related to employee severance costs, which have been completed as of August 31, 2024[56]

Revenue Growth and Performance - Q1 FY25 revenues reached $17.7 billion, a 9% increase in USD and 8% in local currency, with consulting revenues at $9.0 billion and managed services revenues at $8.6 billion[1][3][7] - Full-year FY25 revenue growth outlook raised to 4%-7% in local currency, with a revised foreign exchange impact of -0.5%[2][25] - Accenture's revenues for Q1 2025 increased by 9% to $17.69 billion compared to $16.22 billion in Q1 2024[38] - Americas market revenues grew 9% in USD and 11% in local currency to $8.73 billion, while EMEA revenues increased 10% in USD and 6% in local currency to $6.41 billion[15][16] - Health & Public Service revenues grew 13% in USD and 12% in local currency to $3.81 billion, while Products revenues increased 12% in USD and 10% in local currency to $5.43 billion[18] - Americas region revenues increased by 9% to $8.73 billion, with operating income up 6.5% to $1.38 billion[39][40] - EMEA region revenues grew by 10% to $6.41 billion, with operating income surging by 25.8% to $1.04 billion[39][40] - Asia Pacific region revenues increased by 6% to $2.54 billion, with operating income up 19.4% to $535 million[39][40] - Health & Public Service industry group saw the highest revenue growth at 13%, reaching $3.81 billion[39] - Managed Services revenues grew by 11% to $8.64 billion, outpacing Consulting revenues which increased by 7% to $9.05 billion[39] Earnings and Profitability - GAAP operating margin improved to 16.7%, up 90 basis points, with GAAP EPS of $3.59, a 16% increase[1][4][6] - GAAP diluted EPS for FY25 is now expected to be in the range of $12.43 to $12.79, reflecting increased revenue outlook[2][27] - Operating income rose by 16.7% to $2.95 billion, with an operating margin of 16.7%, up from 15.8% in the previous year[38] - Net income attributable to Accenture plc grew by 15.5% to $2.28 billion, with a net income margin of 12.9%, up from 12.2% in Q1 2024[38] - Operating income for the three months ended November 30, 2024, was $2,948,477, compared to $2,564,887 for the same period in 2023, reflecting a 15% increase[42] - Operating margin improved to 16.7% for the three months ended November 30, 2024, up from 15.8% in the same period in 2023[42] - Net income for the three months ended November 30, 2024, was $2,316,190, compared to $2,009,981 for the same period in 2023, a 15.2% increase[42] - Diluted earnings per share for the three months ended November 30, 2024, were $3.59, up from $3.10 in the same period in 2023[42] - Adjusted operating income (non-GAAP) for Q1 2025 was $2.95 billion, representing a 16.7% margin, consistent with GAAP operating income[41] Cash Flow and Financial Position - Q1 FY25 operating cash flow was $1.02 billion, with free cash flow of $870 million, up from $430 million in the same period last year[13] - Total cash balance at November 30, 2024, was $8.3 billion, compared to $5.0 billion at August 31, 2024[14] - Cash and cash equivalents increased to $8,306,055 as of November 30, 2024, from $5,004,469 as of August 31, 2024[43] - Total assets increased to $59,868,070 as of November 30, 2024, from $55,932,363 as of August 31, 2024[43] - Net cash provided by operating activities for the three months ended November 30, 2024, was $1,022,486, compared to $498,551 for the same period in 2023[44] - Net cash used in investing activities for the three months ended November 30, 2024, was $385,524, compared to $855,430 for the same period in 2023[44] - Net cash provided by financing activities for the three months ended November 30, 2024, was $2,751,748, compared to a net cash used of $1,551,913 for the same period in 2023[44] Bookings and Business Segments - New bookings totaled $18.7 billion, a 1% increase in both USD and local currency, including $1.2 billion in generative AI bookings[1][3][6] - Consulting new bookings were $9.22 billion (49% of total), while managed services new bookings were $9.48 billion (51% of total)[15] Costs and Optimization - Business optimization costs in Q1 2024 were $139.66 million, which were excluded from non-GAAP operating income calculations[41] - The company recorded $139,664 in costs related to business optimization initiatives, primarily for employee severance, during the three months ended November 30, 2023[42]

Accenture plc (NYSE: ACN ) is about to announce Q1 ’25 earnings on December 19 before the market opens, so I thought I’d go through what to expect in terms of numbers, what I am looking for to be announced, and how management is lookingMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options f ...

Key TakeawaysAccenture is expected to report first-quarter fiscal 2025 results before the opening bell Thursday.Analysts expect revenue and net income to have climbed year-over-year.Last quarter, new generative AI bookings reached $1 billion. Accenture (ACN) will report first-quarter fiscal 2025 earnings before the opening bell Thursday, and analysts see room for growth ahead of the results. Of the 13 brokers covering the stock tracked by Visible Alpha, nine have a "buy" or equivalent rating, compared to fo ...