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ACN Q3 Earnings & Revenues Beat on Segmental Improvement, Rise Y/Y

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Key Takeaways

  • ACN reported Q3 EPS of $3.49, beating estimates by 5.8% and rising 11.5% year over year.
  • Revenues grew 7.7% to $17.7B, exceeding expectations with gains across managed services and consulting.
  • All operating segments and regions outperformed or met forecasts, led by 13% growth in financial services.

Accenture plc (ACN - Free Report) delivered robust results in the third quarter of fiscal 2025, driven by improved segmental performances. The earnings beat failed to impress the market as the company’s shares declined 3.7% since the earnings release on June 20.

ACN posted adjusted earnings per share of $3.49, beating the Zacks Consensus Estimate by 5.8%. This represents 11.5% year-over-year growth in the bottom line. Total revenues registered a rise of 7.7% from the preceding year to $17.7 billion. The top line surpassed the consensus estimate by 2.6%.

Accenture PLC Price, Consensus and EPS Surprise

 

Accenture PLC Price, Consensus and EPS Surprise

Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote

Based on the type of work, managed services revenues were $8.7 billion, up 9% from the year-ago quarter on a reported basis and in local currency. This compares favorably with our estimate of $8.5 billion. Consulting revenues of $9 billion rose 7% year over year on a reported basis and 6% in local currency. This compares favorably with our estimate of $8.7 billion.

Segment-wise, the health and public service segment’s revenues were $3.8 billion, up 7% from the year-ago quarter on a reported basis and in local currency. This compares favorably with our estimate of $3.7 billion. Resources segment’s revenues amounted to $2.4 billion, increasing 5% from the year-ago quarter on a reported and 4% on a local-currency basis. The figure met our projection. The product segment’s revenues were $5.3 billion, up 7% year over year on a reported and local-currency basis. This compares favorably with our estimate of $5.2 billion.

The communications, media and technology segment’s revenues were $2.9 billion, growing 5% year over year on a reported and local-currency basis. This compares favorably with our estimate of $2.8 billion. The financial services segment’s revenues of $3 billion grew 13% from the year-ago quarter on a reported basis and in local currency. The figure met our projected figure.

Now turning to geographical distribution, revenues from the Americas amounted to $8.9 billion, up 8%from the year-ago quarter on a reported basis and 9% on a local-currency basis. This compares favorably with our estimate of $8.7 billion.

The EMEA region registered revenues of $6.2 billion, increasing 8% on a reported basis and 6% in local currency. This compares favorably with our estimate of $6 billion.

Revenues from the Asia Pacific amounted to $2.5 billion, growing 5% year over year on a reported basis and gaining 4% in local currency. This compares favorably with our estimate of $2.4 billion.

Currently, ACN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed first-quarter 2025 results.

IPG’s reported adjusted EPS was 33 cents, beating the Zacks Consensus Estimate by 10%. The metric declined 8.3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $2 billion miss the consensus estimate by a slight margin. The top line decreased 8.3% on a year-over-year basis.

Waste Connections, Inc. (WCN - Free Report) posted impressive first-quarter 2025 results.

WCN’s reported adjusted earnings were $1.13 per share, surpassing the Zacks Consensus Estimate by 5.6% and increasing 8.7% from the year-ago quarter.

The top line amounted to $2.2 billion, which outpaced the consensus estimate marginally and increased 7.5% on a year-over-year basis.


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