We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Accenture Earnings Beat Estimates in Q4, Revenues Increase Y/Y
Read MoreHide Full Article
Key Takeaways
Accenture's Q4 earnings of $3.03 per share rose 8.6% y/y.
Revenues climbed 7.3% to $17.6B, led by double-digit growth in financial services.
The 1Q26 revenues are guided at $18.1-$18.75B, above the consensus estimate.
Accenture plc (ACN - Free Report) has reported impressive fourth-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $3.03 per share, beating the Zacks Consensus Estimate by 1.7%. The metric increased 8.6% from the year-ago quarter. Total revenues of $17.6 billion beat the consensus estimate by 1.6% and rose 7.3% on a year-over-year basis.
The company’s shares have declined 29% in the past year compared with the industry's 11.3% fall and the Zacks S&P 500 composite’s 18% jump.
Based on the type of work, managed services’ revenues of $8.8 billion increased 6% from the year-ago quarter on a reported basis and 3% in local currency, surpassing our estimate of $8.5 billion. Consulting revenues gained 8% year over year on a reported basis and 6% in local currency to $8.8 billion, beating our estimate of $8.6 billion.
Segment-wise, health and public service revenues of $3.6 billion declined 1% from the year-ago quarter on a reported basis and 3% in local currency. The figure missed our estimation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 8% from the year-ago quarter on a reported basis and 5% on a local currency basis. The figure surpassed our estimate of $2.3 billion. Revenues from the product segment amounted to $5.4 billion, increasing 9% year over year on a reported basis and 5% on a local currency basis. The figure beat our estimate $5.2 billion.
Communications, media and technology revenues of $3 billion increased 7% year over year on a reported basis and 5% in terms of local currency, meeting our estimate. Financial services revenues of $3.3 billion grew 15% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.1 billion.
Geographically, revenues of $8.8 billion from the Americas rose 5% from the year-ago quarter on a reported basis and on a local currency basis. The figure beat our estimation of $8.6 billion.
Revenues of $6.2 billion from the EMEA gained 10% on a reported basis and 3% in local currency, beating our estimate of $6 billion. Revenues of $2.6 billion from the Asia Pacific increased 11% year over year on a reported basis and gained 6% in local currency, surpassing our estimate of $2.4 billion.
Booking Trends of Accenture
The company reported bookings worth $21.3 billion in the fourth quarter of fiscal 2025, increasing 6% from the year-ago quarter on a reported basis and 3% in local currency. Consulting bookings were $8.9 billion and managed services bookings were $12.4 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2025 was 31.9%, down 60 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, up 8% from the year-ago quarter. The adjusted operating margin of 15.1% moved down 10 bps from the fourth quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited fourth-quarter fiscal 2025 with cash and cash equivalents of $11.5 billion compared with $9.6 billion at the end of third-quarter fiscal 2025. The company generated $3.9 billion in cash from operating activities. Capital expenditure in the reported quarter was $107.9 million.
The free cash flow was $3.8 billion. Accenture repurchased 1.6 million shares for $474 million. The company paid out a dividend of $921.7 million in the fourth quarter of fiscal 2025.
ACN’s Q1 & FY26 Guidance
For the first quarter of fiscal 2026, the company expects revenues of $18.10-$18.75 billion. The guided range exceeds the Zacks Consensus Estimate of $17.33 billion.
For fiscal 2026, ACN expects revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow expectation is $9.8-$10.5 billion.
ABM’s EPS (excluding 16 cents from non-recurring items) was 82 cents, which missed the Zacks Consensus Estimate by 13.7% and declined 12.8% year over year. Total revenues of $2.2 billion surpassed the consensus mark by 2.8% and increased 6.2% from the year-ago quarter.
FactSet (FDS - Free Report) posted mixed results for the fourth quarter of fiscal 2025.
FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Accenture Earnings Beat Estimates in Q4, Revenues Increase Y/Y
Key Takeaways
Accenture plc (ACN - Free Report) has reported impressive fourth-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $3.03 per share, beating the Zacks Consensus Estimate by 1.7%. The metric increased 8.6% from the year-ago quarter. Total revenues of $17.6 billion beat the consensus estimate by 1.6% and rose 7.3% on a year-over-year basis.
The company’s shares have declined 29% in the past year compared with the industry's 11.3% fall and the Zacks S&P 500 composite’s 18% jump.
Accenture PLC Price, Consensus and EPS Surprise
Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote
ACN’s Revenues in Detail
Based on the type of work, managed services’ revenues of $8.8 billion increased 6% from the year-ago quarter on a reported basis and 3% in local currency, surpassing our estimate of $8.5 billion. Consulting revenues gained 8% year over year on a reported basis and 6% in local currency to $8.8 billion, beating our estimate of $8.6 billion.
Segment-wise, health and public service revenues of $3.6 billion declined 1% from the year-ago quarter on a reported basis and 3% in local currency. The figure missed our estimation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 8% from the year-ago quarter on a reported basis and 5% on a local currency basis. The figure surpassed our estimate of $2.3 billion. Revenues from the product segment amounted to $5.4 billion, increasing 9% year over year on a reported basis and 5% on a local currency basis. The figure beat our estimate $5.2 billion.
Communications, media and technology revenues of $3 billion increased 7% year over year on a reported basis and 5% in terms of local currency, meeting our estimate. Financial services revenues of $3.3 billion grew 15% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.1 billion.
Geographically, revenues of $8.8 billion from the Americas rose 5% from the year-ago quarter on a reported basis and on a local currency basis. The figure beat our estimation of $8.6 billion.
Revenues of $6.2 billion from the EMEA gained 10% on a reported basis and 3% in local currency, beating our estimate of $6 billion. Revenues of $2.6 billion from the Asia Pacific increased 11% year over year on a reported basis and gained 6% in local currency, surpassing our estimate of $2.4 billion.
Booking Trends of Accenture
The company reported bookings worth $21.3 billion in the fourth quarter of fiscal 2025, increasing 6% from the year-ago quarter on a reported basis and 3% in local currency. Consulting bookings were $8.9 billion and managed services bookings were $12.4 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the fourth quarter of fiscal 2025 was 31.9%, down 60 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.7 billion, up 8% from the year-ago quarter. The adjusted operating margin of 15.1% moved down 10 bps from the fourth quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited fourth-quarter fiscal 2025 with cash and cash equivalents of $11.5 billion compared with $9.6 billion at the end of third-quarter fiscal 2025. The company generated $3.9 billion in cash from operating activities. Capital expenditure in the reported quarter was $107.9 million.
The free cash flow was $3.8 billion. Accenture repurchased 1.6 million shares for $474 million. The company paid out a dividend of $921.7 million in the fourth quarter of fiscal 2025.
ACN’s Q1 & FY26 Guidance
For the first quarter of fiscal 2026, the company expects revenues of $18.10-$18.75 billion. The guided range exceeds the Zacks Consensus Estimate of $17.33 billion.
For fiscal 2026, ACN expects revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow expectation is $9.8-$10.5 billion.
Accenture carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
ABM (ABM - Free Report) reported mixed third-quarter fiscal 2025 results.
ABM’s EPS (excluding 16 cents from non-recurring items) was 82 cents, which missed the Zacks Consensus Estimate by 13.7% and declined 12.8% year over year. Total revenues of $2.2 billion surpassed the consensus mark by 2.8% and increased 6.2% from the year-ago quarter.
FactSet (FDS - Free Report) posted mixed results for the fourth quarter of fiscal 2025.
FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.