Latest news with #ACN
Yahoo
2 hours ago
- Business
- Yahoo
Accenture Earnings Beat Estimates in Q3, Revenues Increase Y/Y
Accenture plc ACN has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates. ACN's earnings were $3.49 per share, beating the Zacks Consensus Estimate by 5.8%. The metric increased 11.5% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 2.6% and rose 7.7% on a year-over-year basis. The company's shares have declined marginally in the past year compared with the industry's and Zacks S&P 500 composite's 8.3% and 10.3% growth, respectively. Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote Based on the type of work, managed services' revenues of $8.7 billion increased 9% from the year-ago quarter on a reported basis and in local currency, surpassing our estimate of $8.5 billion. Consulting revenues gained 7% year over year on a reported basis and 6% in local currency to $9 billion, beating our estimate of $8.7 billion. Segment-wise, health and public service revenues of $3.8 billion grew 7% from the year-ago quarter on a reported basis and in local currency. The figure beat our estimation of $3.7 billion. Revenues from the resources segment amounted to $2.4 billion, rising 5% from the year-ago quarter on a reported and 4% on a local currency basis. The figure met our estimate. Revenues from the product segment amounted to $5.3 billion, increasing 7% year over year on a reported basis and a local currency basis. The figure outpaced our estimation of $5.2 billion. Communications, media and technology revenues of $2.9 billion increased 5% year over year on a reported basis and in terms of local currency, outpacing our estimate of $2.8 billion. Financial services 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. Geographically, revenues of $8.9 billion from the Americas rose 8% from the year-ago quarter on a reported basis and 9% on a local currency basis. The figure beat our estimation of $8.7 billion. Revenues of $6.2 billion from the EMEA gained 8% on a reported basis and 6% in local currency, beating our estimate of $6 billion. Revenues of $2.5 billion from the Asia Pacific increased 5% year over year on a reported basis and gained 4% in local currency, surpassing our estimate of $2.4 billion. The company reported bookings worth $19.7 billion in the third quarter of fiscal 2025, decreasing 6% from the year-ago quarter on a reported basis and 7% in local currency. Consulting bookings were $9.1 billion and managed services bookings were $10.6 billion. The gross margin (gross profit as a percentage of net revenues) for the third quarter of fiscal 2025 was 32.9%, down 50 basis points (bps) from the year-ago quarter. Adjusted operating income was $2.2 billion, flat with the year-ago quarter. The adjusted operating margin of 16.8% moved down 40 bps from third-quarter fiscal 2025. ACN exited third-quarter fiscal 2025 with cash and cash equivalents of $9.6 billion compared with $8.5 billion at the end of first-quarter fiscal 2025. The company generated $3.7 billion in cash from operating activities. Capital expenditure in the reported quarter was $169.1 million. The free cash flow was $3.5 billion. Accenture repurchased 6 million shares for $1.8 billion, including 5.7 million shares repurchased in the open market. The company paid out a dividend of $924 million in the third quarter of fiscal 2025. For the fourth quarter of fiscal 2025, the company hiked its revenue guidance to $17-$17.6 billion from the preceding quarter's view of $16.9-$17.5 billion. The mid-point ($17.3 billion) of the guided range is higher than the Zacks Consensus Estimate of $17.1 billion. For fiscal 2025, ACN updated its revenue growth guidance to 6-7% compared with the preceding quarter's view of 5-7% in local currency. The company's expectation for operating cash flow is raised to $9.6 billion to $10.3 billion from the previous quarter's view of $9.4-$10.1 billion. The free cash flow expectation is raised to $9 billion to $9.7 billion compared with the preceding quarter's view of $8.8 billion and $9.5 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. Fiserv, Inc. FI posted mixed first-quarter 2025 results. FI's adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis. Corpay, Inc. CPAY reported mixed first-quarter 2025 results. CPAY's earnings per share of $4.51 surpassed the consensus estimate by a slight margin and increased 10% year over year. The total revenues of $1 billion missed the consensus estimate by a slight margin but gained 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report Fiserv, Inc. (FI) : Free Stock Analysis Report Corpay, Inc. (CPAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
7 hours ago
- Business
- Yahoo
Accenture (ACN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
Accenture (ACN) reported $17.73 billion in revenue for the quarter ended May 2025, representing a year-over-year increase of 7.7%. EPS of $3.49 for the same period compares to $3.13 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $17.29 billion, representing a surprise of +2.56%. The company delivered an EPS surprise of +5.76%, with the consensus EPS estimate being $3.30. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Accenture performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: New Bookings - Total: $19.70 billion versus the two-analyst average estimate of $21.43 billion. New Bookings - Managed Services: $10.62 billion compared to the $11.94 billion average estimate based on two analysts. New Bookings - Consulting: $9.08 billion compared to the $9.49 billion average estimate based on two analysts. Geographic Revenue- Americas: $8.97 billion versus the three-analyst average estimate of $8.75 billion. The reported number represents a year-over-year change of +14.5%. Geographic Revenue- Asia Pacific: $2.53 billion versus $2.22 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.4% change. Geographic Revenue- EMEA: $6.23 billion versus $6.12 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.9% change. Revenue- Type of Work- Consulting: $9.01 billion compared to the $8.63 billion average estimate based on four analysts. The reported number represents a change of +6.5% year over year. Revenue- Type of Work- Managed Services: $8.72 billion versus $8.58 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change. Revenue- Industry Groups- Product: $5.34 billion versus the three-analyst average estimate of $5.19 billion. The reported number represents a year-over-year change of +7.2%. Revenue- Industry Groups- Health & Public Service: $3.78 billion compared to the $3.76 billion average estimate based on three analysts. The reported number represents a change of +7.5% year over year. Revenue- Industry Groups- Financial services: $3.28 billion versus $2.94 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.3% change. Revenue- Industry Groups- Communications, Media & Technology: $2.91 billion versus the three-analyst average estimate of $2.82 billion. The reported number represents a year-over-year change of +5.4%. View all Key Company Metrics for Accenture here>>>Shares of Accenture have returned -3.2% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Accenture (ACN) Target Price Raised by JP Morgan
Accenture plc (NYSE:ACN) is one of the 11 must-buy AI stocks analysts are betting on. On June 16, JPMorgan analyst Tien Tsin Huang reiterated an Overweight rating on the stock and increased the price target to $353 from $349. The adjustment underscores a positive outlook on the company's performance. Pixabay/Public Domain Additionally, the analyst reiterated the Overweight rating based on the expectation that Accenture would deliver better-than-expected fiscal third-quarter results. The company is expected to report revenue in line with forecasts, with a slight increase in earnings due to currency fluctuations. Accenture's fiscal 2025 revenue is expected to remain steady at its midpoint. Accenture plc (NYSE:ACN) is a global professional services company that provides a wide range of services, including strategy, consulting, digital, technology, and operations. Its solutions help clients reinvent their businesses, leveraging technology, data, AI, and new working methods. While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None.
Yahoo
9 hours ago
- Business
- Yahoo
Accenture's Q3 EPS, Revenue Surpass Estimates
Accenture (NYSE:ACN) beats Q3 estimates as GAAP EPS rises to $3.49, driven by strong consulting demand. Revenue climbed 7.5% year-over-year to $17.7 billion, topping consensus by $380 million, while new bookings totaled $19.7 billion, down 6% in U.S. dollars and 7% in local currency. Warning! GuruFocus has detected 4 Warning Sign with ACN. Generative AI engagements accounted for $1.5 billion of that backlog, signaling sustained appetite for digital transformation projects. Accenture returned cash to shareholders with a 15% dividend hike to $1.48 per share and repurchased or redeemed 6 million shares for $1.8 billion. Looking ahead, the company raised its full-year targets: revenue growth of 6%7% in local currency, a modest 0.2% tailwind from foreign-exchange, and operating margin expansion to 15.6%, up 10 basis points on an adjusted basis. Diluted EPS is now expected between $12.77 and $12.89, while free cash flow guidance was lifted to $9.0 billion$9.7 billion. Why it matters: Investors should note Accenture's balanced growth across legacy and AI services, bolstered by robust cash returns and a raised outlook that underscores confidence in demand resilience. That chart shows Wall Street's 12-month ACN targets sitting at an average of $355, about 16% above today's levels, with bullish bulls eyeing as high as $395 and skeptics at $290. Despite the upbeat outlook, Accenture's shares are actually down double-digits year-to-date, weighed by broader tech sell-offs and profit-taking after last winter's rally. The divergence between the low and high cases highlights how much of the upside hinges on AI spending and macro stability. If consulting budgets hold firm, you could see ACN grind toward those $355$395 marks; if belt-tightening returns, it might test sub-$300 territory again. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
10 hours ago
- Business
- Wall Street Journal
Accenture Posts Higher Profit, Revenue, But Bookings Fall
Accenture ACN -1.81%decrease; red down pointing triangle reported higher revenue and a profit and disclosed positive guidance but bookings fell in its latest quarter. The consulting firm also said it was combining several of its services into one business unit, part of a change of a broader effort tied to the time of growing artificial intelligence adoption, effective Sept. 1.
