The chart below shows how ACN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACN sees a +1.20% change in stock price 10 days leading up to the earnings, and a -0.48% change 10 days following the report. On the earnings day itself, the stock moves by +1.13%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Beat Expectations: Accenture plc beats earnings expectations with reported EPS of $2.82, exceeding expectations of $2.81.
Strong Revenue Performance: Revenue growth of 8.5% in local currency, reaching $16.7 billion, at the top end of the guided range.
Strong Demand for Transformations: Bookings of $20.9 billion, including 32 clients with quarterly bookings greater than $100 million, indicating strong demand for large-scale transformations.
Strategic Investment and Training: Significant investment of over $250 million in strategic acquisitions and approximately 15 million training hours to enhance employee skills and capabilities.
Ethical Company Recognition: Recognition as one of the World’s Most Ethical Companies for the 18th consecutive year and ranked number one in the industry on JUST Capital’s Most Just Companies list.
Strong Cash Generation and Returns: Free cash flow of $2.7 billion and a commitment to return $8.3 billion to shareholders through dividends and share repurchases, reflecting strong cash generation.
Gen AI Growth Highlights: Continued growth in Gen AI with $1.4 billion in new bookings and approximately $600 million in revenue, showcasing leadership in AI-driven solutions.
Consulting and Managed Services Growth: Strong performance in consulting and managed services, with double-digit growth in technology managed services and high-single digit growth in operations.
Negative
Operating Margin Decline: Operating margin contracted 20 basis points compared to adjusted operating margin last year, indicating a slight decline in profitability despite revenue growth.
New Bookings Decline: New bookings were $20.9 billion for the quarter, reflecting a 3% decrease in U.S. dollars, which may signal a slowdown in demand.
Foreign Exchange Impact Analysis: The foreign exchange impact for the quarter was approximately negative 3%, which negatively affected revenue growth compared to previous estimates.
Asia-Pacific Revenue Performance: Revenue growth in Asia-Pacific was only 1% in local currency, indicating weaker performance in that region compared to others.
Consulting Contract Review Impact: The General Service Administration's review of contracts with top consulting firms, including Accenture, may lead to contract terminations that could impact future revenue.
Economic Uncertainty Impact: There is an elevated level of uncertainty in the global economic and geopolitical environment, which could affect future performance and client spending.
Increased Effective Tax Rate: The effective tax rate for the quarter increased to 20.4%, compared to an adjusted effective tax rate of 18.8% for the same quarter last year, indicating a higher tax burden on earnings.
Accenture plc (NYSE:ACN) Q2 2025 Earnings Call Transcript
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