Accenture Q1 Results - Positive Read-Through For Indian IT; Healthcare Vertical Leads Growth: Motilal Oswal

Motilal Oswal Report

Accenture reported Q1 FY25 revenues of $17.7 billion, up 8% YoY constant currency (5% organic), above the upper end of the guided range of 2% to 6%. Accenture has upgraded its revenue growth guidance to 4-7% CC (from 3-6% CC) for FY25 (1-4% organic YoY cc).

We believe the guidance upgrade, broad-based growth across verticals, and the overall commentary augur well for the sector. Accenture’s Q1 FY25 results corroborate our view that the technology spending outlook continues to improve. While the initial phase of recovery in H1 FY25 was sluggish, we now see clear signs of an acceleration. Furthermore, improvements appear to be expanding beyond US banking, financial services and insurance—which continues to strengthen—into additional industry verticals.

While short-cycle deals remain elusive for larger providers and Accenture remains cautious in characterizing the rebound in underlying client spending, the results and commentary lend confidence to an improving technology spend backdrop for Indian IT in CY25.

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