Accenture Raises FY25 Revenue Forecast, Meets Q1 Estimates
Accenture Plc. on Thursday revised its outlook for fiscal 2025, as it sees the full-year revenue growth in the range of 4% to 7% in local currency, compared to its previous forecast of 3% to 6%.
The outlook has been raised as the Nasdaq-listed company now expects a lower adverse impact from foreign exchange on its fiscal 2025 results. The company sees an approximate negative impact of 0.5%, which is lower as compared to the previous estimate of 1.5%.
Accenture also posted its financial results for the first quarter of the fiscal, which ended in November 2024. The global IT consultancy firm's revenue grew 9% in dollar terms to $17.7 billion, which was in line with the Bloomberg estimates.
The company reported consulting revenues of $9 billion and managed services revenues of $8.6 billion.
Accenture raised its revenue forecast for the second quarter, seeing it in the range of $16.2 billion to $16.8 billion. At the upper end, it is higher than the estimate of $16.68 billion shared by the analysts tracked by Bloomberg.
The new bookings in the first quarter amounted to $18.7 billion, marking a 1% jump in dollar terms, Accenture said in a release. The new bookings include 30 quarterly client bookings of more than $100 million.
"We continued to lead in helping our clients realise value with generative AI, with new bookings of $1.2 billion," the company's Chair and Chief Executive Officer Julie Sweet said.
“Our strategy to lead reinvention for clients while continuing to invest in our business has given us a strong start to fiscal 2025. We delivered broad-based revenue growth across both consulting and managed services, and across each market and industry group, gaining market share," the CEO added.
Accenture Q1 Results: Key Details
The company's GAAP operating income was $2.95 billion, a 15% increase compared to $2.56 billion in the first quarter of fiscal 2024.
The operating margin during the November-ended quarter was 16.7%, an increase of 90 basis points compared to operating margin of 15.8% in the year-ago period.
The GAAP net income for the quarter rose to $2.32 billion, compared with $2.01 billion in the first quarter of fiscal 2024. The diluted earnings per share rose 16% to $3.59 in the quarter ended November, as against $3.10 in the same quarter last year, Accenture said.
The company also noted that on Nov. 15, "a quarterly cash dividend of $1.48 per share was paid to shareholders", which was 15% higher as against the year-ago period. These cash dividend payments totaled $926 million, it added.
The results were declared by Accenture before the Wall Street opened. The company's shares were edging higher in pre-market trading.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
