Accenture, a world-renowned IT services company, is set to release its financial results for the fourth quarter of fiscal year 2025 (Q4 FY2025) before the U.S. stock market opens on September 25. According to analysts' expectations compiled by Bloomberg, Accenture is projected to record Q4 revenue of $17.352 billion, adjusted net income of $1.884 billion, and adjusted earnings per share (EPS) of $2.99.
Review of Last Quarter's Performance
Looking back at its historical performance, Accenture demonstrated strong momentum in the third quarter of fiscal year 2025 (Q3 FY2025). During the quarter, the company achieved revenue of $17.7 billion, surpassing expectations, with a 7% growth in local currency terms. Total orders reached $19.7 billion, among which 30 clients placed quarterly orders exceeding $100 million each. The operating profit margin expanded to 16.8%, representing a 40-basis-point increase year-over-year. Diluted EPS for the quarter stood at $3.49, up 12% compared to the adjusted EPS of the previous year. Free cash flow amounted to $3.5 billion, of which $2.7 billion was returned to shareholders through share repurchases and dividends.
Forecast for This Quarter's Performance
Entering Q4, Accenture faces a complex market environment. Against the backdrop of certain uncertainties in the global economy, enterprises hold divergent attitudes toward spending on areas such as digital transformation and information technology services. On one hand, with the acceleration of digitalization, many enterprises are still actively seeking professional services to enhance their competitiveness, sustaining demand for Accenture's services. On the other hand, some enterprises may tighten their budgets due to the economic environment, becoming more cautious in procuring services.
From a Business Layout Perspective
Accenture has made substantial investments in the field of Generative Artificial Intelligence (GenAI) and achieved remarkable results. Year-to-date (YTD), GenAI orders have totaled $4.1 billion, with related revenue reaching $1.8 billion. In Q3 alone, GenAI orders hit $1.5 billion and GenAI revenue exceeded $700 million. This leading position in emerging technology areas is expected to continue driving the company's performance growth in Q4. As client demand for GenAI-related solutions keeps rising, Accenture is well-positioned to secure more orders and thereby increase revenue, leveraging its technological capabilities and market influence.
From a Regional Market Perspective
Americas: The Americas region delivered a strong performance in Q3, growing by 9% in local currency terms. This growth was primarily driven by the banking and capital markets, industrial, and healthcare sectors, with the United States being the main contributor. If these sectors maintain their development momentum in Q4, the Americas region will continue to contribute significantly to Accenture's revenue.
Europe, Middle East, and Africa (EMEA): The EMEA region achieved a 6% growth in local currency terms in Q3, benefiting from growth in the life sciences, banking and capital markets, and insurance industries. The United Kingdom, Germany, and Italy were the key drivers of this growth. With a relatively stable economic environment in the region, demand for professional services from relevant industries is expected to remain steady, supporting Accenture's revenue.
Asia Pacific (APAC): The APAC region grew by 4% in local currency terms in Q3. This growth was mainly fueled by the public services, banking and capital markets, and insurance sectors, though partially offset by declines in the chemicals and natural resources industries. Growth was primarily driven by Japan and Australia, while partially offset by a decline in Singapore. In Q4, as the APAC economy gradually recovers—especially with the stable development of major markets such as Japan and Australia—Accenture is expected to gain more business opportunities in the region.
From a Financial Indicator Forecast Perspective
Revenue: Accenture expects Q4 FY2025 revenue to range between $17 billion and $17.6 billion, assuming a foreign exchange impact of approximately +2.5%. This reflects an estimated growth of 1% to 5% in local currency terms. Meeting this target would allow the company to sustain its growth trajectory.
Profitability: The operating profit margin in Q3 was 16.8%. Considering Accenture's ongoing investments in strategic areas—such as employee training (with 38 million hours of training provided YTD, an 18% year-over-year increase), expansion of its data and AI workforce (now totaling approximately 75,000 employees, with a target of reaching 80,000 by the end of FY2026), and strategic acquisitions (having invested over $297 million in four strategic acquisitions during the quarter)—the operating profit margin in Q4 may face certain pressure. However, the company's efficient cost management and economies of scale are expected to keep the profit margin within a reasonable range.
Overall Outlook
In summary, Accenture is expected to achieve revenue and profit growth in Q4 FY2025, leveraging its advantages in emerging technology fields like GenAI, the coordinated development of regional markets, and sound financial strategies. Nevertheless, market uncertainties may still impact its performance. Investors should closely monitor various data points in the earnings report as well as the company's outlook for the future.
This content is generated based on Tiger AI and Bloomberg data, for reference only.