Accenture Q4 Revenue Rises 7% to $17.6 Billion, Beats Estimates on Strong AI and Managed Services Demand
Accenture (NYSE: ACN), the global professional services powerhouse, reported its financial results for the fourth quarter of fiscal year 2025 (ended August 31, 2025), surpassing Wall Street expectations on both revenue and adjusted earnings per share (EPS).
The company posted Q4 revenue of $17.6 billion, representing a strong 7% increase year-over-year in U.S. dollars (4.5% in local currency) and landing at the top end of its guidance range. This figure comfortably beat the average analyst estimate of approximately $17.36 billion. The outperformance was primarily attributed to resilient and growing demand from enterprise clients for the company’s consulting services, particularly those focused on artificial intelligence (AI) and digital transformation.
Adjusted diluted EPS for the quarter was $3.03, a 9% increase year-over-year, also surpassing the consensus estimate of around $2.98.
AI and Bookings Drive Growth
A significant highlight of the quarter was the exceptional demand for AI services. Accenture’s generative AI (Gen AI) new bookings reached $1.8 billion in Q4, contributing to a total of $5.9 billion in Gen AI bookings for the full fiscal year 2025. Total new bookings for the quarter were a robust $21.3 billion, with a healthy book-to-bill ratio of 1.2, demonstrating strong momentum for future revenue. Full-year new bookings reached a record $80.6 billion.
“I am very pleased with our 7% growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with AI,” said Julie Sweet, Chair and CEO of Accenture.
From a segment perspective, the growth was broad-based:
- Managed Services revenue grew by 8% year-over-year.
- Consulting business also showed strength, growing by 6% year-over-year.
- Geographically, the Americas and Europe, Middle East, and Africa (EMEA) regions showed solid growth, while Emerging Markets and Asia Pacific regions posted strong double-digit growth.
Full-Year Fiscal 2025 and FY26 Outlook
For the full fiscal year 2025, Accenture’s revenue grew 7% in both U.S. dollars and local currency to $69.7 billion. The company also generated $10.9 billion in free cash flow, a 26% year-over-year increase.
Looking ahead, Accenture provided its guidance for fiscal year 2026, which featured:
- Full-year revenue growth projected to be between 2% and 5% in local currency (or 3% to 6% excluding the anticipated impact from its U.S. federal business).
- Adjusted diluted EPS expected to be in the range of $13.52 to $13.90, a 5% to 8% increase year-over-year.
- A commitment to return at least $9.3 billion in cash to shareholders in FY26.
Restructuring Program
The company also disclosed an additional $865 million in restructuring charges for a new six-month program. This program is aimed at realigning its workforce and operations to better meet the surge in demand for digital and AI services, with savings being redirected into staff training and operational efficiency. The total restructuring charge includes $615 million recorded in Q4 and an expected $250 million in Q1 FY26.
Impact on Stock (ACN)
The market reaction to Accenture’s Q4 and full-year results was initially positive, with the stock seeing a lift in pre-market trading, though it experienced some volatility during the day.
- Positive Drivers: The revenue and adjusted EPS beat, the strong $21.3 billion in new bookings, and the clear success of the AI strategy (nearly $6 billion in Gen AI bookings for the year) provided a strong positive signal to investors. The company’s commitment to returning at least $9.3 billion to shareholders in FY26 also supported the stock price.
- Cautious Drivers: The full-year FY26 revenue growth guidance of 2% to 5% in local currency (even with a 1% to 1.5% drag from the U.S. federal business factored in) was slightly lower than some high-end analyst estimates, leading to some fluctuation. Additionally, the disclosure of a new $865 million restructuring program, while strategic, added a layer of near-term cost and uncertainty that can sometimes temper investor enthusiasm despite the strong underlying performance.
- Overall Trend: The overall sentiment remains moderately positive, as the results confirm Accenture’s successful navigation of a challenging economic environment and its leading position in capitalizing on the massive shift to Artificial Intelligence. The beat on both top and bottom lines, backed by robust bookings, strengthens the investment thesis, especially given the company’s strong long-term fundamentals.
