Accenture (ACN.US) Q3 revenue increased 7.5% year over year to US$17.7 billion, and generative AI orders surged US$1.5 billion

The Zhitong Finance App learned that the latest financial report for the third quarter of fiscal year 2025 released by Accenture (ACN.US) shows that the global consulting giant achieved revenue of 17.7 billion US dollars during the quarter, an increase of 7.5% over the previous year. Despite fluctuations in the total number of new orders — the total number of new orders added during the quarter was US$19.7 billion, down 6% year on year in US dollars and down 7% in local currency, the field of generative artificial intelligence showed impressive performance, with new orders for related businesses reaching US$1.5 billion.

In terms of financial health, the company disclosed an operating profit margin of 16.8% for the quarter, which was 80 basis points and 40 basis points higher than the adjusted operating margin, respectively. Diluted earnings per share (EPS) performed well, reaching $3.49, up 15% and 12%, respectively, from the adjusted indicators. Free cash flow was abundant during the same period, reaching US$3.5 billion. Based on solid cash flow performance, the company announced that it will pay a quarterly cash dividend of $1.48 per share.

Looking ahead to the full fiscal year 2025, the Ireland-based company maintains its previous revenue growth forecast. Revenue growth in local currency is expected to reach 6%-7%, and foreign exchange fluctuations are expected to have a positive impact of 0.2%. The annual operating margin target was set at 15.6%, an increase of 10 basis points over the adjusted target. The estimated range of diluted earnings per share is $12.77 to $12.89, and free cash flow is expected to remain in the range of $9 billion to $9.7 billion.

Chairman and CEO Julie Sweet stated, “We are pleased with the results achieved in the third quarter, particularly in the field of general artificial intelligence, which continues to strengthen our leadership and focus on creating measurable value for our customers.” Notably, despite the Trump administration's slowdown in contract signing and existing agreement cuts to reduce federal spending, putting pressure on the US federal contract market, Accenture said the relevant policy adjustments have yet to have a substantial impact on the company's operations and financial situation.

This financial report reflects that while its traditional business is developing steadily, Accenture is accelerating the deployment of emerging fields such as artificial intelligence. Despite short-term fluctuations in the total number of new orders, the generative AI business's increase of 1.5 billion US dollars in a single quarter and the expectation of free cash flow of nearly 10 billion US dollars for the whole year all show that its strategic transformation has begun to bear fruit. In a complex macroeconomic environment, the company effectively buffered the impact of currency fluctuations through foreign exchange hedging strategies and maintained a steady increase in profit margins.