Accenture Unveils AI-Focused Revamp Amid Bookings Decline and Strong Revenue

Accenture bookings drop eclipses upbeat revenue, unveils AI-focused revamp

Accenture reported a second consecutive drop in quarterly bookings, overshadowing strong revenue and a raised annual forecast. Slower US government spending and economic uncertainty are affecting growth. In response, Accenture is launching a new "reinvention services" unit focused on AI consulting to help secure future business and boost resilience.Accenture reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth. The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down more than 6%. Consulting and IT firms are under pressure as US tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays. CFO Angie Park said slower government spending will have an impact of 2% on its fiscal fourth-quarter and annual revenue, after recording an "immaterial" hit in the last quarter. Bookings - which represent future revenue secured through contracts - fell 6% to $19.70 billion in the third quarter, below the Visible Alpha estimate of $21.54 billion and worse than the 3% decline in the previous quarter. Accenture said 30 clients recorded quarterly bookings of greater than $100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about $1.5 billion. AJ Bell analyst Dan Coatsworth said Accenture had already rattled investors in March with warnings on U.S. government spending, and the latest bookings decline adds to concerns that securing new business was also getting harder. "Earnings grew, but the market is more focused on what's ahead, not what's just happened." To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business. Accenture posted third-quarter revenue of $17.7 billion, beating analysts' average estimate of $17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry. Profit per share of $3.49 also beat estimates of $3.32. Accenture now expects annual revenue growth of 6% to 7%, compared with its earlier expectation of 5% to 7%.

Accenture New Bookings Fall In Q3, But It Raises Profit Outlook - Accenture (NYSE:ACN)

Accenture Plc ACN stock declined on Friday following the release of its third-quarter 2025 results. The company reported quarterly earnings of $3.49 per share, topping the analyst consensus estimate of $3.31. The company reported sales of $17.7 billion, slightly exceeding the analyst consensus estimate of $17.30 billion. Sales increased 8% in U.S. dollars and 7% in local currency. Also Read: Accenture, Dell, NVIDIA Deliver On-Premise AI Solution For Regulated Industries Consulting revenues were $9.01 billion, an increase of 7% in U.S. dollars and 6% in local currency. Managed Services revenues reached $8.72 billion, an increase of 9% in U.S. dollars and local currency. Products revenues reached $5.34 billion, up 7% both in U.S. dollars and local currency. Health & Public Service revenues increased by 7% in U.S. dollars and local currency to $3.78 billion. Financial Services revenue reached $3.28 billion, up 13% in U.S. dollars and local currency. Resources revenue was $2.41 billion, up 5% in U.S. dollars and 4% in local currency. Communications, Media & Technology revenue was $2.91 billion, up 5% both in U.S. dollars and in local currency. New bookings for the quarter were $19.7 billion, a decrease of 6% in U.S. dollars and 7% in local currency. This total comprised $9.08 billion in Consulting new bookings and $10.62 billion in Managed Services new bookings. Generative AI new bookings reached $1.5 billion in the quarter versus $1.4 billion in the second quarter. Operating margin of 16.8%, an increase of 80 basis points, and a rise of 40 basis points compared to adjusted operating margin. Accenture held $9.64 billion in cash and equivalents as of May 31. It generated $3.52 in free cash flow during the quarter. Accenture has declared $1.48 per share dividend, payable on August 15, 2025. During the third quarter of fiscal 2025, Accenture repurchased or redeemed 6 million shares for a total of $1.8 billion, including 5.7 million shares acquired through open market transactions. As of May 31, 2025, Accenture had approximately $3.3 billion remaining in its share repurchase authority and about 623 million total shares outstanding. Accenture announced a strategic overhaul of its growth model, effective September 1, 2025, with a sharpened focus on AI. As part of this change, the company will launch a new Reinvention Services unit. Leadership changes associated with this new structure include Manish Sharma, Accenture's current CEO of the Americas, transitioning to Chief Services Officer. John Walsh, Accenture's current global COO, will succeed Sharma as CEO of the Americas. Kate Hogan, currently COO of the Americas, will become the global COO, succeeding Walsh. Guidance: Accenture narrowed its fiscal year 2025 revenue growth outlook to 6%-7% (prior 5%-7%) in local currency. The company forecasts 2025 diluted earnings of $12.77-$12.89 (prior $12.55-$12.79) per share compared to the consensus of $12.75. Price Action: ACN stock was trading lower by 5.19% to $290.47 premarket at last check Friday. Read Next: Meta, Amazon, Booking Best Positioned For Agentic AI Opportunity, Says Analyst Photo via Shutterstock ACNAccenture PLC$290.10-5.31%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum40.34Growth31.23Quality11.65Value13.07Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Accenture GAAP EPS of $3.49 beats by $0.17, revenue of $17.7B beats by $380M (NYSE:ACN)

Get your investing edge with Seeking Alpha. Create a free account " Accenture press release (NYSE:ACN): Q3 GAAP EPS of $3.49 beats by $0.17. Revenue of $17.7B (+7.5% Y/Y) beats by $380M. New bookings of $19.7 billion, a decrease of 6% in U.S. dollars and 7% in local currency Generative AI new bookings of $1.5 billion Quarterly cash dividend of $1.48 per share, representing a 15% increase; repurchases or redemptions of 6.0 million shares for a total of $1.8 billion Fiscal 2025 Business Outlook Highlights Company now expects full-year revenue growth to be 6% to 7% in local currency Updates foreign exchange impact to positive 0.2% Now expects operating margin to be 15.6%, an expansion of 10 basis points over adjusted operating margin Now expects diluted earnings per share to be in the range of $12.77 to $12.89 Raises free cash flow to be in the range of $9.0 billion to $9.7 billion More on Accenture Accenture Q3 Preview: Needs To Do A Lot More To Impress Me Accenture: A High-Intelligence FCF Machine Accenture: 2024 Replay Accenture Q3 2025 Earnings Preview Earnings week ahead: KR, ACN, ACB, and more 20% Off Sale: Create a free account to read the latest news See what's moving the market. Gain access to breaking stock news, leading investing newsletters, and top analysts.

Accenture bookings drop eclipses upbeat revenue, unveils AI-focused revamp

Accenture reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth. The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down per cent before the bell. Consulting and IT firms are under pressure as U.S. tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays. Accenture said bookings - which represent future revenue secured through contracts - fell six per cent to US$19.70 billion in its fiscal third quarter, below the Visible Alpha estimate of US$21.54 billion and worse than the three per cent decline in the previous quarter. CEO Julie Sweet said 30 clients recorded quarterly bookings of greater than US$100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about US$1.5 billion. Rival IBM also reported a small consulting revenue drop in April and said 15 of its U.S. government contracts worth about $100 million were shelved under the cost-cutting drive, while Indian IT firms including Infosys have warned of a tough year ahead. To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business. Sharma will be succeeded by chief operating officer John Walsh, while Americas COO Kate Hogan will take over as global COO. In the May quarter, Accenture posted revenue of US$17.7 billion, beating analysts' average estimate of US$17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry. Profit per share of US$3.49 also beat estimates of US$3.32. Accenture now expects annual revenue growth of six to seven per cent, compared with its earlier expectation of five to seven per cent. ---

Accenture stock maintains buy rating at Stifel despite 7% drop By Investing.com

Investing.com - Stifel has reiterated its Buy rating and $355.00 price target on Accenture plc (NYSE:ACN) after the company's shares fell 7% on Friday following its fiscal third-quarter results. The stock, currently trading at $291.08, has declined over 9% in the past week, with InvestingPro data indicating oversold conditions. The IT services giant, with a market capitalization of $181.7 billion, is currently trading below its Fair Value. The research firm noted that certain data points such as bookings and headcount could be interpreted negatively without closer scrutiny, while management's reluctance to outline the impact of DOGE (Department of Government Efficiency) into fiscal year 2026 likely contributed to Friday's stock performance decline. Accenture's fiscal third-quarter results actually beat expectations with 4% year-over-year organic growth compared to the consensus estimate of 2%, while earnings per share increased 13% versus the consensus expectation of 6%. Both consulting and outsourcing segments showed stability, with consulting up 6% and outsourcing achieving high single-digit growth. The company maintains strong fundamentals with a 32% gross profit margin and robust cash flows, according to InvestingPro data, which offers 10+ additional insights about Accenture's financial health. The company's fiscal fourth-quarter revenue guidance of 0-4% organic growth remained largely unchanged, reflecting ongoing macroeconomic uncertainty. The implied earnings per share of approximately $2.90, representing a 5% year-over-year increase, fell below the consensus estimate of $3.00, though the company provided no specific quarterly guidance. Notably, InvestingPro analysis shows that nine analysts have recently revised their earnings expectations downward for the upcoming period, while the stock trades at a P/E ratio of 22.7x. Stifel highlighted that the fiscal fourth-quarter revenue guidance reflects a 200 basis point year-over-year headwind from DOGE, and excluding this impact, fourth-quarter revenue growth would be similar to the first through third quarters of fiscal 2025 at approximately 4% constant currency organic growth. Despite near-term headwinds, the company maintains a strong financial health score of 2.75 (Good) on InvestingPro's comprehensive assessment framework, which evaluates over 100 financial metrics available in the Pro Research Report. In other recent news, Accenture reported $1.5 billion in generative AI bookings for the quarter, marking a 67% growth year-over-year, alongside strong demand for large transformational deals. The company added 30 new clients with quarterly bookings exceeding $100 million, demonstrating sustained momentum in high-value engagements. Accenture has announced a restructuring of its operations, effective September 1, 2025, creating a new integrated business unit called Reinvention Services to enhance data and AI capabilities in service delivery. William Blair reiterated an Outperform rating for Accenture, citing its leadership in next-generation capabilities and strategic global presence. Meanwhile, BMO Capital lowered its price target to $325 from $355, maintaining a Market Perform rating due to challenges in the federal sector, despite Accenture raising its full-year revenue guidance. Guggenheim also reduced its price target to $335 from $360 while maintaining a Buy rating, expressing concerns about fiscal year 2026 expectations. Stifel maintained a Buy rating and a $355 price target, expecting Accenture to meet its fiscal third-quarter targets amid challenging market conditions. Accenture's restructuring includes leadership changes, with Manish Sharma appointed as Chief Services Officer, aiming to deliver faster solutions and scale the business.

Accenture bookings drop eclipses upbeat revenue, unveils AI-focused revamp

(Reuters) -Accenture reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth. The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down 5% before the bell. Consulting and IT firms are under pressure as U.S. tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays. Accenture said bookings - which represent future revenue secured through contracts - fell 6% to $19.70 billion in its fiscal third quarter, below the Visible Alpha estimate of $21.54 billion and worse than the 3% decline in the previous quarter. CEO Julie Sweet said 30 clients recorded quarterly bookings of greater than $100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about $1.5 billion. Rival IBM also reported a small consulting revenue drop in April and said 15 of its U.S. government contracts worth about $100 million were shelved under the cost-cutting drive, while Indian IT firms including Infosys have warned of a tough year ahead. To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business. Sharma will be succeeded by chief operating officer John Walsh, while Americas COO Kate Hogan will take over as global COO. In the May quarter, Accenture posted revenue of $17.7 billion, beating analysts' average estimate of $17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry. Profit per share of $3.49 also beat estimates of $3.32. Accenture now expects annual revenue growth of 6% to 7%, compared with its earlier expectation of 5% to 7%. (Reporting by Meghana Khare and Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)

Accenture Shares Fall on Bookings Decline, Concerns over Federal Government Contract -- 3rd Update

Accenture reported a drop in bookings in the latest quarter, prompting investor concern amid a more uncertain relationship with the federal government. The 6% drop in bookings, a closely watched metric that measures future revenue based on contracts, came as the consulting firm on Friday posted higher sales and profit in the third quarter. Shares declined 7.3% to $284.20, putting them on pace for the largest percentage decrease since March 21, 2024. The stock, which touched a new 52-week low of $273.19 earlier in the session, is currently the worst performer in the S&P 500. Some of the challenges stem from the expectation that the Trump administration's cost-cutting focus will hit consulting firms with big businesses advising governments. Accenture and other consulting firms have already offered billions in cuts to their contracts in response to the administration's request for price concessions. Accenture executives said they expect a 2% headwind in its federal business in the current quarter, after seeing an immaterial impact in the latest quarter. Chief Executive Julie Sweet said that seven of Accenture's 13 industries grew at a high single-digit rate or better in the third quarter. Asked whether the headwind should be seen as a baseline scenario going forward, Sweet said it was too early to be making any assumptions. "This is our best data point we have right now," she said. While Accenture manages its federal book of business, Sweet said that executives at many companies it consults with are taking a different approach these days after earlier uncertainty brought on by the tariffs. "Our clients have moved from pause to focus and leapfrog," Sweet said. "Tech, data and AI are really rewiring organizations working in new ways, being future ready so that no matter where they are on their curve, we're helping them get to the point where they can use AI." To meet the growing changes and adoption of artificial intelligence, Accenture said it was combining several of its services into one business unit, effective Sept. 1. The company will bring its strategy, consulting, song, technology and operations services into a single unit called Reinvention Services, which Manish Sharma, the company's current chief executive officer of the Americas, will lead as chief services officer. John Walsh, Accenture's current global chief operating officer, will become CEO of the Americas, succeeding Sharma. Kate Hogan, the current chief operating officer of the Americas, will become the global COO, succeeding Walsh. Kate Clifford, currently CHRO of the Americas, will become the global chief leadership and human resources officer, succeeding Angela Beatty, who has decided to leave Accenture to pursue other opportunities. Accenture logged net income of about $2.2 billion, or $3.49 a share, for the third quarter ended May 31, compared to $1.93 billion, or $3.04 a share, in the prior-year period. Analysts polled by FactSet expected $3.32 a share. Revenue rose to $17.73 billion from $16.47 billion. Analysts polled by FactSet expected $17.31 billion. New bookings for the third quarter came in at $19.70 billion, a decrease of about 6% in dollars and down 7% in local currency compared to the prior-year period. For the fourth quarter, Accenture forecast revenue between $17 billion and $17.6 billion. Analysts polled by FactSet expected $17.06 billion. For the fiscal year, Accenture now expects revenue growth to be between 6% and 7% and earnings per-share in the range of $12.77 and $12.89. The company previously forecast revenue growth between 5% and 7% and earnings per-share in the range of $12.55 and $12.79.

Accenture: overall things not the best

Accenture may have ticked (almost) all the boxes in a reassuring publication -- earnings above expectations, raised targets, strengthened AI strategy -- although the stock fell 7% during trading. The market remains focused on order momentum, which is considered disappointing. Accenture's Q3 figures were good. For the period ended May 31, the consulting giant posted revenue that rose 8% to $17.7bn and EPS of $3.49, significantly above the $3.32 expected. Its two main divisions, consulting ($9.01bn) and managed services ($8.72bn), grew by 7% and 9% respectively. Management has raised its forecast for the current fiscal year and is now targeting EPS of between $12.77 and $12.89 (up from $12.55-$12.79 previously), as well as revenue growth of between 6% and 7% at constant exchange rates. However, the stock fell sharply on Wall Street. The reasons: orders are considered insufficient and the business environment continues to darken. With $19.7bn in new contracts signed this quarter, Accenture is down 6% from last year. And while this figure is higher than in Q2, it remains well below the consensus estimate of $21.5bn. The breakdown shows a decline in both consulting ($9.08bn) and outsourcing ($10.62bn). Only orders related to generative AI bucked the trend, coming in at $1.5bn. The company must also contend with a sharp reduction in government budgets in the United States. This trend is confirmed by the contract withdrawals also reported by IBM. Accenture anticipates a negative impact of 2% on its federal business in Q4. Faced with this more turbulent environment, management intends to strengthen its AI offering with the creation of a dedicated entity called "Reinvention Services," which will bring together all of the group's expertise in consulting, technology, operations, and strategy. This shake-up is accompanied by a major reshuffle in top management, with numerous changes. Accenture will have to do more to maintain its historically high valuation multiples. A P/E multiple of 30x earnings is not sustainable in the current climate, given the lower visibility and weakened growth profile. Added to this are the continuing economic headwinds, budgetary constraints among large corporate clients, and geopolitical headwinds, particularly regarding public contracts.