Accenture (NYSE: ACN) stock dropped after it released its fourth-quarter 2025 results on Thursday.
The company reported quarterly earnings of $3.03 per share, topping the analyst consensus estimate of $2.96.
The company reported sales of $17.60 billion, slightly exceeding the analyst consensus estimate of $17.36 billion.
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Sales increased 7% in U.S. dollars and 4.5% in local currency.
Consulting revenues were $8.77 billion, an increase of 6% in U.S. dollars and 3% in local currency. Managed Services revenues reached $8.82 billion, an increase of 8% in U.S. dollars and 6% in local currency.
Products revenues reached $5.38 billion, up 9% in U.S. dollars and 5% local currency. Health & Public Service revenues decreased by 1% in U.S. dollars and 3% local currency to $3.56 billion.
Financial Services revenue reached $3.32 billion, up 15% in U.S. dollars and 12% local currency. Resources revenue was $2.39 billion, up 8% in U.S. dollars and 5% in local currency.
Communications, Media & Technology revenue was $2.95 billion, up 7% in U.S. dollars and 5% in local currency.
New bookings for the quarter were $21.31 billion, an increase of 6% in U.S. dollars and 3% in local currency. This total comprised $8.87 billion in Consulting new bookings and $12.44 billion in Managed Services new bookings.
Generative AI new bookings reached $1.8 billion in the quarter.
Operating margin of 11.6%, a decrease of 270 basis points. Adjusted operating margin of 15.1% marked an increase of 10 basis points.
Accenture held $11.5 billion in cash and equivalents as of August 31. It generated $3.81 in free cash flow during the quarter.
Accenture exceeded its fiscal 2025 expectations, with revenues, adjusted EPS, and free cash flow all outperforming forecasts, driven in part by early investments in AI, the company said.
Dividend
Accenture hiked its quarterly dividend 10% to $1.63 per share, payable on November 14, 2025.
Accenture Chair and CEO Julie Sweet highlighted that the company achieved 7% growth in fiscal 2025, underlining its ability to help clients reinvent and lead with AI.
Outlook
Accenture projected fiscal 2026 sales $71.07 billion-$73.16 billion versus $69.43 billion consensus estimate. It expects fiscal 2026 GAAP EPS of $13.19-$13.57 compared to $12.88 analyst consensus. The company projects fiscal adjusted EPS of $13.52-$13.90.
Accenture expects first-quarter sales of $18.10 billion-$18.75 billion against $18.451 billion analyst estimate.
It expects to return at least $9.3 billion in cash to shareholders in fiscal year 2026.
Price Action: ACN stock was trading lower by 1.70% to $235.02 premarket at last check Thursday.
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