Accenture ( 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 ( ACN ) held $11.5 billion in cash and equivalents as of August 31. It generated $3.81 in free cash flow during the quarter.
Accenture ( ACN ) 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.
Accenture ( ACN ) 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.
Accenture ( ACN ) 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 ( ACN ) 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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