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Informist, Thursday, Sep. 25, 2025

AHMEDABAD – US-based global information technology company Accenture Plc. has pegged its revenue growth for 2025-26 (Sept-Aug) at 2-5% in local currency, slower than the 7% growth in revenue to $69.67 billion in the previous year. Excluding an estimated 1.0-1.5% impact from its US federal business, the company expects a top line growth of 3-6% for the full year. For Sept-Nov, the company expects its revenue to grow 1-5% in local currency terms to $18.1 billion-$18.75 billion. 

The company expects the impact of foreign exchange movement on the earnings in US dollar terms to be positive 2% compared to FY25. The technology giant hopes to increase its overall number of employees in FY26, including in the US and Europe, reflecting the demand it anticipates for its business.

"I am very pleased with our 7% (revenue) growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with artificial intelligence, or AI," Julie Sweet, chair and chief executive officer of the company, was quoted as saying in a press release. "As clients continue to embrace reinvention to create value and drive financial results and business outcomes, they need help to build their digital core, prepare data and reimagine processes, all while training their people to work in entirely new ways," she said.  

Accenture's earnings are seen as a crucial indicator for Indian IT companies which are scheduled to detail September quarter earnings from next month.

The US company's revenue for the quarter ended August grew 7% on year to $17.6 billion in dollar terms and 4.5% in local currency terms. Its revenue from consulting business for the reporting quarter was up 6% on year at $8.77 billion and that from managed services operations grew 8% to $8.82 billion.

The global IT major's gross margin for Jun-Aug was 31.9%, down from 32.5% in the year-ago quarter. Selling, general, and administrative expenses for the quarter accounted for 16.7% of the revenue at $2.95 billion. This is slightly higher than the $2.88 billion reported a year ago. 

Its operating cash flow for the quarter was $3.91 billion while property and equipment additions saw an outflow of $110 million. Free cash flow, defined as operating cash flow net of property and equipment addition, was $3.81 billion, up from $3.18 billion a year ago. 

In the reporting quarter, Accenture recorded a rise in revenue from almost all of its segments, except health and public services which saw a 1% on-year fall in revenue to $3.56 billion. Financial services grew 15% on year to $3.32 billion and the communications, media, and technology vertical recorded a 7% on-year growth to $2.95 billion. The products business grew 9% to $5.38 billion and the resources vertical rose 8% to $2.39 billion.

Among geographies, Accenture saw the revenue from its biggest market, North America, rise 5% from the year-ago period to $8.80 billion. Revenue from Europe grew 10% to $6.2 billion and that from markets in Asia-pacific region grew 11% to $2.6 billion.

Despite the macroeconomic conditions in flux due to US President Donald Trump's tariff policies and other geopolitical uncertainties, Accenture saw a 6% rise in value of the new bookings at $21.31 billion in the August quarter. Of this, new bookings of the consulting business were $8.87 billion and that of the managed services business $12.44 billion.

Accenture announced a quarterly cash dividend of $1.63 per share for shareholders on record at the close of business on Oct. 10. This dividend, which is payable on Nov. 14, represents a 10% increase over the earlier dividend. In August, it had paid $922 million as quarterly cash dividend at $1.48 per share.

During FY25, Accenture repurchased or redeemed 14.1 million shares for a total of $4.6 billion, including share repurchase of 11.9 million shares from the open market. The company said it expects to return at least $9.3 billion in cash to shareholders in FY26.  End

Reported by Sunil Raghu

Edited by Ashish Shirke

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