Accenture (ACN) posted its Q3 FY25 results, delivering solid top-and bottom-line growth. The company exceeded Wall Street expectations with its upbeat guidance, reflecting strong confidence in its business outlook. However, despite the positive performance, ACN stock fell over 5% in pre-market trading on Friday. This suggests that investor concerns over macroeconomic headwinds and continued uncertainty in the consulting and IT services sector still persist.
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For the full year, Accenture raised the lower end of its revenue guidance once again, now expecting 6% to 7% growth from fiscal 2024. It also increased its EPS forecast to a range of $12.77 to $12.89.
Accenture’s Q3 Performance
According to its Q3 earnings release, Accenture posted revenue of $17.7 billion, reflecting an 8% rise in U.S. dollars and 7% in local currency. This exceeded analysts’ expectations of $17.33 billion, compiled by Visible Alpha. Meanwhile,
On the flip side, new bookings came in at $19.7 billion, down 6% in U.S. dollars and 7% in local terms, missing the $21.5 billion consensus estimate. Both consulting and managed services bookings fell short of analyst expectations.
Accenture Restructures to Power AI Expansion
Accenture is reshaping its leadership to tap into booming AI demand. Notably, the company reported $1.5 billion of bookings in generative AI in Q3.
Moving ahead, the company is combining strategy, consulting, tech, and operations into a new Reinvention Services unit, led by Manish Sharma as Chief Services Officer. Meanwhile, COO John Walsh will step in as Americas CEO. The changes aim to further scale Accenture’s business by strengthening its ability to drive reinvention and accelerate the delivery of generative AI solutions.
Is ACN a Good Stock to Buy Now?
Wall Street has a Moderate Buy consensus rating on ACN stock based on 11 Buys and six Holds assigned in the last three months. At $349.82, the average Accenture share price target implies about 14% upside potential from current levels.
Year-to-date, ACN stock has declined almost 13%.
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