Accenture Raises FY25 Growth Guidance; reports trends in Indian IT sector – Industry News

Nasdaq-listed IT services company Accenture raised its annual revenue growth forecast for fiscal 2025 to 4% to 7% from 3% to 6% previously. The revision is attributed to a reduction in the negative impact of exchange rate fluctuations, which is now expected to be around 0.5%, compared to the previously forecast 1.5%.

Accenture’s performance and prospects are of particular importance to India, where more than 40% of the company’s global workforce, or nearly 800,000 people, is based. The company’s results often serve as a barometer for the Indian IT industry, which views Accenture’s trends as an indicator of global demand. As Indian IT majors prepare to report their third quarter FY25 results in January, Accenture’s Q1 performance highlights critical growth areas, including strong demand for generative AI solutions .

CEO and President Julie Sweet, however, struck a cautious tone regarding client budgets. “We are currently not seeing an improvement in our customers’ overall spend, particularly on smaller transactions. When these market conditions improve, we will be well positioned to take advantage while continuing to meet demand for the critical programs that our customers prioritize,” Sweet said on a post- profit.

Accenture reported first-quarter revenue of $17.7 billion, an 8% sequential increase. The company’s operating margin stood at 16.7%, up 170 basis points from the previous quarter. Its new orders totaled $18.7 billion, driven by $9.2 billion in consulting and $9.5 billion in managed services. Notably, generative AI contributed $1.2 billion to new bookings in the first quarter, reflecting a sequential increase of $200 million.

Accenture operates on a September to August financial year.

Domestic IT companies, especially those focused on emerging technologies, are expected to benefit from this increase in demand for generative AI. Indian companies could see a ripple effect from Accenture’s investments in AI-driven customer reinvention strategies, analysts say.

On a geographic basis, Accenture’s revenue in North America reached $8.73 billion in the first quarter, while revenue in Europe, the Middle East and Africa (EMEA) reached $6.41 billion. Other markets also saw growth. By vertical, the product segment reached $5.43 billion, with healthcare, utilities, and financial services posting notable gains.

The company’s headcount grew for the second consecutive quarter, adding 24,697 employees to reach 799,000, including a significant number of additions in India. However, attrition increased by 1 percentage point to 12%.

Accenture’s continued growth in new technologies and diversified verticals provides insight into what domestic IT companies could expect in terms of industry demand and client priorities in the coming quarters.