Revenue and EPS are bolstered by consulting and managed services, increasing annual revenue outlook

Accenture Q1 Results: Revenue and EPS Supported by Consulting and Managed Services, Raising Full-Year Revenue Outlook

THURSDAY, Accenture (NYSE: ACN) reported revenue of $17.69 billion for the first quarter of fiscal 2025, compared to analyst consensus estimates of $17.12 billion, up 9% year-on-year. year in US dollars and 5% in local currency.

Revenue was about $240 million above the upper end of the company’s guided range of $16.85 billion to $17.45 billion. Adjusted EPS of $3.59 beat analysts’ consensus estimate of $3.39.

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Consulting revenue for the quarter was $9.05 billion, an increase of 7% in US dollars and 6% in local currency. Managed services revenue reached $8.64 billion, an increase of 11% in both U.S. dollars and local currencies.

New bookings for the quarter were $18.7 billion, with consulting bookings of $9.2 billion and managed services bookings of $9.5 billion.

Adjusted operating profit for the quarter was $2.70 billion, or 16.7% of revenue.

Product revenue reached $5.43 billion, up 12% in US dollars and 10% in local currency. Healthcare and Utilities revenue increased 13% in US dollars and 12% in local currency to $3.81 billion.

Financial Services revenue reached $3.17 billion, up 4% in both US dollars and local currencies. Resource revenues amounted to $2.42 billion, up 6% in both U.S. dollars and local currency terms.

Communications, media and technology revenue was $2.86 billion, up 7 percent in both U.S. dollars and local currencies.

The company booked $1.2 billion in new bookings with Generative AI.

Julie Sweet, President and CEO of Accenture, said: “Our strategy to reinvent ourselves for our clients while continuing to invest in our business has given us a strong start to fiscal 2025. We have delivered broad-based revenue growth in consulting and managed services, and in every market and industry group, gaining market share.

Outlook: Accenture’s fiscal 2025 business outlook now assumes that the foreign exchange impact on its U.S. dollar results will be approximately 0.5% negative compared to fiscal 2024; the company previously expected a positive impact of 1.5%.

Accenture forecast second-quarter revenue of $16.2 billion to $16.8 billion (vs. consensus of $16.63 billion).

For fiscal 2025, the company increased its revenue growth to 4-7% in local currency, up from 3-6% previously.

Price action: ACN stock is up 4.72% at $364.01 pre-market at last check Thursday.

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This article Accenture Q1 Results: Revenue and EPS Boosted by Consulting and Managed Services and Lifts Full-Year Revenue Outlook, originally published on Benzinga.com