Accenture (NYSE: ACN) stock tumbled 6% in pre-market trading Thursday, despite reporting better-than-expected results for the second quarter of fiscal 2025. The company also updated its full-year outlook, narrowing its earnings guidance and raising its revenue growth forecast.
Accenture posted Q2 earnings per share of $2.82, slightly above the consensus estimate of $2.81. Revenue reached $16.7 billion, up 8.5% in local currency compared to last year, topping analyst expectations of $16.63 billion.
Bookings for the quarter totaled $20.9 billion, down 3.2% from the same period a year ago, and missing the consensus estimate of $21.69 billion. However, the company said new generative AI-related bookings reached $1.4 billion.
The company reported a gross margin of 29.9%, down from 30.9% a year ago and below the estimated 31.2%. Meanwhile, its operating margin improved to 13.5%, up from 13% in the same quarter last year.
Accenture Chair and CEO Julie Sweet said,
“Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us.”
Guidance: For the full fiscal year, Accenture (NYSE: ACN) narrowed its EPS guidance to $12.55 to $12.79, refining its earlier range of $12.43 to $12.79. Analysts had pegged the figure at $12.72.
The company also raised its revenue growth forecast for fiscal 2025. It now expects growth between 5% and 7%, an improvement over the prior range of 4% to 7%.
Accenture now expects an operating margin of 15.6% to 15.7%, a small adjustment from its previous 15.6% to 15.8% range.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment. Read Full Bio
