Accenture (NYSE:ACN) delivered a solid Q3, beating expectations on both revenue and earnings. Revenue reached $17.7 billion versus the $17.3 billion consensus, while EPS came in at $3.49, topping the expected $3.32. Margins and free cash flow showed modest improvements, reflecting stable execution.
New bookings were lighter than expected, down 6% year over year — a soft spot in an otherwise solid report. While AI-related revenue remains a growth engine, up 66% year over year, the sequential slowdown indicates that initial momentum may be tapering. The book-to-bill ratio remains above 1.0, signaling a healthy pipeline. Management also noted that while DOGE-related client cuts were immaterial in Q3, they are expected to be a 2-point headwind in Q4, no firm estimate was provided beyond FY25.
A well-executed earnings call (as you would expect from a consulting firm), CEO Julie Sweet offered thoughtful commentary during Q&A, and the supporting materials were clear and to the point. Still, a disproportionate amount of the call was spent highlighting AI deployments and customer wins — more reminiscent of an investor day than an earnings discussion — which limited time for deeper analyst engagement.
For more details, key highlights, and commentary, check out the high-level earnings summary.
