Accenture (ACN) delivered a robust performance in Q3 FY25, with broad-based growth and strong execution across key financial metrics, even amid ongoing global economic and geopolitical uncertainty. Revenue rose 8% year-over-year to $17.73 billion, surpassing the company’s guidance, aided slightly by currency tailwinds. While new bookings declined 6% to $19.7 billion, the company reported encouraging momentum in generative AI, with $1.5 billion in AI-related bookings.

Profitability was a standout, with operating income climbing 13% to $2.98 billion, and operating margin improving to 16.8%, up from 16.0% a year ago. Diluted EPS increased 15% to $3.49, and free cash flow jumped to $3.52 billion, underlining Accenture’s strong cash generation. The company returned $2.7 billion to shareholders through dividends and share repurchases, including a 15% dividend increase.

Revenue growth was consistent across service types, with Consulting up 7% and Managed Services up 9%, and across regions, led by the Americas (+8%) and EMEA (+8%). Industry-wise, Financial Services led with 13% growth, followed by solid contributions from Health & Public Service, Products, and Technology. Operating income growth was most notable in the Americas, which delivered $1.72 billion and a 19% margin, driving the bulk of the company-wide margin expansion.

On the cost side, labor inflation led to a slight dip in gross margin to 32.9%, while cost of services rose to 67.1% of revenue. However, improved operating leverage was evident as both sales and general administrative costs declined as a percentage of revenue.

Accenture ended the quarter with a strong balance sheet, holding $9.6 billion in cash, more than offsetting its $5.0 billion in long-term debt. The company raised its full-year guidance, now expecting 6%–7% revenue growth, 15.6% operating margin, EPS of $12.77–$12.89, and free cash flow of $9.0–$9.7 billion. It also reaffirmed plans to return at least $8.3 billion to shareholders.

CEO Julie Sweet emphasized Accenture’s continued leadership in digital transformation and Gen AI, citing broad-based client demand for large-scale, long-duration projects, despite some delays in U.S. federal contracts and constrained discretionary spending. Overall, Q3 results underscore Accenture’s resilience and strategic positioning in an evolving tech and consulting landscape.