Accenture reports 7% jump in revenue at $17.6 billion; FY26 revenue guidance raised to $18.7 billion

Leading technology firm Accenture PLC reported its fourth quarter and fiscal year results. The company reported 7% rise in revenue and expects a better outlook for Fiscal 2026.

Q4 Revenue

In the Q4FY25, the revenue surged 7% in US dollars and 4.5% in the local currency to $17.6 billion, meeting the company’s guided range of $17 billion to $17.6 billion. Segmentally, the Consulting business grew by 6% YoY to $8.7 billion, and managed services revenue grew by 8% to $8.8 billion. Geographically, Emerging Markets and Asia Pacific posted high double-digit growth, while the US stood at 5% YoY growth.

Industry-wise wise the financial services grew by 15% YoY, followed by Products at 9%, Resources at 8% and Communications at 7%.

Operational efficiency

On the operational front, thecompany’s operating income stood at $2.05 billion, 13% lower than the same period last year. In addition, the operating margins too contracted to 11.6% from 14.3 in % same period last year.

Strong AI bookings

New bookings of $21.3 billion for the quarter and $80.6 billion for the year. Generative AI new bookings of $1.8 billion for the quarter and $5.9 billion for the year

Management commentary

CEO Julie Sweet of Accenture PLC said, “I am very pleased with our 7% growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with AI. As clients continue to embrace reinvention to create value and drive financial results and business outcomes, they need help to build their digital core, prepare data and reimagine processes, all while training their people to work in entirely new ways”

FY26 outlook

The company expects to increase its overall number of employees in FY26 across its markets, including in the US and countries in Europe, reflecting the demand it sees in its business. The company expects full-year revenue growth of 2% to 5% in local currency; excluding a 1% to 1.5% impact from its U.S. federal business, the company expects revenue growth of 3% to 6% in local currency. Further, the company gave revenue guidance of $18.1 billion to $18.7 billion and the GAAP operating margin of 15.7%-15.9%

Indian IT stocks in focus

The Indian IT stocks will be in focus on Friday morning after the positive outlook from the Accenture results. The company’s guidance to increase hiring according the demand indicates a major sentiment boost for Indian IT companies. The benchmark NIFTY IT index corrected more than 5% in four trading sessions after the new H1 B Visa rules rattled investor sentiments.