Accenture Reports 9% Revenue Growth to $17.7 Billion in Q1 Fiscal 2025

Accenture plc reported a revenue increase of 9% for the first quarter of fiscal 2025, reaching $17.7 billion compared to $16.2 billion in the same period last year. The company's operating income also rose to $2.95 billion, up from $2.56 billion, reflecting a 15% increase. Net income attributable to Accenture plc was $2.28 billion, or $3.59 per diluted share, marking a 16% increase from $3.10 per diluted share in the prior year. The effective tax rate for the quarter was 21.6%, down from 23.2% in the previous year, primarily due to adjustments related to prior year tax liabilities.

In terms of operational performance, Accenture's workforce expanded to approximately 799,000 employees, up from 743,000 a year earlier, driven by demand for its services and acquisitions. The company reported a utilization rate of 91%, consistent with the previous year. New bookings totaled $18.7 billion, a slight increase of 1% compared to the same quarter last year, with consulting bookings rising by 7% and managed services bookings declining by 4%. The Americas region led revenue growth, with a 9% increase in U.S. dollars and 11% in local currency.

Accenture's operating expenses increased by 8% to $14.7 billion, primarily due to higher costs associated with service delivery. The cost of services rose to $11.87 billion, accounting for 67.1% of total revenues, compared to 66.4% in the prior year. The company did not incur business optimization costs in the current quarter, as these were completed in fiscal 2024. The gross margin decreased slightly to 32.9% from 33.6% due to higher subcontractor costs.

Strategically, Accenture completed several immaterial acquisitions during the quarter, totaling $184.9 million. The company continues to focus on enhancing its service offerings, particularly in technology and digital transformation, which are driving client demand. The firm also reported a significant increase in cash and cash equivalents, totaling $8.3 billion, up from $5.0 billion at the end of the previous fiscal year, bolstered by strong cash flows from operations and financing activities.

Looking ahead, Accenture anticipates continued revenue growth, although it acknowledges potential challenges from economic uncertainties and competitive pressures. The company expects to recognize approximately 58% of its remaining performance obligations, valued at around $29 billion, as revenue in fiscal 2025. Accenture remains committed to leveraging its capabilities in technology and consulting to drive client success and enhance shareholder value.