Executive Summary

Q4 FY25 revenue was $17.60B, at the top end of guidance and up 7% YoY (+4.5% LC); adjusted EPS was $3.03 (+9% YoY) while GAAP EPS fell to $2.25 due to a $615M business-optimization charge .
Versus consensus, Accenture modestly beat on revenue (+1.36%) and EPS (+2.0%), but missed EBITDA (~2.5%) as optimization costs and gross margin compression weighed on reported profitability; AI-related bookings continued to scale ($1.8B in Q4; $5.9B for FY25) *.
FY26 outlook introduced: LC revenue growth 2–5% (3–6% ex-U.S. federal), GAAP op margin 15.3–15.5%, adjusted op margin 15.7–15.9%; adjusted EPS $13.52–$13.90; capital return ≥$9.3B; quarterly dividend raised 10% to $1.63 .
Stock reaction catalysts: sustained large-deal momentum (Q4 bookings $21.3B; book-to-bill 1.2), AI pricing accretion, and FY26 margin expansion vs. near-term GAAP EPS noise from optimization charges and a mid-teens AFS contraction in Q1 .

What Went Well and What Went Wrong

What Went Well

Large-deal momentum and bookings strength: Q4 bookings $21.31B (+6% USD) with 37 clients ≥$100M in the quarter; AI bookings $1.8B in Q4 and $5.9B in FY25, reflecting scaling adoption and accretive pricing for advanced AI .
Revenue at top of guidance, broad-based growth: Q4 revenues $17.60B (+7% USD, +4.5% LC), with Managed Services +8% USD and Consulting +6% USD; Americas +5% LC; EMEA +3% LC; Asia Pacific +6% LC .
Management confidence on AI as expansionary: “We do not see AI as deflationary… savings are reinvested into new priorities,” underscoring durable demand and AI-led share gains .

What Went Wrong

GAAP margin and EPS compressed by optimization charges: GAAP op margin fell to 11.6% (−270 bps YoY) and GAAP EPS to $2.25 (−15% YoY) due to a $615M charge tied to talent rotation and divestitures; adjusted metrics were stable-to-up (15.1% adj. margin, $3.03 adj. EPS) .
Gross margin declined: Q4 gross margin 31.9% vs. 32.5% YoY; adjusted tax rate rose to 27.9% vs. 26.2% YoY, limiting EPS leverage despite revenue strength .
Federal headwind persists: AFS contracting mid-teens in Q1 FY26, with ~1.5% impact embedded in near-term growth; procurement improving but still slower than past years .

Financial Results

Consolidated Results (USD)

Metric	Q4 FY24	Q2 FY25	Q3 FY25	Q4 FY25
Revenues ($B)	$16.41	$16.66	$17.73	$17.60
GAAP Diluted EPS ($)	$2.66	$2.82	$3.49	$2.25
Adjusted EPS ($)	$2.79	N/A	N/A	$3.03
GAAP Operating Margin (%)	14.3%	13.5%	16.8%	11.6%
Adjusted Operating Margin (%)	15.0%	13.7%	16.4%	15.1%

Notes: Adjusted figures exclude business optimization costs; Q4 FY25 includes $615M charge; Q4 FY24 includes prior optimization costs .

Bookings and Mix

Metric	Q2 FY25	Q3 FY25	Q4 FY25
New Bookings ($B)	$20.91	$19.70	$21.31
Book-to-Bill (x)	—	—	1.2
Consulting Bookings ($B)	$10.47	$9.08	$8.87
Managed Services Bookings ($B)	$10.44	$10.62	$12.44

Q4 FY25 Revenue Breakdown

Type of Work:

Type	Revenue ($B)	YoY USD	YoY LC
Consulting	$8.77	+6%	+3%
Managed Services	$8.82	+8%	+6%
Total	$17.60	+7%	+4.5%

Geographic Markets:

Geography	Revenue ($B)	YoY USD	YoY LC
Americas	$8.80	+5%	+5%
EMEA	$6.20	+10%	+3%
Asia Pacific	$2.60	+11%	+6%
Total	$17.60	+7%	+4.5%

Industry Groups:

Industry	Revenue ($B)	YoY USD	YoY LC
CMT	$2.95	+7%	+5%
Financial Services	$3.32	+15%	+12%
Health & Public Service	$3.56	−1%	−3%
Products	$5.38	+9%	+5%
Resources	$2.39	+8%	+5%

KPIs and Cash

KPI	Q4 FY24	Q4 FY25
Operating Cash Flow ($B)	$3.39	$3.91
Free Cash Flow ($B)	$3.18	$3.81
DSOs (days)	46	47
Cash & Equivalents ($B)	$5.00	$11.48
Shares Repurchased (mm)	—	1.6; $474M
Dividend ($/share)	$1.48 paid (Aug 15, 2025)	$1.63 declared (pay Nov 14, 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenues ($B)	Q1 FY26	N/A	$18.1–$18.75	Initial
LC Revenue Growth (%)	Q1 FY26	N/A	1–5	Initial
FX Impact	Q1 FY26	N/A	~+1%	Initial
LC Revenue Growth (%)	FY26	N/A	2–5; 3–6 ex-U.S. federal	Initial
FX Impact	FY26	N/A	~+2%	Initial
GAAP Op Margin (%)	FY26	N/A	15.3–15.5 (60–80 bps expansion)	Initial
Adjusted Op Margin (%)	FY26	N/A	15.7–15.9 (10–30 bps expansion)	Initial
Annual Effective Tax Rate (%)	FY26	N/A	23.5–25.5	Initial
GAAP Diluted EPS ($)	FY26	N/A	$13.19–$13.57	Initial
Adjusted EPS ($)	FY26	N/A	$13.52–$13.90	Initial
Operating Cash Flow ($B)	FY26	N/A	$10.8–$11.5	Initial
Capex ($B)	FY26	N/A	~$1.0	Initial
Free Cash Flow ($B)	FY26	N/A	$9.8–$10.5	Initial
Capital Return ($B)	FY26	N/A	≥$9.3	Initial
Dividend ($/share)	Q4 FY25/Q1 FY26	Prior $1.48	Raised to $1.63	Raised

Earnings Call Themes & Trends

Topic	Q-2 (Q2 FY25)	Q-1 (Q3 FY25)	Current (Q4 FY25)	Trend
Advanced AI adoption & pricing	$1.4B Gen AI bookings; broad-based growth; adjusted margin guidance 15.6–15.7	$1.5B Gen AI bookings; GAAP EPS up 15%; adjusted margin 16.4%; scaling projects	$1.8B Gen AI bookings; pricing accretive; AI “expansionary,” not deflationary	Strengthening, accretive pricing
Federal business dynamics	FX −3% headwind; AFS not highlighted	FX +0.5%; federal not a major callout	Q1 FY26 AFS contracting mid-teens; ~1.5% impact	Ongoing near-term headwind
Large-deal pipeline	32 clients ≥$100M bookings	30 clients ≥$100M bookings; book-to-bill strong	37 clients ≥$100M in Q4; record 129 in FY25	Strengthening
Margin/optimization actions	FY24 optimization costs referenced	No new charges; margin expansion	$615M charge in Q4; ~$250M expected in Q1; >$1B savings to be reinvested	Short-term compression; long-term reinvest
Capex/Real estate	—	—	Capex ~$1B in FY26; expand real estate for office return	Upward shift
Talent strategy/Headcount	—	Utilization strong; margin expansion	Headcount to increase across markets; rapid talent rotation and upskilling	Expansion with rotation

Management Commentary

“I am very pleased with our 7% growth in fiscal 2025… clients… need help to build their digital core, prepare data and reimagine processes… This is what Accenture does best…” — Julie Sweet .
“We do not see AI as deflationary. We do see and are seeing it as expansionary… savings… are being reinvested into new priorities.” — Julie Sweet .
“We recorded a charge of $615 million [in Q4] and expect… ~$250 million in Q1 [FY26]… These actions will result in cost savings, which will be reinvested in our people and business.” — Angie Park .
“For FY26… adjusted operating margin… 15.7% to 15.9%… adjusted EPS… $13.52 to $13.90… return at least $9.3 billion to shareholders.” — Angie Park .

Q&A Highlights

AI impact and pricing: Management emphasized AI as expansionary with accretive pricing; projects increasingly moving from POCs to production, though cadence can be lumpy .
Consulting vs Managed Services balance: Both expected low-to-mid single-digit growth in FY26; managed services increasingly strategic to accelerate AI-enabled transformations .
Federal business: Procurement improving but slower than past; Q1 headwind mid-teens contraction; partnerships (e.g., Palantir) support federal demand .
Capex and workplace: FY26 capex ~$1B tied to expanding real estate and bringing more people back to offices .
Optimization program savings: >$1B savings to be reinvested; utilization expected to remain low-90s with no structural change from AI .

Estimates Context

Metric	Consensus	Actual	Surprise
Primary EPS ($)	2.9715*	3.03	+2.0% (Beat)
Revenue ($B)	17.360*	17.596	+1.36% (Beat)
EBITDA ($B)	3.258*	3.175	−2.53% (Miss)
# EPS Estimates	18*	—	—
# Revenue Estimates	19*	—	—

Values retrieved from S&P Global.*

Implications: Slight beats on revenue/EPS reflect top-end delivery vs guidance and FX tailwind (+~2.5%) aiding Q4 USD results, while EBITDA softness aligns with gross margin compression and the timing of optimization charges .

Key Takeaways for Investors

AI flywheel is accelerating with accretive pricing and expanding large-deal wins; expect continued share gains and AI pull-through into data, cloud, security, and operations .
Near-term GAAP optics are noisy due to $615M Q4 and ~$250M Q1 optimization charges; adjusted margin expansion (10–30 bps in FY26) and dividend raise support capital return resilience .
Federal (AFS) remains a transitory headwind in Q1; growth ex-U.S. federal (3–6% LC) underscores core demand strength .
Bookings trajectory (Q4 $21.3B, FY $80.6B; book-to-bill 1.2) and record large deals signal durable backlog and FY26 revenue visibility .
Watch gross margin trajectory and tax rate normalization; adjusted margin discipline vs. reinvestment for AI/talent rotation is key to EPS leverage .
Capex step-up reflects office utilization and growth; expect disciplined inorganic investment (~$3B in FY26) to support capability expansion .
Trading lens: Modest beat/miss mix with constructive FY26 margin/FCF guide and dividend increase; monitor AFS impact and proof of sustained AI-led pricing/mix to support multi-quarter re-rating .

Appendix: Additional Notes

Q4 FX tailwind: Q4 revenues reflect ~+2.5% FX impact vs assumption provided in Q3 release .
Segment strength: Financial Services (+15% USD), Products (+9% USD) led Q4; Health & Public Service down modestly YoY .
Cash and returns: FY25 FCF $10.87B; returned $8.3B to shareholders (repurchases $4.6B; dividends $3.7B); declared $1.63 dividend (+10%) and added $5B repurchase authority .

Citations: All figures and statements are sourced from Accenture’s Q4 FY25 8‑K and press release and the Q4 FY25 earnings call transcripts .

Accenture plc (ACN)·Q4 2025 Earnings Summary