Accenture has demonstrated resilience in its financial performance, reporting strong revenue figures despite a dip in new bookings. The global consulting giant's Q3FY25 revenue reached $17.7 billion, exceeding analysts' expectations. This growth was largely fueled by increased client spending in the financial services sector. The profit per share also surpassed estimates, coming in at $3.49. Consequently, Accenture has raised its annual revenue growth forecast to 6-7%, up from the previous estimate of 5-7%.
However, the company reported a second consecutive decline in quarterly bookings, which fell 6% to $19.70 billion, falling short of the $21.54 billion estimate. This decline is attributed to slower US government spending and broader economic uncertainties. Despite the bookings downturn, Accenture's overall financial health remains robust, driven by its strategic focus on high-growth areas, particularly generative AI.
In response to the changing market dynamics and the growing importance of AI, Accenture is undergoing a strategic overhaul. A key element of this overhaul is the launch of a new "reinvention services" unit, designed to integrate consulting, technology, operations, and creative arms under a single umbrella. This integrated unit will be led by Manish Sharma, Accenture's current CEO of the Americas, who will assume the role of Chief Services Officer. The goal is to deliver value to clients more rapidly and to more easily embed data and AI into solutions.
Accenture's commitment to AI is evident in its significant investments in the field. The company reported $1.5 billion in generative AI bookings for Q3FY25, bringing the total AI bookings over the last three quarters to $4.1 billion. This reflects the increasing demand from enterprises for AI integration into core operations, supply chains, and customer experiences. Accenture's CEO, Julie Sweet, emphasized that clients are paying "real money for real AI," highlighting the shift from mere experimentation to tangible business applications.
To support its AI initiatives, Accenture is heavily investing in workforce development. The company aims to have 80,000 data and AI employees by the end of fiscal year 2026, up from 72,000 currently. This includes significant investments in employee training and strategic acquisitions to bolster its AI capabilities.
The strategic changes also involve leadership adjustments. John Walsh, the current global Chief Operating Officer, will become the CEO of the Americas, succeeding Manish Sharma. Kate Hogan, the current Chief Operating Officer of the Americas, will take on the role of global Chief Operating Officer. These changes, effective September 1, 2025, are designed to streamline operations and enhance the company's ability to deliver AI-driven solutions.
Accenture's strategic shift towards AI is not just about technological advancement; it's about transforming the company into a more agile and client-focused organization. By integrating its various service lines and investing in AI capabilities, Accenture aims to solidify its position as a leader in the enterprise technology space and capitalize on the growing demand for AI-driven transformation. While near-term headwinds may persist, Accenture's proactive approach positions it for sustained growth and success in the long run.
