Accenture beats Q3 revenue estimates on surging demand for AI-driven services

Accenture results in focus: Accenture reported better-than-expected earnings for the fiscal third quarter today, June 20, with revenue rising 8% year-over-year to $17.7 billion, surpassing Wall Street estimates of $17.30 billion.

This was led by the growing demand for the consulting giant's AI-driven services from enterprise customers. Accenture follows a fiscal year that ends on August 31.

Growth was broad-based, with managed services revenue up 9% and consulting up 7%. Regionally, the Americas led with $8.97 billion in revenue, followed by EMEA ($6.23 billion) and Asia Pacific ($2.53 billion).

Industry-wise, Products was the top-performing segment at $5.34 billion, while Financial Services and Health & Public Service both recorded strong 13% growth in local currency.

In terms of new bookings, which represent the company's potential for future revenue, came in at $19.7 billion in Q3, down 6% in U.S. dollars and 7% in local currency, with consulting and managed services contributing $9.08 billion and $10.62 billion, respectively.

Despite a 6% decline in total new bookings, the company expanded its operating margin to 16.8% from 16%, while diluted EPS rose 15% to $3.49.

Firm restructures around AI-led demand; launches reinvention services

Accenture said it was combining several of its services into one business unit, part of a change of a broader effort tied to the time of growing artificial intelligence adoption, effective Sept. 1.

The consulting firm said it would bring its strategy, consulting, song, technology and operations services into a single unit called reinvention services, which Manish Sharma, the company's current chief executive officer of the Americas, will lead as chief services officer.

Accenture said it will continue to manage its business through three geographic markets - the Americas, EMEA and Asia-Pacific and go to market by industry.

Outlook raised for second time

Accenture also hiked its full-year outlook for the second time following an update in March. Management guided for earnings between $12.77 and $12.89 a share, up from a prior range of $12.55 to $12.79 a share. The company expects fiscal Q4 revenue of $17 billion to $17.6 billion.

Meanwhile, the company is grappling with a weak U.S. federal contracting environment as the Trump administration has slowed new contracts and cut existing agreements in a bid to reduce federal spending, which has led the stock to lose 13% of its value this year and has corrected 23.11% from its 2025 peak.

However, the company said these changes have not had a material impact on its operations or financial condition.

(With inputs from agencies)

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