On March 20, 2025, Accenture (ACN) reported its Q2 2025 earnings, presenting a detailed view of strong financial performance amid a competitive market landscape. The company generated revenue of $16.7 billion, reflecting a 5% increase in U.S. dollars and an even more impressive 8.5% growth in local currency when compared to Q2 2024. This solid performance underscores Accenture’s robust market position and its ability to scale operations effectively in diverse economic environments.

New bookings for the quarter reached $20.9 billion. While this figure represents a slight 3% decline in U.S. dollars, the performance remained steady in local currency. A particularly significant highlight was in the generative AI segment, which not only captured considerable market enthusiasm but also delivered $1.4 billion in bookings, positioning advanced AI solutions at the heart of the company’s growth strategy.

Operational efficiency improved as well, with the operating margin increasing by 50 basis points to 13.5% relative to the same quarter last year—even though it was 20 basis points lower than the adjusted operating margin of 13.7% reported previously. Earnings per share (EPS) followed a positive trajectory, climbing to $2.82, which marks a 7% increase from the prior year’s $2.63 and a 2% rise over the adjusted EPS of $2.77. Additionally, Accenture’s free cash flow saw substantial growth, rising from $1.99 billion in Q2 2024 to $2.68 billion in Q2 2025, reinforcing its financial stability.

The company also continued its commitment to returning capital to shareholders, distributing a total of $2.4 billion through dividends and share repurchases. Specifically, $929 million was paid out in dividends, and $1.4 billion was allocated towards share repurchases, underlining its dedication to enhancing shareholder value.

From a geographic perspective, performance varied across regions. In the Americas, strong revenue growth fueled a 15% increase in operating income, although there was a slight decline in contract profitability. In EMEA, revenue growth spurred an 11% rise in operating income, despite similar challenges with profitability. Meanwhile, the Asia Pacific region experienced modest revenue growth accompanied by a decrease in operating income, largely due to reduced contract profitability.

Looking forward, Accenture updated its fiscal 2025 guidance, narrowing its revenue growth forecast to 5%–7% in local currency. The revised outlook also accounts for a foreign exchange headwind of approximately -0.5%. The operating margin is projected to expand to 15.6%–15.7%, indicating an incremental gain of 10–20 basis points over fiscal 2024’s adjusted figures. Furthermore, the company expects diluted EPS to fall between $12.55 and $12.79, marking projected growth of 4%–7% over the previous year.

Strategically, Accenture remains focused on large-scale transformation initiatives, particularly in areas driven by technology, data, and AI-led digital reinvention. Its managed services division experienced robust growth, and consulting services continued to deliver stable performance. With generative AI recognized as a key growth driver—not only in terms of impressive bookings but also in its expanding applications across various industries—Accenture is firmly positioned to capitalize on emerging opportunities. Backed by a strong balance sheet that included $8.5 billion in cash as of February 28, 2025, the company demonstrates both resilience and strategic foresight in navigating the evolving market dynamics.