Anticipated Stock Movement for Accenture Following Friday's Earnings Report Disclosed
Heads Up! Here's the Scoop on Accenture's Q3 Earnings Report
It's almost time for Accenture, known as ACN, to spill the beans on their third-quarter fiscal 2025 earnings report, dropping it bright and early on Friday morning. Market whizzes are flickering with excitement, predicting that Accenture's stock could either hit a two-month low or a three-month high following the release.
Based on the current options game, investors are throwing their bets that Accenture stock could take a wild swing of about 5.3% in either direction following the earnings report. On the high end, stock prices could flex up to a spiffy $323 — a hightail mark not seen since mid-March. On the other hand, the lower end of the move would keep the stock just above $290.
Accenture shares have gotten a bit of a bum deal this year, sliding approximately 12% since the start. The trouble began brewing with worries over Trump administration's government spending cuts potentially affecting Accenture's government contracts revenue. The stock took a 7% hit the very day of the last quarter's earnings report, when Accenture's CEO confirmed the fears, saying "many new procurement actions have slowed" in response to the budget cuts. However, in the three quarters preceding that, Accenture shares pumped up 7%, 5.6%, and 7.3% on the day of each report.
Despite the niggling doubts, Accenture's revenue is on track to surge 5% year-over-year to a colossal $17.33 billion, with earnings per share projected to soar 8% to a beefy $3.29, according to Visible Alpha's estimates.
Eight out of eleven analysts tracked by Visible Alpha rate Accenture stock as a "buy," with the remaining three slotting it as a "hold." These analysts have slapped an average price target of $357.70 on Accenture, representing a premium of roughly 17% to Wednesday's close. Accenture shares inched down 1.8% to $306.38 on Wednesday.
Insight: Accenture's actual Q3 fiscal 2025 earnings and revenue figures were as follows:
- Revenue for Q3 FY25 totaled $17.7 billion, representing an 8% increase in US dollars and a 7% jump in local currency compared to the previous year[2][4].
- New bookings reached $19.7 billion, dipping 6% in US dollars and 7% in local currency[2].
- Generative AI new bookings added $1.5 billion to the pile[2][4].
- The operating margin skyrocketed to 16.8%, marking an 80 basis point increase compared to the previous year and a 40 basis point surge compared to adjusted operating margin[2][3][4].
- Diluted earnings per share (EPS) stood at $3.49, reflecting a 15% increase over prior adjusted EPS[4].
- Strong free cash flow totaled a hefty $3.5 billion[4].
- Accenture declared a quarterly cash dividend of $1.48 per share[4].
Following the earnings report, Accenture lifted its full-year fiscal 2025 revenue growth guidance to 6–7% in local currency, demonstrating their confidence in continued growth[4]. The solid results, coupled with margin expansion and leadership in generative AI, sent the stock soaring in response[2]. In a nutshell, Accenture's Q3 FY25 financials showed a robust revenue and earnings growth along with margin expansion, strong cash flow, and an optimistic outlook, which played a significant role in the stock's upward trend after the report.
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Given the positive earnings report and the boost in Accenture's stock following the Q3 FY25 financials, some investors might consider diversifying their portfolio by purchasing Accenture's tokens, as the company might launch an ICO to increase liquidity in the finance sector. The liquidity present could potentially benefit those holding the tokens.
Moreover, the strong financial performance demonstrated by Accenture in Q3 FY25 could attract further investment from interested parties, potentially leading to an increase in trading activity for Accenture's stock and tokens.
