Yesterday on March 20, 2025, Accenture announced its second quarter results for the financial year 2025.
The company has increased the lower end of its annual revenue forecast, reflecting growing demand for AI-driven solutions.
The company’s ability to support clients in integrating AI tools, managing cloud migration, and strengthening data security has fueled its growth.
Chair & CEO Comment
Commenting on Q2 results, Accenture Chair and CEO Julie Sweet said, “Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us.”
“The trust and confidence in our unique strengths and capabilities is reflected in 32 clients with quarterly bookings greater than $100 million and we are very pleased to have another milestone quarter in Gen AI with $1.4 billion in new bookings,” she added.
She further said, “Our continued growth is made possible by the extraordinary work of our more than 800,000 people around the world who focus on delivering value to our clients every day.”
HR Data and Trends
With a significant portion of its workforce based in India, Accenture’s performance often reflects broader trends in the country’s IT sector. In the second quarter of fiscal year 2025-
- Accenture added 2,000 employees in Q2, however in the previous quarter, the company had added about 24,000 employees.
- Total Headcount stood at 801,000
- Attrition rate was reported at 13% for the second quarter, 1% higher than the first quarter which was 12%.
Financial Performance and Market Response
Accenture’s financial results presented a mixed outlook. Total bookings for the second quarter were $20.9 billion, marking a 3.2% decline compared to the previous year.
The company’s operating margin for the quarter stood at 15.1%, a decrease of 10 basis points.
Goldman Sachs Research noted that Accenture’s results indicate a gradual recovery but at a slower pace. The company reported second-quarter GAAP diluted earnings per share of $3.59, up 16% from $3.10 in the first quarter of fiscal 2024. Adjusted EPS rose 10% from the previous year.
Quarterly revenue increased across key regions, with North America seeing an 11% rise to $8.6 billion. The Europe, Middle East, and Africa (EMEA) region reported an 8% increase to $5.8 billion, while other markets grew by 1% to $2.3 billion.
Among industries, the products business led with a 9% increase to $5.1 billion, followed by health and public services at $3.6 billion (up 10%) and financial services at $3.1 billion (up 11%).
AI Investments and Industry Trends
Accenture saw continued growth in AI-related projects, securing $1.4 billion in new generative AI (Gen AI) bookings this quarter. The company also landed 32 client deals, each exceeding $100 million.
Total bookings reached $20.9 billion, reflecting a 3.2% decline compared to the previous year. The operating margin for the quarter slipped by 10 basis points to 15.1%.
Meanwhile, competitor Cognizant projected strong revenue growth for 2025, setting its guidance between 3.5% and 6% in constant currency terms.
Across industries, businesses are increasing AI investments to streamline operations and cut costs, creating opportunities for IT service providers like Accenture.
For the next quarter, Accenture forecasts revenue growth between 3% and 7%, factoring in a 0.5% negative impact from foreign exchange rates.
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