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

Strong Q3 Performance Backed by AI Momentum

Accenture reported revenue of $16.5 billion for the quarter ended May 2025, exceeding analyst estimates of $16.3 billion, according to Refinitiv data. The robust performance was underpinned by a 9% year-over-year increase in revenue from its Cloud, Data & AI segment — now a key revenue driver for the company.

The company also posted earnings per share (EPS) of $3.16, ahead of the expected $3.10, while new bookings climbed to $21.1 billion, reflecting a healthy deal pipeline and continued enterprise investment in emerging technologies.

"We’re seeing broad-based demand for GenAI services as clients shift from experimentation to scaled deployment," said Julie Sweet, Chair and CEO of Accenture. "Our investments in talent, technology, and strategic acquisitions have positioned us to lead this next phase of digital transformation."

AI: The Key Growth Lever

Accenture's strong showing comes amid a broader wave of AI adoption across industries, particularly in finance, healthcare, manufacturing, and retail. Companies are increasingly turning to consulting firms for guidance on how to implement generative AI and machine learning solutions, a trend that has intensified since the release of advanced models by companies like OpenAI and Google.

The consulting giant has already invested more than $3 billion in AI capabilities over the past few years, including acquisitions of niche AI startups and partnerships with major cloud providers like Microsoft Azure and Amazon Web Services. These investments are now bearing fruit.

"Enterprises are hungry for end-to-end AI transformation — not just proof-of-concept but full integration," said Meera Shah, Tech Sector Analyst at Bernstein. "Accenture's domain expertise and delivery capabilities give it a clear edge in capturing this AI wave."

Sector-Wide Tailwinds

Accenture’s performance aligns with broader tech sector trends. Rivals like IBM and Capgemini have also reported rising demand for AI consultancy and implementation services. The market for enterprise AI services is expected to grow at a compound annual growth rate (CAGR) of over 25% through 2030, according to McKinsey & Co.

In recent months, Accenture has secured several high-profile contracts, including AI-led transformation projects with leading global banks and a Fortune 100 healthcare provider. These deals typically involve multi-year engagements, providing revenue visibility.

Regional and Segment Highlights

Regionally, North America contributed the largest share of revenue, with a 6% growth driven by financial services and public sector clients. Europe posted 5% growth, while growth in Growth Markets — including Asia Pacific and Latin America — stood at a solid 8%.

Among service lines:

• Technology services grew 10%, thanks to cloud modernization and data engineering work.

• Strategy & Consulting was up 7%, reflecting strong client demand for AI and business model innovation.

• Operations services saw modest growth at 4%, as clients continue to outsource processes with embedded AI automation.

Stock Performance and Market Reaction

Following the results, Accenture shares rose over 3% in after-hours trading, indicating investor optimism about the company’s forward trajectory. The stock has gained approximately 18% year-to-date, outperforming the broader S&P 500 tech sector.

"Accenture remains a top pick among digital transformation leaders," said Daniel Ives, Managing Director at Wedbush Securities. "Its blend of consulting, technology implementation, and AI positioning creates a strong moat."

Forward Guidance and Outlook

Despite macroeconomic headwinds and cautious enterprise IT spending, Accenture raised its full-year revenue growth guidance to 3-5% in local currency, up from the earlier range of 2-4%. The company cited a strong pipeline of deals, especially in GenAI-driven transformation and cloud migration.

The company also reaffirmed its commitment to returning capital to shareholders, announcing a quarterly cash dividend of $1.29 per share, in line with its previous payout.

"We are focused on delivering sustainable, profitable growth while helping clients reinvent their businesses using AI and digital platforms," CFO KC McClure stated during the earnings call.

Investor Takeaway

Accenture’s Q3 beat underscores the company's successful pivot to high-demand digital services, particularly in the fast-evolving AI space. With a global client base, deep domain expertise, and strong partnerships, the consulting major is well-positioned to capture the next wave of enterprise tech spending.

While macro uncertainty remains a factor, the secular trend toward AI-led transformation provides a long-term growth runway for Accenture. Investors looking for exposure to the enterprise AI boom may find the stock a compelling option, especially as deployment moves from pilot to production across industries.