rewrite this title Accenture (ACN) to report Q2 2025 results Thursday. Here’s what to expect | AlphaStreet

Accenture plc, (NYSE: ACN) is preparing to publish its second-quarter results this week, amid expectations for a year-over-year increase in revenue and profit. The professional services company had a strong start to fiscal 2025, delivering broad-based growth across all markets and industry groups. Currently, its focus is on offering services to meet the widespread customer demand for advanced technologies like generative AI and machine learning.

The Stock

Accenture’s stock hit an all-time high in early February, before entering a downward spiral and slipping to a seven-month low last week. The stock has declined by 17% over the past 30 days. However, the pull-back appears to be temporary, as market watchers predict double-digit gains in the next twelve months. Considering the positive outlook and the company’s strong track record of resilience, ACN is unlikely to disappoint long-term investors.

In a recent statement, the management said it expects second-quarter 2025 revenue to be in the range of $16.2 billion to16.8 billion. Analysts following the company predict revenues of $16.62 billion for Q2, compared to $15.8 billion in the corresponding quarter last year. Wall Street’s consensus earnings estimate is $2.81 per share, vs. $2.77 per share in Q2 2024. The earnings report is expected on Thursday, March 20, at 6:40 am ET.

Q1 Beat

In the first three months of fiscal 2025, revenues increased 9% from the prior year to $17.7 billion. Net income attributable to shareholders was $2.28 billion or $3.59 per share in Q1, compared to $1.97 billion or $3.10 per share in Q1 2024. Both numbers surpassed Wall Street’s expectations, marking the second beat in a row. The Products and Health & Public Service segments, which together account for more than 50% of total revenue, grew 12% and 13% respectively.

Accenture’s CEO Julie Sweet said in the Q1 earnings call, “We do not currently see an improvement in overall spending by our clients, particularly on smaller deals. When those market conditions improve, we will be well-positioned to capitalize on them, as we continue to meet the demand for the critical programs our clients are prioritizing. As expected, building the strong digital core required for reinvention was a strong driver of our growth this quarter. GenAI continues to be a catalyst for reinvention across the enterprise and building out the data foundation necessary to capitalize on AI, as an increasing part of that growth.”

Tech Push

As per the most recent financial guidance, the Accenture leadership expects FY25 revenue to increase by 4-7% in local currency. The forecast for full-year earnings is $12.43-12.79 per share. The company is increasing its data and AI workforce to tap into new opportunities in the market and return to the high-growth mode. That is significant, especially given the current subdued demand and cautious enterprise tech spending.

On Monday, ACN opened higher and maintained the uptrend in the early hours, indicating a potential rebound from the recent downturn. Meanwhile, the shares have been trading below their 52-week average price since last week.