Main takeaways from Accenture’s (ACN) Q4 2024 earnings report

Shares of Accenture plc (NYSE: ACN) rose over 4% on Thursday, after the company delivered better-than-expected earnings results for the fourth quarter of 2024. Revenue and earnings grew on a year-over-year basis and beat expectations. The company increased its quarterly dividend, and anticipates its continued investments will help drive growth in fiscal year 2025.

Results beat estimates

Accenture’s revenues for the fourth quarter of 2024 increased 3% year-over-year to $16.40 billion, beating estimates of $16.38 billion. Revenue growth in local currency was 5%. GAAP EPS grew 24% to $2.66. Adjusted EPS increased 3% YoY to $2.79, surpassing projections of $2.78.

Business performance

In Q4, Accenture recorded revenue growth across most of its segments and geographies. Consulting revenues rose 1% YoY to $8.26 billion while Managed Services revenues increased 5% to $8.15 billion.

The Communications, Media & Technology, and Products industry groups saw revenues grow in low to mid-single-digits to $2.75 billion and $4.95 billion, respectively. Health & Public Service revenue grew double-digits to $3.61 billion. Financial Services revenue fell 5% YoY to $2.87 billion while Resources revenue remained flat at $2.22 billion.

Revenues in North America grew 5% to $7.97 billion while EMEA revenues rose 2% to $5.64 billion compared to last year. Revenues in Growth Markets decreased 3% to $2.80 billion.

In the fourth quarter, Accenture’s new bookings increased 21% YoY to $20.1 billion. Consulting new bookings were $8.6 billion while Managed Services bookings were $11.6 billion.

Outlook

Accenture expects revenues of $16.85-17.45 billion for the first quarter of 2025, representing a YoY growth of 2-6% in local currency. For the full year of 2025, the company expects revenue growth of 3-6% in local currency. GAAP EPS is projected to increase 10-13% YoY to $12.55-12.91.

Dividend hike and share buyback

Accenture increased its quarterly dividend by 15% to $1.48 per share. The dividend is payable on November 15, 2024 to shareholders of record on October 10, 2024. Accenture’s share repurchases totaled $628 million in Q4 2024. The company’s Board of Directors approved $4 billion in additional share repurchase authority, bringing its total outstanding authority to approx. $6.7 billion. Accenture plans to return at least $8.3 billion in cash to shareholders through dividends and share repurchases in FY2025.