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Investing.com -- Accenture (NYSE:ACN) reported first-quarter earnings and revenue above analyst expectations, leading to a 3% jump in its shares in premarket trading Thursday.
The company posted earnings per share (EPS) of $3.59 for the quarter, up from $3.10 in the same period last year and topping the $3.42 consensus estimate.
Revenue came in at $17.69 billion, marking a 9% surge year-over-year, and exceeding the $17.13 billion estimate.
Product revenue rose to $5.43 billion, a 12% year-over-year increase and above the $5.12 billion forecast.
The Health&Public Service segment posted revenue of $3.81 billion, up 13% year-over-year, beating expectations of $3.69 billion.
Operating cash flow doubled to $1.02 billion, compared to $498.6 million a year ago, but slightly missed the $1.06 billion estimate. Operating margin improved to 16.7%, up from 15.8% in the prior year.
“Our strategy to lead reinvention for clients while continuing to invest in our business has given us a strong start to fiscal 2025,” said Julie Sweet, chair and CEO of Accenture.
“First quarter new bookings were $18.7 billion, including 30 quarterly client bookings of more than $100 million, and we continued to lead in helping our clients realize value with generative AI, with new bookings of $1.2 billion.”
Looking ahead, Accenture raised its revenue growth outlook to 4%-7% in local currency, up from the previous 3%-6% estimate.
For the second quarter, the company expects revenue between $16.2 billion and $16.8 billion, compared to the consensus of $16.623 billion.
Accenture projects full-year GAAP EPS of $12.43-$12.79, slightly below the prior range of $12.55-$12.91 but within market expectations, compared to the consensus of $12.73. This reflects a 9%-12% increase over fiscal 2024 GAAP EPS of $11.44. Adjusted EPS growth is forecasted at 4%-7%.
The company continues to expect a GAAP operating margin of 15.6%-15.8% for fiscal 2025, representing an expansion of up to 100 basis points year-over-year. The effective tax rate is forecasted to remain between 22.5%-24.5%.
Accenture also reaffirmed its cash flow targets, anticipating operating cash flow of $9.4-$10.1 billion, capital expenditures of $600 million, and free cash flow of $8.8-$9.5 billion.
