Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 12 Aug, 25 | ACN | Buy | USD 239.85 | USD 251.0 | USD 263.0 | 8 days | Closed |
8.56%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Accenture plc provides strategy and consulting, industry X, song, and technology and operation services in North America, Europe, the Middle East, Africa, and internationally. It offers systems integration and application management; security; intelligent platform; infrastructure; software engineering; data and AI; and automation services. The company also operates business processes; and designs, manufactures, and assembles automation equipment, robotics, and other commercial hardware products. It serves communications, media, and technology; banking and capital markets, and insurance; health and public service; consumer goods, retail, travel services; industrial; life science; chemicals, natural resources, energy, and utilities sectors. It has collaboration agreement with Kyoto University to advance learning, research, and innovation in human-centered AI. The company was founded in 1951 and is based in Dublin, Ireland.
EPS Expansion: Diluted EPS grew from USD 3.13 (adjusted Q3 FY24) to USD 3.49 in Q3 FY25, reflecting a 12% year-over-year increase
Revenue Growth: Revenue increased from USD 16.39 billion in Q3 FY24 to USD 17.7 billion in Q3 FY25, marking a 7% rise in local currency and 8% in USD
Gross Margin Compression: Gross margin declined from 33.4% in Q3 FY24 to 32.9% in Q3 FY25, a 50 basis point decrease
Bookings Decline: New bookings decreased from USD 20.96 billion in Q3 FY24 to USD 19.7 billion in Q3 FY25, a 6% drop in USD and 7% in local currency
Accenture’s growth is vulnerable to declines in large-scale client bookings and macroeconomic uncertainties, which could limit demand for discretionary consulting and technology services
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 239.85 | 216.0 | 251.0 | 263.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Quarterly Performance: Accenture delivered a robust performance in the third quarter of fiscal 2025, surpassing its revenue guidance with USD 17.7 billion, representing 7% growth in local currency. The company reported new bookings of USD 19.7 billion, including 30 clients with quarterly bookings exceeding USD 100 million. GenAI continued to drive momentum with USD 1.5 billion in bookings and over USD 700 million in revenues during the quarter. Operating margin expanded by 40 basis points year-over-year, while diluted earnings per share grew 12% compared to the adjusted figure from Q3 FY24.
Broad-Based Growth Across Markets: Revenue growth was broad-based across geographic regions and industry sectors. In the Americas, revenue rose 9% in local currency, driven by strong performance in Banking and Capital Markets, Industrial, and Health sectors. EMEA delivered 6% growth, led by Life Sciences, Banking and Capital Markets, and Insurance, with notable contributions from the United Kingdom, Germany, and Italy. Asia Pacific achieved 4% growth, supported by Public Service and Banking, though partially offset by declines in Chemicals and Natural Resources.
Operational Investments and Workforce Development: The company invested heavily in talent and capabilities to strengthen its market position. Year-to-date, 38 million training hours were delivered, marking an 18% increase over the prior year. The data and AI workforce grew to approximately 75,000, with a target of 80,000 by the end of FY26. Strategic acquisitions during the quarter included TalentSprint, Ascendient, Yumemi, and Soben, aimed at enhancing industry-relevant certifications, digital product development, and infrastructure expertise.
Strategic Partnerships and Innovation: Accenture advanced numerous client partnerships to drive large-scale digital transformation. Initiatives included helping Air France-KLM migrate to the cloud, developing an AI-powered maritime ecosystem for Fincantieri, transforming cybersecurity operations for Nationwide Building Society, and integrating GenAI and automation into Pfizer’s operations. These collaborations emphasized efficiency, resilience, and sustainability while leveraging AI and digital platforms.
Cash Flow and Shareholder Returns: Free cash flow reached USD 3.5 billion in the quarter, stemming from USD 3.7 billion in operating cash flows. The company returned USD 2.7 billion to shareholders via share repurchases and dividends, including a quarterly cash dividend of USD 1.48 per share, representing a 15% increase over last year. As of May 31, 2025, Accenture held USD 9.6 billion in cash and retained USD 3.3 billion in share repurchase authority.
Business Outlook: For the fourth quarter of fiscal 2025, Accenture expects revenues between USD 17.0 billion and USD 17.6 billion, reflecting 1% to 5% growth in local currency. The full-year revenue growth forecast has been raised to 6%–7% in local currency. The company anticipates a full-year operating margin of 15.6% and EPS growth of 7%–8% over adjusted FY24 results. Planned free cash flow for the year is projected at USD 9.0 billion to USD 9.7 billion, with at least USD 8.3 billion to be returned to shareholders.
Commitment to Reinvention and Growth: Accenture announced the integration of its services—Strategy, Consulting, Song, Technology, and Operations—into a single business unit named “Reinvention Services” effective September 1, 2025. This structural shift aims to accelerate solution delivery, embed AI more seamlessly, and better serve clients across industries and geographies, positioning the company for its next phase of growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given for Accenture plc (NYSE: ACN) at the current market price of USD 239.85, as on August 12, 2025 at 8:45 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Information Technology Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ACN Accenture plc |
2.36 0.87% | 274.40 | 31.75 | 28.09 | 3.49 | 7.94 | 3.45 | 20.00 |
| IBM International Business Machines |
1.65 0.54% | 304.83 | 32.79 | 20.83 | 3.32 | 8.50 | 4.06 | 20.10 |
| INFY Infosys Ltd ADR |
0.38 2.14% | 18.15 | 25.55 | 22.78 | 4.20 | 8.01 | 4.10 | 15.87 |
| AEXAY Atos Origin SA ADR |
- -% | 10.37 | - | 0.28 | 4.20 | 1.74 | 0.52 | -2.0097 |
| WIT Wipro Limited ADR |
0.05 1.79% | 2.85 | 26.46 | 23.75 | 0.04 | 3.81 | 2.96 | 12.90 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Aug 12,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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