Accenture plc (NYSE:ACN) Earnings Preview: Q3 Fiscal 2025 Expectations

• Accenture's EPS is expected to be $3.27, with analysts predicting a slight increase to $3.32, marking a 5.1% year-over-year growth.
• Revenue projections stand at approximately $17.26 billion, with a potential increase to $17.3 billion, representing a 4.5% growth from the previous year.
• The company's financial health is solid, with a price-to-earnings (P/E) ratio of 25.46 and a debt-to-equity ratio of 0.28, indicating low debt levels.

Accenture plc (NYSE:ACN) is a global professional services company, providing a range of services in strategy, consulting, digital, technology, and operations. The company is known for its strong presence in the IT services industry, competing with firms like IBM and Deloitte. Accenture is set to release its third-quarter fiscal 2025 earnings on Friday, June 20, before the market opens.

Wall Street estimates Accenture's earnings per share (EPS) to be $3.27, while analysts anticipate a slightly higher EPS of $3.32, reflecting a 5.1% year-over-year increase from $3.13. This growth is indicative of Accenture's robust performance across its segments. The consensus EPS estimate has been revised upward by 1.3% over the past 30 days, suggesting positive sentiment among analysts.

Accenture's revenue is projected to be approximately $17.26 billion, with analysts expecting a slightly higher figure of $17.3 billion. This represents a 4.5% increase from $16.47 billion in the same period last year. The company's strategic acquisition of Japan-based Yumemi is expected to bolster its digital product offerings, potentially driving future revenue growth.

Accenture's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 25.46, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is 2.91, and the enterprise value to sales ratio is 2.90, reflecting the value placed on its sales. The enterprise value to operating cash flow ratio is 18.73, showing how its cash flow is valued relative to its enterprise value.

Accenture maintains a strong financial position with a debt-to-equity ratio of 0.28, indicating low debt levels compared to equity. The current ratio of 1.48 suggests that the company has sufficient liquidity to cover its short-term liabilities. With an earnings yield of 3.93%, Accenture offers a reasonable return on investment for shareholders. JP Morgan analyst Tien-Tsin Huang's Overweight rating on the company further underscores the positive outlook ahead of the earnings call.