Accenture reported better-than-expected earnings and revenue for the third quarter of fiscal year 2025. However, the stock fell around 4 per cent in premarket trading on Friday, as total bookings came in well below analyst estimates — dampening investor sentiment despite an otherwise solid quarter.

The global professional services firm posted revenue of $17.73 billion, up 8 per cent year-over-year in US dollars and 7 per cent in local currency. Diluted earnings per share (EPS) stood at $3.49, beating Wall Street expectations of $3.29, according to estimates compiled by Visible Alpha. Analysts had expected revenue of $17.33 billion.

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However, total new bookings for the quarter came in at $19.7 billion — missing the $21.5 billion consensus estimate. Both consulting and managed services bookings fell short of analyst forecasts. Within that, generative AI-related bookings accounted for $1.5 billion, pointing to continued client interest in AI transformation projects.

Operating margin expanded to 16.8 per cent, up 80 basis points from the prior year and 40 basis points above the adjusted operating margin. Free cash flow for the quarter was reported at $3.5 billion. The company also declared a quarterly cash dividend of $1.48 per share.

Accenture raised the lower end of its full-year guidance for a second consecutive quarter. It now expects revenue growth of 6 to 7 per cent in local currency, compared to the previous range of 5 to 7 per cent. Foreign exchange is expected to contribute a slight 0.2 per cent tailwind. Operating margin for the full year is projected at 15.6 per cent — up 10 basis points over the adjusted margin.

Full-year EPS is now forecast in the range of $12.77 to $12.89, up from the prior $12.55 to $12.79. Free cash flow guidance remains robust at $9.0 billion to $9.7 billion.

Despite the earnings and revenue beat, Accenture shares remain under pressure. The stock is down roughly 13 per cent year-to-date, and Friday’s decline reflects concerns over the weaker-than-expected bookings.

“I am very pleased with our third quarter fiscal 2025 results,” said Julie Sweet, Chair and CEO of Accenture. “We continue to expand our leadership in Gen AI and remain laser-focused on delivering measurable value to our clients.”