AC

Accenture plc stock research

Nov 30, 2024

FY2025 Q1

Accenture (ACN) Gross Margin — Quarter Ended Nov 30, 2024

Revenue increased from the previous quarter, and gross profit grew more than cost of revenue, leading to an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue grew at a faster pace, resulting in a lower gross margin.

Gross margin takeaway

Quarter ended Nov 30, 2024 · FY2025 Q1

Revenue increased from the previous quarter, and gross profit grew more than cost of revenue, leading to an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue grew at a faster pace, resulting in a lower gross margin.

  • The primary driver of the sequential margin improvement was the slower growth in cost of revenue relative to revenue. A key item to monitor is whether this cost efficiency can be maintained.
  • Gross margin improved sequentially, while it weakened compared to the same quarter last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.9%

Gross profit

$5.8B

Revenue

$17.7B

Cost of revenue

$11.9B

Quarter-over-quarter change

-0.5 pts

Year-over-year change

-0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Nov 30, 2023$16.2B$5.4B$10.8B33.6%
Feb 29, 2024$15.8B$4.9B$10.9B30.9%
May 31, 2024$16.5B$5.5B$11.0B33.4%
Nov 30, 2024$17.7B$5.8B$11.9B32.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

May 31, 2024

-0.5 pts

Year-over-year change

Nov 30, 2023

-0.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver of the sequential margin improvement was the slower growth in cost of revenue relative to revenue. A key item to monitor is whether this cost efficiency can be maintained.

Gross margin improved sequentially, while it weakened compared to the same quarter last year.

Monitor the trend of cost of revenue relative to revenue growth.