Accenture restructures into four services groups and reports $16.5bn Q3 FY25 revenue

Accenture plc (NYSE: ACN) announced a sweeping transformation of its global operating model on June 20, 2025, alongside its third-quarter fiscal 2025 results, reporting $16.5 billion in revenue and $3.04 in earnings per share. The reorganization shifts the enterprise technology and consulting firm from an industry-led structure to four global service groups: Strategy & Consulting, Technology, Operations, and Accenture Song. The pivot, designed to align more closely with generative artificial intelligence adoption, marks one of the most significant strategic resets for the Ireland-headquartered multinational since its spin-out from Arthur Andersen in 2001.

The announcement also included leadership changes in the creative and marketing services division, Accenture Song. David Droga, who led Song’s rapid expansion through acquisition and integration, will step down as CEO of Accenture Song and assume the newly created role of Vice Chair of Accenture, reporting to Chair and CEO Julie Sweet. The changes are effective immediately and come as enterprise clients increasingly demand integrated, AI-enabled transformation programs that cut across traditional industry silos.

Why is Accenture restructuring its global operating model and what will the new structure look like?

Accenture’s new model introduces four global service groups—Strategy & Consulting, Technology, Operations, and Accenture Song—each operating with its own leadership and financial accountability. According to Chair and CEO Julie Sweet, the change is aimed at enabling faster innovation, tighter integration across solutions, and a stronger alignment with AI-powered enterprise reinvention.

Institutional investors have increasingly called for large IT consultancies to streamline operations, particularly as clients prioritize outcomes over advisory roadmaps. Analysts have noted that the former industry-led structure, while effective for sector-specific expertise, often created fragmentation when clients required horizontal solutions spanning cloud, data, security, and experience design.

The American consulting firm emphasized that each group will now operate with its own dedicated P&L, accountability for talent development, and delivery excellence. The new structure will be implemented fully by the start of fiscal 2026 and is expected to simplify operations while creating deeper intimacy with C-suite decision-makers across global clients.

How did Accenture perform in Q3 FY25 and what trends are visible in its financial results?

Accenture reported third-quarter fiscal 2025 revenue of $16.5 billion, reflecting a 1% decline in U.S. dollar terms and flat performance in local currency. The enterprise IT consulting and managed services provider saw mixed performance across its core offerings, with Technology and Operations showing relative strength, while discretionary consulting and creative work remained under pressure.

New bookings in Q3 reached $17.2 billion, including $10.3 billion in managed services and $6.9 billion in consulting. Operating income came in at $2.6 billion, translating to an operating margin of 15.8%. Diluted earnings per share were reported at $3.04. Free cash flow during the quarter totaled $2.7 billion, and Accenture returned $2.1 billion to shareholders through share repurchases and quarterly dividends.

For the full fiscal year, Accenture narrowed its local currency revenue growth guidance to a range of 0.5% to 1.5%, from the prior range of 1% to 3%. Full-year EPS is now expected to be between $11.85 and $12.00, reflecting continued pressure from delayed project starts and slower discretionary spending.

What are institutional investors saying about Accenture’s strategy shift and market performance?

Institutional sentiment around Accenture’s new service-led structure is cautiously optimistic. Many investors view the realignment as a necessary move to reposition the global consultancy for a decade of AI-first enterprise transformation. The renewed emphasis on service-based accountability is seen as a way to reduce delivery inefficiencies, improve margin visibility, and accelerate go-to-market synergies.

However, some analysts have flagged the near-term risks of transitioning away from a deeply entrenched industry vertical system. They noted that sales cycles could be disrupted as teams adapt to new alignment models, even as long-term scalability improves. Others pointed out that the company’s decision to reaffirm bookings strength despite a soft macro backdrop suggests resilience in core managed services demand.

Investor expectations for fiscal 2026 will hinge on whether the new structure delivers accelerated revenue growth and sustained margin expansion, particularly in the higher-margin Technology and Operations segments.

What does the leadership change at Accenture Song signal about the future of the creative services arm?

As part of the reorganization, David Droga will step aside from his current role as CEO of Accenture Song and assume a new leadership position as Vice Chair of Accenture. In this role, Droga will report directly to Julie Sweet and support high-level client engagements focused on brand, storytelling, and innovation strategy.

Accenture Song—one of the world’s largest digital creative networks—was formed through the integration of more than 40 acquisitions over several years. It has since grown into a multi-billion-dollar business serving clients across experience design, digital marketing, and commerce transformation. With Droga moving into an advisory role, Song will continue to operate as an independent service group under the new structure.

The leadership change suggests a transition from acquisition-led expansion toward operational scaling and AI integration within customer-facing engagements. According to indirect institutional feedback, the Song business is well-positioned to embed generative AI into creative production workflows, but client budget scrutiny and delayed deal cycles remain headwinds.

How is Accenture positioning itself to lead in the AI-enabled enterprise reinvention market?

Accenture’s realignment reflects its ambition to lead in the AI-first services economy. Over the past year, the firm has made significant investments in proprietary large language models, AI copilots for client delivery, and responsible AI frameworks. By organizing around service capabilities, rather than industry domains, Accenture aims to build integrated solutions that deliver measurable business outcomes.

The consulting and technology services firm has also intensified its partnerships with hyperscalers and data infrastructure providers, particularly in areas like data lakehouse integration, secure AI model deployment, and cloud-native architecture modernization. These capabilities are increasingly central to client roadmaps, as companies move from experimentation to full-scale AI deployment.

Julie Sweet emphasized that the new operating model will allow Accenture to “go deeper, go faster, and go further” in delivering transformation at scale. Internal efforts are also underway to embed generative AI across delivery functions, including software engineering, finance operations, and customer experience.

What are the growth risks and long-term outlook for Accenture as it enters FY26 with a new structure?

As Accenture prepares to execute its new growth strategy in fiscal 2026, it faces a complex mix of tailwinds and challenges. On the upside, strong bookings and resilient demand for managed services suggest that core enterprise IT spending remains intact. Accenture’s AI investments and strategic clarity may also give it an edge as clients seek unified partners across strategy, execution, and innovation.

However, growth risks include continued client budget tightening, competitive pricing from both Indian IT majors and boutique consultancies, and the execution risk associated with implementing a new global structure. Analysts expect modest revenue acceleration by mid-FY26, contingent on stabilization in consulting pipelines and successful integration of the service-led model.

Accenture’s commitment to returning capital to shareholders remains intact, with $3.7 billion returned through the first nine months of FY25. That financial discipline, combined with platform innovation and structural simplification, may help the American consulting and technology services firm defend its market leadership in an evolving enterprise landscape.