• Accenture grew revenue 8% LCCY in Mar-May, but orders -7% y-o-y
• Slight FX adjusted downgrades to FY guidance, stock -7% on Friday
• Small negative estimate risk on BTS' Q2'25e

Forward-looking metrics a bit on the soft side

Competitor and peer Accenture reported its Q3'25 report on Friday (when Swedish markets were closed) which covered the period March-May, ie over and past Liberation Day. In terms of revenue, Accenture reported local currency growth of 8% y-o-y (+3% vs cons and +3% vs guidance) as a positive surprise. Geographically, Americas grew 8%, EMEA 8% and APAC 5%. On the softer side, new bookings came in -7% y-o-y (facing a relatively tough comparable) and the Q4e revenue growth guidance of +1-5% y-o-y is a clear deceleration vs Q3. The FY guidance was raised by 1% on revenue and EPS mainly from FX movements while underlying rather a small reduction. Generative AI bookings came in at USD 1.5bn in the quarter, up 50% y-o-y. The share reacted with a -7% move on earnings, likely as a result of the declining new bookings, soft Q4e guidance and underlying reduction in FY guidance.

Potentially some estimate risk for BTS

As BTS works with strategy consulting and has 50% of revenues in North America, there have been some uncertainties regarding delayed projects and hesitant customers post Liberation Day in April. Although Accenture delivered solid revenue numbers, we view the declining new bookings as a potential sign of delayed decision making and longer sales cycles amongst customers. This could potentially add some risk to estimates going into Q2e, due 22 August, for BTS. FactSet consensus expects BTS to deliver 4% group organic growth in Q2e, compared to 1% in Q1, and the share trades at 10.2x NTM EV/EBITA which is in the low end of the last five-year range.