3Q25 Revenue: $17.7B, +7.5% YoY, beat estimates by $380M
3Q25 GAAP EPS: $3.49, beat estimates by $0.17
3Q25 Dividend: Accenture declares $1.48/share quarterly dividend, in line with previous; Forward yield 1.93%; Payable Aug. 15; for shareholders of record July 10; ex-div July 10.
4Q25 Guidance: Expect revenue to be between $17.0bn to $17.6bn, midpoint of $17.3bn above consensus of $17.09.
FY25 Guidance: Expect revenue growth of between 6% to 7%, midpoint of 6.5% above consensus of 5.96%, and vs 5% to 7% previously; expects GAAP diluted EPS to be between $12.77 to $12.89, midpoint of $12.83 above consensus of $12.75, and vs $12.55 to $12.79 previously; expects GAAP operating margin to be 15.6%; expects free cash flow to be between $9.0 to $9.7bn, compared to $8.8bn to $9.5bn previously; expects operating cash flow to be between $9.6bn to $10.3bn, compared to $9.4bn to $10.1bn previously.
Comment: Accenture plc delivered better-than-expected earnings for 3Q25 but reported a 6% YoY decline in bookings to $19.7bn, marking the second consecutive quarterly drop. The weaker bookings have raised investor concerns, particularly as the company navigates growing uncertainty in its relationship with the U.S. federal government. In response to evolving client needs and broader macroeconomic pressures—including reduced federal spending and rising economic uncertainty—Accenture announced an organizational restructuring aimed at strengthening its AI consulting capabilities. The company is launching a new business unit, Reinvention Services, which will consolidate its AI offerings to support enterprise transformation. However, consulting firms like Accenture remain under pressure as U.S. tariffs and fiscal tightening under the Trump administration drive spending caution among clients, with some contracts facing cancellations or delays. Looking ahead, management anticipates a 2% headwind in its federal business for the current quarter, following a negligible impact in the third quarter. 4Q25recommended trading range: $265 to $300. Neutral Outlook.
1Q25 Revenue: $45.12B, -0.4% YoY, miss estimates by $190M
1Q25 Non-GAAP EPS: $1.49, beat estimates by $0.03
2Q25 Guidance: Expect second-quarter identical sales without fuel to be roughly at the midpoint of its full-year guidance range.
FY25 Guidance: Raise identical sales without fuel guidance to a new range of 2.25% to 3.25%.
Share buyback: Expect share repurchase program to return $7.5B to shareholders by the end of FY25, with $5B through an accelerated share repurchase (ASR) program by 3Q25 and the remainder via open market repurchases.
Comment: In its fiscal first quarter, Kroger reported identical sales growth of 3.2% (excluding fuel), supported by strength in pharmacy, fresh groceries, and a 15% surge in e-commerce sales. Kroger raised its full-year sales outlook, driven by stronger demand for lower-cost store brands, larger pack sizes, and at-home dining alternatives as shoppers become increasingly price-conscious. The grocer is actively lowering prices on more than 2,000 products and expanding its private label offerings, particularly its Simple Truth and Private Selection brands. Despite competitive pressures from Walmart and Costco, Kroger remains relatively insulated from tariff impacts and is focusing on cost control and modernizing its e-commerce operations, though the online segment is not yet profitable. The company plans to close about 60 underperforming stores while opening new locations in high-growth areas starting in 2026, all while searching for a permanent CEO following recent leadership changes. Looking ahead, Kroger is well-positioned to sustain growth by capitalizing on consumer demand for value-driven options, further expanding its private label brands and enhancing its e-commerce platform to improve profitability. While competitive pressures and shifting consumer habits will remain challenges, Kroger’s strategic cost management, selective store expansion and focus on affordable product offerings should support steady sales momentum in the coming years. 2Q25recommended trading range: $65 to $85. Positive Outlook.
1Q25 Revenue: $7.55B, +6.2% YoY, beat estimates by $20M
1Q25 GAAP EPS: $1.38, beat estimates by $0.21
2Q25 Guidance: No guidance provided.
Comment: CarMax reported strong fiscal first-quarter results, driven by a surge in used car demand amid tariff uncertainty and improved internal operations. The company sold nearly 380,000 vehicles across retail and wholesale channels, up 5.8% from the prior year, with retail sales leading growth. Same-store sales rose 8.1%, while average used vehicle prices dipped 1.5% to US$26,120. Profit climbed to US$210.4mn from US$152.4mn a year earlier, supported by operational efficiencies and the expanded use of artificial intelligence, including an AI-powered virtual assistant that improved customer service efficiency by 30%. CarMax’s digital platform remained integral, with 80% of retail unit sales supported by its online capabilities. However, the company raised its loan loss provisions due to seasonally lower credit quality, higher sales volume and continued economic uncertainty. Management expects sales growth and further market share gains throughout the year, supported by strategic pricing, inventory management and continued digital innovation. Looking ahead, CarMax is well-positioned to sustain its growth trajectory by leveraging its omnichannel platform and expanding artificial intelligence applications to drive operational efficiencies and enhance the customer experience. While rising loan loss provisions and economic headwinds may present near-term challenges, the company’s inventory management, competitive pricing and digital transformation are expected to support continued market share expansion and long-term profitability. 2Q25recommended trading range: $65 to $75. Neutral Outlook.
