How ACN (Accenture) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a global professional services leader like ACN (formerly Accenture) makes money is essential for investors and anyone interested in the business of consulting and technology services. In this post, we break down ACN's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick ACN Overview

ACN operates as a global professional services company, providing consulting, technology, and outsourcing solutions to clients across industries. Revenue comes primarily from delivering digital, cloud, and security services, as well as industry-specific consulting and managed services. The business is organized into segments such as Products, Health & Public Service, Financial Services, and Communications, Media & Technology, each targeting distinct client sectors.

Revenue Breakdown

• Total Revenue (Q3 2025): $17.6B (+7.3% YoY)
  • Products Revenue: $5.38B (30.6% of total, +8.6% YoY)
  • Health & Public Service Revenue: $3.56B (20.3% of total, -1.4% YoY)
  • Financial Services Revenue: $3.32B (18.8% of total, +15.4% YoY)
  • Communications, Media & Technology: $2.95B (16.8% of total, +7.4% YoY)
  • Other: $2.39B
• Growth is powered by strong demand in Financial Services and Products, with digital transformation and cloud adoption as key drivers.

Gross Profit and Margins

• Gross Profit: $5.61B (31.9% gross margin)
  • Cost of Revenue: $12.0B (+8.3% YoY)
  • ACN maintains robust margins due to its scalable digital business model and operational efficiencies in service delivery.
• Most costs come from personnel expenses, subcontractor fees, and technology infrastructure required to deliver client projects.

Operating Income and Expenses

• Operating Income: $2.05B (-12.9% YoY, 11.6% margin)
• Operating Expenses: $3.56B (+19.4% YoY)
  • R&D: Not separately disclosed for Q3 2025
  • SG&A: $2.95B (+2.4% YoY, 16.7% of revenue) — includes sales, marketing, and administrative costs to support global operations and client acquisition
  • ACN continues to invest in growth and digital capabilities while maintaining efficiency in its core consulting operations.

Net Income

• Pre-Tax Income: $2.08B (-11.0% YoY, 11.8% margin)
• Income Tax: $625.4M (30.1% effective tax rate)
• Net Income: $1.41B (-16.1% YoY, 8.0% net margin)
• ACN converts a moderate portion of sales into profit due to its global scale and focus on high-value digital services, though margins have compressed due to rising costs and investments.

What Drives ACN's Money Machine?

• Consulting and Managed Services: Over 80% of revenue comes from delivering technology, consulting, and outsourcing solutions to enterprise clients.
• Digital, Cloud & Security: These high-growth areas drive both revenue and margin expansion, with digital transformation projects fueling client demand.
• Strategic Investments: ACN invests heavily in talent acquisition, technology platforms, and industry partnerships to maintain its leadership in digital services.
• Future Growth Areas: Expansion into AI, data analytics, and industry-specific cloud solutions are key priorities, though not all are profitable yet.

Visualizing ACN's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant investments and rising costs, 8.0% of revenue drops to the bottom line.

Key Takeaways

• ACN's money comes overwhelmingly from consulting and managed services for enterprise clients
• High gross and net margins illustrate the power of ACN's scalable, digital-first business model
• Heavy investment in digital capabilities and global talent, balanced by efficiency in operating costs
• Ongoing growth is driven by demand for digital transformation, cloud, and industry-specific solutions

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FAQ About ACN's Income Statement

1. What is the main source of ACN's revenue in 2025?

ACN generates over 80% of its revenue from consulting and managed services, with Products and Financial Services segments contributing the largest shares. Additional revenue comes from Health & Public Service and Communications, Media & Technology.

2. How profitable is ACN in Q3 2025?

ACN reported net income of $1.41B in Q3 2025, with a net margin of approximately 8.0%, reflecting moderate profitability driven by its digital business model and global client base.

3. What are the largest expense categories for ACN?

The biggest expenses on ACN's income statement are cost of revenue (primarily personnel and subcontractor costs) and operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A reached $2.95B in Q3 2025, as ACN prioritizes global sales, marketing, and administrative support.

4. Why does Health & Public Service operate at a loss?

Health & Public Service, despite generating $3.56B in revenue, posted a YoY revenue decline of -1.4% in Q3 2025. This is because ACN aggressively invests in expanding digital health and public sector solutions, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does ACN's effective tax rate compare to previous years?

ACN's effective tax rate in Q3 2025 was 30.1%, consistent with previous years. This moderate rate is primarily due to the company's global tax structure and benefits from international operations.