Accenture Reports Third-Quarter Fiscal 2024 Results
-
New bookings of
$21.1 billion , an increase of 22% inU.S. dollars and 26% in local currency -
Generative AI new bookings of over
$900 million for a total of$2 billion fiscal year-to-date -
Revenues of
$16.5 billion , a decrease of 1% inU.S. dollars and increase of 1.4% in local currency, with consulting revenues of$8.5 billion and managed services revenues of$8.0 billion - GAAP operating margin of 16.0%, an increase of 180 basis points over the third quarter of fiscal 2023; adjusted1 operating margin of 16.4%, an expansion of 10 basis points
-
GAAP EPS of
$3.04 , a decrease of 3% from the third quarter of fiscal 2023; adjusted EPS of$3.13 , a 2% decrease -
Quarterly cash dividend of
$1.29 per share, an increase of 15% -
Accenture updates business outlook for fiscal 2024; now expects full-year revenue growth of 1.5% to 2.5% in local currency, full-year foreign-exchange impact of negative 0.7%, GAAP EPS of$11.29 to$11.44 and adjusted EPS of$11.85 to$12.00 ; continues to expect GAAP operating margin of 14.8%, adjusted operating margin of 15.5% and free cash flow of$8.7 billion to$9.3 billion
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240620215807/en/
3QFY24 Earnings Infographic (Graphic: Business Wire)
Revenues were
GAAP operating income was
1Adjusted financial measures presented in this release are non-GAAP financial measures that exclude business optimization costs recorded in fiscal 2024 and fiscal 2023, and a gain related to our investment in
GAAP diluted earnings per share were
New bookings for the quarter were
Financial Review
Revenues for the third quarter of fiscal 2024 were
Revenues for the quarter reflect a foreign-exchange impact of approximately negative 2% compared with the negative 1% impact previously assumed. Adjusting for the actual foreign-exchange impact, the company’s guided range for quarterly revenues was approximately
-
Consulting revenues for the quarter were
$8.46 billion , a decrease of 3% inU.S. dollars and 1% in local currency compared with the third quarter of fiscal 2023.
-
Managed Services revenues for the quarter were
$8.01 billion , an increase of 2% inU.S. dollars and 4% in local currency compared with the third quarter of fiscal 2023.
GAAP diluted EPS for the quarter were
-
a
$ 0.07 decrease from a higher effective tax rate; and
-
a
$ 0.01 decrease from higher noncontrolling interests;
partially offset by
-
a
$ 0.02 increase from lower share count
Gross margin (gross profit as a percentage of revenues) for the quarter was 33.4%, flat compared with the third quarter of fiscal 2023. Selling, general and administrative (SG&A) expenses for the quarter were
GAAP operating income for the quarter increased 12%, to
The company’s GAAP effective tax rate for the quarter was 25.4%, compared with 22.2% for the third quarter of fiscal 2023. The adjusted effective tax rate for the third quarter of fiscal 2024 was 25.5%, compared with 24.0% for the third quarter of fiscal 2023.
GAAP net income for the quarter was
Operating cash flow for the quarter was
Days services outstanding, or DSOs, were 43 days at
Accenture’s total cash balance at
New Bookings
New bookings for the third quarter of fiscal 2024 were
-
Consulting new bookings were
$9.28 billion , or 44% of total new bookings.
-
Managed Services new bookings were
$11.78 billion , or 56% of total new bookings.
Revenues by Geographic Market 2
Revenues by geographic market were as follows:
-
North America :$7.83 billion , an increase of 1% in bothU.S. dollars and local currency compared with the third quarter of fiscal 2023.
-
EMEA:
$5.78 billion , a decrease of 2% in bothU.S. dollars and local currency compared with the third quarter of fiscal 2023.
-
Growth Markets:
$2.86 billion , a decrease of 4% inU.S. dollars and an increase of 8% in local currency compared with the third quarter of fiscal 2023.
Revenues by
Revenues by industry group were as follows:
-
Communications, Media & Technology:
$2.76 billion , a decrease of 4% inU.S. dollars and 1% in local currency compared with the third quarter of fiscal 2023.
-
Financial Services:
$2.89 billion , a decrease of 8% inU.S. dollars and 5% in local currency compared with the third quarter of fiscal 2023.
-
Health & Public Service:
$3.52 billion , an increase of 8% inU.S. dollars and 9% in local currency compared with the third quarter of fiscal 2023.
-
Products:
$4.98 billion , flat inU.S. dollars and an increase of 2% in local currency compared with the third quarter of fiscal 2023.
-
Resources:
$2.31 billion , flat inU.S. dollars and an increase of 3% in local currency compared with the third quarter of fiscal 2023.
2Effective
Returning Cash to Shareholders
Accenture continues to return cash to shareholders through cash dividends and share repurchases.
Dividend
On
Share Repurchase Activity
During the third quarter of fiscal 2024, Accenture repurchased or redeemed 4.3 million shares for a total of
Accenture’s total remaining share repurchase authority at
At
Business Outlook
Fourth Quarter Fiscal 2024
Accenture expects revenues for the fourth quarter of fiscal 2024 to be in the range of
Fiscal Year 2024
Accenture’s business outlook for fiscal 2024 now assumes that the foreign-exchange impact on its results in
For fiscal 2024, the company now expects revenue growth to be in the range of 1.5% to 2.5% in local currency, compared to 1% to 3% previously.
Accenture continues to expect GAAP operating margin for fiscal 2024 to be 14.8%, an expansion of 110 basis points from fiscal 2023; and adjusted operating margin, which excludes an estimated
The company now expects both its GAAP and adjusted annual effective tax rate, which excludes the tax impacts of business optimization costs, to be in the range of 23.5% to 24.5%, compared to 22.5% to 24.5% previously.
The company now expects GAAP diluted EPS to be in the range of
For fiscal 2024, the company continues to expect operating cash flow to be in the range of
The company continues to expect to return at least
360° Value Reporting
Accenture’s goal is to create 360° value for our clients, people, shareholders, partners and communities. Our reporting captures how we deliver unique value across six vital dimensions and offers a comprehensive view of our financial and environmental, social and governance (ESG) measures, and our goals, progress and performance for each. Our full 360° Value Report and online 360° Value Reporting Experience provide customizable reporting. To access, please visit the Accenture 360° Value Reporting Experience at www.accenture.com/reportingexperience.
Conference Call and Webcast Details
Accenture will host a conference call at
A replay of the conference call will be available at www.accenture.com and at +1 (866) 207-1041 [or +1 (402) 970-0847 outside the
About Accenture
Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with 750,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.
Non-GAAP Financial Information
This news release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target,” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in
C onsolidated Income Statements
(In thousands of (Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues |
|
$ |
16,466,828 |
|
|
100.0 |
% |
|
$ |
16,564,585 |
|
|
100.0 |
% |
|
$ |
48,490,645 |
|
|
100.0 |
% |
|
$ |
48,126,545 |
|
|
100.0 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of services |
|
|
10,968,377 |
|
|
66.6 |
% |
|
|
11,035,515 |
|
|
66.6 |
% |
|
|
32,665,784 |
|
|
67.4 |
% |
|
|
32,576,567 |
|
|
67.7 |
% |
Sales and marketing |
|
|
1,750,366 |
|
|
10.6 |
% |
|
|
1,738,621 |
|
|
10.5 |
% |
|
|
5,091,442 |
|
|
10.5 |
% |
|
|
4,852,207 |
|
|
10.1 |
% |
General and administrative costs |
|
|
1,039,800 |
|
|
6.3 |
% |
|
|
1,084,288 |
|
|
6.5 |
% |
|
|
3,158,747 |
|
|
6.5 |
% |
|
|
3,209,539 |
|
|
6.7 |
% |
Business optimization costs |
|
|
77,420 |
|
|
0.5 |
% |
|
|
346,873 |
|
|
2.1 |
% |
|
|
332,493 |
|
|
0.7 |
% |
|
|
591,263 |
|
|
1.2 |
% |
Total operating expenses |
|
|
13,835,963 |
|
|
|
|
|
14,205,297 |
|
|
|
|
|
41,248,466 |
|
|
|
|
|
41,229,576 |
|
|
|
||||
OPERATING INCOME |
|
|
2,630,865 |
|
|
16.0 |
% |
|
|
2,359,288 |
|
|
14.2 |
% |
|
|
7,242,179 |
|
|
14.9 |
% |
|
|
6,896,969 |
|
|
14.3 |
% |
Interest income |
|
|
53,690 |
|
|
|
|
|
81,818 |
|
|
|
|
|
220,939 |
|
|
|
|
|
176,782 |
|
|
|
||||
Interest expense |
|
|
(11,334 |
) |
|
|
|
|
(11,208 |
) |
|
|
|
|
(36,134 |
) |
|
|
|
|
(30,122 |
) |
|
|
||||
Other income (expense), net |
|
|
(18,851 |
) |
|
|
|
|
201,783 |
|
|
|
|
|
(60,222 |
) |
|
|
|
|
136,576 |
|
|
|
||||
INCOME BEFORE INCOME TAXES |
|
|
2,654,370 |
|
|
16.1 |
% |
|
|
2,631,681 |
|
|
15.9 |
% |
|
|
7,366,762 |
|
|
15.2 |
% |
|
|
7,180,205 |
|
|
14.9 |
% |
Income tax expense |
|
|
673,022 |
|
|
|
|
|
583,346 |
|
|
|
|
|
1,666,231 |
|
|
|
|
|
1,584,887 |
|
|
|
||||
NET INCOME |
|
|
1,981,348 |
|
|
12.0 |
% |
|
|
2,048,335 |
|
|
12.4 |
% |
|
|
5,700,531 |
|
|
11.8 |
% |
|
|
5,595,318 |
|
|
11.6 |
% |
Net income attributable to noncontrolling interest in |
|
|
(1,901 |
) |
|
|
|
|
(2,101 |
) |
|
|
|
|
(5,592 |
) |
|
|
|
|
(5,790 |
) |
|
|
||||
Net income attributable to noncontrolling interests – other (1) |
|
|
(47,264 |
) |
|
|
|
|
(36,238 |
) |
|
|
|
|
(114,453 |
) |
|
|
|
|
(90,934 |
) |
|
|
||||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC |
|
$ |
1,932,183 |
|
|
11.7 |
% |
|
$ |
2,009,996 |
|
|
12.1 |
% |
|
$ |
5,580,486 |
|
|
11.5 |
% |
|
$ |
5,498,594 |
|
|
11.4 |
% |
CALCULATION OF EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to |
|
$ |
1,932,183 |
|
|
|
|
$ |
2,009,996 |
|
|
|
|
$ |
5,580,486 |
|
|
|
|
$ |
5,498,594 |
|
|
|
||||
Net income attributable to noncontrolling interest in |
|
|
1,901 |
|
|
|
|
|
2,101 |
|
|
|
|
|
5,592 |
|
|
|
|
|
5,790 |
|
|
|
||||
Net income for diluted earnings per share calculation |
|
$ |
1,934,084 |
|
|
|
|
$ |
2,012,097 |
|
|
|
|
$ |
5,586,078 |
|
|
|
|
$ |
5,504,384 |
|
|
|
||||
WEIGHTED AVERAGE SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
|
628,353,267 |
|
|
|
|
|
631,535,162 |
|
|
|
|
|
628,437,255 |
|
|
|
|
|
630,826,230 |
|
|
|
||||
Diluted |
|
|
635,607,597 |
|
|
|
|
|
638,743,434 |
|
|
|
|
|
636,611,310 |
|
|
|
|
|
638,404,751 |
|
|
|
||||
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
3.07 |
|
|
|
|
$ |
3.18 |
|
|
|
|
$ |
8.88 |
|
|
|
|
$ |
8.72 |
|
|
|
||||
Diluted |
|
$ |
3.04 |
|
|
|
|
$ |
3.15 |
|
|
|
|
$ |
8.77 |
|
|
|
|
$ |
8.62 |
|
|
|
||||
Cash dividends per share |
|
$ |
1.29 |
|
|
|
|
$ |
1.12 |
|
|
|
|
$ |
3.87 |
|
|
|
|
$ |
3.36 |
|
|
|
(1) |
Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of |
(2) |
Diluted earnings per share assumes the exchange of all |
Summary of Revenues
(In thousands of (Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Percent Increase (Decrease)
Dollars |
|
Percent Increase (Decrease) Local Currency |
||||||
|
|
|
|
|
|
|
||||||
GEOGRAPHIC MARKETS |
|
|
|
|
|
|
|
|
||||
|
|
$ |
7,834,206 |
|
$ |
7,720,903 |
|
1 |
% |
|
1 |
% |
EMEA (2) |
|
|
5,776,624 |
|
|
5,872,107 |
|
(2 |
) |
|
(2 |
) |
Growth Markets (1) (2) |
|
|
2,855,998 |
|
|
2,971,575 |
|
(4 |
) |
|
8 |
|
Total Revenues |
|
$ |
16,466,828 |
|
$ |
16,564,585 |
|
(1 |
)% |
|
1 |
% |
INDUSTRY GROUPS |
|
|
|
|
|
|
|
|
||||
Communications, Media & Technology |
|
$ |
2,763,076 |
|
$ |
2,880,187 |
|
(4 |
)% |
|
(1 |
)% |
Financial Services |
|
|
2,894,753 |
|
|
3,138,181 |
|
(8 |
) |
|
(5 |
) |
Health & Public Service |
|
|
3,515,264 |
|
|
3,266,347 |
|
8 |
|
|
9 |
|
Products |
|
|
4,983,422 |
|
|
4,968,399 |
|
— |
|
|
2 |
|
Resources |
|
|
2,310,313 |
|
|
2,311,471 |
|
— |
|
|
3 |
|
Total Revenues |
|
$ |
16,466,828 |
|
$ |
16,564,585 |
|
(1 |
)% |
|
1 |
% |
TYPE OF WORK |
|
|
|
|
|
|
|
|
||||
Consulting |
|
$ |
8,457,169 |
|
$ |
8,693,030 |
|
(3 |
)% |
|
(1 |
)% |
Managed Services |
|
|
8,009,659 |
|
|
7,871,555 |
|
2 |
|
|
4 |
|
Total Revenues |
|
$ |
16,466,828 |
|
$ |
16,564,585 |
|
(1 |
)% |
|
1 |
% |
|
|
Nine Months Ended |
|
Percent Increase (Decrease)
Dollars |
|
Percent Increase (Decrease) Local Currency |
||||||
|
|
|
|
|
|
|
||||||
GEOGRAPHIC MARKETS |
|
|
|
|
|
|
|
|
||||
|
|
$ |
22,773,920 |
|
$ |
22,741,597 |
|
— |
% |
|
— |
% |
EMEA (2) |
|
|
17,179,116 |
|
|
16,739,688 |
|
3 |
|
|
(1 |
) |
Growth Markets (1) (2) |
|
|
8,537,609 |
|
|
8,645,260 |
|
(1 |
) |
|
6 |
|
Total Revenues |
|
$ |
48,490,645 |
|
$ |
48,126,545 |
|
1 |
% |
|
1 |
% |
INDUSTRY GROUPS |
|
|
|
|
|
|
|
|
||||
Communications, Media & Technology |
|
$ |
8,086,661 |
|
$ |
8,745,192 |
|
(8 |
)% |
|
(6 |
)% |
Financial Services |
|
|
8,737,261 |
|
|
9,104,444 |
|
(4 |
) |
|
(4 |
) |
Health & Public Service |
|
|
10,226,769 |
|
|
9,289,961 |
|
10 |
|
|
10 |
|
Products |
|
|
14,605,247 |
|
|
14,352,759 |
|
2 |
|
|
1 |
|
Resources |
|
|
6,834,707 |
|
|
6,634,189 |
|
3 |
|
|
4 |
|
Total Revenues |
|
$ |
48,490,645 |
|
$ |
48,126,545 |
|
1 |
% |
|
1 |
% |
TYPE OF WORK |
|
|
|
|
|
|
|
|
||||
Consulting |
|
$ |
24,934,709 |
|
$ |
25,416,160 |
|
(2 |
)% |
|
(2 |
)% |
Managed Services |
|
|
23,555,936 |
|
|
22,710,385 |
|
4 |
|
|
4 |
|
Total Revenues |
|
$ |
48,490,645 |
|
$ |
48,126,545 |
|
1 |
% |
|
1 |
% |
(1) |
As announced on |
(2) |
Effective |
Operating Income by Geographic Market
(In thousands of (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
|
||||||||||||
|
|
|
|
|
|
||||||||||
|
Operating Income |
|
Operating Margin |
|
Operating Income |
|
Operating Margin |
|
Increase (Decrease) |
||||||
|
$ |
1,365,072 |
|
17 |
% |
|
$ |
1,241,245 |
|
16 |
% |
|
$ |
123,827 |
|
EMEA (2) |
|
749,859 |
|
13 |
|
|
|
670,330 |
|
11 |
|
|
|
79,529 |
|
Growth Markets (1) (2) |
|
515,934 |
|
18 |
|
|
|
447,713 |
|
15 |
|
|
|
68,221 |
|
Total Operating Income |
$ |
2,630,865 |
|
16.0 |
% |
|
$ |
2,359,288 |
|
14.2 |
% |
|
$ |
271,577 |
|
Nine Months Ended |
|
|
||||||||||||
|
|
|
|
|
|
||||||||||
|
Operating Income |
|
Operating Margin |
|
Operating Income |
|
Operating Margin |
|
Increase (Decrease) |
||||||
|
$ |
3,682,156 |
|
16 |
% |
|
$ |
3,374,986 |
|
15 |
% |
|
$ |
307,170 |
|
EMEA (2) |
|
2,102,472 |
|
12 |
|
|
|
2,012,616 |
|
12 |
|
|
|
89,856 |
|
Growth Markets (1) (2) |
|
1,457,551 |
|
17 |
|
|
|
1,509,367 |
|
17 |
|
|
|
(51,816 |
) |
Total Operating Income |
$ |
7,242,179 |
|
14.9 |
% |
|
$ |
6,896,969 |
|
14.3 |
% |
|
$ |
345,210 |
|
(1) |
As announced on |
(2) |
Effective |
Reconciliation of Operating Income, as Reported (GAAP) to Operating Income as Adjusted (Non-GAAP)
(In thousands of (Unaudited) |
||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||
|
|
|
|
|||||||||||||||
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
Operating Margin (Non-GAAP) |
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
Operating Margin (Non-GAAP) |
|||||||||
|
$ |
1,365,072 |
$ |
(3,677 |
) |
$ |
1,361,395 |
17 |
% |
|
$ |
1,241,245 |
$ |
96,349 |
$ |
1,337,594 |
17 |
% |
EMEA (3) |
|
749,859 |
|
74,937 |
|
|
824,796 |
14 |
|
|
|
670,330 |
|
167,205 |
|
837,535 |
14 |
|
Growth Markets (2) (3) |
|
515,934 |
|
6,160 |
|
|
522,094 |
18 |
|
|
|
447,713 |
|
83,319 |
|
531,032 |
18 |
|
Total Operating Income |
$ |
2,630,865 |
$ |
77,420 |
|
$ |
2,708,285 |
16.4 |
% |
|
$ |
2,359,288 |
$ |
346,873 |
$ |
2,706,161 |
16.3 |
% |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
||||||||||||||
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
Operating Margin (Non-GAAP) |
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
Operating Margin (Non-GAAP) |
||||||||
|
$ |
3,682,156 |
$ |
46,941 |
$ |
3,729,097 |
16 |
% |
|
$ |
3,374,986 |
$ |
273,329 |
$ |
3,648,315 |
16 |
% |
EMEA (3) |
|
2,102,472 |
|
231,302 |
|
2,333,774 |
14 |
|
|
|
2,012,616 |
|
208,165 |
|
2,220,781 |
13 |
|
Growth Markets (2) (3) |
|
1,457,551 |
|
54,250 |
|
1,511,801 |
18 |
|
|
|
1,509,367 |
|
109,769 |
|
1,619,136 |
19 |
|
Total Operating Income |
$ |
7,242,179 |
$ |
332,493 |
$ |
7,574,672 |
15.6 |
% |
|
$ |
6,896,969 |
$ |
591,263 |
$ |
7,488,232 |
15.6 |
% |
(1) |
Costs recorded in connection with our business optimization initiatives, primarily for employee severance. |
(2) |
As announced on |
(3) |
Effective |
Reconciliation of Net Income and Diluted Earnings Per Share, as Reported (GAAP), to Net Income and Diluted Earnings Per Share, as Adjusted (Non-GAAP)
(In thousands of (Unaudited) |
||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||
|
|
|
|
|||||||||||||||||||
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
|
As Reported (GAAP) |
Business Optimization (1) |
Investment Gain (2) |
Adjusted (Non-GAAP) |
||||||||||||||
Operating Income |
$ |
2,630,865 |
|
$ |
77,420 |
|
$ |
2,708,285 |
|
|
$ |
2,359,288 |
|
$ |
346,873 |
|
$ |
— |
|
$ |
2,706,161 |
|
Operating Margin |
|
16.0 |
% |
|
0.4 |
% |
|
16.4 |
% |
|
|
14.2 |
% |
|
2.1 |
% |
|
— |
% |
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
||||||||||||||
Income before income taxes |
|
2,654,370 |
|
|
77,420 |
|
|
2,731,790 |
|
|
|
2,631,681 |
|
|
346,873 |
|
|
(252,920 |
) |
|
2,725,634 |
|
Income tax expense |
|
673,022 |
|
|
23,650 |
|
|
696,672 |
|
|
|
583,346 |
|
|
80,336 |
|
|
(8,840 |
) |
|
654,842 |
|
Net Income |
$ |
1,981,348 |
|
$ |
53,770 |
|
$ |
2,035,118 |
|
|
$ |
2,048,335 |
|
$ |
266,537 |
|
$ |
(244,080 |
) |
$ |
2,070,792 |
|
Effective tax rate |
|
25.4 |
% |
|
30.5 |
% |
|
25.5 |
% |
|
|
22.2 |
% |
|
23.2 |
% |
|
3.5 |
% |
|
24.0 |
% |
Diluted earnings per share (3) |
$ |
3.04 |
|
$ |
0.08 |
|
$ |
3.13 |
|
|
$ |
3.15 |
|
$ |
0.42 |
|
$ |
(0.38 |
) |
$ |
3.19 |
|
|
Nine Months Ended |
|||||||||||||||||||||
|
|
|
|
|||||||||||||||||||
|
As Reported (GAAP) |
Business Optimization (1) |
Adjusted (Non-GAAP) |
|
As Reported (GAAP) |
Business Optimization (1) |
Investment Gain (2) |
Adjusted (Non-GAAP) |
||||||||||||||
Operating Income |
$ |
7,242,179 |
|
$ |
332,493 |
|
$ |
7,574,672 |
|
|
$ |
6,896,969 |
|
$ |
591,263 |
|
$ |
— |
|
$ |
7,488,232 |
|
Operating Margin |
|
14.9 |
% |
|
0.7 |
% |
|
15.6 |
% |
|
|
14.3 |
% |
|
1.3 |
% |
|
— |
% |
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||||||||
Income before income taxes |
|
7,366,762 |
|
|
332,493 |
|
|
7,699,255 |
|
|
|
7,180,205 |
|
|
591,263 |
|
|
(252,920 |
) |
|
7,518,548 |
|
Income tax expense |
|
1,666,231 |
|
|
85,706 |
|
|
1,751,937 |
|
|
|
1,584,887 |
|
|
131,851 |
|
|
(8,840 |
) |
|
1,707,898 |
|
Net Income |
$ |
5,700,531 |
|
$ |
246,787 |
|
$ |
5,947,318 |
|
|
$ |
5,595,318 |
|
$ |
459,412 |
|
$ |
(244,080 |
) |
$ |
5,810,650 |
|
Effective tax rate |
|
22.6 |
% |
|
25.8 |
% |
|
22.8 |
% |
|
|
22.1 |
% |
|
22.3 |
% |
|
3.5 |
% |
|
22.7 |
% |
Diluted earnings per share (3) |
$ |
8.77 |
|
$ |
0.39 |
|
$ |
9.16 |
|
|
$ |
8.62 |
|
$ |
0.72 |
|
$ |
(0.38 |
) |
$ |
8.96 |
|
Amounts in tables may not total due to rounding. |
|
(1) |
Costs recorded in connection with our business optimization initiatives, primarily for employee severance. |
(2) |
Gain recognized related to our investment in |
(3) |
The impact of the business optimization costs and investment gain on diluted earnings per share are presented net of related taxes. The income tax effect was negative |
Consolidated Balance Sheets
(In thousands of |
||||||
|
|
|
|
|
||
ASSETS |
|
(Unaudited) |
|
|
||
CURRENT ASSETS: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
5,537,217 |
|
$ |
9,045,032 |
Short-term investments |
|
|
4,878 |
|
|
4,575 |
Receivables and contract assets |
|
|
13,199,388 |
|
|
12,227,186 |
Other current assets |
|
|
2,333,935 |
|
|
2,105,138 |
Total current assets |
|
|
21,075,418 |
|
|
23,381,931 |
NON-CURRENT ASSETS: |
|
|
|
|
||
Contract assets |
|
|
119,281 |
|
|
106,994 |
Investments |
|
|
231,281 |
|
|
197,443 |
Property and equipment, net |
|
|
1,451,599 |
|
|
1,530,007 |
Lease assets |
|
|
2,587,408 |
|
|
2,637,479 |
|
|
|
19,842,707 |
|
|
15,573,003 |
Other non-current assets |
|
|
8,833,625 |
|
|
7,818,448 |
Total non-current assets |
|
|
33,065,901 |
|
|
27,863,374 |
TOTAL ASSETS |
|
$ |
54,141,319 |
|
$ |
51,245,305 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
||
Current portion of long-term debt and bank borrowings |
|
$ |
1,610,025 |
|
$ |
104,810 |
Accounts payable |
|
|
2,251,330 |
|
|
2,491,173 |
Deferred revenues |
|
|
5,299,334 |
|
|
4,907,152 |
Accrued payroll and related benefits |
|
|
6,416,460 |
|
|
7,506,030 |
Lease liabilities |
|
|
680,484 |
|
|
690,417 |
Other accrued liabilities |
|
|
1,950,120 |
|
|
2,309,456 |
Total current liabilities |
|
|
18,207,753 |
|
|
18,009,038 |
NON-CURRENT LIABILITIES: |
|
|
|
|
||
Long-term debt |
|
|
68,878 |
|
|
43,093 |
Lease liabilities |
|
|
2,242,156 |
|
|
2,310,714 |
Other non-current liabilities |
|
|
5,002,790 |
|
|
4,423,867 |
Total non-current liabilities |
|
|
7,313,824 |
|
|
6,777,674 |
|
|
|
27,744,489 |
|
|
25,692,839 |
Noncontrolling interests |
|
|
875,253 |
|
|
765,754 |
Total shareholders’ equity |
|
|
28,619,742 |
|
|
26,458,593 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
54,141,319 |
|
$ |
51,245,305 |
Consolidated Cash Flows Statements
(In thousands of (Unaudited) |
|||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
1,981,348 |
|
|
$ |
2,048,335 |
|
|
$ |
5,700,531 |
|
|
$ |
5,595,318 |
|
|
Depreciation, amortization and other |
|
|
521,305 |
|
|
|
601,099 |
|
|
|
1,571,633 |
|
|
|
1,639,804 |
|
|
Share-based compensation expense |
|
|
473,931 |
|
|
|
472,695 |
|
|
|
1,538,802 |
|
|
|
1,530,034 |
|
|
Change in assets and liabilities/other, net |
|
|
165,418 |
|
|
|
167,242 |
|
|
|
(3,069,370 |
) |
|
|
(2,650,276 |
) |
|
Net cash provided by (used in) operating activities |
|
|
3,142,002 |
|
|
|
3,289,371 |
|
|
|
5,741,596 |
|
|
|
6,114,880 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
|
(124,117 |
) |
|
|
(141,500 |
) |
|
|
(302,873 |
) |
|
|
(347,878 |
) |
|
Purchases of businesses and investments, net of cash acquired |
|
|
(2,329,700 |
) |
|
|
(257,020 |
) |
|
|
(5,239,180 |
) |
|
|
(1,334,007 |
) |
|
Proceeds from the sale of businesses and investments |
|
|
— |
|
|
|
400,238 |
|
|
|
20,905 |
|
|
|
418,113 |
|
|
Other investing, net |
|
|
2,851 |
|
|
|
3,273 |
|
|
|
6,504 |
|
|
|
8,392 |
|
|
Net cash provided by (used in) investing activities |
|
|
(2,450,966 |
) |
|
|
4,991 |
|
|
|
(5,514,644 |
) |
|
|
(1,255,380 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of ordinary shares |
|
|
504,516 |
|
|
|
537,016 |
|
|
|
1,267,323 |
|
|
|
1,344,637 |
|
|
Purchases of shares |
|
|
(1,383,242 |
) |
|
|
(788,937 |
) |
|
|
(3,896,216 |
) |
|
|
(3,325,850 |
) |
|
Proceeds from (repayments of) debt, net |
|
|
1,499,033 |
|
|
|
— |
|
|
|
1,499,033 |
|
|
|
— |
|
|
Cash dividends paid |
|
|
(810,976 |
) |
|
|
(707,742 |
) |
|
|
(2,433,610 |
) |
|
|
(2,121,331 |
) |
|
Other financing, net |
|
|
(26,235 |
) |
|
|
(13,161 |
) |
|
|
(71,088 |
) |
|
|
(62,481 |
) |
|
Net cash provided by (used in) financing activities |
|
|
(216,904 |
) |
|
|
(972,824 |
) |
|
|
(3,634,558 |
) |
|
|
(4,165,025 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(58,022 |
) |
|
|
(24,879 |
) |
|
|
(100,209 |
) |
|
|
(48,862 |
) |
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
416,110 |
|
|
|
2,296,659 |
|
|
|
(3,507,815 |
) |
|
|
645,613 |
|
|
CASH AND CASH EQUIVALENTS, beginning of period |
|
|
5,121,107 |
|
|
|
6,238,787 |
|
|
|
9,045,032 |
|
|
|
7,889,833 |
|
|
CASH AND CASH EQUIVALENTS, end of period |
|
$ |
5,537,217 |
|
|
$ |
8,535,446 |
|
|
$ |
5,537,217 |
|
|
$ |
8,535,446 |
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240620215807/en/
Accenture Media Relations
+1 917 452 4421
rachel.frey@accenture.com
Katie O’Conor
Accenture Investor Relations
+1 973 301 3275
catherine.m.oconor@accenture.com
Source: Accenture