Accenture plc Annual Report, Year Ended Aug 31, 2016

Accenture plc reported robust growth in its fiscal year 2016, with net revenues reaching $32.9 billion, an increase of 6% in U.S. dollars and 10% in local currency compared to fiscal year 2015. This growth was broad-based across its operating segments, particularly strong in Products, Health & Public Service, and Financial Services. The company experienced solid demand for its consulting services, which grew 10% in U.S. dollars and 15% in local currency, driven by digital transformation and new technology adoption. While outsourcing also saw growth, it was more modest at 1% in U.S. dollars and 6% in local currency, with increased demand for cloud enablement and digital-related services. Accenture continued to emphasize its global delivery model, expanding its workforce to approximately 384,000 employees. The company also executed strategic divestitures of its Navitaire and Duck Creek businesses, resulting in significant gains. Despite increased labor costs and acquisition-related expenses impacting gross margin slightly, operating margin improved to 14.6% from 14.3% (or 14.5% excluding a pension settlement charge in the prior year). Diluted earnings per share increased significantly to $6.45 from $4.76, largely due to the gains from divestitures and a lower effective tax rate. The company maintained a strong liquidity position with $4.9 billion in cash and cash equivalents and substantial capacity under its borrowing facilities.