Summary
Accenture plc's 2018 10-K filing reveals a strong financial performance, with net revenues reaching $39.6 billion, representing a 13.5% increase in U.S. dollars and 10.5% in local currency over the prior year. This growth was broad-based, with significant contributions from all operating groups and geographic regions, highlighting robust demand for consulting and outsourcing services, particularly in digital, cloud, and security-related areas. The company continues to invest strategically in acquisitions, talent, and innovation to maintain its competitive edge. While gross margins saw a slight decrease to 31.4% due to higher labor costs, operating margins improved to 14.8%, excluding a significant pension settlement charge in the prior year. The company's financial health is further supported by strong operating cash flow generation and a substantial cash balance, enabling continued investment and shareholder returns through share repurchases and dividends.
Financial Highlights
56 data points| Revenue | $40.99B |
| Cost of Revenue | $28.50B |
| Gross Profit | $12.49B |
| R&D Expenses | $790.78M |
| Operating Expenses | $35.09B |
| Operating Income | $5.90B |
| Interest Expense | $19.54M |
| Net Income | $4.06B |
| EPS (Basic) | $6.46 |
| EPS (Diluted) | $6.34 |
| Shares Outstanding (Basic) | 628.45M |
| Shares Outstanding (Diluted) | 655.30M |
Key Highlights
- 1Net revenues grew by 13.5% to $39.6 billion in fiscal year 2018, demonstrating strong market demand.
- 2Growth was observed across all five operating groups (Communications, Media & Technology; Financial Services; Health & Public Service; Products; Resources) and geographic regions (North America, Europe, Growth Markets).
- 3Consulting net revenues increased 15% and outsourcing net revenues increased 12% in U.S. dollars, showcasing strength in both service types.
- 4The company reported strong operating cash flow of $6.03 billion, an increase of $1.05 billion from fiscal year 2017.
- 5Accenture's workforce expanded to approximately 459,000 employees globally as of August 31, 2018, reflecting increased business activity.
- 6The company maintained a significant share repurchase program, with $3.05 billion bought back under publicly announced plans in Q4 FY18, indicating a commitment to returning capital to shareholders.
- 7Fiscal year 2018 saw favorable currency translation impacts, contributing approximately 3% more to U.S. dollar revenue growth than local currency growth.