Summary
Accenture plc's fiscal year 2020 performance, ending August 31, 2020, was marked by revenue growth of 3% in U.S. dollars to $44.3 billion, despite the significant disruption caused by the COVID-19 pandemic in the latter half of the year. The company demonstrated resilience by quickly adapting to a remote work environment for most of its employees and managing shifts in client demand, with a notable pivot towards digital, cloud, and security-related services. While the pandemic negatively impacted certain industries and consulting services, Accenture saw increased demand in others, such as Public Service and Life Sciences. The company's strategic investments in acquisitions, research and development, and talent continued, with over $1.5 billion invested in 34 acquisitions. Accenture's robust balance sheet is supported by strong operating cash flows and significant cash reserves, providing flexibility for ongoing investments and capital returns to shareholders, including dividends and share repurchases.
Financial Highlights
56 data points| Revenue | $44.33B |
| Cost of Revenue | $30.35B |
| Gross Profit | $13.98B |
| R&D Expenses | $870.61M |
| Operating Expenses | $37.81B |
| Operating Income | $6.51B |
| Interest Expense | $33.07M |
| Net Income | $5.11B |
| EPS (Basic) | $8.03 |
| EPS (Diluted) | $7.89 |
| Shares Outstanding (Basic) | 636.30M |
| Shares Outstanding (Diluted) | 647.80M |
Key Highlights
- 1Revenue increased 3% year-over-year to $44.3 billion, with a 4% increase in local currency, demonstrating resilience amidst the COVID-19 pandemic.
- 2The company successfully transitioned approximately 95% of its workforce to remote work, maintaining business continuity and client service delivery.
- 3Invested over $1.5 billion in 34 strategic acquisitions to enhance capabilities and scale in high-growth areas.
- 4Operating income grew 3% to $6.5 billion, with an operating margin of 14.7%, slightly improving from 14.6% in the prior year.
- 5Diluted earnings per share rose to $7.89 from $7.36 in the prior year, benefiting from a $280 million gain on an investment in Duck Creek Technologies.
- 6Bookings increased to $49.6 billion from $45.5 billion, indicating strong future revenue potential, with consulting bookings at $25.8 billion and outsourcing at $23.7 billion.
- 7The company maintained a strong liquidity position with $8.4 billion in cash and cash equivalents and generated $8.2 billion in operating cash flow.