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10-QPeriod: Q1 FY2022

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2021

Filed December 16, 2021For Securities:ACN

Summary

Accenture plc reported strong financial performance for the first quarter of fiscal year 2022, ending November 30, 2021. Total revenues reached $14.97 billion, a significant 27% increase year-over-year in both U.S. dollars and local currency, driven by robust demand across all geographic markets, industry groups, and service types. The company highlighted strong growth in both its consulting (up 33% in USD) and outsourcing (up 21% in USD) businesses. New bookings also saw a substantial increase of 30% to $16.8 billion. Operating income grew by 29% to $2.43 billion, resulting in an operating margin of 16.3%, a slight expansion from the prior year's 16.1%. Diluted earnings per share (EPS) rose to $2.78 from $2.32 in the prior year's comparable period, excluding the impact of investment gains in the prior year. The company also returned $1.5 billion to shareholders through share purchases and dividends, underscoring its commitment to capital return. Key balance sheet improvements include a substantial increase in goodwill, primarily driven by acquisitions, reflecting continued investment in strategic growth. While cash and cash equivalents decreased from the prior quarter due to significant investments in acquisitions and share repurchases, the company maintained a strong liquidity position with substantial available borrowing facilities. The company's outlook remains positive, with strong demand anticipated for its digital transformation services.

Financial Statements
Beta
Revenue$14.97B
Cost of Revenue$10.05B
Gross Profit$4.92B
Operating Expenses$12.53B
Operating Income$2.43B
Interest Expense$11.18M
Net Income$1.79B
EPS (Basic)$2.83
EPS (Diluted)$2.78
Shares Outstanding (Basic)632.28M
Shares Outstanding (Diluted)644.92M

Key Highlights

  • 1Revenues grew by 27% year-over-year to $14.97 billion, demonstrating strong client demand for Accenture's services.
  • 2New bookings increased by 30% year-over-year to $16.8 billion, indicating a healthy pipeline of future revenue.
  • 3Operating income increased by 29% year-over-year to $2.43 billion, with operating margin expanding slightly to 16.3%.
  • 4Diluted earnings per share (EPS) increased to $2.78 from $2.32 (adjusted for prior year gains), reflecting improved profitability.
  • 5The company returned $1.5 billion to shareholders in the quarter through share purchases ($845 million) and dividends ($613 million).
  • 6Goodwill increased significantly by approximately $1.27 billion, driven by strategic acquisitions, indicating ongoing investment in growth.
  • 7Cash and cash equivalents decreased from $8.17 billion to $5.64 billion, largely due to substantial investments in acquisitions and share repurchases.

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