10-QPeriod: Q2 FY2022

Accenture plc Quarterly Report for Q2 Ended Feb 28, 2022

Filed March 17, 2022For Securities:ACN

Summary

Accenture plc reported strong financial results for the second quarter and first half of fiscal year 2022, demonstrating robust revenue growth and increased profitability. For the second quarter of fiscal 2022, revenues reached $15.0 billion, a 24% increase year-over-year in U.S. dollars and 28% in local currency, driven by broad-based demand across all geographic markets, industry groups, and service types. Diluted Earnings Per Share (EPS) were $2.54, up 14% from the prior year, or 25% excluding prior year investment gains. The company also saw significant new bookings of $19.6 billion, highlighting strong future revenue potential. For the first six months of fiscal 2022, revenues grew 26% in U.S. dollars to $30.0 billion, with diluted EPS at $5.32, an increase from $4.55 in the prior year period (excluding prior year investment gains). Accenture returned $3.8 billion to shareholders during the quarter through share repurchases and dividends, underscoring its commitment to shareholder value.

Financial Highlights

53 data points
Beta

Revenue

$15.05B

30.1% Gross Margin

Net Income

$1.63B

10.9% Net Margin

EPS (Diluted)

$2.54

Total Assets

$44.32B

Cash & Equivalents

$5.47B

Free Cash Flow

$1.99B

Financial Statements
Beta
Revenue$15.05B
Cost of Revenue$10.52B
Gross Profit$4.52B
Operating Expenses$12.99B
Operating Income$2.06B
Interest Expense$11.22M
Net Income$1.63B
EPS (Basic)$2.58
EPS (Diluted)$2.54
Shares Outstanding (Basic)633.96M
Shares Outstanding (Diluted)644.13M

Key Highlights

  • 1Revenue Growth: Total revenues for the second quarter of fiscal 2022 were $15.0 billion, an increase of 24% in U.S. dollars (28% in local currency) compared to the second quarter of fiscal 2021.
  • 2Strong Bookings: New bookings reached $19.6 billion for the second quarter of fiscal 2022, indicating robust future revenue potential.
  • 3Profitability Improvement: Diluted Earnings Per Share (EPS) were $2.54 for the second quarter, a 14% increase year-over-year. Excluding prior year investment gains, EPS increased 25%.
  • 4Segment Performance: Significant revenue growth was observed across all geographic markets (North America, Europe, Growth Markets) and service types (Consulting and Outsourcing).
  • 5Shareholder Returns: The company returned $3.8 billion to shareholders in the second quarter of fiscal 2022, comprising $2.5 billion in share repurchases and $1.2 billion in dividends.
  • 6Workforce Expansion: Accenture's global workforce grew to approximately 699,000 as of February 28, 2022, reflecting increased demand for its services.
  • 7Russia Business Discontinuation: Accenture announced the discontinuation of its business operations in Russia, with revenues in Russia being immaterial to overall results.

Frequently Asked Questions

Accenture reported revenues of $15.0 billion for the second quarter of fiscal year 2022, representing a significant increase of 24% in U.S. dollars and 28% in local currency compared to the same period in fiscal year 2021. This growth was broad-based across all geographic markets, industry groups, and service types.

Profitability showed a strong trend, with diluted Earnings Per Share (EPS) reaching $2.54 for the second quarter of fiscal 2022, a 14% increase from $2.23 in the prior year. Excluding the impact of investment gains in the prior year, EPS grew by 25%, indicating solid operational performance.

New bookings for the second quarter of fiscal 2022 were robust at $19.6 billion, an increase of 22% in U.S. dollars and 26% in local currency year-over-year. This strong bookings performance suggests continued demand for Accenture's services and a positive outlook for future revenue.

Accenture demonstrated its commitment to shareholder returns by returning $3.8 billion in the second quarter of fiscal 2022. This included approximately $2.5 billion in share repurchases and $1.2 billion in dividends, reflecting a healthy cash flow generation.