01—Abstract
Summary
Summary of the 10-Q filed March 17, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Revenue 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.
- Strong Bookings: New bookings reached $19.6 billion for the second quarter of fiscal 2022, indicating robust future revenue potential.
- Profitability 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%.
- Segment Performance: Significant revenue growth was observed across all geographic markets (North America, Europe, Growth Markets) and service types (Consulting and Outsourcing).
- Shareholder 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.
- Workforce Expansion: Accenture's global workforce grew to approximately 699,000 as of February 28, 2022, reflecting increased demand for its services.
- Russia Business Discontinuation: Accenture announced the discontinuation of its business operations in Russia, with revenues in Russia being immaterial to overall results.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2022, Accenture plc kept $0.11.
- Revenue$15.05B100.0%
- Cost of revenue−$10.52B69.9%
- Gross profit$4.52B30.1%
- Operating costs−$2.46B16.4%
- Operating income$2.06B13.7%
- Interest, other & tax−$426.6M2.8%
- Net income$1.63B10.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2022filed March 17, 2022Financial Statements
Q2 FY2022 against Q2 FY2021
| Line item | Q2 FY2022Q2 FY2021 | Change |
|---|---|---|
| Revenue | $15.05B$12.09B | +24.5% |
| Cost of Revenue | $10.52B$8.49B | +23.9% |
| Gross Profit | $4.52B$3.60B | +25.8% |
| Operating Expenses | $12.99B$10.43B | +24.4% |
| Operating Income | $2.06B$1.65B | +24.7% |
| Interest Expense | $11.22M$8.92M | +25.7% |
| Net Income | $1.63B$1.44B | +13.5% |
| EPS (Basic) | $2.58$2.27 | +13.7% |
| EPS (Diluted) | $2.54$2.23 | +13.9% |
| Shares Outstanding (Basic) | 633.96M635.99M | −0.3% |
| Shares Outstanding (Diluted) | 644.13M646.32M | −0.3% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the second quarter of fiscal year 2022?
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.
How did Accenture's profitability fare in the reported period?
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.
What is the outlook for future revenue based on bookings?
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.
How did Accenture return capital to shareholders during this period?
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.
06—Continue