Summary
Accenture plc reported solid revenue growth in its third quarter of fiscal year 2023, with revenues reaching $16.6 billion, a 3% increase in U.S. dollars and 5% in local currency year-over-year. This growth was driven by strong performance in Managed Services, which saw a 10% increase in U.S. dollar revenue, and positive contributions from Europe and Growth Markets. However, the Consulting segment experienced a slight revenue decline of 4% in U.S. dollars. The company reported significant business optimization costs of $347 million in the quarter, primarily related to employee severance, which impacted operating income and margin. Excluding these costs, adjusted operating margin expanded by 20 basis points. Diluted earnings per share (EPS) were $3.15, an increase from the prior year, with adjusted EPS also showing a healthy increase, reflecting both the impact of business optimization costs and a notable gain on an investment. Accenture returned $1.5 billion to shareholders through share purchases and dividends.
Financial Highlights
56 data points| Revenue | $16.56B |
| Cost of Revenue | $11.04B |
| Gross Profit | $5.53B |
| Operating Expenses | $14.21B |
| Operating Income | $2.36B |
| Interest Expense | $11.21M |
| Net Income | $2.01B |
| EPS (Basic) | $3.18 |
| EPS (Diluted) | $3.15 |
| Shares Outstanding (Basic) | 631.54M |
| Shares Outstanding (Diluted) | 638.74M |
Key Highlights
- 1Revenues grew 3% in U.S. dollars to $16.6 billion, and 5% in local currency, indicating resilient demand.
- 2Managed Services revenue increased by 10% in U.S. dollars, demonstrating strong client adoption of outsourcing and transformation services.
- 3Consulting revenue saw a slight decrease of 4% in U.S. dollars, signaling a potential slowdown in advisory services or a shift in client spending priorities.
- 4Significant business optimization costs of $347 million impacted reported operating income, highlighting restructuring efforts.
- 5Diluted Earnings Per Share (EPS) rose to $3.15, with adjusted EPS showing a 14% increase, reflecting operational performance excluding one-time charges and gains.
- 6New bookings increased to $17.2 billion, a 2% rise in U.S. dollars and 4% in local currency, indicating continued pipeline strength.
- 7Shareholder returns remained robust with $1.5 billion distributed through share repurchases and dividends.