01—Abstract
Summary
Summary of the 10-Q filed March 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported solid financial results for the second quarter and first half of fiscal year 2025, demonstrating resilience in a dynamic global economic environment.
Total revenues for the quarter reached $16.7 billiona, an increase of 5% in U.S. dollars and 8.5% in local currency year-over-year, driven by strong performance in the Americas and EMEA regions, and across key industries like Financial Services, Health & Public Service, and Products. Managed services showed particularly robust growth, up 8% in U.S. dollars and 11% in local currency, while consulting services grew 3% in U.S. dollars and 6% in local currency, reflecting continued client demand for digital transformations, cloud adoption, and AI-driven initiatives. Profitability also improved, with operating income up 10% to $2.25 billion for the quarter, resulting in an operating margin of 13.5%, an increase from 13.0% in the prior year period.
Diluted earnings per share (EPS) rose 7% to $2.82b. The company maintained a strong balance sheet with $8.5 billion in cash and cash equivalents.
Accenture returned $2.4 billionc to shareholders during the quarter through dividends and share repurchases, underscoring its commitment to capital return. While global economic uncertainty persists, affecting the pace of smaller contracts, the company's focus on large-scale transformations and strategic investments in technology, data, and AI positions it for continued growth.
02—Key points
Key Highlights
- Revenues increased 5% in U.S. dollars (8.5% in local currency) to $16.7 billion for the quarter, driven by strong demand across geographic markets and industries.
- Operating income grew 10% to $2.25 billion, with operating margin improving to 13.5% from 13.0% in the prior year.
- Diluted earnings per share (EPS) increased 7% to $2.82 for the quarter, reflecting solid operational performance.
- Managed Services revenue showed significant strength, growing 8% in U.S. dollars (11% in local currency), outpacing Consulting revenue growth.
- The company maintained a strong cash position with $8.5 billion in cash and cash equivalents as of February 28, 2025.
- Accenture returned $2.4 billion to shareholders in the quarter through $929 million in dividends and $1.4 billion in share repurchases.
- Remaining performance obligations stood at approximately $31 billion as of February 28, 2025, indicating substantial future revenue potential.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Accenture plc kept $0.11.
- Revenue$16.66B100.0%
- Cost of revenue−$11.68B70.1%
- Gross profit$4.97B29.9%
- Operating costs−$2.73B16.4%
- Operating income$2.24B13.5%
- Interest, other & tax−$456.6M2.7%
- Net income$1.79B10.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed March 20, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $16.66B$15.80B | +5.4% |
| Cost of Revenue | $11.68B$10.92B | +7.0% |
| Gross Profit | $4.97B$4.88B | +2.0% |
| Operating Expenses | $14.41B$13.75B | +4.8% |
| Operating Income | $2.24B$2.05B | +9.7% |
| Interest Expense | $64.67M$10.30M | +527.5% |
| Net Income | $1.79B$1.67B | +6.8% |
| EPS (Basic) | $2.85$2.66 | +7.1% |
| EPS (Diluted) | $2.82$2.63 | +7.2% |
| Shares Outstanding (Basic) | 626.82M629.02M | −0.3% |
| Shares Outstanding (Diluted) | 634.21M636.80M | −0.4% |
05—Questions
Frequently Asked Questions
What is Accenture's revenue performance for the second quarter of fiscal year 2025?
Accenture reported revenues of $16.7 billion for the second quarter of fiscal year 2025, representing a 5% increase in U.S. dollars and an 8.5% increase in local currency compared to the same period last year. This growth was driven by strong performance across its geographic markets, particularly in the Americas and EMEA, and across key industry groups.
How did Accenture's profitability fare in the second quarter?
Accenture's profitability showed improvement. Operating income increased by 10% to $2.25 billion, leading to an operating margin of 13.5%, up from 13.0% in the second quarter of fiscal year 2024. Diluted earnings per share (EPS) also rose by 7% to $2.82.
What is the outlook for Accenture's future revenue based on remaining performance obligations?
Accenture had remaining performance obligations of approximately $31 billion as of February 28, 2025. The company expects to recognize about 50% of these obligations as revenue in fiscal year 2025, with an additional 26% expected in fiscal year 2026, indicating a solid revenue pipeline for the near to medium term.
How is Accenture returning capital to shareholders?
Accenture demonstrated a strong commitment to returning capital to shareholders by returning $2.4 billion during the second quarter of fiscal year 2025. This included $929 million in cash dividends and $1.4 billion in share repurchases. The company also declared a quarterly cash dividend of $1.48 per share.
06—Continue