Early Access

10-QPeriod: Q2 FY2025

Accenture plc Quarterly Report for Q2 Ended Feb 28, 2025

Filed March 20, 2025For Securities:ACN

Summary

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 billion, 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 $2.82. The company maintained a strong balance sheet with $8.5 billion in cash and cash equivalents. Accenture returned $2.4 billion 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.

Financial Statements
Beta
Revenue$16.66B
Cost of Revenue$11.68B
Gross Profit$4.97B
Operating Expenses$14.41B
Operating Income$2.24B
Interest Expense$64.67M
Net Income$1.79B
EPS (Basic)$2.85
EPS (Diluted)$2.82
Shares Outstanding (Basic)626.82M
Shares Outstanding (Diluted)634.21M

Key Highlights

  • 1Revenues 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.
  • 2Operating income grew 10% to $2.25 billion, with operating margin improving to 13.5% from 13.0% in the prior year.
  • 3Diluted earnings per share (EPS) increased 7% to $2.82 for the quarter, reflecting solid operational performance.
  • 4Managed Services revenue showed significant strength, growing 8% in U.S. dollars (11% in local currency), outpacing Consulting revenue growth.
  • 5The company maintained a strong cash position with $8.5 billion in cash and cash equivalents as of February 28, 2025.
  • 6Accenture returned $2.4 billion to shareholders in the quarter through $929 million in dividends and $1.4 billion in share repurchases.
  • 7Remaining performance obligations stood at approximately $31 billion as of February 28, 2025, indicating substantial future revenue potential.

Frequently Asked Questions