Shares are on track for their best day since JuneInformation technology services firm Accenture Plc (NYSE:ACN) reported better-than-expected fiscal first-quarter revenue and hiked its full-year outlook. The shares are up 7.3% to trade at $373.24 at last glance, on track for their best single-day percentage win since June and trading at their highest level since October. ACN is staging a bounce off familiar support at the $350 level, and added 21% in the last six months.Options traders are already chiming in ...

For the quarter ended November 2024, Accenture (ACN) reported revenue of $17.69 billion, up 9% over the same period last year. EPS came in at $3.59, compared to $3.27 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $17.16 billion, representing a surprise of +3.08%. The company delivered an EPS surprise of +6.21%, with the consensus EPS estimate being $3.38.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

On Thursday, Accenture Plc ACN reported first-quarter fiscal 2025 sales of $17.69 billion compared with the analyst consensus estimate of $17.12 billion, up 9% year-over-year in U.S. dollars and 5% in local currency. Revenues were approximately $240 million above the top end of the company's guided range of $16.85 billion to $17.45 billion. The adjusted EPS of $3.59 topped the analyst consensus estimate of $3.39.Also Read: Accenture Lands $1.6B US Air Force Deal To Elevate Cloud One: DetailsConsulting reven ...

Core Viewpoint - Accenture reported quarterly earnings of $3.59 per share, exceeding the Zacks Consensus Estimate of $3.38 per share, and showing an increase from $3.27 per share a year ago, indicating a 6.21% earnings surprise [1][2]. Financial Performance - The company achieved revenues of $17.69 billion for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 3.08%, compared to $16.22 billion in the same quarter last year [2]. - Over the last four quarters, Accenture has exceeded consensus EPS estimates three times and topped revenue estimates two times [2]. Stock Performance and Outlook - Accenture shares have declined approximately 0.9% since the beginning of the year, contrasting with the S&P 500's gain of 23.1% [4]. - The current consensus EPS estimate for the upcoming quarter is $2.79 on revenues of $16.67 billion, and for the current fiscal year, it is $12.68 on revenues of $68.37 billion [8]. Industry Context - The Computers - IT Services industry, to which Accenture belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9].

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 FY2025, detailing financial position, performance, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands USD) | Account | Nov 30, 2024 | Aug 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$59,868,070** | **$55,932,363** | **+6.9%** | | Cash and cash equivalents | $8,306,055 | $5,004,469 | +66.0% | | Goodwill | $20,868,911 | $21,120,179 | -1.2% | | **Total Liabilities** | **$29,765,647** | **$26,764,115** | **+11.2%** | | Long-term debt | $5,039,460 | $78,628 | +6309.5% | | **Total Shareholders' Equity** | **$30,102,423** | **$29,168,248** | **+3.2%** | - The **significant increase in cash and long-term debt** is primarily due to the issuance of **$5 billion** in senior unsecured notes during the quarter[6](index=6&type=chunk)[31](index=31&type=chunk) [Consolidated Income Statements](index=4&type=section&id=Consolidated%20Income%20Statements) Consolidated Income Statement (in thousands USD, except per share data) | Metric | Q1 FY2025 (ended Nov 30, 2024) | Q1 FY2024 (ended Nov 30, 2023) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenues** | **$17,689,545** | **$16,224,303** | **+9.0%** | | Operating Income | $2,948,477 | $2,564,887 | +14.9% | | Net Income Attributable to Accenture plc | $2,278,894 | $1,973,444 | +15.5% | | **Diluted EPS** | **$3.59** | **$3.10** | **+15.8%** | [Consolidated Cash Flows Statements](index=8&type=section&id=Consolidated%20Cash%20Flows%20Statements) Consolidated Cash Flows (in thousands USD) | Cash Flow Activity | Three Months Ended Nov 30, 2024 | Three Months Ended Nov 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,022,486 | $498,551 | | Net cash used in investing activities | ($385,524) | ($855,430) | | Net cash provided by (used in) financing activities | $2,751,748 | ($1,551,913) | | **Net increase (decrease) in cash** | **$3,301,586** | **($1,904,191)** | - **Financing activities** were the primary driver of the cash increase, mainly due to proceeds from debt issuance of **$5.06 billion**, which was partially offset by share purchases (**$898 million**) and dividend payments (**$926 million**)[11](index=11&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose key accounting policies, including revenue recognition, new debt issuance of **$5 billion**, and updated segment reporting - Remaining performance obligations were approximately **$29 billion** as of November 30, 2024, with the company expecting to recognize about **58%** of this amount as revenue in fiscal 2025[19](index=19&type=chunk) - During the quarter, the company completed several individually immaterial acquisitions for a total consideration of **$184.9 million**[25](index=25&type=chunk) - On October 4, 2024, Accenture Capital Inc. issued **$5 billion** in aggregate principal amount of senior unsecured notes with maturities ranging from 2027 to 2034[31](index=31&type=chunk) - The effective tax rate for Q1 FY25 was **21.6%**, down from **23.2%** in Q1 FY24, primarily due to higher benefits from adjustments to prior year tax liabilities[34](index=34&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY25 financial results, highlighting **9% revenue growth** to **$17.7 billion**, **1% new bookings growth**, and improved operating margin and EPS [Overview and Key Metrics](index=23&type=section&id=Overview%20and%20Key%20Metrics) Q1 FY2025 Key Metrics vs. Q1 FY2024 | Metric | Q1 FY2025 | YoY Change (USD) | YoY Change (Local Currency) | | :--- | :--- | :--- | :--- | | Revenues | $17.7 billion | +9% | +8% | | New Bookings | $18.7 billion | +1% | +1% | | Operating Margin | 16.7% | +90 bps | - | | Diluted EPS | $3.59 | +16% | - | - The company returned **$1.8 billion** to shareholders through **$926 million** in dividends and **$898 million** in share repurchases[47](index=47&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Revenues grew **8% in local currency**, driven by Americas and Managed Services, with gross margin declining and operating margin improving Q1 FY2025 Revenue Growth vs. Q1 FY2024 (Local Currency) | Category | Revenue Growth (Local Currency) | | :--- | :--- | | **By Geography** | | | Americas | 11% | | EMEA | 6% | | Asia Pacific | 4% | | **By Type of Work** | | | Consulting | 6% | | Managed Services | 11% | - New bookings for the quarter were **$18.7 billion**, a **1%** increase in both USD and local currency, with Consulting bookings growing **6%** while Managed Services bookings declined **4%** in local currency[52](index=52&type=chunk) - The company is experiencing a slower pace and level of client spending, particularly for smaller consulting contracts with shorter durations, although clients continue to prioritize large-scale transformations[46](index=46&type=chunk)[49](index=49&type=chunk) - The workforce increased to approximately **799,000** people from **743,000** a year ago, and annualized voluntary attrition was **12%**, up from **11%** in the prior year[49](index=49&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased to **$8.3 billion**, driven by financing activities, primarily a **$5 billion debt issuance**, and cash from operations Share Purchase Activity (Q1 FY2025) | Category | Shares Purchased | Amount (millions) | | :--- | :--- | :--- | | Open-market purchases | 2,174,686 | $771 | | Other purchases (employee plans) | 353,046 | $126 | | **Total** | **2,527,732** | **$897** | - As of November 30, 2024, the company had approximately **$5.9 billion** remaining in its authorized share purchase program[71](index=71&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposure, including foreign currency, interest rate, and equity investment risks, since the prior fiscal year - There were no material changes to the information on market risk exposure during the three months ended November 30, 2024[66](index=66&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of the end of the period, the company's disclosure controls and procedures were effective at the reasonable assurance level[66](index=66&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, internal controls[67](index=67&type=chunk) Part II. Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation and regulatory matters, including an appeal in a data security lawsuit and a DOJ investigation into federal security controls compliance - Accenture is appealing a class certification in a lawsuit related to a data security incident at Starwood, a former client, and believes the lawsuit is without merit[36](index=36&type=chunk) - Accenture Federal Services (AFS) is under a civil and criminal investigation by the U.S. Department of Justice (DOJ) concerning potential inaccurate submissions related to federal security controls, with the potential cost or outcome currently inestimable[36](index=36&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended August 31, 2024 - There have been no material changes to the risk factors disclosed in the company's Annual Report for the year ended August 31, 2024[69](index=69&type=chunk) [Use of Proceeds and Share Repurchases](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 FY25, Accenture repurchased **2.53 million shares** for **$897 million**, with **$5.9 billion** remaining in the authorized share purchase program Q1 FY2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid | Approx. Value Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | | Sep 2024 | 723,155 | $343.18 | $6,458 | | Oct 2024 | 981,930 | $363.53 | $6,175 | | Nov 2024 | 822,647 | $355.28 | $5,922 | | **Total** | **2,527,732** | **$355.02** | **-** |

Revenue Growth and Performance - Q1 FY25 revenues reached $17.7 billion, a 9% increase in USD and 8% in local currency, with consulting revenues at $9.0 billion and managed services revenues at $8.6 billion[1][3][7] - Full-year FY25 revenue growth outlook raised to 4%-7% in local currency, with a revised foreign exchange impact of -0.5%[2][25] - Accenture's revenues for Q1 2025 increased by 9% to $17.69 billion compared to $16.22 billion in Q1 2024[38] - Americas market revenues grew 9% in USD and 11% in local currency to $8.73 billion, while EMEA revenues increased 10% in USD and 6% in local currency to $6.41 billion[15][16] - Health & Public Service revenues grew 13% in USD and 12% in local currency to $3.81 billion, while Products revenues increased 12% in USD and 10% in local currency to $5.43 billion[18] - Americas region revenues increased by 9% to $8.73 billion, with operating income up 6.5% to $1.38 billion[39][40] - EMEA region revenues grew by 10% to $6.41 billion, with operating income surging by 25.8% to $1.04 billion[39][40] - Asia Pacific region revenues increased by 6% to $2.54 billion, with operating income up 19.4% to $535 million[39][40] - Health & Public Service industry group saw the highest revenue growth at 13%, reaching $3.81 billion[39] - Managed Services revenues grew by 11% to $8.64 billion, outpacing Consulting revenues which increased by 7% to $9.05 billion[39] Earnings and Profitability - GAAP operating margin improved to 16.7%, up 90 basis points, with GAAP EPS of $3.59, a 16% increase[1][4][6] - GAAP diluted EPS for FY25 is now expected to be in the range of $12.43 to $12.79, reflecting increased revenue outlook[2][27] - Operating income rose by 16.7% to $2.95 billion, with an operating margin of 16.7%, up from 15.8% in the previous year[38] - Net income attributable to Accenture plc grew by 15.5% to $2.28 billion, with a net income margin of 12.9%, up from 12.2% in Q1 2024[38] - Operating income for the three months ended November 30, 2024, was $2,948,477, compared to $2,564,887 for the same period in 2023, reflecting a 15% increase[42] - Operating margin improved to 16.7% for the three months ended November 30, 2024, up from 15.8% in the same period in 2023[42] - Net income for the three months ended November 30, 2024, was $2,316,190, compared to $2,009,981 for the same period in 2023, a 15.2% increase[42] - Diluted earnings per share for the three months ended November 30, 2024, were $3.59, up from $3.10 in the same period in 2023[42] - Adjusted operating income (non-GAAP) for Q1 2025 was $2.95 billion, representing a 16.7% margin, consistent with GAAP operating income[41] Cash Flow and Financial Position - Q1 FY25 operating cash flow was $1.02 billion, with free cash flow of $870 million, up from $430 million in the same period last year[13] - Total cash balance at November 30, 2024, was $8.3 billion, compared to $5.0 billion at August 31, 2024[14] - Cash and cash equivalents increased to $8,306,055 as of November 30, 2024, from $5,004,469 as of August 31, 2024[43] - Total assets increased to $59,868,070 as of November 30, 2024, from $55,932,363 as of August 31, 2024[43] - Net cash provided by operating activities for the three months ended November 30, 2024, was $1,022,486, compared to $498,551 for the same period in 2023[44] - Net cash used in investing activities for the three months ended November 30, 2024, was $385,524, compared to $855,430 for the same period in 2023[44] - Net cash provided by financing activities for the three months ended November 30, 2024, was $2,751,748, compared to a net cash used of $1,551,913 for the same period in 2023[44] Bookings and Business Segments - New bookings totaled $18.7 billion, a 1% increase in both USD and local currency, including $1.2 billion in generative AI bookings[1][3][6] - Consulting new bookings were $9.22 billion (49% of total), while managed services new bookings were $9.48 billion (51% of total)[15] Costs and Optimization - Business optimization costs in Q1 2024 were $139.66 million, which were excluded from non-GAAP operating income calculations[41] - The company recorded $139,664 in costs related to business optimization initiatives, primarily for employee severance, during the three months ended November 30, 2023[42]

Accenture plc (NYSE: ACN ) is about to announce Q1 ’25 earnings on December 19 before the market opens, so I thought I’d go through what to expect in terms of numbers, what I am looking for to be announced, and how management is lookingMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options f ...

Key TakeawaysAccenture is expected to report first-quarter fiscal 2025 results before the opening bell Thursday.Analysts expect revenue and net income to have climbed year-over-year.Last quarter, new generative AI bookings reached $1 billion. Accenture (ACN) will report first-quarter fiscal 2025 earnings before the opening bell Thursday, and analysts see room for growth ahead of the results. Of the 13 brokers covering the stock tracked by Visible Alpha, nine have a "buy" or equivalent rating, compared to fo ...

Core Viewpoint - Accenture plc (ACN) is expected to report strong first-quarter fiscal 2025 results, with anticipated revenue growth across various segments and a positive earnings outlook [1][2][8]. Revenue Expectations - The Zacks Consensus Estimate for total revenue is $17.2 billion, reflecting a 5.9% increase from the first quarter of fiscal 2024 [2]. - Managed Services segment revenue is estimated at $8.2 billion, indicating a 5.6% year-over-year increase [3]. - Consulting revenues are projected to reach $8.9 billion, representing a 5.8% growth compared to the previous year [4]. - Health & Public Services segment is expected to generate $3.7 billion, an 8.3% rise from the year-ago quarter [4]. - Resources segment revenues are anticipated to be $2.4 billion, suggesting a 4.8% year-over-year growth [4]. - Communications, Media & Technology segment revenues are expected to increase by 7.3% to $2.9 billion [4]. - Products segment revenue is estimated at $5.2 billion, indicating a 6.3% increase from the previous year [5]. - Financial Services revenues are projected to be $3.1 billion, reflecting a 1.1% rise year-over-year [5]. Geographical Revenue Insights - North America revenues are expected to grow by 7.1% to $8.6 billion [6]. - EMEA region revenues are estimated at $6 billion, suggesting a 3.9% increase from the year-ago quarter [6]. - Asia Pacific revenues are anticipated to grow by 5.1% to $2.5 billion [6]. Earnings Projections - The Zacks Consensus Estimate for earnings per share (EPS) is $3.4, indicating a 3.4% increase from the previous year [7]. - A business optimization strategy aimed at reducing structural costs is expected to contribute to the bottom line [7]. Earnings Prediction Model - The model predicts an earnings beat for ACN, supported by a positive Earnings ESP of +1.45% and a Zacks Rank of 3 (Hold) [8].

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that suppo ...