Core Insights - Accenture (ACN) is revamping its growth model with a focus on GenAI, aiming to be the preferred partner for clients' reinvention [1] - The company has consolidated its core services into a new unit called Reinvention Services, effective September 2025, to enhance solution delivery and integration of data and AI [2] Group 1: Business Strategy and Performance - Reinvention Services has shown early success, with nearly 80% of large deals involving multiple AI-enabled services, leading to bookings nearly doubling to $5.9 billion in fiscal 2025 and revenues tripling to $2.7 billion [3][10] - Accenture launched AI Refinery to help organizations deploy AI agents quickly, supporting over 2,000 GenAI projects for clients [4] - The company is actively partnering with tech giants like Google Cloud and Microsoft to enhance its GenAI offerings and drive client reinvention [5][6] Group 2: Market Position and Valuation - Accenture's stock has underperformed, losing 30.1% over the past year compared to a 13.5% decline in its industry [8] - The company trades at a forward price-to-earnings ratio of 18.19, below the industry average of 26.39, but at a premium compared to peers like Genpact and Leidos [12] - The Zacks Consensus Estimate for Accenture's earnings for fiscal 2026 and 2027 has seen slight increases of 0.4% and 0.5%, respectively, over the past 60 days [14]

Part I [Disclosure Regarding Forward-Looking Statements](index=4&type=section&id=Disclosure%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements based on current expectations, with actual outcomes potentially differing due to risks - The report contains forward-looking statements that are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict[10](index=10&type=chunk) - Risks and uncertainties that could cause actual results to differ materially are discussed in the 'Risk Factors' section[10](index=10&type=chunk) [Available Information](index=4&type=section&id=Available%20Information) Accenture's public filings, including 10-K, 10-Q, and 8-K reports, are available on its Investor Relations website and the SEC's site - Accenture provides its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments free of charge on its Investor Relations website (http://investor.accenture.com)[11](index=11&type=chunk) - The SEC's website (http://www.sec.gov) also contains reports and other information regarding issuers that file electronically[12](index=12&type=chunk) [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Accenture is a global professional services company focused on digital core development and AI integration, operating across three markets and five industry groups - Accenture is a leading global professional services company, helping clients reinvent through digital core building and AI integration[13](index=13&type=chunk) - The company's strategy is to be the reinvention partner of choice, the most AI-enabled, client-focused, and a great place to work[13](index=13&type=chunk) Fiscal 2025 Highlights | Metric | Value | | :--- | :--- | | Revenues | $69.7B | | Number of Clients | >9,000 | | Employees | ~779,000 | | Long-term Client Relationships (10+ years with top 200) | 195 | | Diamond Clients (largest relationships) | 305 | Fiscal 2025 Investments | Investment Area | Amount | | :--- | :--- | | Strategic Acquisitions (23 acquisitions) | $1.5B | | Research and Development (R&D) | $0.8B | | Learning and Professional Development (47 million training hours) | ~$1.0B | - Accenture made a significant multi-year investment of **$3 billion in generative AI** starting in fiscal 2023 to establish early leadership[18](index=18&type=chunk) [Overview](index=5&type=section&id=Overview) This section provides a general introduction to Accenture's business model and strategic focus [Fiscal 2025 Highlights](index=5&type=section&id=Fiscal%202025%20Highlights) This section summarizes Accenture's key achievements and financial performance for fiscal year 2025 [Fiscal 2025 Investments](index=5&type=section&id=Fiscal%202025%20Investments) This section details Accenture's strategic investments made during fiscal year 2025 across various areas [Geographic Markets](index=6&type=section&id=Geographic%20Markets) Accenture operates through three geographic markets: Americas, EMEA, and Asia Pacific, responsible for client relationships and revenue goals - Accenture operates through three geographic markets: Americas, EMEA (Europe, Middle East and Africa), and Asia Pacific[14](index=14&type=chunk)[19](index=19&type=chunk) - These markets are responsible for building client relationships, delivering solutions, ensuring client satisfaction, and achieving revenue and profitability goals[19](index=19&type=chunk) [Reinvention Services](index=6&type=section&id=Reinvention%20Services) Effective September 1, 2025, all services were integrated into 'Reinvention Services' to accelerate solution development and AI integration - Effective September 1, 2025, all services were integrated into a single business unit called 'Reinvention Services'[21](index=21&type=chunk) - This model combines capabilities across strategy, consulting, technology, operations, Song, and Industry X, with industry and functional expertise and technology ecosystem partnerships[21](index=21&type=chunk) - The goal is to create leading solutions faster, embed AI and data more easily, and simplify selling and delivery across the client base[21](index=21&type=chunk) [Ecosystem Partner Relationships](index=7&type=section&id=Ecosystem%20Partner%20Relationships) Accenture maintains strong relationships with technology ecosystem partners, crucial for scaling AI adoption and achieving business outcomes - Accenture is the **number-one partner** for its top 10 technology ecosystem partners[27](index=27&type=chunk) - These partnerships are vital for helping clients achieve business outcomes from technology and scale AI adoption[27](index=27&type=chunk) - In fiscal 2025, Accenture expanded its AI and data partnerships beyond the top 10[27](index=27&type=chunk) [Clients](index=7&type=section&id=Clients) Accenture serves approximately 9,000 clients, including Fortune Global 100 and 500 companies, with a focus on long-term relationships - Accenture serves approximately **9,000 clients**, including a significant portion of the Fortune Global 100 and 500[28](index=28&type=chunk) - The company has long-term relationships, partnering with **195 of its top 200 clients for 10 or more years**[28](index=28&type=chunk) - Accenture has **305 'Diamond clients,'** representing its largest client relationships[28](index=28&type=chunk) [Industry Groups](index=7&type=section&id=Industry%20Groups) Accenture leverages deep industry expertise across five groups to provide client-specific solutions and accelerate reinvention - Accenture goes to market through five industry groups: Communications, Media & Technology, Financial Services, Health & Public Service, Products, and Resources[29](index=29&type=chunk) - This industry focus provides understanding of industry evolution, business issues, trends, operating models, and emerging technologies[29](index=29&type=chunk) FY25 Revenues by Industry Group | Industry Group | FY25 Revenues | | :--- | :--- | | Communications, Media & Technology | $11.5B | | Financial Services | $12.8B | | Health & Public Service | $14.8B | | Products | $21.2B | | Resources | $9.5B | [People](index=9&type=section&id=People) Accenture employs approximately 779,000 people globally, focusing on talent development and managing attrition rates - Accenture had approximately **779,000 people** as of August 31, 2025, serving clients in over 120 countries[36](index=36&type=chunk) - The company's talent strategy includes investing in upskilling, exiting people where reskilling isn't viable, and driving operating efficiencies through AI[39](index=39&type=chunk) People Metrics (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | Change | | :--- | :--- | :--- | :--- | | Workforce | ~779,000 | ~774,000 | +5,000 | | Learning & Professional Development Investment | ~$1.0B | N/A | N/A | | Training Hours | ~47M | N/A | +9% YoY | | AI and Data Practitioners | ~77,000 | N/A | N/A | | Promotions | ~97,000 | N/A | N/A | | Voluntary Attrition (excluding involuntary) | **14%** | 13% | +1% | | Q4 FY25 Annualized Voluntary Attrition | 15% | N/A | -1% QoQ (from Q3 FY25) | [Global Delivery Capability](index=10&type=section&id=Global%20Delivery%20Capability) Accenture's global delivery network across 52 countries provides scalable innovation, automation, and cost advantages - Accenture's global delivery capability is a key differentiator, utilizing one of the world's largest networks of centers across **52 countries**[36](index=36&type=chunk)[45](index=45&type=chunk) - The global approach offers scalable innovation, standardized processes, automation, AI, industry expertise, cost advantages, and foreign language fluency[45](index=45&type=chunk) [Innovation and Intellectual Property](index=10&type=section&id=Innovation%20and%20Intellectual%20Property) Accenture invests significantly in R&D for competitive advantage, protecting intellectual property across AI, cloud, and cybersecurity - Innovation is a source of competitive advantage, with significant R&D investments to address market realities and leverage emerging technologies[46](index=46&type=chunk) R&D Spending (Fiscal Years) | Fiscal Year | R&D Spending | | :--- | :--- | | 2025 | $0.8B | | 2024 | $1.2B | | 2023 | $1.3B | - Accenture protects its intellectual property through patents, trade secrets, copyrights, and contractual arrangements, covering AI, cloud, cybersecurity, automation, analytics, and quantum technologies[49](index=49&type=chunk) [Assets and Platforms](index=11&type=section&id=Assets%20and%20Platforms) Accenture leverages proprietary assets and platforms, including GenWizard and SynOps, with embedded AI to deliver client value - Accenture utilizes proprietary assets and platforms, including GenWizard, myNav, SynOps, and AI Navigator for Enterprise, to deliver client value[51](index=51&type=chunk) - Advanced AI is deeply embedded into platforms like GenWizard to enhance service delivery[51](index=51&type=chunk) [Competition](index=11&type=section&id=Competition) Accenture operates in a highly competitive global market, competing with diverse service providers, but believes its scale offers a unique position - Accenture operates in a highly competitive and rapidly changing global marketplace[52](index=52&type=chunk) - Competitors include large multinational IT service providers, offshore firms, accounting firms, consultancies, and technology startups[53](index=53&type=chunk) - Accenture believes its full range of services at scale provides a unique competitive position[52](index=52&type=chunk) [Information About Our Executive Officers](index=12&type=section&id=Information%20About%20Our%20Executive%20Officers) This section provides brief biographies of Accenture's executive officers as of October 10, 2025, detailing their roles and tenure - Key executive officers as of October 10, 2025, include Julie Sweet (Chair and CEO), Angie Park (CFO), and Manish Sharma (Chief Strategy and Services Officer)[61](index=61&type=chunk)[62](index=62&type=chunk)[59](index=59&type=chunk) - The biographies highlight their extensive experience and tenure within Accenture and prior roles[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Organizational Structure](index=13&type=section&id=Organizational%20Structure) Accenture plc, incorporated in Ireland, operates through subsidiaries, with noncontrolling interests representing less than 1% ownership - Accenture plc was incorporated in Ireland on June 10, 2009, and operates through its subsidiaries[65](index=65&type=chunk) - Noncontrolling ownership interests in Accenture Canada Holdings Inc. were less than **1%** as of August 31, 2025[66](index=66&type=chunk) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) This section details various business, financial, operational, and legal risks that could materially affect Accenture's performance and stock price - Accenture's business is exposed to risks from volatile economic and geopolitical conditions, which can reduce client spending[68](index=68&type=chunk)[69](index=69&type=chunk) - Rapid technological changes, particularly in AI, pose risks related to client demand, competition, and the potential replacement of services by automation[70](index=70&type=chunk)[71](index=71&type=chunk)[76](index=76&type=chunk) - Failure to attract, retain, and upskill talent, especially in new technologies, could adversely affect business and utilization rates[80](index=80&type=chunk) - Cybersecurity incidents and attacks, increasingly sophisticated with AI, pose significant legal, reputational, and financial risks due to potential data breaches and system disruptions[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company faces intense competition from various service providers and technology companies, which could lead to market share loss or pricing pressure[90](index=90&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - Profitability is vulnerable to pricing pressures, unsuccessful cost-management strategies, delivery inefficiencies, and failure to meet contractual targets[103](index=103&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Changes in tax laws, audits, and foreign currency exchange rate fluctuations could materially affect the effective tax rate, results of operations, and cash flows[109](index=109&type=chunk)[111](index=111&type=chunk)[114](index=114&type=chunk) - Global operations expose Accenture to risks from health emergencies, geopolitical unrest, natural disasters, and the challenges of managing a large, geographically diverse workforce[117](index=117&type=chunk)[120](index=120&type=chunk) - Legal and regulatory risks include potential liability from contractual failures, government contracting complexities, diverse global compliance requirements, and intellectual property infringement claims[126](index=126&type=chunk)[127](index=127&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk) [Business Risks](index=14&type=section&id=Business%20Risks) This section outlines risks related to Accenture's core business operations, market conditions, and strategic execution [Financial Risks](index=19&type=section&id=Financial%20Risks) This section describes financial risks, including those related to profitability, foreign currency, and tax matters [Operational Risks](index=22&type=section&id=Operational%20Risks) This section covers risks associated with Accenture's global operations, talent management, and service delivery [Legal and Regulatory Risks](index=24&type=section&id=Legal%20and%20Regulatory%20Risks) This section details legal and regulatory risks, including compliance, intellectual property, and contractual liabilities [Item 1B. Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) Accenture reports no unresolved staff comments from the SEC - There are no unresolved staff comments[151](index=151&type=chunk) [Item 1C. Cybersecurity](index=29&type=section&id=Item%201C.%20Cybersecurity) Accenture's cybersecurity program, integrated into enterprise risk management, leverages international standards and Board oversight to protect data - Accenture's cybersecurity risk management program is integrated into its overall enterprise risk management system[152](index=152&type=chunk) - The security framework leverages international standards (ISO 27001/27701, NIST CSF, CSA STAR, CIS Critical Security Controls) and includes regular risk assessments and penetration testing[153](index=153&type=chunk) - Key strategic security programs include secure integration of acquisitions and supplier cyber risk management[153](index=153&type=chunk) - All employees are required to complete annual information security and data privacy training[156](index=156&type=chunk) - Cybersecurity governance is overseen by the Board of Directors, with the Audit Committee specifically responsible for IT risk exposures, including cybersecurity and data privacy[160](index=160&type=chunk)[161](index=161&type=chunk) - The Chief Information Security Officer (CISO) leads Accenture's global cybersecurity program, supported by a team of over 1,000 experts[162](index=162&type=chunk) [Cybersecurity Risk Management and Strategy](index=29&type=section&id=Cybersecurity%20Risk%20Management%20and%20Strategy) This section details Accenture's cybersecurity risk management framework, strategy, and protective measures [Cybersecurity Governance](index=30&type=section&id=Cybersecurity%20Governance) This section describes the oversight and leadership structure for Accenture's global cybersecurity program [Item 2. Properties](index=30&type=section&id=Item%202.%20Properties) Accenture operates major offices in over 200 cities across 52 countries, primarily through leased facilities rather than owned properties - Accenture has major offices in over **200 cities across 52 countries** worldwide[164](index=164&type=chunk) - The company does not own any material real property; substantially all facilities are leased under long-term leases[164](index=164&type=chunk) [Item 3. Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 15 (Commitments and Contingencies) in the financial statements - Legal proceedings information is incorporated by reference from Note 15 (Commitments and Contingencies) in the Consolidated Financial Statements[166](index=166&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Accenture - This item is not applicable[167](index=167&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Accenture's Class A ordinary shares trade on the NYSE, with details on share ownership, dividends, and active share repurchase programs - Accenture plc Class A ordinary shares are traded on the New York Stock Exchange (NYSE) under the symbol 'ACN'[168](index=168&type=chunk) - As of September 26, 2025, there were **356 holders of record** for Class A ordinary shares and 14 for Class X ordinary shares[168](index=168&type=chunk)[169](index=169&type=chunk) Dividend Declaration (Q1 Fiscal 2026) | Dividend Type | Amount per Share | Record Date | Payable Date | | :--- | :--- | :--- | :--- | | Quarterly Cash Dividend (Class A) | $1.63 | October 10, 2025 | November 14, 2025 | - Irish dividend withholding tax (DWT) of **25%** may apply to dividends, with exemptions for shareholders in 'relevant territories' like the US and EU member states[171](index=171&type=chunk) Purchases of Class A Ordinary Shares (Q4 Fiscal 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased under Publicly Announced Plans | | :--- | :--- | :--- | :--- | | June 1, 2025 – June 30, 2025 | 633,762 | $305.70 | 606,123 | | July 1, 2025 – July 31, 2025 | 961,398 | $289.01 | 945,536 | | August 1, 2025 – August 31, 2025 | 8,341 | $259.47 | — | | **Total** | **1,603,501** | **$295.45** | **1,551,659** | - As of August 31, 2025, the aggregate available authorization for share purchases and redemptions was **$2,851 million**[175](index=175&type=chunk) - An additional **$5.0 billion** in share repurchase authority was approved on September 22, 2025, bringing the total to **$7.851 billion**[175](index=175&type=chunk)[438](index=438&type=chunk) [Dividends](index=32&type=section&id=Dividends) This section provides details on Accenture's dividend declarations and related tax implications [Recent Sales of Unregistered Securities](index=32&type=section&id=Recent%20Sales%20of%20Unregistered%20Securities) This section reports on any recent sales of unregistered securities by Accenture [Purchases of Accenture plc Class A Ordinary Shares](index=33&type=section&id=Purchases%20of%20Accenture%20plc%20Class%20A%20Ordinary%20Shares) This section details Accenture's share repurchase activities for its Class A ordinary shares [Item 6. [Reserved]](index=33&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Accenture's financial performance, including revenue, bookings, operating metrics, and liquidity, for fiscal 2025 versus 2024 - Accenture's fiscal 2025 revenues increased **7%** in both U.S. dollars and local currency to **$69.7 billion**[184](index=184&type=chunk)[187](index=187&type=chunk) - New bookings for fiscal 2025 were **$80.6 billion**, a decrease of **1%** in both U.S. dollars and local currency[184](index=184&type=chunk)[197](index=197&type=chunk) Key Financial Metrics (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $69.7 billion | $64.9 billion | +7% | | New Bookings | $80.6 billion | $81.2 billion | -1% | | Operating Margin (GAAP) | 14.7% | 14.8% | -0.1% | | Adjusted Operating Margin (Non-GAAP) | 15.6% | 15.5% | +0.1% | | Diluted EPS (GAAP) | $12.15 | $11.44 | +6% | | Adjusted Diluted EPS (Non-GAAP) | $12.93 | $11.95 | +8% | | Cash Returned to Shareholders | $8.3 billion | N/A | N/A | | - Dividends | $3.7 billion | N/A | N/A | | - Share Purchases | $4.6 billion | N/A | N/A | - The company initiated business optimization actions in Q4 fiscal 2025, incurring **$615 million in costs**, primarily for employee severance (**$344 million**) and asset impairments (**$271 million**) from divesting misaligned acquisitions[184](index=184&type=chunk)[218](index=218&type=chunk) - Accenture's workforce increased to approximately **779,000** as of August 31, 2025, with a voluntary attrition rate of **14%** (excluding involuntary terminations), up from 13% in fiscal 2024[193](index=193&type=chunk)[194](index=194&type=chunk) [Overview](index=34&type=section&id=Overview) This section provides a high-level summary of Accenture's financial condition and operational highlights [Key Metrics](index=34&type=section&id=Key%20Metrics) This section presents key financial and operational metrics used to evaluate Accenture's performance [Revenues](index=35&type=section&id=Revenues) Accenture's fiscal 2025 revenues increased 7% to $69.7 billion, with strong growth in Americas, EMEA, and various industry groups Revenues by Geographic Market (Fiscal 2025 vs. 2024) | Geographic Market | FY25 Revenue ($B) | FY24 Revenue ($B) | % Increase (USD) | % Increase (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Americas | $35.1 | $32.6 | 8% | 9% | | EMEA | $24.6 | $22.8 | 8% | 6% | | Asia Pacific | $10.0 | $9.5 | 5% | 4% | | **Total** | **$69.7** | **$64.9** | **7%** | **7%** | Revenues by Industry Group (Fiscal 2025 vs. 2024) | Industry Group | FY25 Revenue ($B) | FY24 Revenue ($B) | % Increase (USD) | % Increase (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Communications, Media & Technology | $11.5 | $10.8 | 6% | 6% | | Financial Services | $12.8 | $11.6 | 10% | 10% | | Health & Public Service | $14.8 | $13.8 | 7% | 6% | | Products | $21.2 | $19.6 | 8% | 8% | | Resources | $9.5 | $9.1 | 5% | 5% | | **Total** | **$69.7** | **$64.9** | **7%** | **7%** | Revenues by Type of Work (Fiscal 2025 vs. 2024) | Type of Work | FY25 Revenue ($B) | FY24 Revenue ($B) | % Increase (USD) | % Increase (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Consulting | $35.1 | $33.2 | 6% | 5% | | Managed Services | $34.6 | $31.7 | 9% | 9% | | **Total** | **$69.7** | **$64.9** | **7%** | **7%** | - Consulting revenue growth was driven by client reinvention efforts leveraging cloud, enterprise platforms, security, AI, and data[188](index=188&type=chunk) - Managed services revenue growth was driven by demand for reinvented operations, application development and maintenance, and infrastructure management[189](index=189&type=chunk) [People Metrics](index=36&type=section&id=People%20Metrics) Accenture's workforce grew to 779,000, with consistent utilization and a slight increase in voluntary attrition in fiscal 2025 People Metrics (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | Utilization | 92% | 92% | | Workforce | ~779,000 | ~774,000 | | Voluntary Attrition (excl. involuntary) | 14% | 13% | | Q4 FY25 Annualized Voluntary Attrition (excl. involuntary) | 15% | N/A | - The company manages workforce size and composition through hiring adjustments and involuntary terminations to balance skills with client demand[193](index=193&type=chunk)[194](index=194&type=chunk) [New Bookings](index=36&type=section&id=New%20Bookings) New bookings for fiscal 2025 totaled $80.6 billion, a 1% decrease, with consulting up and managed services down New Bookings (Fiscal 2025 vs. 2024) | Type of Work | FY25 New Bookings ($B) | FY24 New Bookings ($B) | % Change (USD) | % Change (Local Currency) | | :--- | :--- | :--- | :--- | :--- | | Consulting | $37.6 | $37.0 | +2% | +2% | | Managed Services | $43.0 | $44.2 | -3% | -3% | | **Total New Bookings** | **$80.6** | **$81.2** | **-1%** | **-1%** | - Managed services bookings typically convert to revenue over a longer period compared to consulting bookings[197](index=197&type=chunk) - The majority of contracts are terminable by clients on short notice, meaning a significant portion of bookings is not included in remaining performance obligations[199](index=199&type=chunk) [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Accenture's financial reporting relies on significant estimates and judgments, particularly for revenue recognition and income taxes - Revenue recognition involves judgments on distinct performance obligations, satisfaction over time or at a point in time, and measuring progress towards completion[201](index=201&type=chunk) - Income tax accounting requires judgments on current tax exposures, recoverability of deferred tax assets, and the likely outcomes of ongoing audits and tax proceedings[204](index=204&type=chunk)[206](index=206&type=chunk) - Estimates for total contract costs and variable consideration (like incentive fees) are continuously monitored and subject to revision[202](index=202&type=chunk)[203](index=203&type=chunk) [Revenues by Segment/Geographic Market](index=38&type=section&id=Revenues%20by%20Segment%2FGeographic%20Market) Accenture reports revenues by geographic market, industry group, and type of work, but does not track unit or rate volume - Reportable operating segments are the geographic markets: Americas, EMEA, and Asia Pacific[207](index=207&type=chunk) - Revenues are also categorized by industry group and type of work (consulting and managed services)[207](index=207&type=chunk) - The company does not track standard measures of unit or rate volume, making it difficult to measure revenue growth attributable to price or volume changes[209](index=209&type=chunk) [Results of Operations for Fiscal 2025 Compared to Fiscal 2024](index=39&type=section&id=Results%20of%20Operations%20for%20Fiscal%202025%20Compared%20to%20Fiscal%202024) Fiscal 2025 operating income increased 7% to $10.2 billion, with adjusted operating margin up, and diluted EPS growing 6% to $12.15 Operating Income and Margin (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Income | $10,226 million | $9,596 million | +7% | | Operating Margin | 14.7% | 14.8% | -0.1% | | Adjusted Operating Margin (Non-GAAP) | 15.6% | 15.5% | +0.1% | Operating Expenses by Category (Fiscal 2025 vs. 2024) | Expense Category | FY25 ($M) | FY25 (% of Rev) | FY24 ($M) | FY24 (% of Rev) | Change ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of services | $47,438 | 68.1% | $43,734 | 67.4% | +$3,703 | | Sales and marketing | $7,043 | 10.1% | $6,847 | 10.6% | +$197 | | General and administrative costs | $4,351 | 6.2% | $4,281 | 6.6% | +$70 | | Business optimization costs | $615 | 0.9% | $438 | 0.7% | +$177 | | **Total Operating Expenses** | **$59,447** | **85.3%** | **$55,301** | **85.2%** | **+$4,147** | - Gross margin decreased to **31.9%** in fiscal 2025 from 32.6% in fiscal 2024, primarily due to higher payroll costs[215](index=215&type=chunk) Earnings Per Share (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $12.15 | $11.44 | | Adjusted Diluted EPS (Non-GAAP) | $12.93 | $11.95 | - The increase in adjusted diluted EPS was primarily due to higher revenue and operating results, lower share count, and a lower effective tax rate, partially offset by lower non-operating income[237](index=237&type=chunk) [Results of Operations for Fiscal 2024 Compared to Fiscal 2023](index=42&type=section&id=Results%20of%20Operations%20for%20Fiscal%202024%20Compared%20to%20Fiscal%202023) Discussion of fiscal 2024 versus 2023 results is incorporated by reference from the prior year's 10-K report - Discussion and analysis for fiscal 2024 compared to fiscal 2023 are available in the prior year's 10-K report[238](index=238&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Accenture's liquidity is strong, with cash and equivalents at $11.5 billion and operating cash flows increasing by $2.3 billion - Primary liquidity sources are cash flows from operations, available cash reserves, and debt capacity[239](index=239&type=chunk) Cash and Cash Equivalents (Fiscal Year-End) | Fiscal Year-End | Amount ($B) | | :--- | :--- | | August 31, 2025 | $11.5 | | August 31, 2024 | $5.0 | Cash Flows Summary (Fiscal 2025 vs. 2024) | Activity | FY25 ($M) | FY24 ($M) | Change ($M) | | :--- | :--- | :--- | :--- | | Operating activities | $11,474 | $9,131 | +$2,343 | | Investing activities | $(2,020) | $(7,062) | +$5,042 | | Financing activities | $(2,948) | $(6,064) | +$3,115 | | **Net increase (decrease) in cash** | **$6,474** | **$(4,041)** | **+$10,515** | - The increase in operating cash flows was due to higher net income and lower cash outflows for compensation[242](index=242&type=chunk) - The decrease in cash used in investing activities was primarily due to lower spending on business acquisitions[242](index=242&type=chunk) - Accenture plans to continue using a significant portion of cash from operations for share repurchases in fiscal 2026[246](index=246&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Accenture manages foreign currency risk with forward contracts, has immaterial interest rate risk, and faces equity investment risks [Foreign Currency Risk](index=45&type=section&id=Foreign%20Currency%20Risk) This section details Accenture's exposure to foreign currency fluctuations and its hedging strategies - Accenture uses derivative financial instruments, primarily forward contracts, to manage foreign currency exchange rate risk for cash flow and balance sheet exposures[251](index=251&type=chunk)[252](index=252&type=chunk) - A **10% change** in foreign currency exchange rates against the U.S. dollar would result in a hypothetical change in the fair value of hedge instruments of approximately **$722 million** as of August 31, 2025[253](index=253&type=chunk) [Interest Rate Risk](index=45&type=section&id=Interest%20Rate%20Risk) This section discusses Accenture's exposure to interest rate changes and its management approach - Interest rate risk associated with borrowing and investing activities is not material[254](index=254&type=chunk) [Equity Investment Risk](index=45&type=section&id=Equity%20Investment%20Risk) This section outlines risks associated with Accenture's equity investments, particularly in non-marketable securities - Equity investment risk includes non-marketable securities in privately held companies, which are inherently risky due to early-stage technologies[256](index=256&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated Financial Statements and Supplementary Data are incorporated by reference, commencing on page F-1 (page 57) - The Consolidated Financial Statements and Supplementary Data are incorporated by reference and commence on page F-1 (page 57)[258](index=258&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=46&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Accenture reports no changes in or disagreements with accountants on accounting and financial disclosure - There have been no changes in or disagreements with accountants on accounting and financial disclosure[259](index=259&type=chunk) [Item 9A. Controls and Procedures](index=46&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and KPMG LLP concluded that Accenture's disclosure controls and internal control over financial reporting were effective as of August 31, 2025 - Disclosure controls and procedures were evaluated as effective at the reasonable assurance level as of August 31, 2025[260](index=260&type=chunk) - Management concluded that internal control over financial reporting was effective as of August 31, 2025, based on the COSO framework[263](index=263&type=chunk) - KPMG LLP audited and issued a report on the effectiveness of internal control over financial reporting[264](index=264&type=chunk) - No material changes in internal control over financial reporting occurred during the fourth quarter of fiscal 2025[265](index=265&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section details the evaluation of Accenture's disclosure controls and procedures [Management's Annual Report on Internal Control over Financial Reporting](index=46&type=section&id=Management%27s%20Annual%20Report%20on%20Internal%20Control%20over%20Financial%20Reporting) This section presents management's annual report on the effectiveness of internal control over financial reporting [Changes in Internal Control over Financial Reporting](index=47&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports any material changes in internal control over financial reporting during the period [Item 9B. Other Information](index=47&type=section&id=Item%209B.%20Other%20Information) This section summarizes Rule 10b5-1(c) trading arrangements adopted by executive officers and directors in Q4 fiscal 2025 - Executive officers and directors adopted trading arrangements in Q4 fiscal 2025 under Rule 10b5-1(c)[266](index=266&type=chunk) Executive Officer Trading Arrangements (Q4 Fiscal 2025) | Name | Title | Date of Adoption | Duration of Plan | Aggregate Shares to be Sold | | :--- | :--- | :--- | :--- | :--- | | Julie Sweet | Chair and CEO | July 12, 2025 | Oct 22, 2025 - July 24, 2026 | 39,000 | | Manish Sharma | Chief Strategy and Services Officer | June 24, 2025 | Oct 22, 2025 - July 24, 2026 | 11,500 | | Ryoji Sekido | Co-CEO—Asia Pacific | June 24, 2025 | Oct 22, 2025 - July 24, 2026 | 6,000 | | Mauro Macchi | CEO—EMEA | July 28, 2025 | Oct 27, 2025 - July 24, 2026 | 4,000 | [Trading Arrangements](index=47&type=section&id=Trading%20Arrangements) This section details the trading arrangements adopted by executive officers and directors [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=48&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) Accenture reports no disclosures regarding foreign jurisdictions that prevent inspections - There are no disclosures regarding foreign jurisdictions that prevent inspections[271](index=271&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=49&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2026 proxy statement - Information on executive officers is included in Part I of this Form 10-K[273](index=273&type=chunk) - Remaining information on directors and corporate governance will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting[273](index=273&type=chunk) [Item 11. Executive Compensation](index=49&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting - Executive compensation information will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting[274](index=274&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=50&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) This section details securities authorized under equity compensation plans, with remaining ownership information incorporated by reference Securities Authorized for Issuance under Equity Compensation Plans (as of August 31, 2025) | Plan Category | Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price | Shares Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | 2001 Share Incentive Plan | 1,872 | $— | — | | Amended and Restated 2010 Share Incentive Plan | 16,388,598 | — | 20,971,852 | | Amended and Restated 2010 Employee Share Purchase Plan | — | N/A | 46,056,389 | | **Total** | **16,390,470** | | **67,028,241** | - The remaining information on security ownership will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting[278](index=278&type=chunk) [Securities Authorized for Issuance under Equity Compensation Plans](index=50&type=section&id=Securities%20Authorized%20for%20Issuance%20under%20Equity%20Compensation%20Plans) This section provides details on securities authorized for issuance under Accenture's equity compensation plans [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=50&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence will be incorporated by reference from the 2026 proxy statement - Information on certain relationships, related transactions, and director independence will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting[279](index=279&type=chunk) [Item 14. Principal Accountant Fees and Services](index=51&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services will be incorporated by reference from the 2026 Annual General Meeting proxy statement - Information on principal accountant fees and services will be incorporated by reference from the definitive proxy statement for the 2026 Annual General Meeting[280](index=280&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists exhibits, financial statements, and an Exhibit Index, including corporate documents and certifications - The report includes Consolidated Financial Statements as of August 31, 2025 and 2024, and for the three years ended August 31, 2025[281](index=281&type=chunk) - No Financial Statement Schedules are filed[281](index=281&type=chunk) - A detailed Exhibit Index lists various corporate documents, agreements, and certifications, including the Amended and Restated Memorandum and Articles of Association, Indenture for senior unsecured notes, and various share incentive plans[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk) [Item 16. Form 10-K Summary](index=54&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to Accenture - This item is not applicable[285](index=285&type=chunk) [Signatures](index=55&type=section&id=Signatures) The Annual Report on Form 10-K was signed on October 10, 2025, by authorized executive officers and directors - The Annual Report on Form 10-K was signed on October 10, 2025[286](index=286&type=chunk) - Signatories include Julie Sweet (CEO, Chair), Angie Park (CFO), Melissa A. Burgum (Chief Accounting Officer), and other directors[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) Consolidated Financial Statements and Supplementary Data This section presents the audited consolidated financial statements and related notes for Accenture [Report of Independent Registered Public Accounting Firm](index=58&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on Accenture's consolidated financial statements and internal control over financial reporting for fiscal 2025 - KPMG LLP issued an unqualified opinion on the consolidated financial statements for the three-year period ended August 31, 2025, stating they present fairly in conformity with U.S. GAAP[291](index=291&type=chunk)[292](index=292&type=chunk) - KPMG LLP also issued an unqualified opinion on the effectiveness of Accenture's internal control over financial reporting as of August 31, 2025[291](index=291&type=chunk)[292](index=292&type=chunk) - Critical audit matters included the evaluation of estimated costs to complete certain technology integration consulting services contracts and unrecognized tax benefits related to transfer pricing[298](index=298&type=chunk)[300](index=300&type=chunk)[303](index=303&type=chunk) [Consolidated Balance Sheets](index=61&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $65.4 billion, driven by cash and goodwill, while liabilities rose due to long-term debt, and equity grew to $32.2 billion Consolidated Balance Sheet Highlights (as of August 31) | Item | 2025 ($M) | 2024 ($M) | Change ($M) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Cash and cash equivalents | $11,478,729 | $5,004,469 | +$6,474,260 | | Receivables and contract assets (current) | $14,985,073 | $13,664,847 | +$1,320,226 | | Goodwill | $22,536,416 | $21,120,179 | +$1,416,237 | | Total assets | **$65,394,897** | **$55,932,363** | **+$9,462,534** | | **LIABILITIES** | | | | | Current portion of long-term debt and bank borrowings | $114,484 | $946,229 | -$831,745 | | Long-term debt | $5,034,169 | $78,628 | +$4,955,541 | | Total current liabilities | $20,352,097 | $18,976,127 | +$1,375,970 | | Total non-current liabilities | $12,801,833 | $7,787,988 | +$5,013,845 | | **SHAREHOLDERS' EQUITY** | | | | | Total shareholders' equity | **$32,240,967** | **$29,168,248** | **+$3,072,719** | [Consolidated Income Statements](index=62&type=section&id=Consolidated%20Income%20Statements) Revenues increased to $69.7 billion in fiscal 2025, with net income rising to $7.7 billion and diluted EPS growing to $12.15 Consolidated Income Statement Highlights (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Revenues | $69,672,977 | $64,896,464 | $64,111,745 | | Total operating expenses | $59,447,313 | $55,300,617 | $55,301,856 | | Operating income | $10,225,664 | $9,595,847 | $8,809,889 | | Income before income taxes | $10,270,393 | $9,699,323 | $9,139,332 | | Income tax expense | $2,437,993 | $2,280,126 | $2,135,802 | | Net income attributable to Accenture plc | $7,678,433 | $7,264,787 | $6,871,557 | | Diluted earnings per Class A ordinary share | $12.15 | $11.44 | $10.77 | | Cash dividends per share | $5.92 | $5.16 | $4.48 | [Consolidated Statements of Comprehensive Income](index=63&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income was $7.8 billion, with total comprehensive income of $7.9 billion, influenced by foreign currency translation gains Consolidated Statements of Comprehensive Income Highlights (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Net income | $7,832,400 | $7,419,197 | $7,003,530 | | Other comprehensive income (loss) attributable to Accenture plc | $89,363 | $188,359 | $447,241 | | Comprehensive income | $7,927,994 | $7,609,673 | $7,459,260 | | Comprehensive income attributable to Accenture plc | $7,767,796 | $7,453,146 | $7,318,798 | - Foreign currency translation contributed **$235.7 million** in other comprehensive income in fiscal 2025[310](index=310&type=chunk) - Cash flow hedges resulted in a net loss of **$204.6 million** in other comprehensive income in fiscal 2025[310](index=310&type=chunk) [Consolidated Shareholders' Equity Statements](index=64&type=section&id=Consolidated%20Shareholders%27%20Equity%20Statements) Total shareholders' equity increased to $32.2 billion, driven by net income and share-based compensation, offset by repurchases and dividends Consolidated Shareholders' Equity Highlights (as of August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Total Accenture plc shareholders' equity | $31,195,446 | $28,288,646 | $25,692,839 | | Total shareholders' equity | $32,240,967 | $29,168,248 | $26,458,593 | | Net income attributable to Accenture plc | $7,678,433 | $7,264,787 | $6,871,557 | | Purchases of Class A shares | $(4,614,969) | $(4,509,392) | $(4,322,529) | | Share-based compensation expense | $2,093,878 | $1,941,590 | $1,913,051 | | Dividends | $(3,696,677) | $(3,238,259) | $(2,824,435) | - During fiscal 2025, Accenture cancelled **22,738,965 Class A ordinary shares** held as treasury shares, with an aggregate cost of **$6.7 billion**[313](index=313&type=chunk)[436](index=436&type=chunk) [Consolidated Cash Flows Statements](index=67&type=section&id=Consolidated%20Cash%20Flows%20Statements) Operating cash flows increased to $11.5 billion, investing cash use decreased due to lower acquisitions, and financing cash use also decreased Consolidated Cash Flows Summary (Fiscal Years Ended August 31) | Activity | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $11,474,399 | $9,131,027 | $9,524,268 | | Net cash provided by (used in) investing activities | $(2,019,650) | $(7,061,818) | $(2,622,470) | | Net cash provided by (used in) financing activities | $(2,948,334) | $(6,063,508) | $(5,645,326) | | Net increase (decrease) in cash and cash equivalents | $6,474,260 | $(4,040,563) | $1,155,199 | | Cash and cash equivalents, end of period | $11,478,729 | $5,004,469 | $9,045,032 | - The increase in operating cash flows was primarily due to higher net income and lower cash outflows for certain compensation payments[242](index=242&type=chunk)[314](index=314&type=chunk) - The decrease in cash used in investing activities was primarily due to lower spending on business acquisitions[242](index=242&type=chunk)[314](index=314&type=chunk) - The decrease in cash used in financing activities was primarily due to higher net proceeds from borrowings[242](index=242&type=chunk)[314](index=314&type=chunk) [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, estimates, and specific financial statement line items [Note 1. Summary of Significant Accounting Policies](index=68&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines Accenture's significant accounting policies for revenue recognition, income taxes, share-based compensation, and business optimization costs - Accenture recognizes revenue over time for managed services and technology integration consulting, and at a point in time for certain non-technology consulting, based on progress towards satisfying performance obligations[324](index=324&type=chunk)[325](index=325&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk) - Variable consideration, such as incentive fees, is included in the transaction price when reasonably estimable and a significant revenue reversal is not probable[322](index=322&type=chunk)[323](index=323&type=chunk) - Income taxes involve estimating current tax exposures and judging the recoverability of deferred tax assets, with ongoing audits and investigations[332](index=332&type=chunk) Business Optimization Costs (Fiscal 2025 vs. 2024) | Item | Fiscal 2025 ($M) | Fiscal 2024 ($M) | | :--- | :--- | :--- | | Employee severance | $344 | N/A | | Asset impairments | $271 | N/A | | **Total Business Optimization Costs** | **$615** | **$438** | - Accenture retrospectively adopted ASU No. 2023-07 (Improvements to Reportable Segment Disclosures) in fiscal 2025 and is evaluating ASU No. 2023-09 (Improvements to Income Tax Disclosures) and ASU No. 2024-03 (Disaggregation of Income Statement Expenses) for future periods[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) [Note 2. Revenues](index=74&type=section&id=Note%202.%20Revenues) Remaining performance obligations were $34 billion, with $4.3 billion in deferred revenues recognized in fiscal 2025 Remaining Performance Obligations (as of August 31) | Fiscal Year-End | Amount ($B) | | :--- | :--- | | 2025 | $34 | | 2024 | $30 | - Approximately **65%** of remaining performance obligations as of August 31, 2025, are expected to be recognized as revenue in fiscal 2026[353](index=353&type=chunk) - Revenues recognized during fiscal 2025 that were included in Deferred revenues as of August 31, 2024, amounted to **$4.3 billion**[357](index=357&type=chunk) Contract Balances (as of August 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Receivables | $13,065,433 | $11,873,442 | | Contract assets (current) | $1,919,640 | $1,791,405 | | Deferred revenues (current) | $6,073,170 | $5,174,923 | | Deferred revenues (non-current) | $642,361 | $641,091 | [Note 3. Earnings Per Share](index=75&type=section&id=Note%203.%20Earnings%20Per%20Share) Diluted earnings per share for fiscal 2025 was $12.15, calculated based on net income and diluted weighted average shares Earnings Per Share Calculation (Fiscal Years Ended August 31) | Item | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Net income attributable to Accenture plc ($M) | $7,678,433 | $7,264,787 | $6,871,557 | | Basic weighted average Class A ordinary shares | 624,891,649 | 627,852,613 | 630,608,186 | | Basic earnings per share | $12.29 | $11.57 | $10.90 | | Diluted weighted average Class A ordinary shares | 632,435,108 | 635,940,044 | 638,591,616 | | Diluted earnings per share | $12.15 | $11.44 | $10.77 | - Diluted EPS calculation assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis[358](index=358&type=chunk) [Note 4. Accumulated Other Comprehensive Loss](index=76&type=section&id=Note%204.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss decreased to $(1.465) billion, driven by foreign currency translation gains and cash flow hedge losses Accumulated Other Comprehensive Loss (as of August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Foreign currency translation, net of tax | $235,681 | $214,889 | $341,688 | | Defined benefit plans, net of tax | $58,232 | $(27,669) | $122,268 | | Cash flow hedges, net of tax | $(204,550) | $1,139 | $(16,715) | | **Accumulated other comprehensive loss** | **$(1,465,379)** | **$(1,554,742)** | **$(1,743,101)** | - Approximately **$115 million** of net unrealized losses related to derivatives designated as cash flow hedges are expected to be reclassified into cost of services within the next twelve months[360](index=360&type=chunk) [Note 5. Property and Equipment](index=77&type=section&id=Note%205.%20Property%20and%20Equipment) Net property and equipment increased to $1.566 billion, with depreciation expense of $622.5 million in fiscal 2025 Property and Equipment, Net (as of August 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Computers, related equipment and software | $2,260,910 | $2,163,222 | | Furniture and fixtures | $447,533 | $431,516 | | Leasehold improvements | $1,784,561 | $1,640,236 | | Property and equipment, gross | $4,493,004 | $4,234,974 | | Total accumulated depreciation | $(2,926,630) | $(2,713,855) | | **Property and equipment, net** | **$1,566,374** | **$1,521,119** | Depreciation Expense (Fiscal Years Ended August 31) | Fiscal Year | Amount ($M) | | :--- | :--- | | 2025 | $622,493 | | 2024 | $547,935 | | 2023 | $620,659 | [Note 6. Business Combinations](index=77&type=section&id=Note%206.%20Business%20Combinations) Accenture completed several acquisitions in fiscal 2025 for $1.169 billion, adding $1.054 billion in goodwill - Accenture completed a number of individually immaterial acquisitions in fiscal 2025, 2024, and 2023 to expand solutions and services[362](index=362&type=chunk) Acquisition Details (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Total consideration | $1,168,698 | $6,456,648 | $2,482,109 | | Goodwill | $1,054,190 | $5,320,890 | $2,094,972 | | Intangible assets | $199,120 | $1,265,290 | $544,661 | - Intangible assets primarily consist of customer-related intangibles, amortized over four to eighteen years[362](index=362&type=chunk) [Note 7. Goodwill and Intangible Assets](index=78&type=section&id=Note%207.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to $22.5 billion, with no impairment, and definite-lived intangible assets totaled $2.4 billion Goodwill by Geographic Market (as of August 31) | Geographic Market | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Americas | $12,414,698 | $11,960,650 | $9,149,539 | | EMEA | $8,036,627 | $7,341,686 | $5,152,149 | | Asia Pacific | $2,085,091 | $1,817,843 | $1,271,315 | | **Total** | **$22,536,416** | **$21,120,179** | **$15,573,003** | - No goodwill impairment existed as of August 31, 2025 or 2024[343](index=343&type=chunk) Definite-Lived Intangible Assets (as of August 31, 2025) | Intangible Asset Class | Net Carrying Amount ($M) | | :--- | :--- | | Customer-related | $2,163,436 | | Technology | $120,428 | | Patents | $42,309 | | Other | $84,582 | | **Total** | **$2,410,755** | Intangible Asset Amortization Expense (Fiscal Years Ended August 31) | Fiscal Year | Amount ($M) | | :--- | :--- | | 2025 | $745,892 | | 2024 | $530,062 | | 2023 | $440,957 | [Note 8. Leases](index=79&type=section&id=Note%208.%20Leases) Accenture's lease obligations are primarily for office real estate, with operating lease costs of $729.7 million in fiscal 2025 - Substantially all lease obligations are for office real estate[366](index=366&type=chunk) Lease Costs (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Operating lease cost | $729,727 | $719,434 | $868,082 | | Variable lease cost | $229,094 | $220,953 | $213,078 | | Sublease income | $(16,122) | $(18,618) | $(17,061) | | **Total** | **$942,699** | **$921,769** | **$1,064,099** | Operating Lease Metrics (as of August 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average remaining lease term | 6.5 years | 6.7 years | | Weighted average discount rate | 4.3% | 4.2% | - Future undiscounted cash outflows for operating leases total **$3.47 billion** as of August 31, 2025[371](index=371&type=chunk) [Note 9. Financial Instruments](index=81&type=section&id=Note%209.%20Financial%20Instruments) Accenture uses derivative financial instruments to manage foreign currency risk, with $36.8 million maximum credit risk from derivatives - Accenture uses derivative financial instruments (foreign currency forward contracts) to manage foreign currency exchange rate risk, not for trading[372](index=372&type=chunk) - Credit risk from derivatives is limited to the fair value of favorable contracts, totaling **$36.8 million** as of August 31, 2025[373](index=373&type=chunk) - Cash flow hedges are used to mitigate foreign exchange risk of forecasted intercompany expenses, with **$10.2 million** net losses reclassified into Cost of services in fiscal 2025[376](index=376&type=chunk)[378](index=378&type=chunk) - Undesignated foreign currency forward contracts, hedging balance sheet exposures, resulted in net losses of **$147.2 million** in fiscal 2025[379](index=379&type=chunk) Fair Value of Derivative Instruments (as of August 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Total derivative assets | $36,847 | $119,248 | | Total derivative liabilities | $281,389 | $90,567 | | **Total fair value (net)** | **$(244,542)** | **$28,681** | | Total notional value | $17,201,447 | $14,824,483 | [Note 10. Borrowings and Indebtedness](index=83&type=section&id=Note%2010.%20Borrowings%20and%20Indebtedness) Accenture issued $5 billion in senior unsecured notes, bringing total outstanding debt to $5.1 billion as of August 31, 2025 - Accenture Capital Inc. issued **$5 billion** aggregate principal amount of senior unsecured notes in October 2024, maturing from 2027 through 2034[381](index=381&type=chunk) Total Outstanding Debt (as of August 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Current portion of long-term debt and bank borrowings | $114,484 | $946,229 | | Long-term debt (Senior notes) | $4,967,226 | $0 | | Other long-term debt | $66,943 | $78,628 | | **Total outstanding debt** | **$5,100,000 (principal)** | **$935,000 (principal)** | - Accenture maintains a **$5.5 billion** syndicated loan facility maturing in May 2029, and other uncommitted credit facilities[385](index=385&type=chunk)[386](index=386&type=chunk) - No borrowings were outstanding under the syndicated loan facility or other credit facilities as of August 31, 2025[386](index=386&type=chunk)[387](index=387&type=chunk) [Note 11. Income Taxes](index=85&type=section&id=Note%2011.%20Income%20Taxes) Fiscal 2025 income tax expense was $2.438 billion (23.7% effective rate), with $2.410 billion in unrecognized tax benefits Income Tax Expense (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Current taxes | $2,080,645 | $2,374,114 | $2,404,755 | | Deferred taxes (benefit) expense | $357,348 | $(93,988) | $(268,953) | | **Total income tax expense** | **$2,437,993** | **$2,280,126** | **$2,135,802** | Effective Income Tax Rate Reconciliation (Fiscal Years Ended August 31) | Item | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | U.S. federal statutory income tax rate | 21.0% | 21.0% | 21.0% | | Non-U.S. operations taxed at other rates | — | 1.0% | 1.4% | | Other net activity in unrecognized tax benefits | 3.0% | 2.7% | 3.2% | | **Effective income tax rate** | **23.7%** | **23.5%** | **23.4%** | - As of August 31, 2025, Accenture had **$2.410 billion** of unrecognized tax benefits, with **$1.615 billion** potentially favorably affecting the effective tax rate if recognized[397](index=397&type=chunk) - The company is negotiating a bilateral Advance Pricing Agreement (APA) with the U.S. and Ireland covering fiscal 2021 through 2025, expected to conclude in fiscal 2026 or 2027[399](index=399&type=chunk) - Ireland and other countries where Accenture operates have enacted Pillar Two, the OECD's global minimum tax rate, which applies starting fiscal year 2025[112](index=112&type=chunk) [Note 12. Retirement and Profit Sharing Plans](index=88&type=section&id=Note%2012.%20Retirement%20and%20Profit%20Sharing%20Plans) Accenture maintains defined benefit and contribution plans, with pension expense of $219.9 million and a funded status of $(1.116) billion Pension and Postretirement Expense (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Pension expense | $219,933 | $222,891 | $206,346 | | Postretirement expense | Not material | Not material | Not material | Funded Status for Defined Benefit Plans (as of August 31) | Item | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Funded status, end of year (Pension Plans) | $(1,116,081) | $(1,057,951) | | Funded status, end of year (Postretirement Plans) | $(538,989) | $(566,831) | - Plan assets are invested in a diversified portfolio primarily consisting of fixed income instruments and equities to mitigate market and interest rate risks[412](index=412&type=chunk) Defined Contribution Plan Expenses (Fiscal Years Ended August 31) | Fiscal Year | Amount ($M) | | :--- | :--- | | 2025 | $949,214 | | 2024 | $914,092 | | 2023 | $976,230 | [Note 13. Share-Based Compensation](index=94&type=section&id=Note%2013.%20Share-Based%20Compensation) Share-based compensation expense was $2.094 billion in fiscal 2025, with 7.64 million RSUs granted and shares available for future grants Share-Based Compensation Expense (Fiscal Years Ended August 31) | Item | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Total share-based compensation expense | $2,093,878 | $1,941,590 | $1,913,051 | | Income tax benefit related to share-based compensation | $581,521 | $572,904 | $585,767 | - As of August 31, 2025, **20,971,852 shares** were available for future grants under the Amended and Restated Accenture plc 2010 Share Incentive Plan[422](index=422&type=chunk) Restricted Share Unit Activity (Fiscal 2025) | Item | Number of Restricted Share Units | Weighted Average Grant-Date Fair Value | | :--- | :--- | :--- | | Nonvested balance as of Aug 31, 2024 | 15,823,227 | $311.06 | | Granted | 7,642,010 | $346.49 | | Vested | (6,119,669) | $310.36 | | Forfeited | (1,360,494) | $345.82 | | **Nonvested balance as of Aug 31, 2025** | **15,985,074** | **$325.33** | - As of August 31, 2025, there was **$1.672 billion** of unrecognized RSU compensation expense, expected to be recognized over a weighted average period of **1.1 years**[425](index=425&type=chunk) - The 2010 ESPP allows eligible employees to purchase Class A ordinary shares at a discount, and Accenture Leadership participants in the VEIP receive matching restricted share units[427](index=427&type=chunk) [Note 14. Shareholders' Equity](index=96&type=section&id=Note%2014.%20Shareholders%27%20Equity) Accenture's equity structure includes various share classes, with $4.615 billion in share repurchases and $3.7 billion in dividends in fiscal 2025 - Accenture plc has Ordinary Shares (non-voting, liquidation rights), Class A Ordinary Shares (voting, dividend, liquidation rights), and Class X Ordinary Shares (voting, no dividends, no liquidation rights, linked to exchangeable shares)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk) - Holders of Accenture Canada Holdings Inc. exchangeable shares can exchange them for Accenture plc Class A ordinary shares on a one-for-one basis[432](index=432&type=chunk) Share Purchase Activity (Fiscal 2025) | Item | Class A Ordinary Shares (Shares) | Class A Ordinary Shares (Amount $M) | Accenture Canada Exchangeable Shares (Shares) | Accenture Canada Exchangeable Shares (Amount $M) | | :--- | :--- | :--- | :--- | :--- | | Open-market share purchases | 11,878,584 | $3,838,976 | — | — | | Other share purchase programs | — | — | 12,271 | $4,528 | | Other purchases (e.g., tax withholding) | 2,203,778 | $775,993 | — | — | | **Total** | **14,082,362** | **$4,614,969** | **12,271** | **$4,528** | - During fiscal 2025, **22,738,965 treasury shares** were cancelled, with an aggregate cost of **$6.666 billion**[436](index=436&type=chunk) Dividend Payments (Fiscal 2025) | Dividend Payment Date | Dividend Per Share | Total Cash Outlay ($M) | | :--- | :--- | :--- | | November 15, 2024 | $1.48 | $925,558 | | February 14, 2025 | $1.48 | $928,992 | | May 15, 2025 | $1.48 | $923,894 | | August 15, 2025 | $1.48 | $921,725 | | **Total Dividends** | | **$3,700,169** | - On September 22, 2025, the Board declared a quarterly cash dividend of **$1.63 per share** and approved an additional **$5 billion** in share repurchase authority[438](index=438&type=chunk) [Note 15. Commitments and Contingencies](index=98&type=section&id=Note%2015.%20Commitments%20and%20

Core Insights - Accenture plc (NYSE:ACN) is recognized as one of the 12 Most Promising Dividend Stocks by Wall Street Analysts [1] Group 1: Company Overview - Accenture is a global professional services company focusing on digital transformation, consulting, and technology solutions [2] - The company operates in over 120 countries, leveraging its global network to provide tailored solutions for various business challenges [2] Group 2: Strategic Focus - In recent years, Accenture has emphasized strengthening its leadership in technology and innovation, particularly through advancements in AI and strategic acquisitions [3] Group 3: Financial Performance - In fiscal Q4 2025, Accenture reported a free cash flow of $3.8 billion, totaling nearly $11 billion for the entire year [4] - For FY26, the company anticipates returning $9.6 billion in shareholder returns [4] - On September 25, Accenture announced a 10.1% increase in its quarterly dividend to $1.63 per share, extending its dividend growth streak to 15 years [4] - The stock currently supports a dividend yield of 2.58% as of October 8 [4]

Core Insights - Accenture plc (NYSE: ACN) stock has been negatively impacted by spending cuts related to DOGE announced earlier this year [1] Company Analysis - The analyst has maintained a bullish stance on Accenture's stock despite the recent downturn [1] - The analyst emphasizes a strong focus on the tech sector and holds a Bachelor of Commerce Degree with Distinction, majoring in Finance [1] Industry Context - The article highlights the importance of core values such as Excellence, Integrity, Transparency, and Respect for long-term success in the investment landscape [1]

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) unveiled a new way for customers to gain access to its artificial intelligence prowess on Thursday, Gemini Enterprise. Separately, Accenture (NYSE:ACN) said on Thursday that its deal with Google's (NASDAQ:GOOG) (NASDAQ:GOOGL) Cloud ...

Core Insights - Accenture and Google Cloud are collaborating to enhance client transformation through the implementation of Gemini Enterprise agentic AI solutions [1] Group 1 - The partnership aims to leverage advanced AI technologies to drive innovation and efficiency for clients [1] - Gemini Enterprise solutions are designed to provide businesses with tailored AI capabilities that can adapt to their specific needs [1] - This collaboration reflects a growing trend in the industry towards integrating AI into business processes to improve decision-making and operational performance [1]

Corporate Leadership Trends - The shift towards more women in top executive roles is transforming corporate cultures and enhancing business performance across various sectors, including technology and healthcare [2] - Women-led firms are setting new benchmarks for strategic growth and operational excellence, often outperforming their industry peers [2] Case Studies of Women Leaders - Julie Sweet, CEO of Accenture, has driven the firm's focus on cloud, digital, and AI, emphasizing inclusion and transparent communication, which has helped sustain growth [3] - Maria Black, CEO of Automatic Data Processing, leverages her extensive experience to guide the company towards a more insight-driven and human-centric future [3] Women Entrepreneurs and Business Growth - The number of women-owned firms grew 44% faster than male-owned businesses from 2019 to 2024, with 56% of women entrepreneurs reporting higher revenues in 2025 compared to 2024 [4] - Many women entrepreneurs are accessing growth capital, with 20% utilizing debt and 32% equity funding in the past year [4] Funding Challenges for Women Entrepreneurs - Women-led startups receive only about 2% of venture capital funding in the U.S. and Europe, partly due to biases in the investment community [5] Investment Opportunities in Women-Led Companies - Companies like Phillips 66, Progressive Corporation, Macy's, and General Dynamics exemplify strong leadership and strategic vision, making them attractive investment opportunities [7] Phillips 66 Performance - In Q2 2025, Phillips 66 reported a net income of $877 million and adjusted earnings of $973 million, with a return of $906 million to shareholders through dividends and buybacks [10][11] Progressive Corporation Performance - Under Tricia Griffith's leadership, Progressive's net premiums written increased to $20 billion in Q2 2025, up 12% from the previous year, with an EPS of $4.88, reflecting strong operational discipline [14][15] Macy's Performance - Macy's reported net sales of $4.8 billion in Q2 2025, with adjusted EPS of 41 cents, and comparable sales rose 0.8% on an owned basis [18] General Dynamics Performance - General Dynamics posted revenues of $13 billion in Q2 2025, up 8.9% year over year, with a record backlog of $103.7 billion, indicating strong long-term earnings visibility [21][22]

Group 1: Company Overview - Accenture Plc. (NYSE:ACN) is a multinational professional services company that provides strategy, technology, and consulting services to help businesses scale and modernize through digital, cloud, and artificial intelligence solutions [5] Group 2: Investment Insights - Accenture has been recognized as one of the 13 Safest Stocks to Invest in Now, driven by significant hedge fund interest and a strong return on equity [1] - Jefferies has reduced its price target for Accenture from $260 to $250 while maintaining a Hold rating, citing the company's ongoing reorganization towards artificial intelligence [2] - Jefferies noted that investor sentiment regarding AI integration is a key driver for Accenture's stock performance, despite fiscal 2026 guidance being in line with expectations [3] Group 3: Strategic Developments - Accenture made a strategic investment in the UK-based insurtech company Rehuman, aiming to enhance client engagement through data-driven, AI-powered solutions [4] - The advancements in AI-focused transitions at Accenture highlight both the potential benefits and challenges the company may face [4] Group 4: Financial Projections - Jefferies increased its estimate for Accenture's fiscal 2026 adjusted EPS to $13.83, reflecting an increase of $0.35 from previous projections [3]

Group 1 - Significant bearish sentiment among major investors in Accenture, with 53% bearish and 30% bullish positions noted in options trading [2][3] - Recent options activity includes 13 trades, with a total of $917,870 in call options and a single put option worth $29,250, indicating unusual trading patterns [1][2] - The price target for Accenture based on trading activity ranges from $190.0 to $340.0 over the past three months [3] Group 2 - The mean open interest for Accenture options trades is 521.78, with a total volume of 990.00, reflecting liquidity and interest in the stock [4] - Recent significant options trades include various call options with strike prices ranging from $250.00 to $340.00, with total trade prices reaching up to $158.2K [9] - Accenture is recognized as the world's largest professional services company by headcount, employing around 800,000 people across over 120 countries [10] Group 3 - Professional analysts have set an average target price of $302.8 for Accenture, with individual ratings ranging from $270 to $350 from various firms [12][13] - The current trading volume for Accenture is 2,030,704, with a slight price increase of 0.56%, bringing the stock price to $246.7 [15]

Core Insights - ClearBridge Investments reported strong equity performance in Q3 2025, with the S&P 500 Index rising 8.1% and the Nasdaq Composite increasing 11.2% to record highs, driven by favorable economic conditions and strong corporate earnings, particularly in technology [1] - The ClearBridge Large Cap Growth Strategy underperformed the benchmark due to underexposure to perceived AI winners and holding stocks considered AI losers [1] Company-Specific Insights - Accenture plc (NYSE:ACN) experienced a one-month return of -3.78% and a 52-week loss of 32.28%, closing at $245.32 with a market capitalization of $152.589 billion on October 3, 2025 [2] - ClearBridge exited positions in Accenture due to concerns over decelerating growth in its consulting business and muted tech spending, which impacted its outsourcing demand [3] - In Q4 2025, Accenture reported revenues of $17.6 billion, reflecting a 7% increase in U.S. dollars and 4.5% in local currency, but is not considered among the most popular stocks among hedge funds [4]