Accenture(US:ACN)2025-03-20 10:43Financial Performance - New bookings for Q2 FY25 were $20.9 billion, a decrease of 3% in U.S. dollars and flat in local currency compared to Q2 FY24[8]. - Revenues for Q2 FY25 were $16.7 billion, an increase of 5% in U.S. dollars and 8.5% in local currency, at the top end of the guided range[10]. - Generative AI new bookings reached $1.4 billion, reflecting strong demand in this segment[3]. - Operating margin for Q2 FY25 was 13.5%, an increase of 50 basis points compared to the previous year[14]. - Diluted earnings per share for Q2 FY25 were $2.82, a 7% increase from $2.63 in Q2 FY24[18]. - Free cash flow for Q2 FY25 was $2.68 billion, up from $1.99 billion in Q2 FY24[19]. - The company expects full-year revenue growth to be between 5% and 7% in local currency[6]. - Operating margin guidance for FY25 is updated to 15.6% to 15.7%, reflecting a 10 to 20 basis points expansion over adjusted operating margin[6]. Shareholder Returns - Accenture repurchased 4.0 million shares for a total of $1.4 billion during Q2 FY25[23]. - Cash dividends per share increased to $1.48 for the three months ended February 28, 2025, up from $1.29 in the same period of 2024[35]. - The company paid cash dividends of $928,992 thousand during the three months ended February 28, 2025, compared to $812,578 thousand in the same period in 2024, representing an increase of approximately 14.3%[45]. Income and Expenses - Total operating expenses for the three months ended February 28, 2025, were $14,414,587, which is an increase from $13,753,087 in the same period of 2024[35]. - The cost of services represented 70.1% of revenues for the three months ended February 28, 2025, compared to 69.1% for the same period in 2024[35]. - Operating income for the three months ended February 28, 2025, was $2,244,714, which is 13.5% of revenues, compared to 13.0% for the same period in 2024[35]. - Total revenues for the three months ended February 28, 2025, were $16,659,301, representing a 5% increase compared to $15,799,514 for the same period in 2024[37]. - Operating income for the six months ended February 28, 2025, was $5,193,191, with a margin of 15.1%, compared to $4,611,314 and a margin of 14.4% in the prior year[39]. Net Income - Net income attributable to Accenture plc for the three months ended February 28, 2025, was $1,788,075, a 6.8% increase from $1,674,859 in the same period of 2024[35]. - Net income for the three months ended February 28, 2025, was $1,822,441, compared to $1,709,202 in the same period last year, resulting in an increase of $87,331[41]. - Net income for the three months ended February 28, 2025, was $1,822,441 thousand, compared to $1,709,202 thousand for the same period in 2024, reflecting an increase of about 6.6%[45]. Cash Flow and Assets - The total cash balance at February 28, 2025, was $8.5 billion, compared to $5.0 billion at August 31, 2024[20]. - Cash and cash equivalents rose to $8,490,438 thousand at the end of the period, up from $5,004,469 thousand, marking a significant increase of approximately 69.5%[45]. - The company reported net cash provided by operating activities of $2,853,400 thousand for the three months ended February 28, 2025, compared to $2,101,043 thousand for the same period in 2024, an increase of approximately 36%[45]. - Long-term debt increased significantly to $5,042,111 thousand from $78,628 thousand, indicating a strategic shift in financing[43]. - Total assets increased to $59,869,756 thousand as of February 28, 2025, up from $55,932,363 thousand on August 31, 2024, representing a growth of approximately 5.3%[43]. Strategic Insights - The company anticipates continued growth in client demand for its services and solutions, particularly in response to evolving technology trends[33]. - Accenture's profitability may be impacted by competitive pressures and the need to adapt to changes in the technological environment[33]. - Purchases of businesses and investments net of cash acquired amounted to $250,795 thousand for the three months ended February 28, 2025, compared to $2,121,455 thousand in the same period last year, indicating a strategic reduction in acquisition spending[45]. - The Asia Pacific region experienced a decrease in operating income for the three months ended February 28, 2025, with $365,036 compared to $434,158 in the prior year, a decline of $69,122[38]. - The effective tax rate for the three months ended February 28, 2025, was 20.4%, compared to 18.4% for the same period in 2024[41].