Accenture(US:ACN)2025-06-20 10:44Financial Performance - Revenues for Q3 fiscal 2025 were $17.7 billion, an increase of 8% in U.S. dollars and 7% in local currency compared to Q3 fiscal 2024[70] - New bookings for Q3 fiscal 2025 were $19.7 billion, a decrease of 6% in U.S. dollars and 7% in local currency[70] - Operating margin for Q3 fiscal 2025 was 16.8%, up from 16.0% in Q3 fiscal 2024[70] - Diluted earnings per share for Q3 fiscal 2025 were $3.49, a 15% increase from $3.04 in Q3 fiscal 2024[70] - Revenues for Q3 fiscal 2025 increased to $17.7 billion, an 8% increase compared to $16.5 billion in Q3 fiscal 2024[85] - Operating income for the third quarter of fiscal 2025 increased by $352 million, or 13%, compared to the same period in fiscal 2024, with an operating margin of 16.8%[101] - For the nine months ended May 31, 2025, operating income rose by $934 million, or 13%, with an operating margin of 15.7%[101] Shareholder Returns - Cash returned to shareholders in Q3 fiscal 2025 totaled $2.7 billion, including dividends of $924 million and share purchases of $1.8 billion[70] - During the nine months ended May 31, 2025, Accenture plc repurchased a total of 12,478,861 shares for $4,141 million, including 10,326,925 shares through open-market purchases valued at $3,381 million[122] - The company plans to continue utilizing a significant portion of cash generated from operations for share repurchases throughout the remainder of fiscal 2025, with the number of shares repurchased depending on various market conditions[124] Revenue Breakdown - Consulting revenues increased by 7% in U.S. dollars and 6% in local currency for Q3 fiscal 2025, driven by strong growth in the Americas and EMEA[74] - Managed services revenues increased by 9% in both U.S. dollars and local currency for Q3 fiscal 2025, supported by strong demand for application modernization and cloud enablement[75] - Revenues in the Americas increased by 8% in Q3 fiscal 2025, driven by growth in Public Service, Banking & Capital Markets, and Insurance[87] Cost and Expenses - Operating expenses for Q3 fiscal 2025 increased by $909 million, or 7%, totaling $14.7 billion, while decreasing as a percentage of revenues to 83.2% from 84.0%[90] - Cost of services for Q3 fiscal 2025 increased by $933 million, or 9%, and represented 67.1% of revenues, compared to 66.6% in Q3 fiscal 2024[93] - Sales and marketing expenses for Q3 fiscal 2025 increased by $12 million, or 1%, and decreased as a percentage of revenues to 9.9% from 10.6%[95] - General and administrative costs for Q3 fiscal 2025 increased by $42 million, or 4%, and decreased as a percentage of revenues to 6.1% from 6.3%[96] Workforce and Utilization - The workforce increased to approximately 791,000 as of May 31, 2025, compared to approximately 750,000 a year earlier, reflecting hiring for skills needed to support service demand[78] - Utilization rate for Q3 fiscal 2025 was 92%, consistent with the same quarter in fiscal 2024[78] - Annualized attrition rate for Q3 fiscal 2025 was 16%, up from 14% in Q3 fiscal 2024[79] Cash and Debt - As of May 31, 2025, cash and cash equivalents totaled $9.6 billion, up from $5.0 billion as of August 31, 2024[117] - Net cash provided by operating activities for the nine months ended May 31, 2025 was $7,560 million, an increase of $1,819 million from the prior year[117] - The net increase in cash and cash equivalents for the nine months ended May 31, 2025 was $4,627 million, a significant improvement from a decrease of $3,508 million in the prior year[117] - The company had outstanding long-term debt of $5 billion as of May 31, 2025, with maturities ranging from 2027 to 2034[120] Interest and Tax - Interest income for the third quarter of fiscal 2025 was $79 million, an increase of $25 million over the same quarter in fiscal 2024[108] - Interest expense for the third quarter of fiscal 2025 was $68 million, an increase of $56 million compared to the third quarter of fiscal 2024[109] - The effective tax rate for the third quarter of fiscal 2025 was 24.0%, down from 25.4% in the same quarter of fiscal 2024[111] Internal Controls and Risk Management - Accenture plc's management has evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective at the reasonable assurance level as of the end of the reporting period[127] - There have been no changes in internal control over financial reporting that materially affected the company during the third quarter of fiscal 2025[128] - There were no material changes to market risk exposure during the nine months ended May 31, 2025, as disclosed in the Annual Report for the year ended August 31, 2024[126] - The company has not been required to make any significant payments under off-balance sheet arrangements to date[126] Share Repurchase Program - The share repurchase program may be accelerated, suspended, delayed, or discontinued at any time without notice, depending on various factors[124] - The company acquired shares primarily through share withholding for payroll tax obligations under employee equity share plans, which do not affect the aggregate available authorization for open-market purchases[123] - Accenture continues to monitor its capital allocation planning, cash and debt balances, and other cash demands, including acquisition activity[124]