Accenture(US:ACN)2025-09-25 10:43Revenue and Earnings - Fiscal 2025 revenues were $69.67 billion, reflecting a 7% increase in both U.S. dollars and local currency compared to fiscal 2024[28]. - Fourth quarter revenues reached $17.60 billion, a 7% increase in U.S. dollars and 4.5% in local currency, at the top end of the company's guidance[10]. - New bookings for fiscal 2025 totaled $80.62 billion, a decrease of 1% in both U.S. dollars and local currency compared to fiscal 2024[26]. - Generative AI new bookings for the fourth quarter were $1.8 billion, contributing to a total of $5.9 billion for the year[6]. - Full-year GAAP diluted EPS was $12.15, a 6% increase, while adjusted EPS was $12.93, an 8% increase compared to fiscal 2024[6]. - The company expects full-year revenue growth of 2% to 5% in local currency for fiscal 2026, with adjusted EPS guidance of $13.52 to $13.90, representing a 5% to 8% increase[6]. - GAAP diluted EPS for fiscal 2025 were $12.15, a 6% increase over $11.44 for fiscal 2024[41]. - Full year fiscal 2026 GAAP diluted EPS is expected to be between $13.19 and $13.57, representing a 9% to 12% increase over fiscal 2025[45]. Cash Flow and Shareholder Returns - Free cash flow for the fourth quarter was $3.8 billion, and $10.9 billion for the full year[6]. - The company returned $8.3 billion to shareholders in fiscal 2025, including $4.6 billion in share repurchases and $3.7 billion in cash dividends[39]. - The company repurchased 14.1 million shares for a total of $4.6 billion in fiscal 2025, with an outstanding authority of approximately $7.9 billion[46]. - A quarterly cash dividend of $1.63 per share has been declared, representing a 10% increase over the previous quarterly dividend[42]. - Cash dividends paid increased to $921,725 for the three months ended August 31, 2025, from $807,869 in the same period of 2024[63]. Operating Performance - The company recorded a GAAP operating margin of 14.7% for the full year, a decrease of 10 basis points, while the adjusted operating margin was 15.6%, an increase of 10 basis points[6]. - GAAP operating income for fiscal 2025 increased 7% to $10.23 billion compared to $9.60 billion in fiscal 2024[35]. - Operating cash flow for fiscal 2025 was $11.47 billion, up from $9.13 billion in fiscal 2024[37]. - Operating income for the year ended August 31, 2025, was $10,840,988, with a 15.6% operating margin, compared to $10,034,287 and a 15.5% margin for the previous year[59]. - Total operating income for the three months ended August 31, 2025, was $2,665,015, representing a 15.1% operating margin, compared to $2,459,615 and a 15.0% margin for the same period in 2024[57]. Assets and Equity - The total cash balance at August 31, 2025, was $11.5 billion, up from $5.0 billion a year earlier[25]. - Total current assets increased to $28,900,689 as of August 31, 2025, from $20,857,781 in 2024, driven by a rise in cash and cash equivalents to $11,478,729[62]. - Total assets reached $65,394,897 as of August 31, 2025, up from $55,932,363 in 2024, indicating strong growth in the company's asset base[62]. - Total shareholders' equity increased to $32,240,967 as of August 31, 2025, from $29,168,248 in 2024, reflecting a solid increase in equity[62]. Regional Performance - The Americas region generated revenues of $8,804,391 for the three months ended August 31, 2025, reflecting a 5% increase from $8,423,447 in the prior year[55]. - Operating income in the Americas for the three months ended August 31, 2025, was $987,032, down from $1,295,736 in the prior year, with a margin of 11%[56]. - The Americas region contributed $1,407,501 to operating income for the three months ended August 31, 2025, with a 16% margin, compared to $1,320,561 and a 16% margin in 2024[57]. - The Asia Pacific region's operating income for the three months ended August 31, 2025, was $462,846, with an 18% margin, compared to $420,494 and an 18% margin in 2024[57]. Costs and Expenses - The company initiated a business optimization program with a charge of $615 million in Q4 FY25, expecting total costs of approximately $865 million over six months[16]. - The company recorded $344 million in employee severance costs and $271 million in asset impairments related to business optimization actions initiated in fiscal 2025[59]. - Depreciation, amortization, and other expenses for the three months ended August 31, 2025, were $758,932, up from $596,405 in the same period of 2024[63]. - Share-based compensation expense rose to $439,547 for the three months ended August 31, 2025, compared to $402,788 in the same period of 2024[63]. Income and Taxation - Net income attributable to Accenture plc for the three months ended August 31, 2025, was $1,413,963, down 16% from $1,684,301 in the same period last year[53]. - Net income for the three months ended August 31, 2025, was $1,449,806, a decrease from $1,718,666 in the same period of 2024, while the year-end net income increased to $7,832,400 from $7,419,197[63]. - The effective tax rate for the three months ended August 31, 2025, was 27.9%, compared to 26.2% for the same period in 2024[59].