Accenture(US:ACN)2025-12-18 11:44Financial Performance - Revenues for the first quarter of fiscal 2026 were $18.7 billion, representing a 6% increase in U.S. dollars and a 5% increase in local currency compared to the first quarter of fiscal 2025[73]. - New bookings reached $20.9 billion, an increase of 12% in U.S. dollars and 10% in local currency[73]. - Operating margin for the first quarter of fiscal 2026 was 15.3%, down from 16.7% in the first quarter of fiscal 2025; adjusted operating margin was 17.0%[73]. - Diluted earnings per share were $3.54, a 1% decrease from $3.59 in the first quarter of fiscal 2025; adjusted earnings per share increased 10% to $3.94[73]. - Revenues in managed services increased 8% in U.S. dollars and 7% in local currency compared to the first quarter of fiscal 2025[76]. - Consulting revenues increased 4% in U.S. dollars and 3% in local currency compared to the first quarter of fiscal 2025[75]. - Revenues for the first quarter of fiscal 2026 were $18,742 million, a 6% increase compared to $17,690 million in the same period of fiscal 2025[85]. - Operating income decreased by $75 million, or 3%, to $2,874 million, with an operating margin of 15.3%, down from 16.7% in the previous year[95]. Shareholder Returns - Cash returned to shareholders totaled $3.3 billion, including dividends of $1.0 billion and share purchases of $2.3 billion[73]. - During the first quarter of fiscal 2026, the company repurchased 9,496,660 shares for a total of $2.33 billion[114]. - The company intends to continue using a significant portion of cash generated from operations for share repurchases throughout fiscal 2026[116]. Operating Metrics - Utilization rate for the first quarter of fiscal 2026 was 93%, up from 91% in the first quarter of fiscal 2025[78]. - Annualized voluntary attrition was 13%, compared to 12% in the first quarter of fiscal 2025[79]. - Operating expenses increased by $1,127 million, or 8%, to $15,868 million, representing 84.7% of revenues, up from 83.3% in the prior year[86][89]. - Managed services bookings typically convert to revenue over a longer period compared to consulting bookings, impacting revenue recognition[82]. Cash Flow and Investments - Operating cash flows increased by $642 million to $1,664 million for the three months ended November 30, 2025, compared to $1,022 million for the same period in 2024[110]. - Cash used in investing activities increased by $119 million, primarily due to higher spending on business acquisitions[110]. - Financing activities saw a decrease of $5,663 million, attributed to lower net proceeds from borrowings and increased share repurchases[110]. Debt and Liquidity - As of November 30, 2025, cash and cash equivalents decreased to $9.6 billion from $11.5 billion as of August 31, 2025[109]. - The company had outstanding long-term debt of $5 billion as of November 30, 2025, with maturities ranging from 2027 to 2034[112]. Tax and Other Financial Considerations - The effective tax rate increased to 24.5% from 21.6% due to reduced benefits from adjustments to prior year tax liabilities[103]. - Interest income rose by $30 million, or 40%, to $106 million, primarily due to a higher average cash balance[100]. - Business optimization costs of $308 million were recorded, primarily for employee severance, impacting overall operating income[93]. Risk and Control - There were no material changes in market risk exposure during the three months ended November 30, 2025[119]. - The company has not been required to make significant payments under indemnification arrangements with clients[118]. - There were no changes in internal control over financial reporting that materially affected the company's controls during the first quarter of fiscal 2026[121].