Accenture(US:ACN)2025-12-18 11:42Financial Performance - New bookings for Q1 FY26 were $20.94 billion, an increase of 12% in U.S. dollars and 10% in local currency compared to Q1 FY25[8]. - Revenues for Q1 FY26 were $18.74 billion, reflecting a 6% increase in U.S. dollars and 5% in local currency, at the top of the company's guided range[10]. - GAAP operating margin for Q1 FY26 was 15.3%, a decrease of 140 basis points from 16.7% in Q1 FY25; adjusted operating margin expanded 30 basis points to 17.0%[18]. - GAAP diluted EPS for Q1 FY26 was $3.54, a 1% decrease from $3.59 in Q1 FY25; adjusted EPS increased 10% to $3.94[19]. - Free cash flow for Q1 FY26 was $1.51 billion, compared to $0.87 billion in Q1 FY25[20]. - The company reported a gross margin of 33.1% for Q1 FY26, up from 32.9% in Q1 FY25[14]. - Accenture's diluted earnings per share for the quarter were $3.54, compared to $3.59 in the previous year[33]. - Net income for the same period was $2,241,896, compared to $2,316,190 for the three months ended November 30, 2024, reflecting a decrease of 3.2%[40]. - Business optimization costs impacted diluted EPS by a negative $0.09 for the three months ended November 30, 2025[38]. Shareholder Returns - Total cash returned to shareholders in Q1 FY26 was $3.3 billion, including $2.3 billion in share repurchases and $1.0 billion in cash dividends[24]. - Accenture's cash dividends per share increased to $1.63 from $1.48 year-over-year[33]. Revenue Growth Expectations - The company expects full-year revenue growth to be 2% to 5% in local currency, with adjusted EPS projected to be in the range of $13.52 to $13.90, reflecting a 5% to 8% increase[26]. Regional Performance - The Americas region generated revenues of $9,080,059, a 4% increase from $8,733,095, while EMEA and Asia Pacific saw increases of 8% and 7%, respectively[34]. - The Financial Services industry group experienced a 14% revenue increase to $3,602,372, while Health & Public Service remained flat with revenues of $3,796,837[34]. Cash and Assets - Accenture's total cash balance at November 30, 2025, was $9.6 billion, down from $11.5 billion at August 31, 2025[21]. - Total current assets decreased to $28,066,694 as of November 30, 2025, from $28,900,689 as of August 31, 2025[39]. - Total assets decreased to $64,698,463 as of November 30, 2025, compared to $65,394,897 as of August 31, 2025[39]. - Cash and cash equivalents at the end of the period were $9,649,405, down from $11,478,729 at the beginning of the period[40]. - Total shareholders' equity decreased to $31,922,282 as of November 30, 2025, from $32,240,967 as of August 31, 2025[39]. Operating Income - Operating income for the same period was $2,873,698, with an operating margin of 15.3%, down from $2,948,477 and 16.7% in the prior year[33]. - Operating income in the Americas increased by $150,101 to $1,527,335, while EMEA and Asia Pacific saw declines of $135,486 and $89,394, respectively[35]. - Net cash provided by operating activities for the three months ended November 30, 2025, was $1,664,097, an increase from $1,022,486 in the prior year[40]. Management Insights - Accenture's management emphasizes the importance of adapting to changes in technology and maintaining client demand to mitigate risks associated with economic conditions[30].