SEC Form 10-Q filed by Accenture plc

12/19/24 6:48:37 AM ET

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Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

Commission File Number: 001-34448

Accenture plc

(Exact name of registrant as specified in its charter)


Ireland			98-0627530
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1 Grand Canal Square,

Grand Canal Harbour,

Dublin 2, Ireland

(Address of principal executive offices)

(353) (1) 646-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A ordinary shares, par value $0.0000225 per share	ACN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares of the registrant’s Class A ordinary shares, par value $0.0000225 per share, outstanding as of December 9, 2024 was 674,873,315 (which number includes 49,393,378 issued shares held by the registrant). The number of shares of the registrant’s Class X ordinary shares, par value $0.0000225 per share, outstanding as of December 9, 2024 was 307,754.

Table of Contents



		Page
Part I.	Financial Information	3
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of November 3 0 , 2024 (Unaudited) and August 31, 20 24	3
	Consolidated Income Statements (Unaudited) for the three months ended November 3 0 , 2024 and 2023	4
	Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended November 3 0 , 2024 and 2023	5
	Consolidated Shareholders’ Equity Statement (Unaudited) for the three months ended November 3 0 , 2024 and 2023	6
	Consolidated Cash Flows Statements (Unaudited) for the three months ended November 3 0 , 2024 and 2023	8
	Notes to Consolidated Financial Statements (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
Part II.	Other Information	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	33
Signatures		34


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE FORM 10-Q		3

Part I — Financial Information

Item 1. Financial Statements

Consolidated Balance Sheets

November 30, 2024 and August 31, 2024


	November 30, 2024		August 31, 2024
ASSETS	(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	8,306,055	$	5,004,469
Short-term investments	5,150		5,396
Receivables and contract assets	14,574,637		13,664,847
Other current assets	2,312,495		2,183,069
Total current assets	25,198,337		20,857,781
NON-CURRENT ASSETS:
Contract assets	128,981		120,260
Investments	371,507		334,664
Property and equipment, net	1,507,460		1,521,119
Lease assets	2,669,480		2,757,396
Goodwill	20,868,911		21,120,179
Deferred contract costs	893,898		862,140
Deferred tax assets	4,108,532		4,147,496
Intangibles	2,740,590		2,904,031
Other non-current assets	1,380,374		1,307,297
Total non-current assets	34,669,733		35,074,582
TOTAL ASSETS	$	59,868,070	$	55,932,363
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings	$	114,321	$	946,229
Accounts payable	2,579,165		2,743,807
Deferred revenues	4,711,553		5,174,923
Accrued payroll and related benefits	6,602,324		7,050,833
Income taxes payable	863,673		719,084
Lease liabilities	709,964		726,202
Other accrued liabilities	1,605,968		1,615,049
Total current liabilities	17,186,968		18,976,127
NON-CURRENT LIABILITIES:
Long-term debt	5,039,460		78,628
Deferred revenues	623,750		641,091
Retirement obligation	1,845,092		1,815,867
Deferred tax liabilities	453,066		428,845
Income taxes payable	1,366,759		1,514,869
Lease liabilities	2,282,652		2,369,490
Other non-current liabilities	967,900		939,198
Total non-current liabilities	12,578,679		7,787,988
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2024 and August 31, 2024	57		57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 674,278,898 and 672,484,852 shares issued as of November 30, 2024 and August 31, 2024, respectively	15		15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 307,754 shares issued and outstanding as of November 30, 2024 and August 31, 2024	—		—
Restricted share units	2,777,423		2,614,608
Additional paid-in capital	15,364,338		14,710,857
Treasury shares, at cost: Ordinary, 40,000 shares as of November 30, 2024 and August 31, 2024; Class A ordinary, 49,248,770 and 47,204,565 shares as of November 30, 2024 and August 31, 2024, respectively	(11,304,512)		(10,564,572)
Retained earnings	24,402,568		23,082,423
Accumulated other comprehensive loss	(2,049,394)		(1,554,742)
Total Accenture plc shareholders’ equity	29,190,495		28,288,646
Noncontrolling interests	911,928		879,602
Total shareholders’ equity	30,102,423		29,168,248
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	59,868,070	$	55,932,363

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE FORM 10-Q		4

Consolidated Income Statements

For the Three Months Ended November 30, 2024 and 2023

(Unaudited)



	2024		2023
REVENUES:
Revenues	$	17,689,545	$	16,224,303
OPERATING EXPENSES:
Cost of services	11,866,716		10,776,362
Sales and marketing	1,811,109		1,709,891
General and administrative costs	1,063,243		1,033,499
Business optimization costs	—		139,664
Total operating expenses	14,741,068		13,659,416
OPERATING INCOME	2,948,477		2,564,887
Interest income	76,027		101,980
Interest expense	(30,042)		(14,495)
Other income (expense), net	(39,217)		(35,719)

INCOME BEFORE INCOME TAXES	2,955,245		2,616,653
Income tax expense	639,055		606,672
NET INCOME	2,316,190		2,009,981
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.	(2,170)		(2,016)
Net income attributable to noncontrolling interests – other	(35,126)		(34,521)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	2,278,894	$	1,973,444
Weighted average Class A ordinary shares:
Basic	625,676,922		627,996,111
Diluted	634,656,410		637,398,361
Earnings per Class A ordinary share:
Basic	$	3.64	$	3.14
Diluted	$	3.59	$	3.10
Cash dividends per share	$	1.48	$	1.29

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q		5

Consolidated Statements of Comprehensive Income

For the Three Months Ended November 30, 2024 and 2023

(Unaudited)



	2024		2023
NET INCOME	$	2,316,190	$	2,009,981
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation	(474,983)		68,192
Defined benefit plans	(15,758)		36,392
Cash flow hedges	(3,911)		11,302

OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC	(494,652)		115,886
Other comprehensive income (loss) attributable to noncontrolling interests	(10,093)		1,885
COMPREHENSIVE INCOME	$	1,811,445	$	2,127,752

COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,784,242	$	2,089,330
Comprehensive income attributable to noncontrolling interests	27,203		38,422
COMPREHENSIVE INCOME	$	1,811,445	$	2,127,752

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q		6

Consolidated Shareholders’ Equity Statement

For the Three Months Ended November 30, 2024

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares					$		No. Shares
Balance as of August 31, 2024	$	57	40	$	15	672,485	$	—	308	$	2,614,608	$	14,710,857	$	(10,564,572)	(47,245)	$	23,082,423	$	(1,554,742)	$	28,288,646	$	879,602	$	29,168,248
Net income																	2,278,894				2,278,894		37,296		2,316,190
Other comprehensive income (loss)																			(494,652)		(494,652)		(10,093)		(504,745)
Purchases of Class A shares												742		(897,395)		(2,528)					(896,653)		(742)		(897,395)

Share-based compensation expense										413,697		56,728									470,425				470,425
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares												(869)									(869)				(869)
Issuances of Class A shares for employee share programs						1,794				(284,465)		605,253		157,455		484	(491)				477,752		(385)		477,367
Dividends										33,583							(958,258)				(924,675)		(883)		(925,558)
Other, net												(8,373)									(8,373)		7,133		(1,240)
Balance as of November 30, 2024	$	57	40	$	15	674,279	$	—	308	$	2,777,423	$	15,364,338	$	(11,304,512)	(49,289)	$	24,402,568	$	(2,049,394)	$	29,190,495	$	911,928	$	30,102,423

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q		7

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended November 30, 2023

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares					$		No. Shares
Balance as of August 31, 2023	$	57	40	$	15	664,616	$	—	325	$	2,403,374	$	12,778,782	$	(7,062,512)	(36,391)	$	19,316,224	$	(1,743,101)	$	25,692,839	$	765,754	$	26,458,593
Net income																	1,973,444				1,973,444		36,537		2,009,981
Other comprehensive income (loss)																			115,886		115,886		1,885		117,771
Purchases of Class A shares												1,050		(1,188,289)		(3,810)					(1,187,239)		(1,050)		(1,188,289)

Share-based compensation expense										365,711		57,289									423,000				423,000
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(7)			(2,839)									(2,839)				(2,839)
Issuances of Class A shares for employee share programs						1,896				(245,342)		525,335		218,783		641	(21,751)				477,025		409		477,434
Dividends										29,279							(838,504)				(809,225)		(831)		(810,056)
Other, net												(6,140)									(6,140)		5,982		(158)
Balance as of November 30, 2023	$	57	40	$	15	666,512	$	—	318	$	2,553,022	$	13,353,477	$	(8,032,018)	(39,560)	$	20,429,413	$	(1,627,215)	$	26,676,751	$	808,686	$	27,485,437

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q		8

Consolidated Cash Flows Statements

For the Three Months Ended November 30, 2024 and 2023

(Unaudited)


	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,316,190	$	2,009,981
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	569,340		521,400
Share-based compensation expense	470,425		423,000


Deferred tax expense (benefit)	59,222		(24,371)
Other, net	(19,903)		6,795
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(1,225,106)		(836,231)
Other current and non-current assets	(441,514)		(658,647)
Accounts payable	(124,399)		48,728
Deferred revenues, current and non-current	(313,397)		(510,391)
Accrued payroll and related benefits	(307,357)		(273,763)
Income taxes payable, current and non-current	50,891		85,142
Other current and non-current liabilities	(11,906)		(293,092)
Net cash provided by (used in) operating activities	1,022,486		498,551
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment	(152,205)		(68,933)
Purchases of businesses and investments, net of cash acquired	(241,560)		(788,025)
Proceeds from the sale of businesses and investments	5,270		—

Other investing, net	2,971		1,528
Net cash provided by (used in) investing activities	(385,524)		(855,430)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	477,367		477,434
Purchases of shares	(898,264)		(1,191,128)
Proceeds from debt	5,061,085		—
Repayments of debt	(931,885)		—
Cash dividends paid	(925,558)		(810,056)
Other financing, net	(30,997)		(28,163)
Net cash provided by (used in) financing activities	2,751,748		(1,551,913)
Effect of exchange rate changes on cash and cash equivalents	(87,124)		4,601
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,301,586		(1,904,191)
CASH AND CASH EQUIVALENTS, beginning of period	5,004,469		9,045,032
CASH AND CASH EQUIVALENTS, end of period	$	8,306,055	$	7,140,841
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	529,162	$	563,359

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		9

1. Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2024 included in our Annual Report on Form 10-K filed with the SEC on October 10, 2024.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three months ended November 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of November 30, 2024 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $27,354 and $27,561, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

Investments

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).

Our non-current investments are as follows:


	November 30, 2024		August 31, 2024
Equity method investments	$	127,776	$	128,634
Investments without readily determinable fair values	243,731		206,030
Total non-current investments	$	371,507	$	334,664

For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of Other income (expense), net.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		10

Depreciation and Amortization

As of November 30, 2024 and August 31, 2024, total accumulated depreciation was $2,752,886 and $2,713,855, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2024 and 2023, respectively.


	Three Months Ended
	November 30, 2024		November 30, 2023
Depreciation	$	133,099	$	133,245
Amortization - Deferred transition	85,324		98,491
Amortization - Intangible assets	160,214		111,631
Operating lease cost	186,529		175,014
Other	4,174		3,019
Total depreciation, amortization and other	$	569,340	$	521,400

New Accounting Pronouncements

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures.

On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option. We are in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not our financial position or results of operations.

On November 4, 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires entities to disclose specified information about certain expenses in the notes to the financial statements, including employee compensation. The ASU will be effective beginning with our annual fiscal 2028 financial statements. We are currently evaluating the impact of this standard on our disclosures.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		11

2. Revenues

Disaggregation of Revenue

See Note 12 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $29 billion and $30 billion as of November 30, 2024 and August 31, 2024, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately 58% of our remaining performance obligations as of November 30, 2024 as revenue in fiscal 2025, an additional 20% in fiscal 2026, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three months ended November 30, 2024 and 2023.

Contract Balances

Deferred transition revenues were $623,750 and $641,091 as of November 30, 2024 and August 31, 2024, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $893,898 and $862,140 as of November 30, 2024 and August 31, 2024, respectively, and are included in Deferred contract costs. Generally, deferred transition costs are recoverable under the contract in the event of early termination and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets.

The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues):


	November 30, 2024		August 31, 2024
Receivables	$	12,590,544	$	11,873,442
Contract assets (current)	1,984,093		1,791,405
Receivables and contract assets, net of allowance (current)	14,574,637		13,664,847
Contract assets (non-current)	128,981		120,260
Deferred revenues (current)	4,711,553		5,174,923
Deferred revenues (non-current)	623,750		641,091

Changes in the contract asset and liability balances during the three months ended November 30, 2024 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three months ended November 30, 2024 that were included in Deferred revenues as of August 31, 2024 were $2.8 billion. Revenues recognized during the three months ended November 30, 2023 that were included in Deferred revenues as of August 31, 2023 were $2.8 billion.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		12

3. Earnings Per Share

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended
	November 30, 2024		November 30, 2023
Basic earnings per share
Net income attributable to Accenture plc	$	2,278,894	$	1,973,444
Basic weighted average Class A ordinary shares	625,676,922		627,996,111
Basic earnings per share	$	3.64	$	3.14
Diluted earnings per share
Net income attributable to Accenture plc	$	2,278,894	$	1,973,444
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)	2,170		2,016
Net income for diluted earnings per share calculation	$	2,281,064	$	1,975,460
Basic weighted average Class A ordinary shares	625,676,922		627,996,111
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)	595,837		641,659
Diluted effect of employee compensation related to Class A ordinary shares	8,185,818		8,492,332
Diluted effect of share purchase plans related to Class A ordinary shares	197,833		268,259
Diluted weighted average Class A ordinary shares (2)	634,656,410		637,398,361
Diluted earnings per share	$	3.59	$	3.10

(1)Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests - other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares.

(2)The weighted average diluted shares outstanding for the calculation of diluted earnings per share excludes an immaterial amount of shares issuable upon the vesting of restricted stock units because their effects were antidilutive.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		13

4. Accumulated Other Comprehensive Loss

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc:


	Three Months Ended
	November 30, 2024		November 30, 2023
Foreign currency translation
Beginning balance	$	(1,295,743)	$	(1,510,632)
Foreign currency translation	(486,087)		67,789
Income tax benefit (expense)	1,030		2,240
Portion attributable to noncontrolling interests	10,074		(1,837)
Foreign currency translation, net of tax	(474,983)		68,192
Ending balance	(1,770,726)		(1,442,440)

Defined benefit plans
Beginning balance	(254,172)		(226,503)



Reclassifications into net periodic pension and post-retirement expense	(17,680)		44,294
Income tax benefit (expense)	1,907		(7,865)
Portion attributable to noncontrolling interests	15		(37)
Defined benefit plans, net of tax	(15,758)		36,392
Ending balance	(269,930)		(190,111)

Cash flow hedges
Beginning balance	(4,827)		(5,966)
Unrealized gain (loss)	14,598		23,614
Reclassification adjustments into Cost of services	(7,477)		(10,600)
Income tax benefit (expense)	(11,036)		(1,701)
Portion attributable to noncontrolling interests	4		(11)
Cash flow hedges, net of tax	(3,911)		11,302
Ending balance (1)	(8,738)		5,336










Accumulated other comprehensive loss	$	(2,049,394)	$	(1,627,215)

(1)As of November 30, 2024, $25,149 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		14

5. Business Combinations

During the three months ended November 30, 2024, we completed individually immaterial acquisitions for total consideration of $184,871, net of cash acquired. The pro forma effects of these acquisitions on our operations were not material.

6. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by reportable segment are as follows:


	August 31, 2024		Additions/ Adjustments		Foreign Currency Translation		November 30, 2024
Americas (1)	$	11,960,650	$	31,993	$	(33,777)	$	11,958,866
EMEA	7,341,686		109,591		(307,796)		7,143,481
Asia Pacific (1)	1,817,843		842		(52,121)		1,766,564
Total	$	21,120,179	$	142,426	$	(393,694)	$	20,868,911

(1)During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation.

Goodwill includes immaterial adjustments related to prior period acquisitions.

Intangible Assets

Our definite-lived intangible assets by major asset class are as follows:


	August 31, 2024						November 30, 2024
Intangible Asset Class	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer-related	$	3,924,339	$	(1,336,679)	$	2,587,660	$	3,861,361	$	(1,412,787)	$	2,448,574
Technology	335,845		(183,182)		152,663		338,271		(198,843)		139,428
Patents	120,457		(72,518)		47,939		118,339		(71,700)		46,639
Other	150,098		(34,329)		115,769		145,021		(39,072)		105,949
Total	$	4,530,739	$	(1,626,708)	$	2,904,031	$	4,462,992	$	(1,722,402)	$	2,740,590

Total amortization related to our intangible assets was $160,214 and $111,631 for the three months ended November 30, 2024 and 2023, respectively. Estimated future amortization related to intangible assets held as of November 30, 2024 is as follows:


Fiscal Year	Estimated Amortization
Remainder of 2025	$	444,238
2026	534,917
2027	470,141
2028	435,618
2029	346,275
Thereafter	509,401
Total	$	2,740,590


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		15

7. Shareholders’ Equity

Dividends

Our dividend activity during the three months ended November 30, 2024 is as follows:


	Dividend Per Share		Accenture plc Class A Ordinary Shares			Accenture Canada Holdings Inc. Exchangeable Shares			Total Cash Outlay
Dividend Payment Date			Record Date	Cash Outlay		Record Date	Cash Outlay
November 15, 2024	$	1.48	October 10, 2024	$	924,675	October 9, 2024	$	883	$	925,558

The payment of cash dividends includes the net effect of $33,583 of additional restricted stock units being issued as a part of our share plans, which resulted in 93,129 restricted share units being issued.

Subsequent Event

On December 18, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on January 16, 2025 payable on February 14, 2025.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		16

8. Financial Instruments

Derivatives

In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.

Cash Flow Hedges

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2024 and 2023, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $4,256 and $20,280 for the three months ended November 30, 2024 and 2023, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

The notional and fair values of all derivative instruments are as follows:


	November 30, 2024		August 31, 2024
Assets
Cash Flow Hedges
Other current assets	$	55,013	$	51,152
Other non-current assets	26,407		28,363
Other Derivatives
Other current assets	34,707		39,733
Total assets	$	116,127	$	119,248
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	29,863	$	29,247
Other non-current liabilities	25,371		35,346
Other Derivatives
Other accrued liabilities	8,851		25,974
Total liabilities	$	64,085	$	90,567
Total fair value	$	52,042	$	28,681
Total notional value	$	14,707,184	$	14,824,483

We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, we record derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:


	November 30, 2024		August 31, 2024
Net derivative assets	$	83,615	$	91,127
Net derivative liabilities	31,573		62,446
Total fair value	$	52,042	$	28,681


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		17

9. Borrowings and Indebtedness

On October 4, 2024, Accenture Capital Inc. (“Accenture Capital”), a wholly owned finance subsidiary of Accenture plc, issued $5 billion aggregate principal amount of senior unsecured notes. Net proceeds from the offering are being used for general corporate purposes, including repayment of outstanding commercial paper borrowings. Interest on the senior unsecured notes is payable semi-annually in arrears. Accenture Capital may redeem the senior unsecured notes at any time in whole, or from time to time, in part at specified redemption prices. Accenture plc and Accenture Capital are not subject to any financial covenants under the senior unsecured notes.

The following is a summary of total outstanding debt as of November 30, 2024 and August 31, 2024, respectively:


	November 30, 2024		August 31, 2024
Current portion of long-term debt and bank borrowings
Commercial paper (1)	$	99,446	$	931,507
Other (2)	14,875		14,722
Total current portion of long-term debt and bank borrowings	$	114,321	$	946,229

Long-term debt
Senior notes – 3.90% due 2027	$	1,100,000	$	—
Senior notes – 4.05% due 2029	1,200,000		—
Senior notes – 4.25% due 2031	1,200,000		—
Senior notes – 4.50% due 2034	1,500,000		—
Total principal amount (3)	$	5,000,000	$	—
Less: unamortized debt discount and issuance costs	(37,998)		—
Total carrying amount	$	4,962,002	$	—
Other (2)	77,458		78,628
Total long-term debt	$	5,039,460	$	78,628

(1)The carrying amounts of the commercial paper as of November 30, 2024 and August 31, 2024 include the remaining principal outstanding of $100,000 and $935,000, respectively, net of total unamortized discounts of $554 and $3,493, respectively. The weighted-average effective interest rate for the commercial paper was 4.6% and 5.4% as of November 30, 2024 and August 31, 2024, respectively.

(2)Amounts primarily include finance lease liabilities.

(3)The total estimated fair value of our senior notes was $4.9 billion as of November 30, 2024. The fair value was determined based on quoted prices as of the last trading day of the first quarter of fiscal 2025 and is classified as Level 1 within the fair value hierarchy.

As of November 30, 2024, future principal payments for total outstanding debt, excluding finance leases, are summarized as follows:


Fiscal Year	Amount
Remainder of 2025	$	100,000
2026	—
2027	—
2028	1,100,000
2029	—
Thereafter	3,900,000
Total	$	5,100,000


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		18

As of November 30, 2024, we had the following borrowing facilities:


	Credit Facilities
Syndicated loan facility (1)	$	5,500,000
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2)	1,917,931
Local guaranteed and non-guaranteed lines of credit (3)	281,345
Total	$	7,699,276

(1)This facility, which matures on May 14, 2029, provides unsecured, revolving borrowing capacity for general corporate purposes, including the issuance of letters of credit and short-term commercial paper. Borrowings under this facility will accrue interest at the applicable risk-free rate plus a spread. We continue to be in compliance with relevant covenant terms. The facility is subject to annual commitment fees.

(2)We maintain separate, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local currency financing for the majority of our operations. Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets. As of November 30, 2024 and August 31, 2024, we had no borrowings under these facilities.

(3)We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. As of November 30, 2024 and August 31, 2024, we had no borrowings under these various facilities.

We had an aggregate of $1,242,317 and $1,269,178 of letters of credit outstanding and $100,000 and $935,000 (excluding unamortized discounts) of commercial paper outstanding as of November 30, 2024 and August 31, 2024, respectively. The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.

10. Income Taxes

We apply an estimated annual effective tax rate to our year-to-date operating results to determine the interim provision for income tax expense. In addition, we recognize taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs.

Our effective tax rates for the three months ended November 30, 2024 and 2023 were 21.6% and 23.2%, respectively. The lower effective tax rate for the three months ended November 30, 2024 was primarily due to higher benefits from adjustments to prior year tax liabilities.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		19

11. Commitments and Contingencies

Indemnifications and Guarantees

In the normal course of business and in conjunction with certain client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters.

As of November 30, 2024 and August 31, 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $2,181,000 and $2,370,000, respectively, of which all but approximately $59,000 and $61,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of November 30, 2024 and August 31, 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,692,529 ($1,514,492 net of recourse provisions) and $1,758,783 ($1,609,046 net of recourse provisions) respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. In general, we would only be liable for these guarantees in the event we defaulted in performing our obligations under each contract, the probability of which we believe is remote.

To date, we have not been required to make any significant payment under any of the arrangements described above. We have assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations, indemnification provisions, letters of credit and surety bonds, and believe that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole.

Legal Contingencies

As of November 30, 2024, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. Based on the present status of these matters, except as otherwise noted below, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on our results of operations or financial condition.

On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc. (“Marriott”) in the U.S. District Court for the District of Maryland. The complaint alleges negligence by us, and seeks monetary damages, costs and attorneys’ fees and other related relief, relating to a data security incident involving unauthorized access to the reservations database of Starwood Worldwide Resorts, Inc. (“Starwood”), which was acquired by Marriott on September 23, 2016. Since 2009, we have provided certain IT infrastructure outsourcing services to Starwood. On May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we appealed. On August 17, 2023, the appeals court vacated the class certification and remanded the case to the district court for consideration of, among other things, the class action waiver signed by Starwood customer plaintiffs. On November 29, 2023, the district court reinstated the classes previously certified by the court in May 2022. We are appealing the district court’s decision. We continue to believe the lawsuit is without merit and we will vigorously defend it. At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition.

After Accenture Federal Services (“AFS”) made a voluntary disclosure to the U.S. government, the U.S. Department of Justice (“DOJ”) initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to an assessor who was evaluating on behalf of the U.S. government an AFS service offering and whether the service offering fully implemented required federal security controls. AFS is responding to an administrative subpoena and cooperating with DOJ’s investigation. This matter could subject us to adverse consequences, including civil and criminal penalties, including under the civil U.S. False Claims Act and/or other statutes, and administrative sanctions, such as termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with agencies of the U.S. government. We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.


Table of Contents	Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q		20

12. Segment Reporting

Our reportable segments are our three geographic markets, which are the Americas, EMEA and Asia Pacific.

Information regarding reportable segments, industry groups and type of work is as follows:


	Revenues
	Three Months Ended
	November 30, 2024		November 30, 2023
Geographic Markets
Americas (1)	$	8,733,095	$	8,026,972
EMEA	6,411,952		5,803,642
Asia Pacific (1)	2,544,498		2,393,689
Total Revenues	$	17,689,545	$	16,224,303
Industry Groups
Communications, Media & Technology	$	2,857,885	$	2,669,448
Financial Services	3,168,835		3,033,578
Health & Public Service	3,812,609		3,377,466
Products	5,425,317		4,859,987
Resources	2,424,899		2,283,824
Total Revenues	$	17,689,545	$	16,224,303
Type of Work
Consulting	$	9,045,228	$	8,456,506
Managed Services	8,644,317		7,767,797
Total Revenues	$	17,689,545	$	16,224,303


	Operating Income
	Three Months Ended
	November 30, 2024		November 30, 2023
Geographic Markets
Americas (1)	$	1,377,234	$	1,292,981
EMEA	1,035,977		823,601
Asia Pacific (1)	535,266		448,305
Total Operating Income	$	2,948,477	$	2,564,887


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended August 31, 2024, and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended August 31, 2024.

We use the terms “Accenture,” “we,” “our” and “us” in this report to refer to Accenture plc and its subsidiaries. All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2025” means the 12-month period that will end on August 31, 2025. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.

We use the term “in local currency” so that certain financial results may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of business performance. Financial results “in local currency” are calculated by restating current period activity into U.S. dollars using the comparable prior year period’s foreign currency exchange rates. This approach is used for all results where the functional currency is not the U.S. dollar.

Disclosure Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our operations, results of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target,” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to those identified below.

Business Risks

•Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and geopolitical conditions and the effects of these conditions on our clients’ businesses and levels of business activity.

•Our business depends on generating and maintaining client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.

•Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action.

•If we are unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected.

•We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks.

•The markets in which we operate are highly competitive, and we might not be able to compete effectively.

•Our ability to attract and retain business and employees may depend on our reputation in the marketplace.

•If we do not successfully manage and develop our relationships with key ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected.


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Financial Risks

•Our profitability could materially suffer due to pricing pressure, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels.

•Changes in our level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on our effective tax rate, results of operations, cash flows and financial condition.

•Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates.

•Our debt obligations could adversely affect our business and financial condition.

•Changes to accounting standards or in the estimates and assumptions we make in connection with the preparation of our consolidated financial statements could adversely affect our financial results.

Operational Risks

•As a result of our geographically diverse operations and our strategy to continue to grow in our key markets around the world, we are more susceptible to certain risks.

•If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives.

•We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses.

Legal and Regulatory Risks

•Our business could be materially adversely affected if we incur legal liability.

•Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.

•Our work with government clients exposes us to additional risks inherent in the government contracting environment.

•If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.

•We are incorporated in Ireland and Irish law differs from the laws in effect in the United States and might afford less protection to our shareholders. We may also be subject to criticism and negative publicity related to our incorporation in Ireland.

For a more detailed discussion of these factors, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024. Our forward-looking statements speak only as of the date of this report or as of the date they are made, and we undertake no obligation to update any forward-looking statements.


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Overview

Accenture is a leading global professional services company, providing a broad range of services and solutions across Strategy & Consulting, Technology, Operations, Industry X and Song. We serve clients in three geographic markets: the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.

Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence. There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business. These conditions have slowed the pace and level of client spending, particularly for smaller contracts with a shorter duration and for our consulting services. Clients continue to prioritize large-scale transformations, which convert to revenue over a longer period.

Key Metrics

Key metrics for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 are included below. We have presented operating income, operating margin, effective tax rate and diluted earnings per share for the first quarter of fiscal 2024 on a non-GAAP or “adjusted” basis to exclude the impact of $140 million in business optimization costs recorded during the quarter, as discussed further in our Results of Operations.

•Revenues of $17.7 billion, an increase of 9% in U.S. dollars and 8% in local currency;

•New bookings of $18.7 billion, an increase of 1% in both U.S. dollars and local currency;

•Operating margin of 16.7%, compared to operating margin of 15.8% and adjusted operating margin of 16.7% in the first quarter of fiscal 2024;

•Diluted earnings per share of $3.59, a 16% increase over diluted earnings per share of $3.10 and a 10% increase over adjusted earnings per share of $3.27 in the first quarter of fiscal 2024; and

•Cash returned to shareholders of $1.8 billion, including dividends of $926 million and share purchases of $898 million.

Revenues


		Three Months Ended				Percent Increase (Decrease) U.S. Dollars		Percent Increase (Decrease) Local Currency		Percent of Revenues for the Three Months Ended
(in billions of U.S. dollars)		November 30, 2024		November 30, 2023						November 30, 2024		November 30, 2023

Geographic Markets	Americas (1)	$	8.7	$	8.0	9	%	11	%	49	%	49	%
	EMEA	6.4		5.8		10		6		36		36
	Asia Pacific (1)	2.5		2.4		6		4		14		15
	Total Revenues	$	17.7	$	16.2	9	%	8	%	100	%	100	%


Industry Groups	Communications, Media & Technology	$	2.9	$	2.7	7	%	7	%	16	%	16	%
	Financial Services	3.2		3.0		4		4		18		19
	Health & Public Service	3.8		3.4		13		12		22		21
	Products	5.4		4.9		12		10		31		30
	Resources	2.4		2.3		6		6		14		14
	Total Revenues	$	17.7	$	16.2	9	%	8	%	100	%	100	%


Type of Work	Consulting	$	9.0	$	8.5	7	%	6	%	51	%	52	%
	Managed Services	8.6		7.8		11		11		49		48
	Total Revenues	$	17.7	$	16.2	9	%	8	%	100	%	100	%

Amounts in table may not total due to rounding.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Revenues for the first quarter of fiscal 2025 increased 9% in U.S. dollars and 8% in local currency compared to the first quarter of fiscal 2024. During the first quarter of fiscal 2025, revenue growth in local currency was very strong in the Americas, strong in EMEA and solid in Asia Pacific. We experienced local currency revenue growth that was very strong in Health & Public Service and Products, strong in Communications, Media & Technology and Resources and solid in Financial Services. Revenue growth in local currency was very strong in managed services and strong in consulting. The business environment is competitive, and we continue to experience lower pricing across the business. We define pricing as contract profitability or margin on the work that we sell.

In our consulting business, revenues for the first quarter of fiscal 2025 increased 7% in U.S. dollars and 6% in local currency compared to the first quarter of fiscal 2024. Consulting revenue growth in local currency for the first quarter of fiscal 2025 was driven by very strong growth in the Americas, solid growth in EMEA and modest growth in Asia Pacific. Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, in particular technology, data, and AI led digital transformations. This includes moving to the cloud, embedding security and responsible AI across the enterprise and leveraging our change capabilities to help our clients build new skills and drive the successful adoption of new processes and technologies. In addition, clients continue to be focused on initiatives designed to deliver cost savings and supply chain and operational resilience, as well as projects to accelerate growth and improve customer experiences. While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.

In our managed services business, revenues for the first quarter of fiscal 2025 increased 11% in both U.S. dollars and local currency compared to the first quarter of fiscal 2024. Managed services revenue growth in local currency for the first quarter of fiscal 2025 was driven by very strong growth in the Americas and EMEA, and solid growth in Asia Pacific. We continue to experience growing demand to assist clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. In addition, clients continue to be focused on transforming their operations through technology, data and AI, and leveraging our digital platforms and talent to drive productivity and operational cost savings.

As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations. While a significant portion of our revenues are in U.S. dollars, the majority of our revenues are denominated in other currencies, including the Euro, Japanese yen and U.K. pound. There continues to be volatility in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had and could in the future have a material effect on our financial results. If the U.S. dollar weakens against other currencies, resulting in favorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be higher. If the U.S. dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be lower. The U.S. dollar weakened against various currencies during the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024, resulting in favorable currency translation and U.S. dollar revenue growth that was approximately 1% higher than our revenue growth in local currency. Assuming that exchange rates stay within recent ranges for the remainder of fiscal 2025, we estimate that our full fiscal 2025 revenue growth in U.S. dollars will be approximately 0.5% lower than our revenue growth in local currency.

People Metrics

Utilization

Workforce

Annualized Voluntary Attrition

91%

799,000

12%

consistent with the first quarter of fiscal 2024

compared to approximately 743,000 as of November 30, 2023

compared to 11% in the first quarter of fiscal 2024

Utilization for the first quarter of fiscal 2025 was 91%, consistent with the first quarter of fiscal 2024. We hire to meet current and projected future demand. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions, given that compensation costs are the most significant portion of our operating expenses. Our workforce, the majority of which serves our clients, increased to approximately 799,000 as of November 30, 2024, compared to approximately 743,000 as of November 30, 2023. The year-over-year increase in our workforce reflects demand for our services and solutions, as well as people added in connection with acquisitions.

For the first quarter of fiscal 2025, annualized attrition, excluding involuntary terminations, was 12%, up from 11% in the first quarter of fiscal 2024. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

In addition, we adjust compensation to provide market relevant pay based on the skills of our people and locations where we operate. We also consider a variety of factors, including the macroeconomic environment, in making our decisions around pay and benefits. We strive to adjust pricing as well as drive cost and delivery efficiencies, such as changing the mix of people and utilizing technology, to reduce the impact of compensation increases on our margin and contract profitability.

Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to: match people and skills with the types or amounts of services and solutions clients are demanding; recover or offset increases in compensation; deploy our employees globally on a timely basis; manage attrition; and/or effectively assimilate new employees.

New Bookings


	Three Months Ended				Percent Increase (Decrease) U.S. Dollars		Percent Increase (Decrease) Local Currency
(in billions of U.S. dollars)	November 30, 2024		November 30, 2023
Consulting	$	9.2	$	8.6	7	%	6	%
Managed Services	9.5		9.8		(4)		(4)
Total New Bookings	$	18.7	$	18.4	1	%	1	%

We provide information regarding our new bookings, which include new contracts, including those acquired through acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides useful trend information regarding changes in the volume of our new business over time. New bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large managed services contracts. The types of services and solutions clients are demanding and the pace and level of their spending may impact the conversion of new bookings to revenues. For example, managed services bookings, which are typically for multi-year contracts, generally convert to revenue over a longer period of time compared to consulting bookings.

Information regarding our new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. New bookings involve estimates and judgments. There are no third-party standards or requirements governing the calculation of bookings. We do not update our new bookings for material subsequent terminations or reductions related to bookings originally recorded in prior fiscal years. New bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations.

The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Only the non-cancelable portion of these contracts is included in our remaining performance obligations disclosed in Note 2 (Revenues) to our Consolidated Financial Statements under Item 1, “Financial Statements.” Accordingly, a significant portion of what we consider contract bookings is not included in our remaining performance obligations.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Results of Operations for the Three Months Ended November 30, 2024 Compared to the Three Months Ended November 30, 2023

Revenues

Revenues by geographic market, industry group and type of work are as follows:


	Three Months Ended				Percent Increase (Decrease) U.S. Dollars		Percent Increase (Decrease) Local Currency
(in millions of U.S. dollars)	November 30, 2024		November 30, 2023
Geographic Markets
Americas (1)	$	8,733	$	8,027	9	%	11	%
EMEA	6,412		5,804		10		6
Asia Pacific (1)	2,544		2,394		6		4
Total	$	17,690	$	16,224	9	%	8	%
Industry Groups
Communications, Media & Technology	$	2,858	$	2,669	7	%	7	%
Financial Services	3,169		3,034		4		4
Health & Public Service	3,813		3,377		13		12
Products	5,425		4,860		12		10
Resources	2,425		2,284		6		6
Total	$	17,690	$	16,224	9	%	8	%
Type of Work
Consulting	$	9,045	$	8,457	7	%	6	%
Managed Services	8,644		7,768		11		11
Total	$	17,690	$	16,224	9	%	8	%

Amounts in table may not total due to rounding.

Geographic Markets

The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024:

•Americas revenues increased 11% in local currency, led by growth in Industrial, Software & Platforms, Banking & Capital Markets and Consumer Goods, Retail & Travel Services. Revenue growth was driven by the United States, as well as Argentina, which continued to grow in local currency due primarily to hyperinflation.

•EMEA revenues increased 6% in local currency, led by growth in Public Service, Life Sciences and Health, partially offset by a decline in Banking & Capital Markets. Revenue growth was driven by the United Kingdom and Italy, partially offset by a decline in France.

•Asia Pacific revenues increased 4% in local currency, led by growth in Utilities, Industrial and Health, partially offset by a decline in Chemicals & Natural Resources. Revenue growth was driven by Japan, partially offset by declines in Singapore and Australia.

Operating Expenses

Operating expenses for the first quarter of fiscal 2025 increased $1,082 million, or 8%, compared to the first quarter of fiscal 2024, and decreased as a percentage of revenues to 83.3% from 84.2% during this period.

The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs. Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation, subcontractor and other payroll costs, and non-payroll costs such as facilities, technology and travel. Cost of services includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of acquisitions. Sales and marketing costs are driven primarily by compensation costs for business development activities; marketing- and advertising-related activities; and certain acquisition-related costs. General and administrative costs primarily include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Operating expenses by category are as follows:


	Three Months Ended
(in millions of U.S. dollars)	November 30, 2024				November 30, 2023				Increase (Decrease)
Operating Expenses	$	14,741	83.3	%	$	13,659	84.2	%	$	1,082
Cost of services	11,867		67.1		10,776		66.4		1,090
Sales and marketing	1,811		10.2		1,710		10.5		101
General and administrative costs	1,063		6.0		1,033		6.4		30
Business optimization costs	—		—		140		0.9		(140)

Amounts in table may not total due to rounding.

Cost of Services

Cost of services for the first quarter of fiscal 2025 increased $1,090 million, or 10%, over the first quarter of fiscal 2024, and increased as a percentage of revenues to 67.1% compared to 66.4% during this period. Gross margin for the first quarter of fiscal 2025 decreased as a percentage of revenues to 32.9% from 33.6% during the first quarter of fiscal 2024. The decrease in gross margin was primarily due to higher subcontractor costs and the impact of our business optimization actions which reduced severance costs in gross margin during the first quarter of fiscal 2024.

Sales and Marketing

Sales and marketing expense for the first quarter of fiscal 2025 increased $101 million, or 6%, over the first quarter of fiscal 2024, and decreased as a percentage of revenues to 10.2% from 10.5% during this period primarily due to lower labor costs.

General and Administrative Costs

General and administrative costs for the first quarter of fiscal 2025 increased $30 million, or 3%, over the first quarter of fiscal 2024, and decreased as a percentage of revenues to 6.0% from 6.4% during this period primarily due to lower labor costs, partially offset by an increase in non-payroll costs.

Business Optimization Costs

During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs. We recorded a total of $1.5 billion related to these actions, primarily for employee severance, which have been completed as of August 31, 2024.

Non-GAAP Financial Measures

We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis excluding the business optimization costs recorded in fiscal 2024 as we believe doing so facilitates understanding as to the impact of this item and our performance in comparison to the prior periods. While we believe that this non-GAAP financial information is useful in evaluating our operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

Operating Income and Operating Margin

Operating income and operating margin for each of the geographic markets are as follows:


	Three Months Ended
	November 30, 2024				November 30, 2023
(in millions of U.S. dollars)	Operating Income		Operating Margin		Operating Income		Operating Margin		Increase (Decrease)
Americas (1)	$	1,377	16	%	$	1,293	16	%	$	84
EMEA	1,036		16		824		14		212
Asia Pacific (1)	535		21		448		19		87
Total	$	2,948	16.7	%	$	2,565	15.8	%	$	384

Amounts in table may not total due to rounding.

Operating income for the first quarter of fiscal 2025 increased $384 million, or 15%, compared with the first quarter of fiscal 2024. Operating margin for the first quarter of fiscal 2025 was 16.7%, compared with 15.8% for the first quarter of fiscal 2024.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Geographic Markets

We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during the first quarter of fiscal 2025 was similar to that disclosed for revenue for each geographic market. Additionally, costs associated with our business optimization actions did not impact fiscal 2025 operating income as the actions were completed in fiscal 2024. The commentary below provides insight into other factors affecting geographic market performance and operating income for the first quarter of fiscal 2025 compared with the first quarter of fiscal 2024:

•Americas operating income increased primarily due to revenue growth, partially offset by a decline in contract profitability.

•EMEA operating income increased primarily due to revenue growth, partially offset by a decline in consulting contract profitability.

•Asia Pacific operating income increased primarily due to revenue growth, partially offset by a decline in contract profitability.

Operating Income and Operating Margin Excluding Fiscal 2024 Business Optimization Costs (Non-GAAP)

The business optimization costs reduced operating margin for the first quarter of fiscal 2024 by 90 basis points. Operating margin for the first quarter of fiscal 2025 remained flat compared to adjusted operating margin for the first quarter of fiscal 2024 of 16.7%.


	Three Months Ended
	November 30, 2024				November 30, 2023
(in millions of U.S. dollars)	Operating Income (GAAP)		Operating Margin (GAAP)		Operating Income (GAAP)		Business Optimization (1)		Operating Income (Non-GAAP)		Operating Margin (Non-GAAP)		Increase (Decrease)
Americas (2)	$	1,377	16	%	$	1,293	$	50	$	1,343	17	%	$	34
EMEA	1,036		16		824		71		894		15		142
Asia Pacific (2)	535		21		448		19		467		20		68
Total	$	2,948	16.7	%	$	2,565	$	140	$	2,705	16.7	%	$	244

Amounts in tables may not total due to rounding.

(1)Costs recorded in connection with our business optimization initiatives, primarily for employee severance.

(2)During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation.

Interest Income

Interest income for the first quarter of fiscal 2025 was $76 million, a decrease of $26 million, or 25%, from the first quarter of fiscal 2024. The decrease was primarily due to lower interest rates and a lower average cash balance.

Income Tax Expense

The effective tax rates for the first quarter of fiscal 2025 and 2024 were 21.6% and 23.2%, respectively. The lower effective tax rate was primarily due to higher benefits from adjustments to prior year tax liabilities.

Income Tax Expense Excluding Fiscal 2024 Business Optimization Costs (Non-GAAP)

The business optimization costs of $140 million and related reduction in tax expense of $34 million had an immaterial impact on our adjusted effective tax rate for the first quarter of fiscal 2024.

Earnings Per Share

Diluted earnings per share were $3.59 for the first quarter of fiscal 2025, compared with $3.10 for the first quarter of fiscal 2024. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 1, “Financial Statements.”


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Earnings Per Share Excluding Fiscal 2024 Business Optimization Costs (Non-GAAP)

The business optimization costs of $106 million, net of related taxes, decreased diluted earnings per share by $0.17 for the first quarter of fiscal 2024. Adjusted diluted earnings per share were $3.27 for the first quarter of fiscal 2024.


	Three Months Ended
November 30, 2023 As Reported	$	3.10
Business optimization costs	0.22
Tax effect of business optimization costs (1)	(0.05)
November 30, 2023 As Adjusted	$	3.27

November 30, 2024 As Reported	$	3.59

(1)The income tax effect of business optimization costs includes both the current and deferred income tax impact and was calculated by using the relevant tax rate of the country where the adjustments were recorded.

The increase in diluted earnings per share for the first quarter of fiscal 2025 compared to adjusted diluted earnings per share for the first quarter of fiscal 2024 was due to the following factors:


	Three Months Ended
November 30, 2023 As Adjusted	$	3.27
Higher revenue and operating results	0.29
Lower effective tax rate	0.07
Lower share count	0.01
Lower non-operating income	(0.05)
November 30, 2024 As Reported	$	3.59

Liquidity and Capital Resources

As of November 30, 2024, Cash and cash equivalents was $8.3 billion, compared with $5.0 billion as of August 31, 2024.

Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table:


	Three Months Ended
(in millions of U.S. dollars)	November 30, 2024		November 30, 2023		Change
Net cash provided by (used in):
Operating activities	$	1,022	$	499	$	524
Investing activities	(386)		(855)		470
Financing activities	2,752		(1,552)		4,304
Effect of exchange rate changes on cash and cash equivalents	(87)		5		(92)
Net increase (decrease) in cash and cash equivalents	$	3,302	$	(1,904)	$	5,206

Amounts in table may not total due to rounding.

Operating activities: The $524 million increase in operating cash flows was primarily due to higher net income and changes in operating assets and liabilities.

Investing activities: The $470 million decrease in cash used was primarily due to lower spending on business acquisitions. For additional information, see Note 5 (Business Combinations) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

Financing activities: The $4,304 million increase in financing cash flows was primarily due to net proceeds from borrowings. For additional information, see Note 9 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

We believe that our current and longer-term working capital, investments and other general corporate funding requirements will be satisfied for the next twelve months and thereafter through cash flows from operations and, to the extent necessary, from our borrowing facilities and future financial market activities.


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free flow of funds. Domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.

Borrowings and Indebtedness

On September 30, 2024, we filed a registration statement on Form S-3, pursuant to which Accenture plc’s wholly owned finance subsidiaries Accenture Capital and Accenture Global Capital DAC may issue debt securities. As of November 30, 2024, we had outstanding long-term debt in the form of senior unsecured notes issued by Accenture Capital in an aggregate principal amount of $5 billion, which mature from 2027 through 2034. Accenture plc fully and unconditionally guarantees these notes, as well as all future debt securities that may be issued by these entities.

For additional information regarding our outstanding borrowings, credit facilities and other debt, see Note 9 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

Share Purchases and Redemptions

The Board of Directors of Accenture plc has authorized funding for our publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares and for purchases and redemptions of Accenture plc Class A ordinary shares and Accenture Canada Holdings Inc. exchangeable shares held by current and former members of Accenture Leadership and their permitted transferees.

Our share purchase activity during the three months ended November 30, 2024 is as follows:


	Accenture plc Class A Ordinary Shares			Accenture Canada Holdings Inc. Exchangeable Shares
(in millions of U.S. dollars, except share amounts)	Shares	Amount		Shares	Amount
Open-market share purchases (1)	2,174,686	$	771	—	$	—
Other share purchase programs	—	—		2,375	1
Other purchases (2)	353,046	126		—	—
Total	2,527,732	$	897	2,375	$	1

(1)We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.

(2)During the three months ended November 30, 2024, as authorized under our various employee equity share plans, we acquired Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under those plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

We intend to continue to use a significant portion of cash generated from operations for share repurchases during the remainder of fiscal 2025. The number of shares ultimately repurchased under our open-market share purchase program may vary depending on numerous factors, including, without limitation, share price and other market conditions, our ongoing capital allocation planning, the levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic and/or business conditions, and board and management discretion. Additionally, as these factors may change over the course of the year, the amount of share repurchase activity during any particular period cannot be predicted and may fluctuate from time to time. Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice.

Off-Balance Sheet Arrangements

In the normal course of business and in conjunction with some client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters.

To date, we have not been required to make any significant payment under any of the arrangements described above. For further discussion of these transactions, see Note 11 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

Significant Accounting Policies

See Note 1 (Basis of Presentation) to our Consolidated Financial Statements under Item 1, “Financial Statements.”


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ACCENTURE FORM 10-Q	Item 3. Quantitative and Qualitative Disclosures About Market Risk	31

Item 3. Quantitative and Qualitative Disclosures About Market Risk

During the three months ended November 30, 2024, there were no material changes to the information on market risk exposure disclosed in our Annual Report on Form 10-K for the year ended August 31, 2024. For a discussion of our market risk associated with foreign currency risk, interest rate risk and equity investment risk as of August 31, 2024, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of our Annual Report on Form 10-K for the year ended August 31, 2024.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and our principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the principal executive officer and the principal financial officer of Accenture plc have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the first quarter of fiscal 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


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ACCENTURE FORM 10-Q	Part II — Other Information	32

Part II — Other Information

Item 1. Legal Proceedings

The information set forth under “Legal Contingencies” in Note 11 (Commitments and Contingencies) to our Consolidated Financial Statements under Part I, Item 1, “Financial Statements,” is incorporated herein by reference.

Item 1A. Risk Factors

For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024 (the “Annual Report”). There have been no material changes to the risk factors disclosed in our Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Accenture plc Class A Ordinary Shares

The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the first quarter of fiscal 2025.


Period	Total Number of Shares Purchased	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3)
					(in millions of U.S. dollars)
September 1, 2024 — September 30, 2024	723,155	$	343.18	687,457	$	6,458
October 1, 2024 — October 31, 2024	981,930	363.53		780,817	6,175
November 1, 2024 — November 30, 2024	822,647	355.28		706,412	5,922
Total (4)	2,527,732	$	355.02	2,174,686

(1)Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by purchase or redemption for cash and any acquired by means of employee forfeiture.

(2)Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the first quarter of fiscal 2025, we purchased 2,174,686 Accenture plc Class A ordinary shares under this program for an aggregate price of $771 million. The open-market purchase program does not have an expiration date.

(3)As of November 30, 2024, our aggregate available authorization for share purchases and redemptions was $5,922 million which management has the discretion to use for either our publicly announced open-market share purchase program or the other share purchase programs. Since August 2001 and as of November 30, 2024, the Board of Directors of Accenture plc has authorized an aggregate of $54.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.

(4)During the first quarter of fiscal 2025, Accenture purchased 353,046 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs. These transactions consisted of acquisitions of Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under our various employee equity share plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

Item 3. Defaults Upon Senior Securities

None.


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ACCENTURE FORM 10-Q	Part II — Other Information	33

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Trading Arrangements

The table below summarizes the terms of trading arrangements adopted or terminated by our executive officers or directors during the first quarter of fiscal 2025. All of the trading arrangements listed below are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Name

Title

Date of Adoption or Termination

Duration of Plan (1)

Aggregate number of Class A ordinary shares to be sold pursuant to the trading agreement (2)

Melissa Burgum

Chief accounting officer

Adopted on October 21, 2024

January 19, 2025 - October 24, 2025

3,400

John Walsh

Chief operating officer

Adopted on October 24, 2024

January 22, 2025 - October 24, 2025

15,000

(1) Each plan will expire on the earlier of the expiration date or the completion of all transactions under the trading arrangement.

(2) The actual number of shares sold will depend on the vesting of certain performance-based equity awards and the number of shares withheld by Accenture to satisfy its income tax withholding obligations, and may vary from the approximate number provided.

Item 6. Exhibits

Exhibit Index:


Exhibit Number						Exhibit
3.1						Amended and Restated Memorandum and Articles of Association of Accenture plc (incorporated by reference to Exhibit 3.1 to Accenture plc’s 8-K filed on February 7, 2018)

10.1						Accenture LLP Leadership Separation Benefits Plan (filed herewith)

31.1						Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2						Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1						Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2						Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101						The following financial information from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2024, formatted in Inline XBRL: (i) Consolidated Balance Sheets as of November 30, 2024 (Unaudited) and August 31, 2024, (ii) Consolidated Income Statements (Unaudited) for the three months ended November 30, 2024 and November 30, 2023, (iii) Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended November 30, 2024 and November 30, 2023, (iv) Consolidated Shareholders’ Equity Statement (Unaudited) for the three months ended November 30, 2024 and November 30, 2023, (v) Consolidated Cash Flows Statements (Unaudited) for the three months ended November 30, 2024 and November 30, 2023 and (vi) the Notes to Consolidated Financial Statements (Unaudited)

104						The cover page from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2024, formatted in Inline XBRL (included as Exhibit 101)


Table of Contents
ACCENTURE FORM 10-Q	Signatures	34

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: December 19, 2024


			ACCENTURE PLC

			By:			/s/ Angie Park
			Name:			Angie Park
			Title:			Chief Financial Officer
						(Principal Financial Officer and Authorized Signatory)

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SEC Form 10-Q filed by Accenture plc

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