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Nov 30, 2021

Accenture Q1 2022 Earnings Report

Reported very strong first-quarter results and raised business outlook for fiscal 2022.

Key Takeaways

Accenture reported revenues of $15.0 billion, a 27% increase in both U.S. dollars and local currency. Diluted earnings per share were $2.78, a 20% increase. Operating income increased 29% to $2.43 billion. New bookings were a record $16.8 billion.

Revenues are $15.0 billion, an increase of 27% in both U.S. dollars and local currency.

EPS are $2.78, a 20% increase from the first quarter last year.

Operating income increases 29% to $2.43 billion, with operating margin of 16.3%, an expansion of 20 basis points.

New bookings are a record $16.8 billion, a 30% increase in both U.S. dollars and local currency from the first quarter last year.

Total Revenue
$15B
Previous year: $11.8B
+27.2%
EPS
$2.78
Previous year: $2.17
+28.1%
New bookings
$16.8B
Previous year: $16.8B
+0.0%
Operating margin
16.3%
Gross Profit
$4.92B
Previous year: $3.9B
+26.3%
Cash and Equivalents
$5.64B
Previous year: $8.59B
-34.4%
Free Cash Flow
$349M
Previous year: $1.51B
-76.9%
Total Assets
$43.7B
Previous year: $38.3B
+14.1%

Accenture

Accenture

Forward Guidance

Accenture raises its business outlook for fiscal 2022; now expects full-year revenue growth of 19% to 22% in local currency; EPS of $10.32 to $10.60; and free cash flow of $7.7 billion to $8.2 billion

Positive Outlook

  • Full-year revenue growth of 19% to 22% in local currency
  • EPS of $10.32 to $10.60
  • Free cash flow of $7.7 billion to $8.2 billion
  • Second quarter fiscal 2022 revenue to be in the range of $14.30 billion to $14.75 billion
  • Operating margin for the full fiscal year to be in the range of 15.2% to 15.4%

Challenges Ahead

  • Foreign-exchange impact on its results in U.S. dollars will be approximately negative 3% compared with fiscal 2021
  • Assumes a negative 4% foreign-exchange impact compared with the second quarter of fiscal 2021
  • Company continues to expect its annual effective tax rate to be in the range of 23.0% to 25.0%.
  • Uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity
  • Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks