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Nov 30, 2022

Accenture Q1 2023 Earnings Report

Accenture reported strong first-quarter fiscal 2023 results with revenue increase and EPS growth.

Key Takeaways

Accenture's Q1 2023 revenues reached $15.7 billion, a 5% increase in U.S. dollars and 15% in local currency. EPS grew by 11% to $3.08, and operating income rose by 7% to $2.59 billion.

Revenues are $15.7 billion, an increase of 5% in U.S. dollars and 15% in local currency.

Operating margin expands 20 basis points to 16.5%, with operating income increasing 7% to $2.59 billion.

EPS are $3.08, an 11% increase from $2.78 for the first quarter of fiscal 2022.

New bookings are $16.2 billion across consulting and managed services with both at $8.1 billion.

Total Revenue
$15.7B
Previous year: $15B
+5.2%
EPS
$3.08
Previous year: $2.78
+10.8%
New bookings
$16.2B
Previous year: $16.8B
-3.6%
Gross Profit
$5.18B
Previous year: $4.92B
+5.2%
Cash and Equivalents
$5.9B
Previous year: $5.64B
+4.7%
Free Cash Flow
$397M
Previous year: $349M
+13.8%
Total Assets
$47.1B
Previous year: $43.7B
+7.9%

Accenture

Accenture

Forward Guidance

Accenture expects Q2 2023 revenues to be in the range of $15.20 billion to $15.75 billion, an increase of 6% to 10% in local currency. For fiscal year 2023, the company expects revenue growth to be in the range of 8% to 11% in local currency and EPS to be in the range of $11.20 to $11.52.

Positive Outlook

  • Revenue growth of 6% to 10% in local currency for Q2 2023.
  • Expected revenue growth of 8% to 11% in local currency for fiscal year 2023.
  • Diluted EPS expected to be in the range of $11.20 to $11.52 for fiscal year 2023.
  • Operating margin for the full 2023 fiscal year to be in the range of 15.3% to 15.5%.
  • Company continues to expect operating cash flow to be in the range of $8.5 billion to $9.0 billion.

Challenges Ahead

  • Foreign-exchange impact of approximately negative 5% compared with the second quarter of fiscal 2022.
  • Assumes an approximately negative 5% foreign-exchange impact on its results in U.S. dollars for fiscal year 2023.
  • Uncertain economic and political conditions may affect results of operations.
  • Inability to match people and their skills with client demand may affect business.
  • Failure to protect client and/or company data from security incidents or cyberattacks.