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May 31, 2022
Accenture Q3 2022 Earnings Report
Accenture reports very strong third-quarter results with revenue increase and operating margin expansion.
Key Takeaways
Accenture's Q3 2022 revenues reached $16.2 billion, a 22% increase in U.S. dollars and 27% in local currency. Operating income increased by 23% to $2.6 billion, with a 16.1% operating margin. New bookings were $17.0 billion, a 10% increase.
Revenues increased by 22% in U.S. dollars and 27% in local currency, reaching $16.2 billion.
Operating income rose by 23% to $2.6 billion, with operating margin expanding to 16.1%.
New bookings increased by 10% to $17.0 billion.
EPS increased by 16% to $2.79, including a negative impact from the disposition of the Russia business.
Accenture
Accenture
Accenture Revenue by Segment
Revenue by Segment
Consulting Revenue
CapyFin.com Forward Guidance
Accenture expects Q4 2022 revenues to be in the range of $15.0 billion to $15.5 billion, representing 20% to 24% growth in local currency. The company raises full-year revenue growth to 25.5% to 26.5% in local currency and updates EPS to $10.61 to $10.70.
Positive Outlook
- Revenue growth expected to be in the range of 25.5% to 26.5% in local currency for fiscal year 2022.
- Operating margin expected to be 15.2% for the full fiscal year.
- Free cash flow expected to be in the range of $8.0 billion to $8.5 billion.
- Company continues to expect to return at least $6.5 billion in cash to shareholders through dividends and share repurchases.
- Diluted EPS expected to be in the range of $10.61 to $10.70.
Challenges Ahead
- Foreign-exchange impact expected to be negative 4.5% for fiscal year 2022.
- Effective tax rate expected to be in the range of 23.5% to 24.5%.
- Q4 revenue growth reflects an assumption of negative 8% foreign-exchange impact.
- Volatile economic and political conditions may adversely affect results.
- The COVID-19 pandemic has impacted Accenture’s business and operations, and the extent to which it will continue to do so and its impact on the company’s future financial results are uncertain.