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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.
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.
Historical Earnings Impact
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