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May 31, 2023

Accenture Q3 2023 Earnings Report

Accenture reported solid bookings and revenue with very strong adjusted operating margin, earnings per share, and free cash flow.

Key Takeaways

Accenture's Q3 2023 revenues reached $16.6 billion, a 3% increase in U.S. dollars and 5% in local currency. The company reported GAAP EPS of $3.15, a 13% increase, and adjusted EPS of $3.19, a 14% increase. New bookings were $17.2 billion, and free cash flow was $3.15 billion.

Revenues are $16.6 billion, an increase of 3% in U.S. dollars and 5% in local currency.

GAAP operating margin is 14.2%, while adjusted operating margin is 16.3%, an expansion of 20 basis points.

GAAP EPS of $3.15, a 13% increase; adjusted EPS of $3.19, a 14% increase.

Free cash flow is $3.15 billion.

Total Revenue
$16.6B
Previous year: $16.2B
+2.5%
EPS
$3.19
Previous year: $2.79
+14.3%
New bookings
$17.2B
Previous year: $17B
+1.2%
Gross Profit
$5.54B
Previous year: $5.32B
+4.1%
Cash and Equivalents
$8.54B
Previous year: $6.7B
+27.3%
Free Cash Flow
$3.15B
Previous year: $2.87B
+9.8%
Total Assets
$50.1B
Previous year: $46.1B
+8.7%

Accenture

Accenture

Forward Guidance

Accenture expects Q4 2023 revenues to be in the range of $15.75 billion to $16.35 billion, an increase of 2% to 6% in local currency. For fiscal year 2023, the company expects revenue growth of 8% to 9% in local currency, GAAP EPS of $10.94 to $11.05, adjusted EPS of $11.52 to $11.63, and free cash flow of $8.1 billion to $8.6 billion.

Positive Outlook

  • Full-year revenue growth of 8% to 9% in local currency.
  • GAAP operating margin of 14.2%.
  • Adjusted operating margin of 15.4%.
  • GAAP EPS of $10.94 to $11.05.
  • Free cash flow of $8.1 billion to $8.6 billion.

Challenges Ahead

  • Foreign-exchange impact of negative 4%.
  • Business optimization costs of $800 million.
  • Q4 revenue growth between 2% and 6% in local currency.
  • Uncertainty in economic and political conditions.
  • Fluctuations in foreign currency exchange rates.