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May 31, 2024
Accenture Q3 2024 Earnings Report
Accenture's financial performance declined slightly due to foreign exchange impacts, but new bookings increased significantly.
Key Takeaways
Accenture reported a slight decrease in revenue and EPS due to foreign exchange impacts, but new bookings grew by 22%. The company is focused on generative AI and continues to invest in acquisitions.
New bookings increased by 22% to $21.1 billion.
Generative AI new bookings reached over $900 million for the quarter.
Revenues decreased by 1% to $16.5 billion.
GAAP EPS decreased by 3% to $3.04.
Accenture
Accenture
Accenture Revenue by Segment
Accenture Revenue by Geographic Location
Revenue by Segment
Consulting Revenue
CapyFin.comManaged Services Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Accenture expects Q4 2024 revenues to be in the range of $16.05 billion to $16.65 billion, representing 2% to 6% growth in local currency. For fiscal year 2024, the company now expects revenue growth to be in the range of 1.5% to 2.5% in local currency and GAAP EPS to be in the range of $11.29 to $11.44.
Positive Outlook
- Revenue growth of 2% to 6% in local currency is expected for Q4 2024.
- Full-year revenue growth is projected to be 1.5% to 2.5% in local currency.
- GAAP operating margin for fiscal 2024 is expected to be 14.8%.
- Free cash flow is projected to be in the range of $8.7 billion to $9.3 billion.
- Accenture plans to return at least $7.7 billion in cash to shareholders through dividends and share repurchases.
Challenges Ahead
- Foreign-exchange impact on results in U.S. dollars is expected to be negative 0.7% for fiscal 2024.
- GAAP diluted EPS is now expected to be in the range of $11.29 to $11.44, compared to $11.41 to $11.64 previously.
- Adjusted EPS is now expected to be in the range of $11.85 to $12.00, compared to $11.97 to $12.20 previously.
- The company now expects both its GAAP and adjusted annual effective tax rate to be in the range of 23.5% to 24.5%, compared to 22.5% to 24.5% previously.
- Revenue for the quarter reflect a foreign-exchange impact of approximately negative 2% compared with the negative 1% impact previously assumed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income