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Item 1. Financial Statements

2025-03-20 compared with 2024-12-19 · 150 added, 79 removed, 598 unchanged (28% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

November 30, 2024 and August 31, 2024

November 30, 2024 August 31, 2024

February 28, 2025 and August 31, 2024

February 28, 2025 August 31, 2024

ASSETS (Unaudited)

38 unchanged sentences

SHAREHOLDERS’ EQUITY:

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2024 and August 31, 2024

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 674,278,898 and 672,484,852 shares issued as of November 30, 2024 and August 31, 2024, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 307,754 shares issued and outstanding as of November 30, 2024 and August 31, 2024

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of February 28, 2025 and August 31, 2024

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 678,351,420 and 672,484,852 shares issued as of February 28, 2025 and August 31, 2024, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 303,318 and 307,754 shares issued and outstanding as of February 28, 2025 and August 31, 2024, respectively

Restricted share units 1,983,239 2,614,608

1 unchanged sentence

Treasury shares, at cost:

Ordinary, 40,000 shares as of November 30, 2024 and August 31, 2024;

Class A ordinary, 49,248,770 and 47,204,565 shares as of November 30, 2024 and August 31, 2024, respectively

Ordinary, 40,000 shares as of February 28, 2025 and August 31, 2024;

Class A ordinary, 51,906,694 and 47,204,565 shares as of February 28, 2025 and August 31, 2024, respectively

( 12,324,187 ) ( 10,564,572 )

11 unchanged sentences

Consolidated Income Statements

For the Three Months Ended November 30, 2024 and 2023

For the Three and Six Months Ended February 28, 2025 and February 29, 2024

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Revenues $ 16,659,301 $ 15,799,514 $ 34,348,846 $ 32,023,817

28 unchanged sentences

Consolidated Statements of Comprehensive Income

For the Three Months Ended November 30, 2024 and 2023

For the Three and Six Months Ended February 28, 2025 and February 29, 2024

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

NET INCOME $ 1,822,441 $ 1,709,202 $ 4,138,631 $ 3,719,183

15 unchanged sentences

Consolidated Shareholders’ Equity Statement

For the Three Months Ended November 30, 2024

For the Three Months Ended February 28, 2025

Shares Class A

10 unchanged sentences

Shareholders’

Balance as of August 31, 2024 $ 57 40 $ 15 672,485 $ — 308 $ 2,614,608 $ 14,710,857 $ ( 10,564,572 ) ( 47,245 ) $ 23,082,423 $ ( 1,554,742 ) $ 28,288,646 $ 879,602 $ 29,168,248

Balance as of November 30, 2024 $ 57 40 $ 15 674,279 $ — 308 $ 2,777,423 $ 15,364,338 $ ( 11,304,512 ) ( 49,289 ) $ 24,402,568 $ ( 2,049,394 ) $ 29,190,495 $ 911,928 $ 30,102,423

Net income 1,788,075 1,788,075 34,366 1,822,441

7 unchanged sentences

Other, net 5,811 5,811 ( 6,579 ) ( 768 )

Balance as of February 28, 2025 $ 57 40 $ 15 678,351 $ — 303 $ 1,983,239 $ 16,685,363 $ ( 12,324,187 ) ( 51,947 ) $ 25,209,996 $ ( 2,308,430 ) $ 29,246,053 $ 935,895 $ 30,181,948

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Financial Statements

(In thousands of U.S.

dollars and share amounts)

ACCENTURE FORM 10-Q

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended February 29, 2024

Shares Class A

Shares Class X

Shares Restricted

Units Additional

Capital Treasury Shares Retained

Earnings Accumulated

Comprehensive

Accenture plc

Shareholders’

Equity Noncontrolling

Interests Total

Shareholders’

Balance as of November 30, 2023 $ 57 40 $ 15 666,512 $ — 318 $ 2,553,022 $ 13,353,477 $ ( 8,032,018 ) ( 39,560 ) $ 20,429,413 $ ( 1,627,215 ) $ 26,676,751 $ 808,686 $ 27,485,437

Net income 1,674,859 1,674,859 34,343 1,709,202

Other comprehensive income (loss) ( 29,925 ) ( 29,925 ) ( 2,257 ) ( 32,182 )

Purchases of Class A shares 1,153 ( 1,318,412 ) ( 3,742 ) ( 1,317,259 ) ( 1,153 ) ( 1,318,412 )

Share-based compensation expense 641,871 641,871 641,871

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 3 ) ( 3,434 ) ( 3,434 ) ( 3,434 )

Issuances of Class A shares for employee share programs 3,893 ( 1,369,402 ) 1,197,930 559,618 1,685 ( 103,022 ) 285,124 249 285,373

Dividends 37,847 ( 849,613 ) ( 811,766 ) ( 812 ) ( 812,578 )

Other, net 6,632 6,632 ( 5,485 ) 1,147

Balance as of February 29, 2024 $ 57 40 $ 15 670,405 $ — 315 $ 1,863,338 $ 14,555,758 $ ( 8,790,812 ) ( 41,617 ) $ 21,151,637 $ ( 1,657,140 ) $ 27,122,853 $ 833,571 $ 27,956,424

The accompanying Notes are an integral part of these Consolidated Financial Statements.

4 unchanged sentences

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended November 30, 2023

For the Six Months Ended February 28, 2025

Shares Class A

20 unchanged sentences

Other, net ( 2,562 ) ( 2,562 ) 554 ( 2,008 )

Balance as of November 30, 2023 $ 57 40 $ 15 666,512 $ — 318 $ 2,553,022 $ 13,353,477 $ ( 8,032,018 ) ( 39,560 ) $ 20,429,413 $ ( 1,627,215 ) $ 26,676,751 $ 808,686 $ 27,485,437

Balance as of February 28, 2025 $ 57 40 $ 15 678,351 $ — 303 $ 1,983,239 $ 16,685,363 $ ( 12,324,187 ) ( 51,947 ) $ 25,209,996 $ ( 2,308,430 ) $ 29,246,053 $ 935,895 $ 30,181,948

The accompanying Notes are an integral part of these Consolidated Financial Statements.

1 unchanged sentence

(In thousands of U.S.

dollars and share amounts)

ACCENTURE FORM 10-Q

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 29, 2024

Shares Class A

Shares Class X

Shares Restricted

Units Additional

Capital Treasury Shares Retained

Earnings Accumulated

Comprehensive

Accenture plc

Shareholders’

Equity Noncontrolling

Interests Total

Shareholders’

Balance as of August 31, 2023 $ 57 40 $ 15 664,616 $ — 325 $ 2,403,374 $ 12,778,782 $ ( 7,062,512 ) ( 36,391 ) $ 19,316,224 $ ( 1,743,101 ) $ 25,692,839 $ 765,754 $ 26,458,593

Net income 3,648,303 3,648,303 70,880 3,719,183

Other comprehensive income (loss) 85,961 85,961 ( 372 ) 85,589

Purchases of Class A shares 2,203 ( 2,506,701 ) ( 7,552 ) ( 2,504,498 ) ( 2,203 ) ( 2,506,701 )

Share-based compensation expense 1,007,582 57,289 1,064,871 1,064,871

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 10 ) ( 6,273 ) ( 6,273 ) ( 6,273 )

Issuances of Class A shares for employee share programs 5,789 ( 1,614,744 ) 1,723,265 778,401 2,326 ( 124,773 ) 762,149 658 762,807

Dividends 67,126 ( 1,688,117 ) ( 1,620,991 ) ( 1,643 ) ( 1,622,634 )

Other, net 492 492 497 989

Balance as of February 29, 2024 $ 57 40 $ 15 670,405 $ — 315 $ 1,863,338 $ 14,555,758 $ ( 8,790,812 ) ( 41,617 ) $ 21,151,637 $ ( 1,657,140 ) $ 27,122,853 $ 833,571 $ 27,956,424

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Financial Statements

(In thousands of U.S.

ACCENTURE FORM 10-Q

Consolidated Cash Flows Statements

For the Three Months Ended November 30, 2024 and 2023

For the Six Months Ended February 28, 2025 and February 29, 2024

February 28, 2025 February 29, 2024

CASH FLOWS FROM OPERATING ACTIVITIES:

51 unchanged sentences

The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods.

The results of operations for the three months ended November 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025.

The results of operations for the three and six months ended February 28, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of November 30, 2024 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $ 27,354 and $ 27,561 , respectively.

As of February 28, 2025 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $ 26,704 and $ 27,561 , respectively.

The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

2 unchanged sentences

Our non-current investments are as follows:

November 30, 2024 August 31, 2024

February 28, 2025 August 31, 2024

Equity method investments $ 127,183 $ 128,634

8 unchanged sentences

Depreciation and Amortization

As of November 30, 2024 and August 31, 2024, total accumulated depreciation was $ 2,752,886 and $ 2,713,855 , respectively.

See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2024 and 2023, respectively.

Three Months Ended

November 30, 2024 November 30, 2023

As of February 28, 2025 and August 31, 2024, total accumulated depreciation was $ 2,780,723 and $ 2,713,855 , respectively.

See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and six months ended February 28, 2025 and February 29, 2024, respectively.

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Depreciation $ 133,809 $ 134,997 $ 266,908 $ 268,242

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Remaining Performance Obligations

We had remaining performance obligations of approximately $ 29 billion and $ 30 billion as of November 30, 2024 and August 31, 2024, respectively.

We had remaining performance obligations of approximately $ 31 billion and $ 30 billion as of February 28, 2025 and August 31, 2024, respectively.

Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized.

3 unchanged sentences

Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations.

We expect to recognize approximately 58 % of our remaining performance obligations as of November 30, 2024 as revenue in fiscal 2025, an additional 20 % in fiscal 2026, and the balance thereafter.

We expect to recognize approximately 50 % of our remaining performance obligations as of February 28, 2025 as revenue in fiscal 2025, an additional 26 % in fiscal 2026, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three months ended November 30, 2024 and 2023.

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and six months ended February 28, 2025 and February 29, 2024, respectively.

Contract Balances

Deferred transition revenues were $ 623,750 and $ 641,091 as of November 30, 2024 and August 31, 2024, respectively, and are included in Non-current deferred revenues.

Deferred transition revenues were $ 638,448 and $ 641,091 as of February 28, 2025 and August 31, 2024, respectively, and are included in Non-current deferred revenues.

Costs related to these activities are also deferred and are expensed as the services are provided.

Deferred transition costs were $ 893,898 and $ 862,140 as of November 30, 2024 and August 31, 2024, respectively, and are included in Deferred contract costs.

Deferred transition costs were $ 929,143 and $ 862,140 as of February 28, 2025 and August 31, 2024, respectively, and are included in Deferred contract costs.

Generally, deferred transition costs are recoverable under the contract in the event of early termination and are monitored regularly for impairment.

1 unchanged sentence

The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues):

November 30, 2024 August 31, 2024

February 28, 2025 August 31, 2024

Receivables $ 12,437,308 $ 11,873,442

4 unchanged sentences

Deferred revenues (non-current) 638,448 641,091

Changes in the contract asset and liability balances during the three months ended November 30, 2024 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three months ended November 30, 2024 that were included in Deferred revenues as of August 31, 2024 were $ 2.8 billion.

Revenues recognized during the three months ended November 30, 2023 that were included in Deferred revenues as of August 31, 2023 were $ 2.8 billion.

Changes in the contract asset and liability balances during the six months ended February 28, 2025 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three and six months ended February 28, 2025 that were included in Deferred revenues as of November 30, 2024 and August 31, 2024 were $ 2.6 billion and $ 3.7 billion, respectively.

Revenues recognized during the three and six months ended February 29, 2024 that were included in Deferred revenues as of November 30, 2023 and August 31, 2023 were $ 2.5 billion and $ 3.6 billion, respectively.

Notes To Consolidated Financial Statements

4 unchanged sentences

Basic and diluted earnings per share are calculated as follows:

Three Months Ended

November 30, 2024 November 30, 2023

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Basic earnings per share

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The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc:

Three Months Ended

November 30, 2024 November 30, 2023

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Foreign currency translation

7 unchanged sentences

Beginning balance ( 269,930 ) ( 190,111 ) ( 254,172 ) ( 226,503 )

Reclassifications into net periodic pension and post-retirement expense ( 17,680 ) 44,294

Reclassifications into net periodic pension and

post-retirement expense 4,255 6,514 ( 13,425 ) 50,808

Income tax benefit (expense) ( 833 ) ( 1,272 ) 1,074 ( 9,137 )

11 unchanged sentences

Accumulated other comprehensive loss $ ( 2,308,430 ) $ ( 1,657,140 ) $ ( 2,308,430 ) $ ( 1,657,140 )

(1) As of November 30, 2024, $ 25,149 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.

(1) As of February 28, 2025, $ 37,989 of net unrealized losses related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.

Notes To Consolidated Financial Statements

3 unchanged sentences

Business Combinations

During the three months ended November 30, 2024, we completed individually immaterial acquisitions for total consideration of $ 184,871 , net of cash acquired.

During the six months ended February 28, 2025, we completed individually immaterial acquisitions for total consideration of $ 421,133 , net of cash acquired.

The pro forma effects of these acquisitions on our operations were not material.

3 unchanged sentences

Adjustments Foreign

Translation November 30, 2024

Translation February 28, 2025

Americas (1) $ 11,960,650 $ 99,352 $ ( 45,723 ) $ 12,014,279

8 unchanged sentences

Our definite-lived intangible assets by major asset class are as follows:

August 31, 2024 November 30, 2024

August 31, 2024 February 28, 2025

Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

4 unchanged sentences

Total $ 4,530,739 $ ( 1,626,708 ) $ 2,904,031 $ 4,348,155 $ ( 1,732,507 ) $ 2,615,648

Total amortization related to our intangible assets was $ 160,214 and $ 111,631 for the three months ended November 30, 2024 and 2023, respectively.

Estimated future amortization related to intangible assets held as of November 30, 2024 is as follows:

Total amortization related to our intangible assets was $ 152,162 and $ 312,376 for the three and six months ended February 28, 2025, respectively.

Total amortization related to our intangible assets was $ 119,625 and $ 231,256 for the three and six months ended February 29, 2024, respectively.

Estimated future amortization related to intangible assets held as of February 28, 2025 is as follows:

Fiscal Year Estimated Amortization

7 unchanged sentences

Shareholders’ Equity

Our dividend activity during the three months ended November 30, 2024 is as follows:

Our dividend activity during the six months ended February 28, 2025 is as follows:

Share Accenture plc Class A

3 unchanged sentences

November 15, 2024 $ 1.48 October 10, 2024 $ 924,675 October 9, 2024 $ 883 $ 925,558

February 14, 2025 1.48 January 16, 2025 928,114 January 15, 2025 878 928,992

Total Dividends $ 1,852,789 $ 1,761 $ 1,854,550

The payment of cash dividends includes the net effect of $ 70,982 of additional restricted stock units being issued as a part of our share plans, which resulted in 186,690 restricted share units being issued.

Subsequent Event

On December 18, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ 1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on January 16, 2025 payable on February 14, 2025.

On March 19, 2025, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ 1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on April 10, 2025 payable on May 15, 2025.

Notes To Consolidated Financial Statements

7 unchanged sentences

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized.

For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2024 and 2023, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and six months ended February 28, 2025 and February 29, 2024, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $ 4,256 and $ 20,280 for the three months ended November 30, 2024 and 2023, respectively.

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $ 12,442 and $ 16,698 for the three and six months ended February 28, 2025, respectively, and net losses of $ 26,056 and $ 46,336 for the three and six months ended February 29, 2024, respectively.

Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

1 unchanged sentence

The notional and fair values of all derivative instruments are as follows:

November 30, 2024 August 31, 2024

February 28, 2025 August 31, 2024

Cash Flow Hedges

15 unchanged sentences

The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:

November 30, 2024 August 31, 2024

February 28, 2025 August 31, 2024

Net derivative assets $ 35,734 $ 91,127

12 unchanged sentences

Accenture plc and Accenture Capital are not subject to any financial covenants under the senior unsecured notes.

The following is a summary of total outstanding debt as of November 30, 2024 and August 31, 2024 , respectively:

November 30, 2024 August 31, 2024

The following is a summary of total outstanding debt as of February 28, 2025 and August 31, 2024 , respectively:

February 28, 2025 August 31, 2024

Current portion of long-term debt and bank borrowings

13 unchanged sentences

Total long-term debt $ 5,042,111 $ 78,628

(1) The carrying amounts of the commercial paper as of November 30, 2024 and August 31, 2024 include the remaining principal outstanding of $ 100,000 and $ 935,000 , respectively, net of total unamortized discounts of $ 554 and $ 3,493 , respectively.

The weighted-average effective interest rate for the commercial paper was 4.6 % and 5.4 % as of November 30, 2024 and August 31, 2024, respectively.

(1) The carrying amounts of the commercial paper as of February 28, 2025 and August 31, 2024 include the remaining principal outstanding of $ 100,000 and $ 935,000 , respectively, net of total unamortized discounts of $ 49 and $ 3,493 , respectively.

The weighted-average effective interest rate for the commercial paper was 4.5 % and 5.4 % as of February 28, 2025 and August 31, 2024 , respectively.

(2) Amounts primarily include finance lease liabilities.

(3) The total estimated fair value of our senior notes was $ 4.9 billion as of November 30, 2024.

The fair value was determined based on quoted prices as of the last trading day of the first quarter of fiscal 2025 and is classified as Level 1 within the fair value hierarchy.

As of November 30, 2024, future principal payments for total outstanding debt, excluding finance leases, are summarized as follows:

(3) The total estimated fair value of our senior notes was $ 4.9 billion as of February 28, 2025.

The fair value was determined based on quoted prices as of the last trading day of the second quarter of fiscal 2025 and is classified as Level 1 within the fair value hierarchy.

As of February 28, 2025, future principal payments for total outstanding debt, excluding finance leases, are summarized as follows:

Fiscal Year Amount

7 unchanged sentences

ACCENTURE FORM 10-Q

As of November 30, 2024, we had the following borrowing facilities:

As of February 28, 2025, we had the following borrowing facilities:

Credit Facilities

10 unchanged sentences

Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets.

As of November 30, 2024 and August 31, 2024 , we had no borrowings under these facilities.

As of February 28, 2025 and August 31, 2024 , we had no borrowings under these facilities.

(3) We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities.

As of November 30, 2024 and August 31, 2024 , we had no borrowings under these various facilities.

We had an aggregate of $ 1,242,317 and $ 1,269,178 of letters of credit outstanding and $ 100,000 and $ 935,000 (excluding unamortized discounts) of commercial paper outstanding as of November 30, 2024 and August 31, 2024, respectively.

As of February 28, 2025 and August 31, 2024 , we had no borrowings under these various facilities.

We had an aggregate of $ 1,244,873 and $ 1,269,178 of letters of credit outstanding and $ 100,000 and $ 935,000 (excluding unamortized discounts) of commercial paper outstanding as of February 28, 2025 and August 31, 2024, respectively.

The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.

1 unchanged sentence

In addition, we recognize taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs.

Our effective tax rates for the three months ended November 30, 2024 and 2023 were 21.6 % and 23.2 %, respectively.

The lower effective tax rate for the three months ended November 30, 2024 was primarily due to higher benefits from adjustments to prior year tax liabilities.

Our effective tax rates for the three months ended February 28, 2025 and February 29, 2024 were 20.4 % and 18.4 %, respectively.

The higher effective tax rate for the three months ended February 28, 2025 was primarily due to lower tax benefits from share-based payments.

Our effective tax rate for both the six months ended February 28, 2025 and February 29, 2024 was 21.1 %.

Notes To Consolidated Financial Statements

5 unchanged sentences

In the normal course of business and in conjunction with certain client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters.

As of November 30, 2024 and August 31, 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 2,181,000 and $ 2,370,000 , respectively, of which all but approximately $ 59,000 and $ 61,000 , respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties.

As of February 28, 2025 and August 31, 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 1,995,000 and $ 2,370,000 , respectively, of which all but approximately $ 64,000 and $ 61,000 , respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties.

For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of November 30, 2024 and August 31, 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,692,529 ($ 1,514,492 net of recourse provisions) and $ 1,758,783 ($ 1,609,046 net of recourse provisions) respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance.

As of February 28, 2025 and August 31, 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,867,566 ($ 1,683,583 net of recourse provisions) and $ 1,758,783 ($ 1,609,046 net of recourse provisions), respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance.

These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied.

3 unchanged sentences

Legal Contingencies

As of November 30, 2024, we or our present personnel had been named as a defendant in various litigation matters.

As of February 28, 2025, we or our present personnel had been named as a defendant in various litigation matters.

We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world.

27 unchanged sentences

Information regarding reportable segments, industry groups and type of work is as follows:

Three Months Ended

November 30, 2024 November 30, 2023

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Geographic Markets

14 unchanged sentences

Operating Income

Three Months Ended

November 30, 2024 November 30, 2023

Three Months Ended Six Months Ended

February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Geographic Markets

9 unchanged sentences

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended August 31, 2024, and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended August 31, 2024.

The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended August 31, 2024, and with the information under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024, as updated in this Quarterly Report on Form 10-Q.

We use the terms “Accenture,” “we,” “our” and “us” in this report to refer to Accenture plc and its subsidiaries.

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• Our business could be materially adversely affected if we incur legal liability.

• Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.

• Our work with government clients exposes us to additional risks inherent in the government contracting environment.

• Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.

• If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.

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We may also be subject to criticism and negative publicity related to our incorporation in Ireland.

For a more detailed discussion of these factors, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024.

For a more detailed discussion of these factors, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024, as updated in Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q.

Our forward-looking statements speak only as of the date of this report or as of the date they are made, and we undertake no obligation to update any forward-looking statements.

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Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.

There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business.

We are seeing an elevated level of what was already significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business.

These conditions have slowed the pace and level of client spending, particularly for smaller contracts with a shorter duration and for our consulting services.

Clients continue to prioritize large-scale transformations, which convert to revenue over a longer period.

Key metrics for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 are included below.

We have presented operating income, operating margin, effective tax rate and diluted earnings per share for the first quarter of fiscal 2024 on a non-GAAP or “adjusted” basis to exclude the impact of $140 million in business optimization costs recorded during the quarter, as discussed further in our Results of Operations.

For a discussion of risks related to these and other recent developments, see Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2024, as updated in Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q.

Key metrics for the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024 are included below.

We have presented operating income, operating margin, effective tax rate and diluted earnings per share for the second quarter of fiscal 2024 on a non-GAAP or “adjusted” basis to exclude the impact of $115 million in business optimization costs recorded during the quarter, as discussed further in our Results of Operations.

• Revenues of $16.7 billion, an increase of 5% in U.S.

dollars and 8.5% in local currency;

• New bookings of $18.7 billion, an increase of 1% in both U.S.

dollars and local currency;

• Operating margin of 16.7%, compared to operating margin of 15.8% and adjusted operating margin of 16.7% in the first quarter of fiscal 2024;

• Diluted earnings per share of $3.59, a 16% increase over diluted earnings per share of $3.10 and a 10% increase over adjusted earnings per share of $3.27 in the first quarter of fiscal 2024;

• Cash returned to shareholders of $1.8 billion, including dividends of $926 million and share purchases of $898 million.

• New bookings of $20.9 billion, a decrease of 3% in U.S.

dollars and flat in local currency;

• Operating margin of 13.5%, compared to operating margin of 13.0% and adjusted operating margin of 13.7% in the second quarter of fiscal 2024;

• Diluted earnings per share of $2.82, a 7% increase over diluted earnings per share of $2.63 and a 2% increase over adjusted earnings per share of $2.77 in the second quarter of fiscal 2024;

• Cash returned to shareholders of $2.4 billion, including dividends of $929 million and share purchases of $1.4 billion.

Three Months Ended Percent

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(in billions of U.S.

dollars) November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

dollars) February 28, 2025 February 29, 2024 February 28, 2025 February 29, 2024

Geographic Markets Americas (1) $ 8.6 $ 7.8 9 % 11 % 51 % 49 %

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements