What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2025-10-10 compared with 2024-10-10 · 56 added, 57 removed, 109 unchanged (51% of the section changed)

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This approach is used for all results where the functional currency is not the U.S.

Accenture is a leading global professional services company, providing a broad range of services and solutions across Strategy & Consulting, Technology, Operations, Industry X and Song.

Accenture is a leading solutions and global professional services company that helps enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed across the enterprise, bringing together our people, proprietary assets and platforms, and deep ecosystem relationships.

Through our Reinvention Services we bring together our capabilities across strategy, consulting, technology, operations, Song and Industry X with our deep industry expertise to create and deliver solutions and services for our clients.

We serve clients in three geographic markets:

North America, EMEA (Europe, Middle East and Africa) and Growth Markets (Asia Pacific and Latin America).

We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading organizations build their digital core, optimize their operations, accelerate revenue growth and enhance services—creating tangible value at speed and scale.

In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America.

With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.

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.

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.

the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.

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

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

While the discretionary environment is unchanged, clients continue to prioritize large-scale transformations, which include becoming AI-ready.

In addition, the U.S.

administration is reducing federal spending and the size of the federal workforce under the guidance of the Department of Government Efficiency.

We are seeing impacts from these efforts in our federal government business (“Accenture Federal Services, or AFS”), including delays in new procurements, reductions in price and contract scope, and contract terminations.

These changes have had an adverse effect on AFS’s results and could in the future have a material impact on our results of operations or financial condition.

For a discussion of risks related to these and other recent developments, see Item 1A, “Risk Factors.”

Key metrics for fiscal 2025 compared to fiscal 2024 are included below.

We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $438 million and $1,063 million, respectively, in business optimization costs recorded during fiscal 2024 and 2023 and, with respect to effective tax rate and diluted earnings per share, the impact of a $253 million investment gain related to our investment in Duck Creek Technologies recorded during fiscal 2023 as discussed further in our Results of Operations.

For additional information regarding business optimization costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”

• Revenues of $64.9 billion, an increase of 1% in U.S.

dollars and 2% in local currency;

• New bookings of $81.2 billion, an increase of 13% in U.S.

dollars and 14% in local currency;

• Operating margin of 14.8%, compared to 13.7% in fiscal 2023;

adjusted operating margin was 15.5% compared to 15.4% in fiscal 2023;

• Diluted earnings per share of $11.44, a 6% increase over $10.77 for fiscal 2023;

adjusted earnings per share increased 2% to $11.95 compared to $11.67 for fiscal 2023;

• Cash returned to shareholders of $7.8 billion, including share purchases of $4.5 billion and dividends of $3.2 billion.

We have presented operating income, operating margin, effective tax rate and diluted earnings per share for fiscal 2025 and 2024 on a non-GAAP or “adjusted” basis to exclude the impact of business optimization costs.

During the fourth quarter of fiscal 2025, we initiated business optimization actions and recorded $615 million in related costs, which includes $344 million associated with a refreshed talent strategy, as well as asset impairments of approximately $271 million primarily related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities.

In fiscal 2024, we recorded $438 million in business optimization costs associated with actions initiated in fiscal 2023 and completed in fiscal 2024.

For additional information regarding our business optimization actions and related costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”

• Revenues of $69.7 billion, an increase of 7% in both U.S.

dollars and local currency;

• New bookings of $80.6 billion, a decrease of 1% in both U.S.

dollars and local currency;

ACCENTURE 2025 FORM 10-K

Management's Discussion and Analysis of Financial Condition and Results of Operations 32

• Operating margin of 14.7%, a decrease from 14.8% in fiscal 2024;

adjusted operating margin of 15.6%, an increase compared to 15.5% in fiscal 2024;

• Diluted earnings per share of $12.15, a 6% increase over diluted earnings per share of $11.44 in fiscal 2024;

adjusted earnings per share of $12.93, an 8% increase over adjusted earnings per share of $11.95 in fiscal 2024;

• Cash returned to shareholders of $8.3 billion, including dividends of $3.7 billion and share purchases of $4.6 billion.

Fiscal Percent

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dollars) 2025 2024 2025 2024

Geographic Markets North America (1) $ 30.7 $ 30.3 1 % 2 % 47 % 47 %

Geographic Markets Americas (1) $ 35.1 $ 32.6 8 % 9 % 50 % 50 %

EMEA 24.6 22.8 8 6 35 35

Growth Markets (1) (2) 11.3 11.5 (2) 7 17 18

Asia Pacific (1) 10.0 9.5 5 4 14 15

Total Revenues $ 69.7 $ 64.9 7 % 7 % 100 % 100 %

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Amounts in table may not total due to rounding.

(1) In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America.

With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.

(2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market.

(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America.

With this change, North America became the Americas market and Growth Markets became the Asia Pacific market.

Prior period amounts have been reclassified to conform with the current period presentation.

Revenues for fiscal 2024 increased 1% in U.S.

dollars and 2% in local currency compared to fiscal 2023.

During fiscal 2024, revenue growth in local currency was strong in Growth Markets and modest in North America, while EMEA was flat.

We experienced local currency revenue growth that was very strong in Health & Public Service, solid in Resources and modest in Products, partially offset by a decline in Communications, Media & Technology and a modest decline in Financial Services.

Revenue growth in local currency was solid in managed services, partially offset by a slight decline in consulting during fiscal 2024.

The business environment is competitive, and we continue to experience lower pricing across the business.

We define pricing as contract profitability or margin on the work that we sell .

In our consulting business, revenues for fiscal 2024 decreased 1% in both U.S.

Revenues for fiscal 2025 increased 7% in both U.S.

dollars and local currency compared to fiscal 2024.

The decline in consulting revenue in local currency in fiscal 2024 was driven by a decline in EMEA, partially offset by modest growth in Growth Markets and slight growth in North America.

Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, in particular technology, data, and AI led digital transformations.

This includes moving to the cloud, embedding security and responsible AI across the enterprise and leveraging our change capabilities to help our clients build new skills and drive the successful adoption of new processes and technologies.

In addition, clients continue to be focused on initiatives designed to deliver cost savings and supply chain and operational resilience, as well as projects to accelerate growth and improve customer experiences.

While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, especially for smaller contracts with a shorter duration.

In our managed services business, revenues for fiscal 2024 increased 4% in U.S.

During fiscal 2025, revenue growth in local currency was very strong in the Americas, strong in EMEA and solid in Asia Pacific.

We experienced local currency revenue growth that was very strong in Financial Services & Products, strong in Health & Public Service and Communications, Media & Technology and solid in Resources.

Revenue growth in local currency was very strong in managed services and solid in consulting.

While the business environment remained competitive, pricing improved in several areas of our business.

We define pricing as the contract profitability or margin on the work that we sell.

In our consulting business, revenues for fiscal 2025 increased 6% in U.S.

dollars and 5% in local currency compared to fiscal 2024.

Managed services revenue growth in local currency in fiscal 2024 was driven by very strong growth in Growth Markets, solid growth in EMEA and modest growth in North America.

We continue to experience growing demand to assist clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service.

In addition, clients continue to be focused on transforming their operations through technology, data and AI, and leveraging our digital platforms and talent to drive productivity and operational cost savings.

Consulting revenue growth in local currency for fiscal 2025 was driven by strong growth in the Americas, solid growth in EMEA and modest growth in Asia Pacific.

Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, leveraging cloud, enterprise platforms, security, AI and data, including advanced AI, as well as our change capabilities to help clients build new skills and drive the successful adoption of new processes and technologies.

In addition, clients continue to be focused on initiatives designed to deliver cost savings, supply chain and operational resilience, as well as to accelerate growth and improve customer experiences.

While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.

In our managed services business, revenues for fiscal 2025 increased 9% in both U.S.

dollars and local currency compared to fiscal 2024.

Managed services revenue growth in local currency for fiscal 2025 was driven by very strong growth in the Americas and strong growth in EMEA and Asia Pacific.

We continue to experience growing demand to assist clients with reinvented operations, application development and maintenance, and infrastructure management including cloud and security.

Clients continue to be focused on transforming their operations through technology, AI and data, and leveraging our proprietary assets and platforms and talent to drive productivity and cost savings.

As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations.

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dollars may be higher.

dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S.

dollars may be lower.

dollar strengthened against various currencies during fiscal 2024, resulting in unfavorable currency translation and U.S.

dollar revenue growth that was approximately 1% lower than our

ACCENTURE 2025 FORM 10-K

Management's Discussion and Analysis of Financial Condition and Results of Operations 33

revenue growth in local currency for the year.

dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S.

dollars may be lower.

There was minimal currency translation impact for fiscal 2025 compared to fiscal 2024.

Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2026 revenue growth in U.S.

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People Metrics

Annualized Voluntary Attrition

up from 91% in fiscal 2023

compared to approximately 733,000 as of August 31, 2023

Voluntary Attrition

consistent with fiscal 2024

Utilization for fiscal 2024 was 92%, up from 91% in fiscal 2023.

compared to approximately 774,000 as of August 31, 2024

compared to 13% in fiscal 2024

Utilization for fiscal 2025 was 92%, consistent with fiscal 2024.

We hire to meet current and projected future demand.

We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions, given that compensation costs are the most significant portion of our operating expenses.

We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our solutions and services, given that compensation costs are the most significant portion of our operating expenses.

Our workforce, the majority of which serves our clients, increased to approximately 779,000 as of August 31, 2025, compared to approximately 774,000 as of August 31, 2024.

The year-over-year increase in our workforce reflects people added in connection with acquisitions and hiring for specific skills.

For fiscal 2024, attrition, excluding involuntary terminations, was 13%, consistent with fiscal 2023.

For the fourth quarter of fiscal 2024, annualized attrition, excluding involuntary terminations, was 14%, consistent with the third quarter of fiscal 2024.

For fiscal 2025, attrition, excluding involuntary terminations, was 14%, compared to 13% in fiscal 2024.

For the fourth quarter of fiscal 2025, annualized attrition, excluding involuntary terminations, was 15%, down from 16% in the third quarter of fiscal 2025.

We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.

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Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to:

match people and skills with the types or amounts of services and solutions clients are demanding;

match people and skills with the types or amounts of solutions and services clients are demanding;

recover or offset increases in compensation;

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New bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large managed services contracts.

The types of services and solutions clients are demanding and the pace and level of their spending may impact the conversion of new bookings to revenues.

The types of solutions and services clients are demanding and the pace and level of their spending may impact the conversion of new bookings to revenues.

For example, managed services bookings, which are typically for multi-year contracts, generally convert to revenue over a longer period of time compared to consulting bookings.

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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-K

Item 5. Market for Registrant’s Common Equity