NYSE$ACN

Accenture Plc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Accenture reported strong revenues and record new bookings.

Accenture's Q2 2023 revenues reached $15.8 billion, a 5% increase, with record new bookings of $22.1 billion, up 13%. GAAP EPS was $2.39, while adjusted EPS increased by 6% to $2.69. The company updated its fiscal 2023 outlook, expecting revenue growth of 8% to 10% in local currency.

  • Revenues increased by 5% to $15.8 billion, and 9% in local currency.
  • New bookings reached a record $22.1 billion, a 13% increase.
  • GAAP EPS was $2.39, while adjusted EPS rose by 6% to $2.69.
  • Accenture updated its fiscal 2023 business outlook, anticipating revenue growth of 8% to 10% in local currency.

Headline financials

Total Revenue

$15.8B

Previous: $15B+5.1%
EPS (adj)

$2.69

Previous: $2.54+5.9%
GAAP operating margin

12.3%

Previous: 13.7%-10.2%
Adjusted operating margin

13.8%

No prior period
New Bookings

$22.1B

Previous: $19.6B+12.7%
Capital Expenditures

-$206M

Previous: -$346M+40.4%
Free Cash Flow

$1.32B

Previous: $1.29B+2.2%
Net Income

$1.52B

Previous: $1.63B-6.8%
Operating Income

$1.94B

Previous: $2.06B-5.7%
Gross Profit

$4.83B

Previous: $4.52B+6.9%
Cash & Equivalents

$6.24B

Previous: $5.47B+14.1%
Total Assets

$47.7B

Previous: $44.3B+7.7%
Stock-Based Comp

$632M

Previous: $547M+15.6%

Revenue & EPS history

Accenture · Revenue · Quarterly

$15.8B

Q2 2023+5.1%vs Q2 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Accenture expects Q3 2023 revenues to be in the range of $16.1 billion to $16.7 billion, reflecting a 3% to 7% increase in local currency. For fiscal year 2023, revenue growth is expected to be 8% to 10% in local currency, with GAAP EPS of $10.84 to $11.06 and adjusted EPS of $11.41 to $11.63.

Tailwinds

  • Revenue growth of 3% to 7% in local currency is expected for Q3 2023.
  • Fiscal year 2023 revenue growth is projected at 8% to 10% in local currency.
  • GAAP operating margin for fiscal 2023 is expected to be in the range of 14.1% to 14.3%.
  • Operating cash flow is projected to be in the range of $8.7 billion to $9.2 billion.
  • Free cash flow is expected to be in the range of $8.0 billion to $8.5 billion.

Headwinds

  • Foreign-exchange impact is expected to be approximately negative 3.5% for Q3 2023.
  • GAAP EPS for fiscal 2023 is projected to be $10.84 to $11.06, lower than previously expected.
  • The company recorded $244 million in business optimization costs during the second quarter and expects to record total costs of approximately $1.5 billion through fiscal 2024.
  • The annual effective tax rate is expected to be in the range of 22.5% to 24.5%.
  • Assumes an approximately negative 4.5% foreign-exchange impact compared with fiscal 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.4%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

46%

33 / 72 earnings

Positive

+8.8%

Q4 2012

Best reaction

-19.0%

Q3 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-19.0%
Q2 2026+0.4%-1.3%
Q1 2026-3.0%-1.1%+4.6%
Q4 2025-2.8%+3.1%+3.6%
Q3 2025-1.4%+0.9%-12.1%
Q2 2025-7.3%-4.8%-13.0%
Q1 2025+5.4%+4.0%+1.4%
Q4 2024+3.8%+4.4%+7.0%
Q3 2024+8.3%+7.6%+15.4%
Q2 2024-11.3%-11.6%-16.7%
Q1 2024-0.7%+3.7%+5.2%
Q4 2023-2.3%-2.6%-7.7%
Q3 2023-4.7%-4.0%+0.5%
Q2 2023+7.4%+8.6%+9.1%
Q1 2023-9.1%-4.3%+0.4%
Q4 2022-2.0%-3.4%+1.6%
Q3 2022+4.5%-0.9%+0.6%
Q2 2022-0.3%+0.8%-1.7%
Q1 2022+5.6%+4.7%-5.8%
Q4 2021+1.4%-3.1%+5.7%
Q3 2021+3.1%+3.8%+11.5%
Q2 2021-0.2%+0.7%+8.6%
Q1 2021+7.6%+4.9%+2.5%
Q4 2020-6.9%-2.8%-0.4%
Q3 2020+5.3%+6.4%+9.7%
Q2 2020-0.8%+3.8%+15.8%
Q1 2020+2.6%+2.8%+1.7%
Q4 2019+0.3%-0.7%-4.1%
Q3 2019+0.8%+2.9%+7.4%
Q2 2019+5.7%+5.3%+8.6%
Q1 2019-9.1%-11.5%-0.3%
Q4 2018-1.6%+0.1%-10.7%
Q3 2018+5.3%+5.1%+4.3%
Q2 2018-9.1%-8.1%-5.9%
Q1 2018+1.4%+0.8%+6.6%
Q4 2017-1.1%-1.7%+4.9%
Q3 2017-3.4%-3.9%+1.4%
Q2 2017-5.9%-4.1%-5.7%
Q1 2017-5.1%-5.3%-7.3%
Q4 2016+4.7%+1.4%-0.8%
Q3 2016-6.4%-7.1%-5.2%
Q2 2016+6.0%
Q1 2016-6.6%
Q4 2015-0.9%
Q3 2015+1.3%
Q2 2015+6.5%
Q1 2015+6.1%
Q4 2014-0.8%
Q3 2014-2.1%
Q2 2014-5.0%
Q1 2014+6.5%
Q4 2013-2.7%
Q3 2013-9.6%
Q2 2013+1.3%
Q1 2013-3.0%
Q4 2011+0.4%
Q4 2012+8.8%
Q3 2012-1.9%
Q2 2012+1.8%
Q1 2012-3.4%
Q2 2011+2.2%
Q3 2011+3.8%
Q1 2011-3.2%
Q4 2010-1.4%
Q4 2008-1.4%
Q3 2010+5.8%
Q3 2009+5.8%
Q2 2009+1.9%
Q2 2010+1.9%
Q1 2009-2.5%
Q1 2010-2.5%
Q4 2009-2.5%

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