NYSE$ACN

Accenture Plc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Accenture reports very strong third-quarter results with revenue increase and operating margin expansion.

Accenture's Q3 2022 revenues reached $16.2 billion, a 22% increase in U.S. dollars and 27% in local currency. Operating income increased by 23% to $2.6 billion, with a 16.1% operating margin. New bookings were $17.0 billion, a 10% increase.

  • Revenues increased by 22% in U.S. dollars and 27% in local currency, reaching $16.2 billion.
  • Operating income rose by 23% to $2.6 billion, with operating margin expanding to 16.1%.
  • New bookings increased by 10% to $17.0 billion.
  • EPS increased by 16% to $2.79, including a negative impact from the disposition of the Russia business.

Headline financials

Total Revenue

$16.2B

Previous: $13.3B+21.8%
EPS (adj)

$2.79

Previous: $2.40+16.3%
GAAP operating margin

16.1%

No prior period
New Bookings

$17B

No prior period
Capital Expenditures

-$541M

Previous: -$344M-57.3%
Free Cash Flow

$1.25B

Previous: $1.21B+3.3%
Net Income

$1.79B

Previous: $1.55B+15.3%
Operating Income

$2.6B

Previous: $2.12B+22.9%
Gross Profit

$5.31B

Previous: $4.4B+20.7%
Cash & Equivalents

$6.7B

Previous: $10B-33.0%
Total Assets

$46.1B

Previous: $42.1B+9.4%
Stock-Based Comp

$407M

Previous: $331M+23.0%

Revenue & EPS history

Accenture · Revenue · Quarterly

$16.2B

Q3 2022+21.8%vs Q3 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Accenture expects Q4 2022 revenues to be in the range of $15.0 billion to $15.5 billion, representing 20% to 24% growth in local currency. The company raises full-year revenue growth to 25.5% to 26.5% in local currency and updates EPS to $10.61 to $10.70.

Tailwinds

  • Revenue growth expected to be in the range of 25.5% to 26.5% in local currency for fiscal year 2022.
  • Operating margin expected to be 15.2% for the full fiscal year.
  • Free cash flow expected to be in the range of $8.0 billion to $8.5 billion.
  • Company continues to expect to return at least $6.5 billion in cash to shareholders through dividends and share repurchases.
  • Diluted EPS expected to be in the range of $10.61 to $10.70.

Headwinds

  • Foreign-exchange impact expected to be negative 4.5% for fiscal year 2022.
  • Effective tax rate expected to be in the range of 23.5% to 24.5%.
  • Q4 revenue growth reflects an assumption of negative 8% foreign-exchange impact.
  • Volatile economic and political conditions may adversely affect results.
  • The COVID-19 pandemic has impacted Accenture’s business and operations, and the extent to which it will continue to do so and its impact on the company’s future financial results are uncertain.

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 Q3 2022

Historical avgQ3 2022

-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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