Accenture (ACN) 22 Jun 232023 Q3 Earnings call transcript

Thank you for standing by. Welcome to Accenture's Third Quarter Fiscal 2023 Earnings Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference is being recorded.

to Managing conference Relations. Director, like host, to now O’Conor, Katie Head would turn over the our I of Investor go ahead. Please

our Thank us earnings thanks and third on announced. you, XXXX quarter everyone fiscal operator, today joining

opportunity Chief the you've Chief Managing Head review O’Conor, a KC Executive to call, will Officer; of am Sweet, had Julie our today's Director, hear On and operator from release just Financial Relations. our news As hope we I time you short Katie an Officer. mentioned, We Investor Chair the McClure, and issued ago.

quarter. quickly agenda the along KC outline will Let statement full details, for will call. outlook update me year results; third KC an key brief a with position through you income and metrics business provides our the our provide sheet, financial Julie with quarter fiscal will balance some on begin take our including today's fourth operational then of market for XXXX. the before Julie overview the for the and

then your call. up the Julie the before at take questions provides of wrap a end will We

Some cause XX-Q and the to in results in Form filings. and other and our those uncertainties are of uncertainties, such, limited and actual on those we the discussed subject from release reports SEC this risks are could forward-looking, news unknown risks known factors to and as annual forth including, XX-K report Form differ our business but quarterly discuss on in today’s call, call. and on expressed including matters not set outlook These to materially will and

useful We where reconciliations financial our website certain measures, of today, non-GAAP call of GAAP which section accenture.com. the information our appropriate Relations we release in to reinforce our measures, news During or Investor provide include at believe financial will investors. for in non-GAAP we

Accenture on conference no to presented update information this always, the As obligation assumes call.

to me let turn Now, Julie. the call over

people today, to shareholders, consistently XXX stakeholders, around and dedication their our deliver partners everyone how thank and and degree the you, is all and our commitment, to to our for for Katie thank able you people, which our our you our value joining Thank world are communities. clients, our we

the to financials. with start I the Turning will quarter,

environment be sales the very and QX very strong in our we revenue While free while significantly to overall, solid uncertain continues delivered continuing invest in with strong macro cash flow, business. and to profitability

X% more time in Now X% delivered $XX.X America year the currency, to revenues revenue representing greater at at of billion, growing X%, we getting bookings bringing had local growth billion, last X%, of XX million, markets XX, growth fiscal to $XX.X than highlights, all billion at date. the bookings of to We us $XX.X with total including XX% growth clients year. same bringing with than $XXX North the year is XX date into which and Europe quarterly

Revenues in than were especially high-tech and impacted small the lower quarter. communications, strategy expected deal group for the industry integration expected and and media in consulting results than by systems sales, lower and

we hiring decisions. operating enterprise and expanded over XX% year to have delivered XX globally, and digital our our growth XX cash $X.X proactive and last in North over grew America, time flow real We in our or grew leveraging currency. (ph), staffing, X% make in Europe XX% [CMT] past And higher to Excluding of skill EPS free margin the in points, at needs billion. quarters utilization, operated connect XX% sales, market X% adjusted adjusted business local X% basis by

this acquisitions the our strategic business with with acquisition in the Nextira actions We to UK in invest We areas and on in quarter, AI Objectivity XXXX fiscal in in lower track invested continuing business to billion. investment significantly Cloud, optimization costs Norway. with and North while $X.X Data to and five in bringing acquisitions year are total Einr beyond, in the the America, to date in

of Brazil sustainability in the in invested in with also Digital acquisition and Green services in We Australia. Domus with modern Bourne ERP

share about to two the growing take market. times We market continued

other this quarter. delivered the Now of XXX degree aspects value to turning we

our needs the were Philippines We work Collectively, delivering our helps business and partner, countries XX% hours the with continue the [Shambu] Together, as impact social to created with we vibrant people. supporting person, commitment for million (ph) in our digital of average continuing U. people Argentina, community pleased S. success Chile, India, in the our an collectively recognized L'Oreal India, quarter, them to technical incredibly top communities needed do. XX grow giving literacy beauty seven in digital alongside place these diversity represent invest as inclusion in We're to the NGO have X hours of and in In India are we collaboration states and important communities to a women and scaling we our to skills nearly countries. Brazil, learning for to the for industry. Foundation, build in representing ensure the XX Vibrant access in sustainable women that we in across livelihoods thrive. are training X,XXX embed Mexico, jobs per equality, skills clients' everything and accelerating XX evolve. skills

valuable rank [Brand are Z's] position on proud XXX prestigious earn list, to brands Finally, today. this most number top our we XX global year (ph) the highest

to Over KC. you

you us taking time Thank on you, to call. today's for thanks to all the of join Julie, and

basis. on third in we track quarter an We guidance are to on adjusted our with deliver are aspects all results or exceed provided pleased our and September of

for by industries. Now driven growth of seven highlights or single quarter. in let currency, high local of our X% double the Revenues me XX digit grew a the summarize few

increase quarter X% been While adjusted expected quarter all decline We revenue pressures local XX.X%, XX% investments of group we've reflecting XX continued currency. industry our CMT highlighting was basis business. in last $X.XX, in our delivered EPS EPS with year the people in lower year. and significant was a last an QX than margin of of points our Adjusted growth in over and includes year, the the over operating this

shareholders and Year invested $X.X to transactions. to billion $X.X delivered attributed through XX billion free $X.X have to dividends. primarily billion Finally, cash returned in we date, acquisitions, and of flow repurchases we

those details, of bookings. With starting with to level some turn comments, the new high let me

New were billion Consulting We bill bookings XX billion quarterly were $XXX book with quarter, X.X. with of with billion for book with the our currency $XX.X very representing to local a were a bill overall growth X.X. book an pleased over $X.X of Managed services of $X.X clients with bookings million. bookings bill X. in of to X% to were

same billion, approximately U.S. dollars revenues revenues, increase outlook revenues the local up for currency. business foreign in headwind X% the in services our currency, X.X% XX% in currency. Consulting of were a the We X% $XX.X see quarter a were in to XX% and headwind local X% compared quarter last $X.X dollars for in dollars decline and quarter. of decline of provided the X.X% billion, exchange now $X.X Managed in U.S. X% in QX. consulting to approximately U.S. local level a and Turning billion, reflecting were revenues

consulting QX. high high look Operations grew single technology closer our digits. and declined we digits services digits expect see high single quarter QX. single Strategy Taking we this double digit and dimensions, continuing a growth in and in grew service at declines

which to companies. about be extended to share, market of two leadership we market our estimated with publicly position growth our refers the our times Regarding basket traded

and publicly market. Now addressable growth which investable exclude two We third which roughly our of our compare about theirs, of used global as public basket assess competitors, results. of reminder, consistent to acquisitions date we of our last to a the market impact through significant adjusted the represents is a methodology their results available against financial closest dozen our company

and North geographic partially and by driven and in and France. Public Markets, by In business, Utilities. growth X% increases Markets, for in Markets. Capital revenue was growth X% was America, offset by and Germany Platforms currency, In was Capital growth in Banking our delivered Growth Revenue Banking Natural Markets. in and Resources driven led Chemicals we Italy, driven and revenue in Japan. Capital growth U.S. Service. Media, our in Software growth to Revenue X% declines by growth local These grew and currency, markets. and and by growth were driven Health by Europe, Banking Industrial In local Service, Public High-tech, local and federal Public Service Communications revenue Turning currency

XX.X% down administrative expense margin X.X% the and quarter compared for the Moving year. was Gross XX.X% XX.X% to for last for General compared last compared was income the statement. the to was year. with same X.X% for for last year. quarter quarter and third the quarter marketing the expense period XX.X% Sales same

and we actions recorded we costs margin to decreased basis business by that in by I Before announced which optimization the QX I want associated $X.XX. EPS note last XXX continue, points $XXX operating with million quarter, in

quarter, recognized Duck a and increased comparisons Technologies, reflect which exclude This The EPS results. these also following $X.XX. we our Creek in in and investment impacts gain impacted adjusted tax our by rate

operating Adjusted in last operating of XX of margin adjusted the an billion the XX.X% from quarter quarter margin, income third points and $X.X operating increase was year. basis in third

of tax source Our adjusted XX.X% third effective diluted in the tax were compared third per last of Days last earnings for rate quarter in by billion year. XX% quarter year. days with was was activities equipment cash the the flow and EPS year. with $X.X quarter quarter were of compared $X.XX last of quarter days of quarter share an diluted compared Adjusted million. $X.XX the XX effective operating days Free rate from for of property last outstanding XX and billion, additions third XX $XXX $X.X the to cash generated resulting for net

August XX balance $X.X cash with at compared billion $X.X May XX. Our was at billion

we regards million repurchased return the ongoing share. to [$XXX.XX] an for $XXX to average at shareholders, price in to X.X cash redeemed our of third objective With or (ph) million shares per quarter,

represents total cash August, of of Also over be billion a As year. of share we This share per year. increase last per a XX% declared had a cash a of $X.XX increase million. on authority repurchase XX, XX% to May, paid $X.X quarterly of in approximately Board $X.XX of share we our $XXX for And over dividend dividend last May quarterly Directors a paid remaining.

same long-term free we our generating modest market in margin objectives, and for share, earnings, returning the market cash investing faster the and at and while at committed generating remain on scale closing, So cash taking shareholders. to than long-standing to strong growing leadership, flow delivering stronger time, expansion financial

me turn back it Julie. let Now to

KC. you, Thank

larger I've in As that we look deals, at see two common to we our themes highlighted before. continue demand

AI total costs, agility focused to transformation compressed First, enterprise AI second, lower rise reinvention lead remain generative companies And more greater growth, and achieve highlights technology, clients particularly security. the of our strategies all yet execute on to they rapid resilience again that interest cloud, as among data, faster. and stronger

more this color with you give building on the me strong double-digit our momentum bring cloud Now Starting core, with quarter reinvention. life. clients secure the priorities QX strong growth let in digital and foundation to for to continues a as very

We working with more a energy have been company years. global XX ENI, than for

embark helping with strategy are reinvention enterprise cloud them hybrid a we and digital focus Now they transformation on transformation a security. total continue sustainability, as their and on

ENI of managing and in the the enabling from production powerful models, highest their telecommunications chain all are center, value largest helping energy data the the supercomputers exploration of to green hosted in in data. integration center one one bunkers operating and infrastructure use the new IT industry the We nongovernmental hold The the houses the data data across implement to most of and future. data securely company's world, of green the the ENI

New full first ENI's energy and that is even step toward transition, of adoption value core transformation and will of for business digital AI data, AI creating will drive in exploit faster and innovation build help a cybersecurity This processes. accelerate the the greater operating resilience. models new R&D secure

and also our us Clients our services, utilize multifaceted with SNC our services. that do outstanding of industry compressed functional expertise all are technology transformation along in with working to deep

supporting to drive products on achieve our pivot industrial are Building protection been client DuPont, our sustainable over a data modernize multi-industrial solutions, relationship growth with access, its and landscape. standardize are global cloud-based and their transformation next-generation infrastructure we technologies operational excellence. and an IT agile We've innovation-based their We XX their trusted to supporting to years, across specialty processes a and with efficiency to company now strategic of water helping finance electronics, compressed automotive. maximize transformation

M&A focused on shaping DuPont and long-term reducing resilience, portfolio revenue increasing with through growth is work innovation costs achieving for and Our industry-leading greater its with success.

in footprint double-digit their expanding growth to companies digital digital cyber as QX. widening part importance very strong risk and of fundamental security core rise with With continues in the a

strengthen monitoring managed to cover their and as We will are response and a beverage previous cybersecurity operations providing working work, and prevent detection intelligence activities. Building are and the web perimeter transformation now dark security services, food along security, chain. we with supply well which company vulnerabilities threat as on

identity, We a client. also privacy will holistic provide security approach management, data for provide day-to-day helping our and

for We're including Based helping corresponding mitigation bank strategy, evaluation their change risks universal develop applications, we on the end-to-end an over global analysis, principles as data. a vendor solution implement X,XXX procedures. strategies, landscape management and procedures future-proof and of mitigation as will well cryptographic and

will We implement the computing and bank methods and achieve the also solution, new will help post-quantum which scale readiness. blueprints, all post-quantum design to architecture help

complex with Our operations. its of services digitize to double our We're and approach relevance Managed transform care processes. insurance help a demonstrating health company grow to the Services digits providing global claims run to continued QX, clients' our membership in managed run, and and

our customer fair purchasing and with business. costs members they we tasks vendors serving the customer A it. the long-standing world. the company, on cost also they need simplify reduce introduced and more time improve pricing for when now products quality As support when boosting of determine easily customers new these access employees to satisfaction around from has part journey, ensuring will accurate by its will been have relationship the of to need to the efficiency focus and of the across the millions solution can company services and better Its

portfolio subscribers, from customers engineer power-targeted that that broadcasting ensuring with supply to worked platform delivered their viewing the a devices demonstrating content and advertising to all help major all platform new recently attract AI. the of of and arrangement, media insights experience to with We lowering continually enabling part new as launch help content have a clients seamless helped that We and aspects offerings, We expanding their brand and while reinvent a services player the its a to streaming costs. platform. experience, the will and enhance chain the cloud, data program use platforms and bring data engineering to innovation managed business across we industry company the

again prioritize clients experience, and As reimagine experienced continue double-digit strong QX. Song in customer to growth

AI-powered customer media OX, British and and customer We resolution Virgin personalized care to leading Accenture experience. will digital cloud-based will more with journey, are and Customer combining an customer journeys messaging design Media satisfaction. Song company by partnering first-time a to to core. be new, predictive their instant and telecommunications a customer chat reimagine increase upselling, enabled omnichannel, calls, greater

activity We also reduce drive will AI and assistance timely deploy intelligently our managed and to calls services volume. capabilities to to support precision route contact using center agent provide call

Our supporting help OX's a Media more Virgin business. brand work build to mission customer-first loyalty will be

X demand grew see which Industry capabilities, continued for double We our [indiscernible]. strong

of one the practices with companies of working a manufacturing energy achieve to its world's are consumer transformation leading savings. We products on

reduction developing and analyze greenhouse production are savings opportunities. data We to energy comprehensive analytics to identify and and plans a gas from their collect use program energy consumption data-driven

to helping operational efficiency manufacturing the value process. in improvements track also through energy deliver We are gains and

reinvestment total at is progress journeys, on forefront. As talent their the enterprise clients

are working human services consumer organization a and provider an the European on its digital with goods transformation market talent and We in core resources processes. acquisition of international

on and to design will culture better focused will approach implement additional efficiencies design, leading training management, a we includes resources an experiences. human process program the and services. that function, in Together, data-driven development create We greater and employee

center different interested their most our our apart help and the of services. and technology reinvent digital reinvent to in strategy leaders and them them unmatched this points. All work data, stepping generative to our consulting looking To be clients and processes set AI. journey, their to on ahead clients' ready reach new strategy as knowledge, And recognize But Now embark people requires breadth performance a is particularly are to of for deep industries. managed strong starting are industry from scale, themselves get and at services AI, to continuously of global they and back, modern And to us functional to of core. are AI. levels in at the business themselves for as clients

and gen to intention has turn I that No technology of to the generative general want as the fast more AI. With broadly. wave leaders context, captured as previous and AI public AI

at We And operate them need companies reinvent they companies, helping on at technology and models with partner choices AI, cloud the now evolving decade of their early. on will the it fewer products a availability general are and over to maturing of in is as our are deployment. stage of largest the of the embarking core. landscape. announced ready clients still many based Think with with are and at we major but age how most with the products AI Foundation also the as the navigate for the position wide our it And ago. center

in We've for years. AI been investing

is generative key And of total piece it see digital and the a going and bolder AI so reinvention enterprise for forward. even while core early bigger catalyst days, big we as a

global executives industry executives fact, in their that their be increase are planning level In of to investments survey data to gen a transformative in just company of XX% week, technology of and will and we completed XX% in last AI. AI organizations and spending of prioritizing said are

Our clear. approach AI to is

ahead. to an and cloud, includes our strong, and accelerate enterprise expansion of step our XX,XXX be are doubling data in leading risks clients new have this AI generative drive bringing most industry done AI trusted and we mitigate billion with are AI, Just life from today Last workforce which such a position AI take including responsible across the $X week, to advanced And with we reinvention the to the in to investing XX,XXX big successfully helping assets us all, they the as new source AI for early experts as navigator we over our announced clients' a lead solutions. X,XXX for investment opportunity center our GenAI-powered journey, value. for AI we has our as to that developing

this isn't about And just tomorrow.

have four We generative months. over sold projects last -- products XXX the AI over

you Let a few me give industries. a of across these flavor

and for dramatically knowledge are to draw simplify with working timely and base, related Holdings plans using AI policy company's which The a customers. regulations, the We generative improving from accuracy will causes Mitsui generate will manner, by explanations appropriate subsidiary in of Insurance Insurance, solution laws generative the response. to Japan-based response and service Group operations improve and customer a including speed Sumitomo MS&AD AI of accident

We're can AI for content create content it create automatically consumer to AI Together, demonstrate how working with how and how base we that The to customer-facing can deeper new generative will drive the large a global channels. enhance the leverages company audience and models engagement for wide and a generative help through We be broadcast more we engagement, can testing recently scale explore grow used events. be platforms. personalized customer used growth coverage and believe to generative AI launched of and across variety explore company's language areas content at experiences. to will experiences

Basel] Industries, unlock capabilities We a data with in are enterprise (ph) new leader working increase help [Linda and industry analytic the value. its and chemicals to

transformation business multiple develop predictive decision-making. in We AI program a customer new insightful and and strategic manufacturing capabilities data, parts like and generative digital to of data-led areas will sustainability, embed drive more their digital across

AI the to of challenges trusted from to with be need exploration and well enterprise leading and strategy how are ecosystem get range to we where understand be use, us the experimentation to partner to they core risks their models which to and we upgrade AI, AI-driven, processes and business new coming reinvention. short, to to shape, specifically, the of working to the assess are clients and the their help apply responsibly. talent services with and partners our gen for help to In rewire to positioned AI full reskill and their digital in in Companies for case ways to to as believe navigate move

you, KC. to Over

Thanks, Julie.

Now turning to business our outlook.

compared revenues impact of we an the billion. be expect range be the assumes X% currency. the This fiscal fiscal reflects fourth will XXXX billion the of $XX.XX and XXXX, to local fourth For FX $XX.XX of estimated quarter of to to quarter to flat X% about growth in in

how FX negative full the over now compared X% the rates be U.S. fiscal been of expect in trending impact the few on our have to XXXX, upon XXXX. For we weeks, results the fiscal dollars approximately based last will

fiscal to an of X%. XXXX, expect range full in revenue contribution local the now be about X% assumes growth of in For fiscal the over to currency which we X% XXXX, inorganic

business investment fiscal EPS expect million of reduce $X.XX. on Creek gain to by by will Technologies in increase in EPS Duck costs The continue XXXX We optimization our $XXX $X.XX. to

Our excludes guidance XXXX for full impacts. year these

over adjusted we range point effective be XXXX XXXX. op range expect to For full margin, our to This $XX.XX We XX annual results. an the in to basis per fiscal a or growth XX.X%. rate be to fiscal now now effective tax XXXX of share year expect tax XX.X%, XXXX X% compares be XX% the in expect to We XX.X% in over XXXX adjusted fiscal fiscal adjusted results. of of expansion for now $XX.XX rate earnings to year fiscal our X% to

additions to $X.X be property to million For expect in equipment to fiscal we to billion. in be XXXX, We and billion. flow and cash of the to be flow the $X.X to $XXX free expect of approximately range billion $X.X range full the operating billion now $X.X continue cash

Our to cash net very free free of reflects to flow cash X.X. flow a strong guidance X.X income ratio

at of and returning through cash to shareholders. return billion a as we our committed $X.X least to to continue to repurchases we Finally, expect portion share remain dividends our substantial

so With questions. it can open up your take Katie? we let's that,

many participants provide KC. you Thanks, a would you on allow would follow-up possible question. each one to as and call? Operator, for instructions I question ask that those ask to as to keep a the

Lisa with the to go MoffettNathanson. We'll of Instructions] Ellis [Operator line

for Hey, my taking Thanks good question. morning.

was back from on the Let's it in Consulting. at and just know looking your dive high this single-digit I quarter. quarter last Strategy a comments decline

that and talk then kind also projects the called AI new expected, we'll bit gen about your other over looks what's the couple of little of in confidence Strategy improve a in what's changed, and came see what little related quarters? that Can you coming next horizon Thank like kind out softer that but technologies. time than evolution of just think and in Consulting to bit a you. many you I level

Sure. Thanks, Lisa.

some give on first color that. I'll So

from difference we extend big really our in the and ended deals. and lower -- the expectations came last and Europe that in further was we the quarter So, where up in we saw a And saw to small they all than, Growth Markets.

Now we the that systems But be this thought in would was both we that and in a difference have S&C of integration. where that's sort big where reason quarter. we

strong that our digital time. job growth, take little there we're huge seeing extensions will bookings continue of higher deals, Now interest have chain, small time, to a but is AI. and continue data very in is there's on we is to and at where projects, we're lot on in And pivot the same going what to and supply it's a opportunity higher and working But manufacturing, to small -- in that, newer while the that transformation.

and gave QX. script doing I back is not stuff see really makes are on QX to our how so in DuPont to means the difference we And that that give go of much the how see What think turnaround. going for to we're it are technology. as bigger evolves, kind bit But to converts stuff, holding expertise little Consulting the want like in going you to have about is there, as year in the to well where thinking as KC small big industry, revenue our I you a next obviously So functions, have a on because and a where differently. clients take while that, which we the example will the and the as color little of Strategy well

gen And opportunity, that, early. is would say things a also like big I AI it are but is what

four So size of XXX projects. it the projects represents sales. That's in average That where of those million we last is. the about months $XXX did in kind

there, to continue pivot to of it going a we're just time. takes so, but bit And little

So I QX. why we're about little KC color don't how you on give let a thinking

Thanks, Great. Yes. Yes. Julie.

just So guidance of back year. the let and at and QX me maybe the overall step kind full look for

but mention I we business that our reiterate did this, for track actions. on want I first, are just So -- optimization to just

million So about of for we're going do XXXX. $XXX full to cost the year

think year that, the Additional we as color this at be complexion. for and we in the what we QX as QX, have of about did same about they'll look is bookings, same

a about improvement in What while of which is some we some revenue our allows guidance, terms guidance to about our further that reflects for deterioration. bit top deal QX, the talked tell of commented bottom Julie deals. will And small in end I At scripts our X%. in revenue you X% performance, the small CMT. end for also

range. it plays out. will our and as for then the it when range factors at in performance it into range America X% impact which overall America, range give the the because within of North to a likely X%, mentioned, and our decline our home was X% X% growth bring allow so, of X% on color, more America, get we reflects And September, of next as overall do of as how we do around I our to get year these obviously, bottom bit North it be quarter. And relates worse. QX we'll lastly, slight to this on two see to we for the And would flat always guidance CMT quarter, to context a you midpoint North do little Julie

can particularly how see view strategic maybe clients. your a revenue of of industry latest changes IT maybe you prepared AI the people you operations see you then of mean, gen follow-up, impacting sort services big But other give you. talked composition Julie, Can the services you you done. more in how your the that, of of of to in the to is kind opportunities a Like sort around I kind offshoring analogy on And the and my IT step you. that impact Thank function more of perspective industry lot a industry Thank way lot and Terrific. sort make and you're overall? affecting Accenture broadly? for your AI an question. remarks, the about on give on it the seeing your gen and the

opportunities. Sure. been services. another worry And like you than even there more Yes. analogy came, And the would be Because right? when offshore I think what interrupt a is SaaS we lot opportunity. SaaS remember IT it's SaaS, was of would obviously, about so less maybe a talked the about actually, how about when huge good And just

Lisa, for this, think, about us of obviously a other big to see you opportunities. so help as two if We it our think areas I clients. So opportunity

is help our opportunity. big first the clients, So

The us delivery second what of opportunity opportunity to clients, for is think, improve services Now and our we us. a is to huge is, the that, -- right? for the

it to think productivity. have of context So first. at about year, Managed right, every find Services least of In we XX%

Like talk we've about them. XX,XXX those platform, a using and we reskilled That's in and year-to-date lot redeployed jobs things myWizard automated like our have then AI, AI-enabled. we and people just So not all right, that. operations, gen

model XX% business requires in year productivity us Our least and at to get out. year

that continue we AI, our of to year to getting generative maturity generative and productivity see give of AI least kind XX% ability year we're automation before As in at out. and AI to as the

software services excited transformation. more of next area, real we're to to do managed integration we and because more to So that we big around Where transformations automate generation more. in gen platforms kind our the super do think deliver of And AI while opportunity may our have development is is compressed remember, a strategy there, around doing provide to in even continue that as do our ability technology. we systems is see what as the we the

So and differentiator. big costly, a ways to that going can less that's the be we to deliver find more faster

So we're leaning in hard.

same are time, At the early. [indiscernible] these technologies

And GenAI so It's of right? enterprises use integrations, which our we're what good being for a take yet, isn't to example, is lot architectured doing think So do. time. for things experimentation going some documentation, but for complex like systems, to able now. highly large really it's them there

uses our that it's own, products more much for all at expensive But a because use cost. us potentially out yet yet, efficient. things lot AI, don't to gen it. to of know help really And are it's case these much business about are know with of clients more them we are aren't the of also the energy of We looking the the what including studies, most we -- because one --

And the so the the so actually there's really ROI, actual what's art of the days. early possible, return, it's but still

And excited this differentiate. $X get the are we leaning it's scale. because it's because yet. consulting can early to at we but new were is productivity, integration big moment that think are early, opportunity we So particularly us on we first days why investing three think next and And years we over out like invested in like very kinds that's billion a cloud of systems for where we another things we we're

credential. be it And help thing I and would to our own our of also using enterprise. it we we an opportunity own best prioritizing it can it like part think to And strategy The take last for then market our course, us our clients. use wherever we're to say we for is, to of us is -- it, there's in use

it yesterday with So first, like three innovation overall, ability big we changes, change right, prior big fast. the we've that just and announced you've partnerships mindset move to says that agile cloud all right, do, of we have think servers, that embrace cloud, and providers; expanded partnerships, invest, you as got the that change like have leading opportunities as new you long to and before to always that creates the

Thank you.

to of We'll line Ashwin Shirvaikar go next Citi. the of

I guess… and both. Thank good you morning

Good morning, Ashwin.

Can Hi. me? hear you

Yes.

Okay.

you bit more comment be -- hoping Sorry. that in people as XXXX do. September seems on specifically fiscal know was are you'll said that But to primary I one provide you you could that normally the little after information. a I that asking. questions of

we So think more headcount are us kind the think framework trends, going of you're how and the given for moving think we planning first that framework helpful. when when of for of just when tough of in would be just Maybe so of that, many parts half. about quite macro, kind there AI, comps we that the the process that about of

Sure.

a just So Ashwin. things, few

to stay as the to thing all, ways our now framework So the transform. important right value to and need understand. get clients short thing really most first a do well of our close as the as clients, is, And just is, in term

faster. for new value in. working on finding AI, to them where get ways we're hard gen And comes the so, That's to example,

we're be that us gen help AI seeing. the next the in to deal new ways over of small new we're so, address going pressure quarter, And campaigns, developing new opportunities, out to investments pushing our

this are to this is going clients ball industries industries, more to comfortable. going have of you well. crystal saw are right going to Because how caution fast to is that economy level get the just don't do, remember, a over now. There's a that quarter including what we say doing We

control, on four how which And only the important. big transformational gen things but kind AI projects deals, of XXX is focus to we're is finding work not large seeing looking certain is with on new we're can't so so, faster, that months. ways the returns doing we at it why And in doing focus you're develop early

keep to going that. we're So doing

focused transformational a base Secondly This of is, right? in level resilience stay on provides those business. our deals,

is to we've continue the where choice. try sure important making of got we to we've And got that and deals, right important. that that -- is services absolutely the all proposition do transformation is it of but bringing partner be maximize really the So together these to small super

core So our strategy. that is part a of

about thinking that's And we're so really it. how

in think or headcount time? expect said quarters term macro aspect given the you longer that to regards what next question is course, is, couple next And do the you expectations. Thank of there's so AI, should one guess growth kind and me and And and, to the what over just on with rev announced I to you trends near-term cuts growth with so let quarters? the that. question with both. a two And from back, ask we Near regard of of that longer-term dissociates for a hiring term, headcount the

where that talking talked like and of in automation, one we we've because I reskilled. part already AI been this big me and like first, -- strategy is, we've and right, last my XX,XXX our we've second the jobs continue automated again is will manage right, been just Let answer, take about such this a just for has to quarter it about right, years,

of been will to in continue a AI the doing that result headcount it way we that for we've And manage as so, years.

So no and real people freed have that change we a us in looks enterprise high up, need much what's of core that right. that with reskill is hire. of how as get what And sales. being that have and our we attrition because that in industries, other adjust And system can course, time digital can hiring they at to people we a relative is are really then we to gives lot to industry we over it flexibility

how that's about I would So it. think

the And for that to about year-over-year XX we going a quarters X% utilization. increase of way XX% then we're of over consecutive last hire, saw year.

our just to going So based And that to do headcount that that to that. do you we've where carefully expect every proven quarter should we well. I growth the ability we're manage and on see think

particular. just would And on just That's I add QX, right. maybe in

is really see focus talked which the expected. we QX, to what continue about. overall our And Julie about, any we need to that grow between we really Julie reskilling as heads don't talked and just add between headcount people As QX not on and QX, a then -- did automation any we

Got it. Thank you.

the JPMorgan. We'll with line go Tien-Tsin Huang next of to

Good Ashwin's went want you the deal -- small morning, guys. question. Thank just so much. and through to think I outlook you Hi. Lisa I

deals? about XX think XX that you're large So continue? from up large momentum to I deals how year-over-year. about Can

So just curious about...

momentum Yes, deal is continuing. Yes. large

Yes.

that, look the I'm follow-up fourth going quarter My how here? no, -- deals yes, So going And into to time. that converting on signed does just ask are to that.

Yes.

may "Hey, way, by do We're about be in the it. the right? gen we are a clients to some more that same, the like and accelerating can't bookings earlier, of ability AI So our are large going just we imagine, the of if continue said this XX because that we're as is you quarter. XX So to do excited see -- of to most at is momentum We use over things say, gen see thing demand million point. AI don't because excitement right? lot $XXX deals, impacting seeing deals there, saw this includes bigger you actually you as And the last year we data, what about bookings the And KC really with can about smaller companies be ahead for deals." the on to problem we're Because see that by the have with -- have can momentum.

KC, back of core. right anything you big add? digital the gets that so And transformations to your to

that's I it. No, think

the think, I cloud-first. on So AI front, mention, did the you

That's that did -- I draw As parallel three you well you years paid for think a that off very $X first guys you. was when billion you ago, cloud investment.

it to $X you're should of expect putting a in return So differently Or How I'm we curious, convert you measure do the returns? perhaps here is billion on similar AI? terms going that? the into

of getting great record the a about a great of got future. and a clever us that's Tien-Tsin, more we've to try investing to return. would talk great track get But to is, way what say I

going well. And to off so, it's pay we think that

Thank and Yes, there. the no, [indiscernible] coincidence guys. I like you, of similarity

you. Thank

of Kupferberg Bank go of America. to We'll line Jason next of the

Hi. Thanks, guys.

or in a at bit picking point few sounds that's start It that a two showing three little relative the fiscal generally assume foundation deals larger up those that persist to would will talk around what larger a XXXX? Just And wanted those going quarters to so? full Tien-Tsin's in to about deals. I just least question you I row strength. actually on QX. within, provide in think qualitatively line just quarters deals a be ramp like extent top there of the to strength that at for run Can to what, those growth

in they how on managed going fiscal next another vary fill what deals, go and So of quarters larger out deals, should sometimes -- particularly and really they year. year in go can depending it does really into is, terms about what into the think terms on there's larger in the -- you work services, our can over of they they do in

we that the year the is and -- get this really deals. into in everything booking And of foundation how transformational quarters bookings say, seeing as terms fill year a change is of have we out, I with some in bookings. what then had no the foundation size. how as we've what been have that's good we the in What -- you also closer in the matter experienced fill we've good the to a would category throughout smaller you you're by into right? do what that, do in sales real So look the But does

of come out next understanding, said which we going why that's is don't we works way, at have part important If We're deals -- year. see before to QX want how to of back. another look an sort if small

understand, Totally totally understand.

just on set Let me switch that follow-up. the Managed of AI. by the for fraction bookings I given level to just over too actually tiny a to a how But on your total the it's for thank bookings ask you not surprising It's days. still And early Services bookings. way, wanted

bit came just the provided an on bookings basis the of services QX based seem on those I commentary to you can how the mix. expectations be they pretty like internal your know QX, will slow quarter. that LTM bookings around versus But some curious managed ahead in Just it looking does lumpy. in, a

Yes.

bookings, XX% on let very X% just Services. So pleased and basis. talk me our they're were Services Managed right? up up overall this a quarter year-to-date about Managed Yes, we're They with overall

So bookings be overall and of revenue, which the to with result continue we're very the very pleased strong.

And business the We the breakout work. would I complexion of strong -- QX, our book-to-bill with and X.X. And obviously really strategic. cutting have of of about also our are just have It within the Julie very same which, script. focusing on differentiator again, Jason, I her trailing clients type around operations core, terms talked will of is highlight I when great bookings in examples business, a a of lot of bookings is operations very their in a had about the when and strength costs continued we'll of digitizing of

Thanks, KC.

Keane to line of go Bank. with the Bryan next We'll Deutsche

but still? kind that earlier and years just the that AI normal the understanding it big of the is of of Also, it's a early, question asking a I Or generative how Is timing. technology morning. use wave? technology and will than that it the Good bookings a in on couple the before moves guys. the and long follow-up it Hi, push get of take everybody the needle time out frame and rapidness is should revenue? is

all, to Well, -- which go I gen Bryan, the like because is gen what on growth, we think And really AI. to say, of that AI, going all so in the actual have I we're companies decade. think saying in are together. like going we're cloud, AI their talk The lumping gen faster. we focus data right, than, done very we we're faster big general, to then more be get think, is not would took first rigorous that a about being when

in being we're between gen AI." to data use going I don't scale. not XX% hard but companies pure of do, know mature with right this AI are this have hasn't ones but what we if their gen like, the About now done of to research everything scale. and are, They're that started last or in on really some AI. like shows AI time companies really at in others yet. you just going -- having where able not that pure be X% companies journey data think to good are had only about published a XX% to About came are been week research data are our and and they're so, -- "Hey, And AI, is to in that very saying And

gets stuff the going growth migrated their some bigger AI, it in is growth the be and in think be the AI in all the data cloud, sorted cloud. and the around getting next pure particularly we It's in gen finish to come while architected data to where it's going Because to like helping the strategy the -- year, governance getting the So not but of companies out. need going your gen is to going to data right? you come end-of-life

take take not So for data is and it cost from example, yet. another and you there's to cost cloud do there how one cloud. it put And like

do. be that, and near about really to working to to with think the year our that's technology be partners is of we to bigger cases. transformational All because from the so accelerating our there's we going clients growth much create feel going And digital deals business work in why term next we're continuing the good the the core. But right really

Or days of do? grow No, it that's a And follow-up, as to of lot a so the really opportunities you there, in just scale there's still are AI? there not early helpful. generative is then in can M&A M&A

have we there's to of already But trained popping people We've It's great X,XXX the to really we're and in train, AI. scan. continue the mean, since ability I people we XXXX, we know, last as to quarter way, the lot to all early. is the gen by have things of a companies going requiring that of And another course up our right? in AI. XXX,XXX on a been take one

good a have we baseline. really So

trained digital, think we're competitively positioned be And is well we our move organic. because to a And great credentials going so where to have how in own it's so, we have to table a we rotate. when that this lot we lot like of

Great. Thanks so much.

Research. go line to We'll next Equity DeepDive of Bourgeois the of Rod

guys. Hi,

and about comment sometimes You pricing profitability. contract

outsourcing. like-for-like basis and a ask both particularly an to provide you and Thanks. update contract if in wanted could on terms, pricing on I consulting So

we're let so pricing just and comment Rod, me seeing. Yes. on what

a about the let on we reminder, we sell. when the we as that start that So work contractility talk that pricing just margin as or me define with

some wage how we're five pricing we navigating we've are business. that challenging environment I improvement years. is pleased pricing, areas in lower stabilized. the we of of so over the quarter, to seeing the we And And pricing, quarters in that quarter managing our with consecutive particularly it's after what be few see pricing this experienced very continue last more is in last mentioned

how in pricing . very we're pleased performing contract we year. with profitability and this So that our overall have

have some certain and wrap themes, Okay. maybe your maybe mean, solution and the for various themes the demand I about that Thanks. have you across of what slowed talk areas, Great. and ERP can outlook those And slowed themes like there the slowed most Are cloud then and as here, the maybe consulting security the up, data. just business to has most?

consulting tale seeing a it's right? that, of small on integration some our a of so what lot of versus the about really the things continuing. So Yes. the systems is deals, the bigger, the on more are small we're side, Look, transformations big sort

about I we're all not digital mean, bigger the that's anything well new core, -- to seeing -- starting So basically It's levels. that's around the more moving projects of now. going right at cloud, really

which back are expect come when that cautious. so less And to is why demand -- people we

Okay. Thank you.

Operator question call. we Julie and will the one have for wrap-up more then time

you. Thank come Faucette James the from will that And Stanley. Morgan with of line

much. very Thanks

questions a Just here. follow-up couple from of me

statements introduction How and generative do of generally? envision AI-related AI and pricing, First, and to on AI constructs, work terms with of projects. you change adoption of the project

those I mean, not changes anticipating areas. in we're any big

like to generative (ph) the AI, reference there expect in mentioned, are you are sustained how inorganic AI. you more then pretty shifts about to -- But a thinking expect And levels contribution? and And now and generally be more opportunities right [B&A] as some emphasis changes it. forward? got really expectations Should little it, Got B&A going stable small ongoing should to or we of we and pretty nascent. bit

things. Well, no, of a couple

that in a has shift which this our be revenue clients how view reinventing get total and part are AI let's They strategy. shift clear to our AI. of -- right? tech using is So core inorganic, growth all, are and go What reinvention. we of part of to about been stable from to doing? And first back So year we a every X% our business I to model, enterprise is this expect from inorganic, data want part just no just the of

but our cloud, So cloud-based both level you very the the growing significantly, overall. also at priorities, move look platforms, right, all the at when top growth cloud, to

by ways core. opportunity of is then we're opportunity is, working, huge it's not for which then AI so, take the technology. about to because about And And to and building just a the reinvent way, the Accenture the the processes digital a

strength able Our in all to that. of do being is

resistant important not emphasis So it an I on think on accelerated it's because It's not a focused opportunity are who really it. companies of or shift that now were kind AI. it's focusing rapidly on

So think I that's important.

And just to our -- is to we focus Then in will piece be is in that be suddenly going going we around and fact, think not the data AI. last M&A there's because digital expertise, organic there. manufacturing, like isn't right, use things scale digital chain. out to a We've lot more that much supply there for done industry we But consulting, AI, expertise.

to into get it use also new areas. We

I'm excited area well. yesterday that a market super for US-focused, America, our great company in a we that just with business. professionals new which market and primarily of announced acquired has a U.S. today small Answer really North XXX That's a So net company a we billion capital $XX an that new we That's in in North growing America addressable growth North really whole projects. acquired the Advisors, and is America-focused business

and into of We're scale that and invest, chain we projects. over with supply you've Industry we right, And seed X continuously and So digital moving We seen capital things new did Accenture. it again. to for with great use manufacturing. areas ability Song, did in and us we're our it growth over do to now

Accenture. that just of So years, the think advantage huge growth not decade but the for a couple over is as you next about, just

you much. Thank That’s so great color.

our quarter. are you support thank for our forward for everyone. every In Look in for a and other to being clients Great. joining. trust Thanks, of people doing your everyone, day. I thanks, all what want to Well, for and together each and closing, shareholders for continued our back all

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