Accenture (ACN) 28 Sep 232023 Q4 Earnings call transcript

Thank you for standing by. Welcome to the Accenture's Fourth Quarter Fiscal 2023 Earnings Call. [Operator Instructions] As a reminder, today's conference is being recorded.

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

operator. you, Thank for and everyone, today our on And Fiscal joining XXXX Quarter Full Earnings Fourth thanks, us Announcement.

hear today's As the Head you Chair On Director, Financial Executive our Officer; O'Conor, Katie Sweet, and will and call, KC Chief operator just of mentioned, Investor I'm from our Julie Chief McClure, Managing Officer. Relations.

release short time a hope had opportunity an issued you've to we We review the news ago.

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

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

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

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

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

over call Julie. let to the turn me Now

year our people our have and at business Katie, across center us. approximately hard of the joining the clients' who to 'XX. worked you, XXX,XXX to fiscal thank everyone And you Accenture be Thank

XXX laser all results value reflected for our record we bookings Our and largest the overall million XXX-degree year. relationships, in strong the FY a We have focus than for With an trust billion, yet have clients with greater is clients increase record stakeholders had up client our XXX clients clients, from last demonstrating our $XX from XXX our year. creating quarterly of bookings on last our now our again $XXX of and depth in Diamond and capabilities XX of 'XX, in us. year, breadth the

representing and $X cash billion acquisitions; and free our development billion generated return to billion to growth billion, while solutions; of across in of We growth over delivered us our flow with and of continuing margin $X.X $X.X XX deployed R&D, expanded revenues year, over of cash in $X people. X% delivered we allowing and market the to business significantly people, currency, while continuing X% in to basis local share. of We capital by invested EPS take $XX billion $X.X industry assets, adjusted our platforms for in billion operating shareholders. XX the of training points and invest adjusted And

a delivering resilience. on actions schedule to costs to structural March little are we And announced create we ahead our in business optimization reduce of greater

a to And work little commitment vibrant we where have our in outstanding We retain to We're more to we detail communities people our call. progress also making in inspire live. help I attract, toward zero continued will invested we net later the ensure our strategy. and through XXXX. give talent and by places

'XX, results we with are our made a and we to our back. extraordinary Coming moves Taking off growth 'XX the pleased optimize fiscal FY X a truly years have step business. of and double-digit very FY

the of part Gen rapidly AI, early next we an also the reinvention XXX in decade. sold Demand an million Last clients months. to sales are for to in in that we over year. roughly $XXX position leadership bring quarter, in with million over AI accelerated had our will our prior $XXX another shared in projects taking of We important total Gen million sales, X approximately which the QX $XXX the with be

Gen are our also way the AI work We embracing own of across the use we services of delivery in and Accenture.

than our to year, last how over clients navigate on that had a is reflect the at we developed beginning macro the of have and FY our tougher As market we we anticipated environment 'XX. has

played a in and across and discretionary we markets impact differently spend; and for globally, caution the While the lower comm, slower it's faced. from tech out media us, significant particular greater decision-making; industries with industries, have challenges seen have

in currency, we local example, grew CMT, in America, globally, QX, X% we Europe Markets. grew X% and X% in if in X% exclude where in For Growth North X% we

on backdrop, laser-focused remain that enter Against we value 'XX, as creating clients. we FY our for

to continue To companies While technology, data and has of every not. of and they so, enterprise the operations reinvent the do need to lead AI pace their build using have fundamentals tech, core. growth. strategies will digital accelerate and spending must part optimize to All to changed, a

still in significant continuing migration represent areas areas AI, particular, great like all cloud see opportunity. are and data demand and the of and ERP and early. And emergence in Gen of of We modernization, it's to modern AI which

are of the and and will XX% example, believe have digital that mature a helping clients data using AI only in strong For We growth. then XX% of build define as workloads than of we we less to what today, cloud and drivers our have X/X ERP the core be only capabilities. reinvent their modernized estimate platforms it

and unique. partners, turn our and our see with clients, And services position large-scale Diamond what Accenture for unique transformation. you expertise, number to along privileged our the consulting, in technology, to services clients can this leveraging advise, makes the to ecosystem positioning our transformation, is of who us deliver ability across our shape from value-led industry geographic of and managed and markets, strategy breadth Our industries to with

to Over you, KC.

today's our expectations, you on pleased completing our us to range Thank which in were with another to And aligned strong were guided for call. fourth our joining for all year Accenture. results within and the We quarter, of you, Julie. thanks

the diversity of again and shareholders. discipline ability reflect significant with illustrate run for our once deliver business our results our our and value business Our to

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

local industry and quarter. As our we increased called this of group expected currency in out last saw pressure quarter, we we XX% declines CMT

Julie CMT, As globally. business X% grew excluding our mentioned,

QX last includes significant significant we $X.X the delivered DSO XX.X%, business. very operating driven strong finally, our And investments increase points people year, -- margin in We Adjusted and an of billion, was XX basis last quarter in and of free continued management. cash adjusted flow reflecting EPS EPS over by over X% year. growth delivered $X.XX, our of

let Now turn me some to the of details.

with X. decline book-to-bill New bookings local book-to-bill a billion $X.X bookings were with quarter, X. currency bookings for an were services overall book-to-bill of XX% in of billion Managed a $X.X $XX.X were with a Consulting billion the of X.

revenues. representing increase share now dollar Turning continued Revenues quarter the $XX for currency, X% to gains. market were billion, local U.S. in and both a

market. competitors, use assess X,XXX our last which of through consistent we reminder, roughly addressable We a on X-quarter significant investable -- company closest and a of of exclude of is which our the compare as public global represent rolling their our available financial against our basket, about basis. a X/X growth market our publicly results methodology theirs, to date adjusted the to results acquisitions impact of Now

closer up digits. declined $X.X quarter Consulting were billion, at digits, grew Managed look local consulting and a the revenues local mid-single revenues were dimensions. a both mid-single for $X.X services strategy of service high in U.S. single and X% and both Technology operations decline XX% grew currency. billion, dollars dollar digits Taking our U.S. currency. and services in

partially our Communications North local America, Software Platforms, Media, offset Service, Tech. Utilities. by X% was These & markets. High and Markets growth geographic increases to in In by Turning in declines Capital & and growth Health revenue & driven Banking Public currency, in were

currency, Markets, Revenue Public grew in by Capital growth Industrial driven Germany & was Europe, and led Banking In in revenues local France. and by Service. growth X%

local driven driven growth delivered revenue Natural by we growth in X% Revenue Japan. Energy. and growth In was Growth Industrial & Chemicals in Markets, by Resources, currency

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

adjusted with and The EPS I in I XXX impacts following which and by to note tax in $XXX margin business we our comparisons impacted Before associated our $X.XX costs actions, optimization decreased recorded reflect and by points want also rate. these basis results. that, operating million exclude QX, continue,

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

rate Our the adjusted for tax share was the quarter last effective of last year. with effective per rate the quarter tax compared EPS XX.X% diluted were an compared of earnings Adjusted for fourth year. in $X.XX $X.XX fourth XX.X% quarter with

resulting operating XX Free property in last the from by days of compared billion, year. and generated activities quarter XX and were quarter days outstanding the of $X.X million. additions $XXX cash to fourth quarter service $X.X net Days days last billion, was of XX for cash of equipment flow

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

X.X And cash on additional per increase In quarter, August, With $X.XX for and repurchase shares million a of of we fourth $X per our at cash regards quarterly per in for declared the XX% or $X.XX cash dividend over of dividend be $X of shareholders. million. average share we of authority. our total of to year; an our approved billion share Directors return $XXX ongoing paid price November repurchased a XX, to objective Also share. share a redeemed to quarterly $XXX.XX Board last paid to fourth billion

in our Now business challenging the the reflecting successfully We exceed all moment as to $XX.X provided X% in of continued and deliver in a our we adjusted currency; revenue of that navigated new local market year, delivered share gains. we've to to year, strong environment for reflecting of X% currency billion last an or aspects summarize basis. original on executed growth macro reflecting guidance September I'd growth and like bookings, take local a $XX.X billion

Before I continue.

by billion points year, $X.X with recorded costs EPS operating $X.XX. full XXX which by decreased margin basis and optimization in the associated actions, we For business

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

XX capital for Adjusted guided X.X. billion basis range, allocation margin by our a EPS. reflecting billion ratio was return to operating was growth shareholders, 'XX ongoing with And investing FY income share above $XX.XX, original acquisitions. significantly while $X $X.X exceeded of original Free X% flow-to-net to over over regards our XX.X%, to of FY shareholders strong cash 'XX. cash to very Adjusted flow cash approximately guidance $X.X we point of cash returning expansion billion per a reflecting XX free of our objective across earnings

closing. our shareholders, partners committed while propositions all In delivering We our people, our remain our stakeholders: our on enduring XXX-degree Clients, for value shareholder to value creating and communities.

back And me let now it to Julie. turn

Thank you, KC.

now clients bring you this me core saw we they quarter as across the and demand our for life from to and Let this digital saw industries. demand reinvent. their markets We build

foundation Our QX as cloud and building continued secure in reinvention. double-digit very a for with clients growth strong momentum strong prioritized

an on to to for developing by increase across integrated personalized customer digital advanced unifies over services safeguard experiences We're backed is workloads their their data, financial privacy strategy enhanced, complex customer bank to enabled for multi-cloud assets, customer and its and the and trusted a Working that a solutions employee next lays decade. foundation multinational landscape the innovation and AI all partnership compliant company supports deliver with a hosting transformation secure cloud-based Together, innovative out and that the productivity. from transformation platform positioning organization will secure and we're and a and hybrid This financial foundation data and cloud focus. solutions. the functions stand partnering

improving core. of processes around IT a reinvention finance, deployment to operational to energy a different U.S.-based common technologies supply assess a on help ability and digital and optimize management asset cloud-based are we operations, that the chains, HR, leading We'll integrates a supporting business unify enterprise total platform company customer and the performance. And management, strategy

and new from responsibilities vendors and data of enable company and are technologies. in helping the Data-driven project, employees improved, processes better the integrate involved be manage will customers. activities and to standardize their their efficiently the allowing serve and also the within the legacy them business, more and applications better understand company helping cultivate to manage operate collaboration We decision-making

accelerate accelerate to cloud, delivered joint of organization. expertise; data support their and an their and business business Japan and from power scale continuous talent; industry the Bottlers innovative includes managed Accenture venture Coca-Cola that will AI bottler path plan, to of with increase their partnership significant XXX of In their of to data-driven to people adopt world-class functions. leveraging partnering enterprise core; broader digital core and are enterprise We leading-edge optimizing of Bottlers approximately services becoming specialized establishing a operations; transforming the strategy will help automation Coca-Cola technology, a their strategic reinvention. value Japan provide The

collaboration and Data synchronization and that of Services digital heard, a our picture the Federal across on Health information-sharing, and network the into and work focused assets. in faster an This domains building medical and real-time larger AI embedded Defense Operating and in Common Accenture is important near unit as data work multiple modernization. see transformations, health, into equipment Picture will the we Medical allows helping implementing provide and Agency more are Department increases for visibility you platform. operate data AI part and of decision-making. Defense and informed enhance By Joint both we core, supplies, comprehensive just and

a small deployment a growth & research, kingdom life talent. generation growing Data kingdom's of the national a Middle We're the with for the in and part the SDAIA boost to Authority in and technology. business. to we AI boost leader help promote and world AI to Saudi especially East, of strategic have a the innovation economy cutting-edge but our pleased are working We become and closely transformation support with partner in digital double-digit We're capabilities public data-driven

in the cybersecurity the in QX. its core, of working security Security growth we to on our essential is in a U.K. and digital network very had We're a business major double-digit with strong systems. transformation energy

well to including and management. security tools response will service migration capability, for entire and provide as more managed a services an continuous We their powerful platform, cybersecurity as monitoring threat active security

solutions security, will U.K. safe and gas delivery help and the reduced security ultimately exposure provide threats Our safeguard improved homes of millions potential to better of global businesses. to

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

services of next generation Automobile smart and joint iconic smart We Europe, from the between Geely. are helping Ltd., maker of and Co., smart vehicles, the a of brands venture products Mercedes-Benz

customer a experience. by the shopping car an data creating recommendations that personalization coverage. and seamless, buying intelligent, the extended based at on fully offerings lines. putting real-time its allows Europe enhanced journey, reinvent smart of them car digital-driven helping ecosystem core, launch supports includes fully the system makes data are We reposition and as By the such insurance It will its electrical support of help brand

planners, Industry Through have X, in commercial chemical next help manufacturing in sources unified program with data platform maintenance lake data. from revenue disparate manufacturing growth the for sites expected generate our digital partnering the X and Industry their We a supply on see capabilities, cloud-based strong demand of significant to and also In insight manufacturing a to QX. digital job client. chain a our X which frontier, worker transformation materials our core dozens over technicians for create The continue operators, and company capabilities, double digits Industry for global to capabilities. a next along and of years we grew with already are few and is connected live we built is of

food will to digital risk its beverage online. resilience supply have help occur. creating chain, stress test in with and large supply products stores consumers we have continued strengthen By before highest partnered their supply disruptions chain, in to twin develop models a supply with identify global to so of chain they the access a we And conglomerate and

Across being unique services along services, with consulting, can of managing reinvent. our our see to industry clients and powerhouse, technology strategy capabilities these you examples, functional a from -- both and help our to expertise managed to technology,

Now let's AI. turn generative to

As AI. announced a a we reminder, last $X in billion investment quarter,

technology time. to early want little of I significant through. is the projects, will over and in this believe XXX about source a is have rapidly, Gen We us share we now AI our value demand coming on for how a and color and be stages, still While it maturing clients

leading with of types We goods are tech training; enablement; of industries, all variety AI. and projects a and across strategy to Clients case from banking, different utilities have to model our in and consumer service, doing implementations activity. to scaling; tuning and public work, to talent use customization, responsible

AI respond. reads and Brasil, known for network deliver in to reducing helps agents agent of For ensure property a manner. that the queries reduced a the also also response example, its are towers. landlords' solution generative by agents all rental relevant a solution to and experience score time a quickly we're the set time Telefônica fulfill help to queries and company, queries set response with It XX%. respond proposes helpful requests, takes increase actions by has to increased to quality multinational Vivo, working The quicker of contracts response it application telecom structures user answers landlords' with about XX% a the as answered The already

Some ingredients our in of AI of key success are, the ecosystem Gen first, partnerships.

our always, in insight for to is on ] planned to ecosystem, from academics. maturity deep relationships early we It model enterprise, we in leadership these are depth, starting to important the the that to clients. hyperscalers, and for is essential and startups of are emphasize builders, As experience guiding and [ our Gen AI the with the the and

of different: Gen our already knowledge AI. of to the And functional We and understanding And future. from that including how XXX,XXX fundamentals reinvent AI of expertise. people to Second, our in with industry we as and bringing the and deep and bridge know enterprise, is our across expertise technical operating start that AI trained talent. is with Building of blend a models, breadth Accenture and the processes the have depth is the to approximately together where and

AI are AI to from goal growing a Now AI, and further Gen sustainably the skilled XXX,XXX in step in specialization, to impact AI progressing with without of deep academy bias. investments And data equip new AI using are than focused rapidly, our we is our doubling people XX,XXX taking equitably, with AI on generative and practitioners deeply tools and we our and also now pace XX,XXX. and more towards

how the which program clients responsible AI by responsible is Third, an is AI. have out AI. help learned address And full lessons and which experience industry-leading the essential. using deliver At us in to we own necessary we're AI Accenture, value use compliance get embedded is the and responsible their risks from and build we to AI our program,

Gen embracing developing embedding cutting-edge AI are AI the our we we new Finally, work. across and services, in way solutions, tools Gen

Our approach the to work today, environments. takes need complex the it and deploy highly the into technology is we recognition account that responsibly where in do

AI, to Gen mature want their While want of and more we test like the modern the digitally explore and quarters to extent understand digital and pace all technology will of proofs clear generative while clients over and become is to built the go progress. coming to The core. with others continue find who companies concepts prefer AI what have synthetic are waters to more until market and faster, as wait they mature and progression this more would data, that the others of

Essential diverse our great to outstanding talent. success happen. and have Better who in our retain ability our ability is retaining our our our our Off and to attract to Net to talent inspire our attract talent. people, and to Core this is all made to approach of talent Now turning robust success our particular strategy and

different cognitive attract of have We we different the with variety backgrounds, differences to experiences. ensure to continue observations perspectives innovation and are drive reinvent. people ability to and to and These the needed which lived perspectives, diversity a different attract lead insights critical deliver that in our to

the Refinitiv year identifies Diversity and Index in our also a XX,XXX organizations company earned traded the on top X the This XXX diverse we row. top-scoring the time and publicly is global And Bloomberg Inclusion success reflected in the position for workplaces. over second Index most Our being the for the years. on #X globally in inclusive the and ranks fourth with companies index Gender-Equality

Our a belonging; Net the skills. their best with sense physically, our and best financially; talent participated and Hall feeling they are approximately on This for at a working healthy approach. Gold through people our we and finally, feeling benefits, Net market-relevant our they of feeling XX Brandon for Off feeling want dimensions, Off strategy strategy example, for year, people well-being Better continuing and includes We Accenture. are recipient in This million were award people focusing well has feel purpose; And connected talent Better emotionally to has hours. build training our of retaining work X programs. and wellness to inspiring

across commitment the long-standing significant environment, our a our path our have approaching net renewable Accenture to on of pleased milestone zero, to XXX% we on all Building to hit electricity are offices.

will Vibrant a in I communities with our in we our world. prioritize therefore, continue business value comment to creating to the important these work are communities. around success, up wrap communities and on

job is and For and committed to World help with over and enrich the years. XX,XXX they seekers welcome Europe helping communities June X refugees, partner hire on In XXX Accenture next recognizing an we courage, how refugee support XXXX, their to and example, with our estimated talent. skill in migrants organizations Day, refugees to Refugee strength to

you, KC. Back to

Julie. Thanks,

turn let our Now me business outlook. to

the For to the FX of impact the we revenues the positive and negative positive an in fiscal 'XX, quarter to first X.X% $XX.XX X% X% of compared first be assumes billion. expect to fiscal local to reflects approximately will $XX.XX 'XX currency. growth range in This billion estimated be of quarter

the over we assume flat of few fiscal upon fiscal For our results have to in the currently dollars the compared year be FX on weeks, U.S. impact rates trending will based the 'XX. full last 'XX, how been

fiscal about revenue X% currency full range contribution in our fiscal 'XX, which inorganic we 'XX, includes of For be the an expect X%. over the of local to X% to in growth

'XX EPS fiscal these points actions operating by excludes The year for guidance fiscal impact basis XXXX We $X.XX. XX following to impacts. GAAP by and full expect business optimization margin

year XX.X% For point adjusted XX to operating fiscal we XX.X%, margin, results. to adjusted a 'XX expect fiscal over be to expansion 'XX basis XX

We of annual an to effective XX.X% fiscal be to the 'XX. range tax This in rate adjusted our tax XX.X% effective compares expect XX.X%. in adjusted to of rate

'XX per We results. earnings in to the for to or adjusted range be fiscal of share expect fiscal our X% $XX.XX full to year adjusted over $XX.XX X% 'XX growth

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

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

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

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

for [Operator provide KC. Operator, Instructions] the Thanks, call? those on instructions would you

[Operator come Instructions] from question first of will Our the Tien-Tsin of line JPMorgan. Huang

don't mind. KC, if you want CMT, first dig and just in I on to Julie

just demand few have the Just you at And any -- if the or curious more here what's is a isolated shoots are turn broad-based? to seeing to challenges all. green around? there Are there? clients, changed it Is strategy it

Yes, Thanks, great. Tien-Tsin.

is those we're globe and challenges. broad-based see it we across seeing mean, it have the continue -- I So we clients, broad-based. to across

little more to it's comms, we and develop both that Europe, technology technology challenges difficult. So The focused are U.S. it's we and going little do a it's know whereas They're differently different, markets. based the think on -- more do companies on going a in bit complexion. to the that the

year, And that improvement on markets. at so we course different little a over will the the the the depending come pace, of expect

it's And in -- of terms twofold. our we're it, really how addressing

the going to all, to of costs, they're working how first cut that more to capabilities. like investing in trying them customer of pivot industry service, helping spending, areas within like within we're much things network continue help So to confines on

in that and our also did U.S. We Anser the in And the like data see growth. to acquisitions, Industry in in doing did Flutura AI. we higher of areas And with technologies is we're what pivoting X India you business

lot to And CMT, the And so our of growing. And we're pivot how make just little that's you a that of as got business that, you're in pivot. we've growth. see a going what time to you of play year actions taking why the areas we're the out build is out. it's our can take over when with business to And rest guidance is to going the that continue seeing to take

one. on that Understood

follow-up, you Just year. curious Gen went on Is a the the are it that you've and through lot more into know getting sales Is pulling AI. recently? just of new just I'm seen projects, there, the large get I sizes my as quick larger? I'm -- doubled what from through it detail. we curious. good here might fiscal how deal evolve

Sure.

Gen So -- numbers, remember, you when and at very give we're we this point pure AI being clear it's Gen AI.

data and things. those So we're talking all not like about of of sort

are that a while, million that's because average range, now lot real $X sort seeing to continue going projects the we're and That's we in Gen of right? right of what dollar-ish still So there's expect a AI on experimentation. for

terms though, doing, of faster, at, is the leading core. in Now look go I what do where right, well, clients digital harder it's to

it data going But early. But right, we people that's so right. we more for over tick and out still how excited up, extremely also migration, to coming it in seeing is a even started year, the example, the about as And points play challenges. think get it it's out

step so really up. their are, plays Gen But next into Entire to set actually, on be to is complex, takes, AI quite then gaps being it keep it's it our need mind the and -- that how of not easy. not help environments to there. what take where like in strengths like It's able get journey to it's the implementing understand them

clients we next they're cautious, being see money us so save on, can those we as focused take "Help really steps." Even

it should No, Accenture. well Yes. bode for

James of Faucette line Morgan the with to next go We'll Stanley.

up Great. couple a to of on of questions follow kind there. Wanted

One other kind seems seen you of through bit, that areas happening little managed had of what's strengthened, a been there? Can the has to services. talk weakened have like it's

hearing is, what's or weaker that in other managed that little color little give demand of services being now, maybe one markets happening being also right especially we're -- the geographically? just you a but there's Europe with a is And Can some and variation things geographically, stronger. on seeing

Yes. Thanks, James, giving for managed seeing it as guidance services on little and just relates guidance we're of the on question. you maybe to of I a of will with overall. what broader I'll kind just -- kind color bit maybe start

growth start is year, which all full I'll start full X% guidance, our So So just X% our for with we right? to year the with year.

expect mentioned, we're go we And and of our I at is that as as can X% we year. to for that top think a throughout part, going X% range. QX, the starts end which build that in see has our you negative Julie range key the

at for a our the 'XX. you as quarter in the then QX that is more first full reflecting our compare QX. of QX, And for part, the we the are we saw backdrop tougher toughest guidance year. business same really of in we of various across most And in what have That's look the FY -- but dimensions our a compare

macro in full And then look assuming macro, we're at not an the things maybe at there's as improvement if environment the a year, to X spend year. discretionary you or the the look add. that we From

is the year. work question, we then digit. -- year growth of single-digit at to go going being see high to on type to healthy managed for And the the throughout for full single full to be going to second, we services consulting build a And year. And low get your mid- the as we're

XX XX last in the we And the basis operating way our on 'XX, then go as expect margin. fiscal for depending we the on to more do would to variability how expansion year. see We points be of to quarters through point revenue-build, on

bit that a little So gave hopefully, color. of you

talk about little services. Julie, a to want if on you managed more bit specifics

And bit. I little on it's services. what a but a continue play be important But clients play a will cost play. faster our managed really because both digitization say for it out would services also to Managed

trust at and CMT. and in for So got other example, Accenture, right, the services safety we've managed

out. kind results, roll the on And the so affect and our to of some that's quarter how things going compare depending of and

year be next the will somewhere about So mid- that's high in why what to we're single thinking digits.

around see issue don't a services. we But managed fundamental

for the But little differently. per fact, think on really of play industries. it see our on a strategic need managed out of se We because less a services. based they're Based market priority we In many will clients clients. it of sort really bit

from bit then 'XX, inorganic what light it. inorganic the quick have can as that, that Got of should little program on particularly just contribution. for an will a just historically And a any anticipate talk capital if return in we done have strategy, you impact follow-up, And what contribution been? guys about has you increased your

sure. Yes,

In And considering 'XX, terms about contribution. for 'XX. for the of about inorganic was was X%, 'XX, in it contribution, inorganic X% another James, we're

that's so billion way can Yes. about we remember we what through there. And our Anser start products, it's small to strategy, new think that market, Like very our inorganic? grow $XX inorganic basically areas addressable and which get did is X, acquisition. with there the acquisition it That's look. we're Industry before an an On we to is into Advisory the capital

about to as in and being invest think expertise. We it our important functional industry

we an AI -- this in last scale, we So bought quarter, and -- and in about terms in strategy India year, in acquisition data this insurance And consulting. quarter. think a did so it practice France of in this we terms we

And advantage of the to pivoting we have do X%, higher investment so a the we as the growth well, the right that course, now, to but ability right assuming is we have more are opportunities. now real to do leverage in order of we're of we have areas capacity our pivot. to And kind ability if right

do we so ability be the think to hot market. in and the drive of about growth in our industry a in advantage as areas our huge to competitive this And really

Ellis We'll next Lisa MoffettNathanson. line the to go of with

I of And 'XX. should us it to that remind end might of in at what to you start are, a on toward fiscal Can XXXX? completed, what's that's then in a the of -- throughout little just business more exactly bit and then the GAAP optimization where of reporting program. give what you in end terms whether And move we more on the detail we of detail expect little should expect how maybe remains 'XX. bit back just kind impact sequence

Yes. Thanks, Lisa.

a just terms of reminder. just So in as

about billion when -- So our $X.X would would said announced it go business and optimization program, we be we we 'XX. FY that through

'XX. saying we through $X.X FY billion So are still

million. year, right, the which so last to into did were a 'XX, get we record FY to incur relates we P&L fiscal bit it 'XX, more $X.X expected a year, $XXX next we is expect more were we 'XX. to As do approximately in in able than -- billion We little in bit to

happy -- you [ impacts I'm take throughout too as business another $X.XX go we any questions ] -- you driver the for through go for EPS, results to yes. quarters, but more that as that be why the will the And through that's a on that impact we the EPS we throughout of variability we'll also, optimization and 'XX, as go it have doesn't out year, year. to so And the throughout go other go saw happy have, our we margin on

countries that it things of And the depends out. procedures. terms really to It we'll and go see we how have and plays different in process through on

we're And we not the year as I'll estimate, but by go so giving that the quarter. breaking we're update not throughout full year -- out on

it, Got okay.

follow-up follow-up, on then step maybe a my just question, the managed back, a taking great. Okay, just Julie. little And quick maybe bit a services

seeing consistently into little highlighting programs. last to that a quarter. some discretionary strategy saw slowdown pretty the over wanted of managed this and if shorter-duration really been we kind ask bled it think, services not bit just has consulting I could as the of over and been kind on update given quarters we've some larger bookings the on you've work, of that, seeing latest few in the a I And softness you you're the in of the transformation of us that

Sure. ERP the managed of right? I just of not include services, kind So but stage that. new first transformational putting only mean, managed place, to programs in what like overall, so would the also they building, include programs services, is it's modern I set for that large say all, kind of

a deals, as really and pay faster those transformational fundamentals, we them. about at to way we way the to managed in a think just often also go the the look because round. think But programs And modernize. often services of are They're for you transformation

clients are ahead facing, have you think when they is done far. more than So reinvention so the about there that fundamentals our

ahead. that workloads, in And modern X/X XX% in you only huge ERP the data the So estimate have cloud our are than and in see put less Only journey, We right? of opportunity XX% where programs. they mature AI. clients are in

way, about And the the a you they -- services a modernizing begets implementations. paying Our in in then is will that by and strategy first positioned, on go managed then well growth reinvention our -- see, core to digital to the more, well kind of and think play we're market right? to that that. super why work of got do lot what build have you as so it right? it So big that's the And other right, you've strategy. be and partner. is when you actually And top how do, as huge role to continue of We of however, for much

But feeling do going macro. bigger and the they CEOs. the they're different And is Now have messages, the Tech them with what's the they we're I money the on seen ground. number on if that's us three deals, So in help need that I asking was in and small you now, right we've a number busy be they come week, very to always right? Number XX best was super about know focused programs more to and already even save cautious more. to underway already is major programs. And about but they're lot seeing to they market, hear from X important, Last one. had right? in what two,

it's guidance, say -- to navigate effect being being over But reality that as reflected partner, the Again, us about is now. overall I that is sense super reinvention and of that's our of positions and kind is plays think able so they this the macro what spending would an in be of is to that terms the pace journey, strength is into well our having right the and And on of macro. bleeding in to there really is caution, demand. -- that able the

I'll basis. add, know, So can we services just in and and be bookings book-to-bill And bookings our X look managed quarters. right. in above, on And or particularly over services. And is that's exactly to we rolling managed at X-quarter goal as maybe X.X are you lumpy, a where Lisa, be

of next with line Keith to Bachman the We'll go BMO.

I ask with if to start to back wanted Julie. M&A, I could -- go you,

deals; past guidance, to therefore different consistent meaningfully to it sort capital integration points required years, of, what X to here, the year was guiding which You're of the points the number a, M&A your X with full the headcount. of even X in ago X is years is bigger. do but contribution or terms much b, the and those than of

sheet business seem points of just because And for the it do how I the larger. make again, people can -- about kind any -- to hear the think just are to continue sure perpetuity. constraints side deals of doesn't on philosophically balance getting like kind you or of required wanted But the X your integration also implicitly,

at same just And you to, part kind Or I then as size in of deals? a have to follow-up. larger need at do you of of you that, then up speak terms little bit the looking a flex could opportunities? do look And

background the about Sorry noise.

Thanks. problem, handle the No allocation I'll Keith. over to it I'll part and capital Julie. hand

Julie a it's very capital bit So referenced earlier, framework just from allocation capital our really this flexible. little durable, also but allocation a is standpoint, but

money been times amount while, time, the can framework. to on cash repurchases various of So portion we've that we significant over share our the that through return able continue a V&A. dividends spend flexing we of and been we've continue And to with at

And returned a dividends and million, just as through year. So guidance a have our shareholders actually increase again, 'XX. in cash we baked to next flow of in our for billion, focus, about free in had FY we XX% $XXX repurchases $X.X

still So it allocation can great doing just our needed flex shows as that while a capital framework return.

when start I right? competency it what I And helped that we've now this proud journey. do how I'm is really done been Counsel. lot prior say in, were the M&A I Accenture, would that of is on this. a And like a we that I was kind to I increase my So they that -- in and remember General life. came of was core need I've we of

see as to you we've grown, we've is that, continued what And capabilities. the build

do how we ones. We could point also doing have with for leaders We've where acquisitions many, The we vary the integration. integration. we small many doing integrate. from to is do operating we $X to to close know done machine even and have model an a very bigger very And really But our now around billion the that years. over been they mature capital. have larger ones we've And this

think about of the Okay, follow-up how FY year? you for through is off process My an on how 'XX? organic enough. do about M&A. thinking I'm finishing basis, as And headcount Accenture you just do really think we RIF, You're headcount your fair just excluding through kind but the

And we're know, what Yes, it's our on say to a thanks, I is competency would growth. see we supply Keith. the you core and demand, Really of skills manage supply as based ours. wherever managing going

QX, of we and exactly So -- to in a said, that's as happened. would add QX lot people what from we need we to that didn't expect

our so to reskilling hire people. of And focus that skills And on to the we we're need. continue going automation, and to a as of mentioned, for the going we're Julie lot

We'll Darrin with Peller Wolfe go next the Research. to line of

visibility years to I the to environment you'd side. of changed? the on say relative now that in mean, just have wanted anything prior terms ask, outlook I in you has

reiterate just where in customers that typically that -- of could little of what seeing downturn, you Then the macroeconomically. might buck the strength trend examples maybe might see bit a that us more of for be right around if specific a manner now, a need you're pockets you in

just matter of kind fighting what really what's no through right now? Just demand it's weakness curious, mission-critical because the

Thanks, Great. Darrin. Yes.

it's fiscal we're taking a the the year, In aim year. know the terms which confident always successfully certain year. for of we'll every as is visibility, back sit But to the of right, this back like budgets year year, you which we year. the other part is the to of in set, right we But new really in less build really for time, well, the that range. here of throughout mentioned, full we're are as all is as deliver we -- at are a And know top we beginning half at because just HX of going our the when the -- more steps

the that highlighted we to see first of by do we'll we'll in taking, come confident back that backed that that to the Well, Julie half in through examples, And why the say And that's up the and pivot we're many all, that? expect we're of that areas. investments steps make. we also the higher-growth year,

you're easier the There's the to the The I in layer as it do benefit of from back we half of so is And second part mean, area is half. transformations. as there, in back And approach last larger-scale that the work we the the we out have that -- we revenue of right? do just need growth get comparison have we'll the some part, to new year. the aware,

building Yes. digital terms demand, been is exactly demand about. what talking of And it's then The we've area in #X core. that of

cloud in So cloud, haven't and to they at the not you've I is in client the mentioned the those basically needing right? got are got migrate financial the clients modernized like but script that's their to all service the in you've who cloud, Then ERP.

absolutely who've And data AI, lots for right, of has Then been You particularly security, focus -- examples of those already investing. then saw happen. now a of that. on got lot you've on and to

accelerate So ERP, and cloud, AI. now they've really they their to they're want in the got modern

the "Can on and So the challenges People And smaller prioritizing more strategy integration, got focusing lot year, happening, they're discretionary a we even starting got there, on as environment. systems are is spend cautious especially America. you've North and depending about consulting. industry where throughout the smaller doing not larger we say, there's saw globally, deals. what's we've in prioritizing, We're They're right, underway. to not doing not --

of reinvention costs of sort start And that's we And cut afford Accenture, help what spending. we the of next." us the can ahead cautious all us, us. help prioritize overall So more so kind of

changed the then behind than building I And about have to Nothing But want has them terms clients digital of core in our to using that more reinvent. it and them ahead of just we're the the the have reemphasize. the this technology expertise only that one scale, can reinvent. technology in them functional help then and, be and to our at to the to that use both industry industry positioned fact build

optimistic So and this our we are super about industry position.

time. just, that, follow-up the sense, to guess, And a makes That Julie. I as ramp

still. success, of and investment $X about evidence we've days AI early last some talked in obviously of billion You seen time, but

AI. more now you ramp part a the that business, see to when much you've had again? So on really time you'd luxury that become much, This of AI quickly that can of months, and generative bigger the just touch around few expect the is a --

more team few my going luxury a more to thank that. them tell for are of so love few you to going sure months, I'm "Guys, months." that. the a you've I'm got

So look.

you're great have what is to And things. view well-informed a As the AI it your little I work in that. will data do you've at Gen our like got clients: going in core. Remember, Can't a bit it's to till cloud, talked things. But and it about are script, look to $X say -- all technology, million of own an unless tell is modernize we're few it's quarters starting I We're in really I've delivery, going more of learning. I take our still sort so my our use amazing these it's what a

opportunity. that's So our

line with Jason of the And we'll go Kupferberg Bank America. of next to

wanted I comment. your on pick up earlier to

that assuming environment I overall any the said 'XX. not in F in spending improvement there discretionary think you you're during

start to 'XX. well certainly with So approach typically you fiscal quite know year conservative guys in guidance. That you the I a relatively served

you little thinking that X backdrop, could of bit each against regarding So in you're for us 'XX? F tell business the dimensions growth about what a

Yes.

in me we But year going of to assuming what of you is mentioned, us really So this on kind bit macro to help pivot to or going growth, not kind in -- hurt to essentially it's the right? improvement let saying. our kind any more as be give areas not Jason, color we're of we're what we're macro the So just us discretionary a guidance, little of guidance spend. so going is

build terms going consulting, to of maybe I think In of just overall, of we're environment, the is that as go I to the know build thinking as to we it. And of we it's what we I'll important go again throughout this in have the color, to And we kind think type work to throughout best way in stick build about going the it's are going year. year.

we Okay. first And on then November seasonal or just consider on I know the bookings, any typically quarter. thoughts some full the there elements year? quarter are in the

sure. Yes,

let discretionary of in the out mean, and And bookings, of they than maybe the bookings. deals fourth we can bit didn't quarter. come we'll about quarter. maybe bit just it lumpy push deals, When some I be environment. of small any saw we we to came kind see change spend the expected. a in little me little start a So it's with In talk lighter

really strategy we're It partner our clients we the to transformational pleased be be XX And that just core. at the over with reiterate $XXX million. and to about reinforces that. just that choice to client's Julie had their of talked

then just bookings quarter's. mentioned services. for I I'm It's X.X to X relates year, us. as for quarters, for QX, seasonally really about, we over rolling lastly, it look right. on And at book-to-bill, looking and which at next little 'XX, you're we're pleased And this 'XX fourth at the lighter But a managed a overall,

a growth bookings expect pipeline, QX. we do have QX However, FY over 'XX solid FY reflect we 'XX that and will

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

will with line question Bryan that Deutsche And Bank. of come from Keane the

I area then going was just an turn to wanted to up point fourth know it during consulting. happen positive And we quarter. that year, think that we that were hoping, at the growth I to one of I back as on that, was know going strategy follow and the to last quarter. that was didn't by

fiscal 'XX, I'm curious, into So think might when S&C year, through you towards turn growth? we do as just go positive year the

thanks, Yes, Bryan.

look. So

year top again, the try reconnecting our our be, goal. we where reflect does at range, And to growth. with that range, clearly year always it which full is full our end of of terms In S&C

year. going what to all it's exactly by will hard the differ it So really be when, pace the Now market, is throughout to right? tell

challenged. Of go America, our a market, And update will be you it's North more course, we we'll as biggest through. bit

do Thank really managing a I All and gives which thank all of our us what and in you day, truly our thank your do the and confidence future. support. shareholders trust to for right, And of continue hard again I every lot they it. want are you. every of to to is I directors, closing. we all to want working day in our people continued extraordinary assure earn

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