Accenture (ACN) 21 Mar 242024 Q2 Earnings call transcript

Good morning. Thank you for standing by. Welcome to Accenture Second Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

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

and our operator, for us joining Thank quarter thanks, fiscal on second XXXX today you, everyone, earnings announcement.

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

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

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

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

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

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

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

Now let over the to Julie. turn call me

every joining, all everyone to XXX-degree to world around people the and our who Katie, for our you thank stakeholders. XXX,XXX day and work deliver you, Thank value

macro. our an with in performance I'm uncertain pleased

of the benefit in to hold the the to clients of at Our the the capabilities results deep of and the within the privileged ability we us, our heart businesses, have highlight growth. waves our next work our invest for do their complex ecosystem trust most position

on momentum strategy on growth executing see to large reinvention in than be trusted to are a clients bookings spending the position our partner capture clients, quarter $XXX more continued with These how greater the we to us increases. We million. our record XX transformational wins quarterly with as of

the of XX,XXX end billion the our expanding which have $XXX doubling lead in our reinvention. GenAI sales GenAI the over in half over had data in to also million first fiscal new of core XX,XXX our to $X.X practitioners to in 'XX. fiscal We against from taking year, skilled is XX,XXX year GenAI, We bookings, clients' us early by goal and and AI now workforce AI of data our

America, our We record. of highest clients, bookings bookings $XX in billion, This highest are our focus in second ever. laser-focused included billion this North on needs our representing is reflected $XX.X quarter our and of of on the

the take of billion to continued our the above quarter, $XX.X We with market slightly midpoint range. to of revenues and compared year for last share flat

the of composition the on our the year, EMEA spending particularly saw including the was expected. by in page evident we of another constraining parts bookings, new came our in This of turn we differently America. on and As spending clients, North calendar turn on than our services, which dial in

transformations, to prioritize in investing in to projects. revenue smaller while We particularly more large-scale see continuing which discretionary limiting slowly, further clients convert spending,

a and pace We spending. slower also saw continued delays in decision-making of

to resulted showing improvement CMT these our over quarter. focused despite in return North conditions, efforts last that and to pleased America growth are We

the with and rigor with on reduce track we announced optimization structural business costs We business are resilience. create year running to our and greater actions discipline, to last remain we

adjusted delivered EPS X%. growth of We

additional markets strategic to the to investment invest XX business in QX growth in $X.X our acquisitions, XX across HX highly acquisitions. our a geographic in significantly acquisitions areas, total to of in billion in with continued bringing across total We drive in capital $X.X deployed of billion

industry create, earned of a for list proud continue of on for position we In and also row #XX to Admired in We an in XXX-degree are million the value we of per year we learning #X the representing Companies. XXth people invest with person. XX quarter, Fortune's in approximately recognition our hours the our that hours the in overall the Most average training World's XX

#X ranked We have the Most CNBC and as we Ethisphere Most list JUST been XXth Ethical in the by for Companies. recognized JUST Capital the on American's of And #X overall a Companies in our one World's row. industry of year

and is expand areas. An strong growth higher into use new order strategy to important part in to our growth of scale to our balance invest areas growth sheet

of track a We record on strong delivering strategy. have this

the some are from Here quarter. highlights

In impending Technology. cloud Insight chain, clients OnProcess North additions across providers, applications modernize enterprise We with and in their significant Sourcing and with of ahead, Navisite an acquired we America, the multiple digital area core. invested digital supply help technologies reinvention to

strategies our brand growth scale. bringing digital world-class And and clients market Song, we Work digital operationalizing Co in by acquired drive & to and at help products to designing

and invested are transform modernize clients and growth. help systems. core we digital their their which drive help build XpointX, digital clients in investing our their legacy EMEA, U.K., capabilities In the will In to we

also with with and stack full our We help in that AI. their expertise intelligence performance its Redkite U.K. accelerate will acquired data the data-driven clients

our develop And to for BXC and accelerate and strategy growth BXB in modeling pricing economics which models. behavioral sales will strategies Germany, concepts using added clients' we Vocatus,

position Thailand experience our with helping in markets, in their by Similarly, clients agendas digital economy. on Indonesia in clients' customer capabilities growth Singapore, our acquisitions Tale to Jixie drive growth us marketing in in and fast-growing Rabbit's capitalize and our expanding

announced organic that technology services month invest our learning clients and years X we which LearnVantage, a next people. to and to clients is help competitive growth earlier advantage. transform, this our invest will over as upskill to the training $X will reskill fuel comprehensive our ability Accenture provide their And Our we to in billion continue

Our a Udacity, annually. acquisition closed, the summer. which partner will of at revenue is services of are for the expect by digital strategic, top These of because includes they close Once a agenda pioneer, in education we the choice the million as have talent we of CEOs. to and position investment zone $XXX reinvention highly enhance our the

outside known groundbreaking example, digital to For we helping training for MSD as of United States and their employees world-class AI are global biopharmaceutical program launch company a leaders. create the a generative Merck, Canada,

helping As build Merck to in in the needed led the breakthrough and expertise has renowned way skills the leader a thought investing people therapies. biopharmaceutical and in its develop market, them long

developing, access Digital, to investing data, once for power and medicines leading-edge patients and be to use its discovering, of continue its around analytics and in again providing lives promise save delivering science and in to vaccines. people, the play role world. manufacturing a able on the pivotal AI By improve will Merck to

KC. Over to you,

our quarter you overall bookings. quarter highest today's time call. with thanks and you, Julie, to results all were our Thank of of with join We pleased new second on for the the us taking in to second

delivering We for value position, continue invest scale our at strengthen shareholders. to to our while leadership

in currency X the of mid-single-digit higher or our life me highlights a quarter. local the science, were few including summarize Revenues of with let XX and growth public of utilities, tech. energy, Now industries, health service, flat in high

pressure, to improved CMT market quarter, industry group see continue While this as we continue take to our and we expected, share.

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

We year, EPS is continued year-to-date Adjusted quarter operating adjusted investments operating last to reflecting of This $X.XX, year. EPS the margin in adjusted compared business. our basis people flat. delivered growth XX decreased last and our over QX in margin in X% includes and significant XX.X% of points

shareholders returned year, to have dividends. in $X half the we acquisitions Finally, and first flow and of we In across billion billion billion the $X.X of delivered free invested cash repurchases through XX $X.X transactions.

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

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

revenues Consulting were revenues for currency. Turning revenues. guided a in in flat were local up the local service in midpoint our the range. of and quarter to Revenues U.S. currency. billion, for both dollars and quarter dollars and U.S. and the were $X $XX.X above of slightly dollars currency were $X.X X% decline in X% billion, local billion, both both U.S. Managed now

closer digits. a single services declined service strategy in Technology look our Taking low single consulting low grew dimensions. at operations, and digits

and media. in our markets, banking platforms markets. and America, currency communications to geographic in revenue Turning in software by service, and with public capital In North and local flat was growth offset declines

Kingdom, and by In the in capital local currency, was led by markets, growth by EMEA, and in communications Ireland. growth industrial, declined resources. and driven Argentina, in partially in was public France X% offset markets. media and In growth capital X% in offset Australia growth service, currency revenues Revenue Revenue chemicals by and markets, offset in grew public in with banking and growth natural and revenue declines banking and service in local declines and Brazil. by United Italy declines Japan

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

$X.XX and operating and points of business Before operating costs and quarter FY basis optimization by The last actions, EPS this basis note comparisons XX want following to I I these year. in and 'XX in adjusted that margin QX XXX $X.XX by decreased our respectively. points million $XXX with reflect recorded FY of $XXX in These by results. we 'XX, and impacts associated EPS QX and exclude million by continue, margin costs

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

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

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

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

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

approximately authority February XX, of share As had $X.X remaining. repurchase billion of we

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

for we growth our laser-focused on value delivering remain the opportunities market capturing closing, In clients. in and

us, of rigor As discipline, to will long-term continuing expect while market you leadership. know for operate and we invest and with

back me turn let to Now Julie. it

Thank you, KC.

me color more on demand environment. give little a Let the

to more to conditions. are industry-specific geopolitical an technology clients continue our strategies seeing economic, building focus reinvention, investment to macro to them capacity, lead with And prioritize all digital due uncertain up environment core improve larger partnering navigating and productivity, to initiatives in transformations, out near-term we're their response, growth and other to ROI. While on to and thoughtfully free

XXX clients focus being with demonstrated most time, for clients fact our top have resiliency clients' years. that the XX us transformational as Our on at complex over work their been provides of by the business, doing center over our

widely it near while importance which seeking those needed is reinvention. the with now implement needed. more of The continuum, because ability digital is recognition across technology difficult And a AI, universal most move use to investments AI small the the finding scale cores the all with coming the grips nearly on varies quickly, to have to AI are to clients strong are with enterprise. of a heart truly clients There which generally what part AI is to is however, at of of scale,

and your upskill build processes reskill all AI, your data people and responsible of need industry technology, the using find capabilities more and foundations. particularly new these first of with all AI, you investment ways core, change reinvent must data To digital around and enable right understanding function And have order their capabilities, working, unlock the and to clients deep value. to to many in in scaled efficiency the in

We our and the as with strategy are industries. our as in rotation operations and clients enterprises everything able customer digital XX manufacturing help and and AI through consulting, of relevance through X, Industry this well to across our the services Song broad because engineering across and functions of technology

our closely is early to help important. is our Our AI backbone technology been stages privileged tangible understand never business the still maturity right and how are and partners in adoption, working Generative ecosystem evolving more AI of ecosystem clients to and achieve data position perhaps the in and that the needed has value. with rapidly and we

complex the with leader in doing bring now and snacking back a are to a like we continue to brands to drive will I long partnership, of an be well-known world life clients' we leader. growth Building heart Cadbury working with work industry on belVita Oreo, of International, our Mondelez businesses. the and trusted are at the

technology shared by foundations the modeled and model core. leading of a laid foundation, a reinvention their now an platforms ambitious digital we services working powered Having are on strong of and data AI --

planning transforming management modernizing and and capabilities. supply platform, will also and a function We warehouse cloud-based finance chain design their implement single while the

enable faster This satisfy they also customers, AI. reinvent new Mondelez technologies more profitability. availability and for of products through will adoption like sales new maximum further the allow digital driving core This generative of will growth to how customers

Cloud foundation continues the to be core. the of digital

models, high cloud modernization, work working business intelligent this at across single to to cloud to as the digits business quarter edge. from clients Our migration grew continuum, the do new

the airline For fully example, in based we're become world's Arabia cloud-based helping Riyadh airline. Saudi Air, a digitally native first

We airline will the AI-driven cybersecurity a operations. with equip and brand-new infrastructure, cloud-only enhanced

it over digital experience Our data such capabilities use and to is and will the scale help technologies, its plans Riyadh This to and airline will as seamless customers as deliver core Air's and remains that cloud, ensure to destinations future-proof employees. a and quickly more by enabling travel the scale for free, AI, XXX also legacy cutting-edge operate personalized company's XXXX.

a transformation the them data drive become on with cloud help program new business, business partnering platform that We experience. Belden, organization are the enhance will and global networking of unlocking a solution a power customer to edge, and opportunities AI

in them them their This clients player digital the operational to where industries provide be key crucial. domain. insights in enable down This are them and analyze will data data-driven collect build them cloud This platform will silos, improve will environments twin to operational by industrial to and reinvention from to real-time technology allowing real-time and edge to valuable become efficiencies. insights break powered a technology, allowing to

partnership company company help support from also power the platforms. enable engineering a in data into that reinvention this new strategic Belden's the market. This and service products leverages will insights will a We of

We leverage helping are power AI value, investment differentiated the on tools tangible clients that of our quickly, focused business generating accelerate in leveraging results. our

clients helping Our is announced AI solutions. AI industries models. AI recently clients LLM new need AI switchboard their architecture across complex our with already outline helped and integration across And for case, Navigator value has the

they compare use. largest and deciding on For prompt perform currently example, which the models the is model one entertainment by switchboard to different of be would interpreted before the testing companies how same to how

data requires enterprise-wide foundation. a an rotation Ultimately, strong AI

and Australia's with on its company, efforts modernization leading technology its accelerating radical of a AI-powered. simplification ecosystem, are We become to working data telecommunications and Telstra,

allowing consolidating disparate We over are enterprise a governed future. scale secure core, data into Telstra and modernizing integrated and data in to AI generative and XX bespoke forming Telstra's capabilities rapidly sources small the set, AI

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the for of deep which the capabilities across customer our transformation, insights richest One creative, customer with of technology AI, uses of areas including opportunities expertise. experience unique generative and is clients Song

grew low digits quarter. this single Song

growth. our business. an help operations its ExxonMobil, future drive We capabilities, fuels reimagine efficiencies our clients our managed deliver helping drive end-to-end transform drive energy to growth. We're global and super will to leverage continue the marketing optimize marketing marketing to platform fuels major, to With automation and across services SynOps measurable

leading and consumer retailer By fronts are customer experience. improve leveraging transform with in to AI, we optimize and We Best across and experience, employee data multiple partnership a Buy, to are growth. helping costs their the and our reimagine operations context drive electronics customer generative our strengthening

into are end-to-end support devices in Best North pleased for also joint We device creating an management own Buy clients. field agreement to America our for have and life are with of Accenture entered a of cycle service offering

new to our strategic provider, this helping superior already have first achieve offering market. TV efficiencies experiences, to We a new marking growth. operational underscore our into commitment entry applied initiatives These and customer Best Buy major this

is We this moving of beyond the quarter. double-digit Security business as role to to IT security growth and in evolving protecting strong assets the our critical reinvention, the essential very business core saw change. technologies security of

their working the the companies into one electric seamless operational United largest technology holding utility of cybersecurity We to unified with are in a integrate States solution.

monitoring security protecting in risk our reduce enhance by and people. and implementing of vulnerability environment, will great of response, help serving their automation. millions will cyber security we the tens of events advanced infrastructure management capabilities Together, This critical

global with working simplify Indo ambitious continue plans transformation demand digits services. e-commerce home on digital growth Count textile maximize and QX. digital X and Industries opportunities. Industry see in the strong for engineering manufacturing to We're a support its Ltd., We leader operations, space in double to grew

a We digital will processes that will standardize, automate by digitize and help analytics powered data build cloud-enabled and operations. and core

the will quality efficient North From better reinvent customer inventory and standardization, their management, new supply chain more optimal enable America, business help expand manufacturing, East, experiences. to and logistics to consumption their Together, Middle we and the India, operations platform in energy U.K. Europe. will

greenhouse each our where choose compliance To corporate visualization a services, and products and carbon to can calculation is And we conscious carbon transformation necessary. footprint footprint green the by emissions. of the of create environmentally market promoting consumers support visualize through product continue for system a gas

to For more COX example, implemented based sustainability we're our into a their emission on We assisting manufacturing the to their uses and record Matsumoto in through Japan decarbonization company insights and the goal. detailed of per that Precision, machine gain processing precision parts a projection a basis. achieve report platform individual performance manufacturing product information solution

to Matsumoto realization to of of understanding effectively and the business contribute This society. more their a of will allow decarbonized Precision their enhance the environmental impact

Back to you, KC.

Julie. Thanks,

let me outlook. Now to our turn business

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

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

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

expect optimization actions impact to GAAP operating XX 'XX basis and We by points business $X.XX. fiscal margin by to EPS continue

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

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

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

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

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

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

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

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

the [Operator of JPMorgan. line Instructions] Your Tien-Tsin first Huang from question comes from

spend simple Julie, big now. your because too get for picture, a seeing been curious time but softness quite some in maybe for question, just cycle a we thoughts the services are just to on of sector where we've IT

has Accenture done well.

always deal bottoming discretionary things little Where come stuff The as pressure are short-term had terms seeing through. very of large short-cycle cycle You returning? a you is we maybe spend or said. activity in

see it's now, clients, ago? other in what I January. Tien-Tsin, what we at I We clients' affects think December, we was page, say days right? predict mean, tightening as projects. than in what's spending XX budgets our visibility the So as Yes. And our anything this that the turn Well, particularly we right hard further the at different our said into every and to -- year that calendar really a right? point we we get services smaller on so of and year, saw than

trend see level. from didn't ago, right, days sort So the a XX same of perspective, we

little more calendar year kind bit we dial a 'XX, the Now turned see where constraint. right? set that's budgets And of the for you've being

environment, a bookings said, strategy our And market in over though, taking partner this nonclients on the as with $XXX share. record seeing to momentum we're XX you be building with million. And we're reinvention

right, a migration what you the say of right? ahead, at XX% about right? the modernization, So understand opportunity both right? There's we So more the fundamentals And ahead. We're -- and of when you, is reinvention the that the transformation, is where the lot does remain right? importance tell look cloud, clients still technology-led same,

kind ahead, at security, Re-platforming actually ahead but least cloud-based well, XX% of opportunities ahead. Data of security on and that can I of platforms, the think XX% opportunity who has XX% about and AI, forever ahead. platforms. the modern And be based adopted about more

get extraordinarily engineering online where you services, like course, coming only manufacturing, been thinking last also couple early of before days. of And to that modern technology. customer, has areas technology the even the sort about years digital that's in of And

we sort clients to really deals transformational strong on industry capture need spending where that's are when we increases. to They today, is the there. because being the And the meeting and as where be So transformation. the to all then to large So have prioritize they the focus clients right? very reinvention. of positioned see technology get to They to need get get it

And in seeing that you're why first that's emerging seeing the that the have billion in in months -- the built even fastest early as you're sales X the sales constraints, of $X an is With interest GenAI. year, ever we tells that of what clients the importance you Accenture, we've that to everything is exactly And technology. going where to and enterprise reinvent right? understand for that's part have the done the last every they're decade of at it AI,

enterprise, in not future. partner just strategy we all which use confident the why reinvention industry company, operations, to of for and together And exactly functional deepen be you see reinvent. to comes consulting, it build for expertise is and and the the but about industry these across build, to this the because results, can to moment to the in I'm the what Being super go strategy that's from to technology,

and makes that, there these maybe across from the catch with million-plus a Any like Accenture large pull-through activity Yes. of become sense? will No, to to all you follow-up this just deal bookings trends I part am my But or -- early deal convert that $XXX size GenAI GenAI, on said. of if be confident will whole some that that confidence question bookings.

you that's layers So that. right, bookings doing our of are is a resilience right? we $XXX of couple in million, this kind over period. and base, just that That you during things, that you these resilience what see When gives what -- of

we've we on seen further projects. As smaller constraint the said,

really guidance, you've perspective. the deals, from feel larger But about got resilience a base these of So good the why that's updated we right?

And then client. at this right? is, how know the You're you

their heart You're at the of business.

we what past. and And in increases, the deals it work. of the represent. how catch doing all we've that's demand. that's strategic then And large That's it, spending run the how these as really You're pent-up kind you see

capture of course, fiscal as the investing back way, year. growth, by in to which to start our see the And inorganically at of more we're really you'll particularly end know, also you

next question from Deutsche the from Your comes of Bank. line Keane Bryan

range. XQ if currency. quarter, currency does third for of that's guess, is the the of a midpoint kind quarter? to into number the X% I Accenture What that a constant have midpoint visibility you ramp-up midpoint of KC, constant of kind fourth going implied like in the X% the in do the

Bryan, correct. thanks is -- what your guidance math That question. be And Obviously, your right. the you're for say. would our would

full In terms of the than our guidance. year visibility, different look, it's we year part in time any what have the for this of really no in past

the to what our time done There's in visibility as provide with the we relates this no we've have to are X% same Obviously, the year. any other year, outlook time. And analysis other not we forecasting you whole year. just it any and of our X%. We the year back to of the of half do difference guidance

I'm and considerably quite everybody doesn't trying it, that update their and data just scale. would Why in business? AI just You got to short And get turn think around it, needing in thinking out spend clients into then, it doesn't to figure up demand leverage that AI to to order get disconnect would translate the there. to translating. in the but on the to order Got term leverage that about it. ramp Julie, stronger

Yes.

So there's X things.

their prioritization, to right? right? right, as you all, on So spending, overall constraint it's about opposed it choices, make So of first So being additive.

their So budget. budget. They're they're able not extra allocate prioritizing to

a now do this. to right substitution more opposed seeing to, we you're as of need So "Hey,

uncertain budget." I had corporates the that's right? given one And put say on have to macro, putting macro the to diet add constrained. Let's that's themselves tied banker people a that the

have the to remember the to data great can't is right? Bryan, be foundation, that The jump You you need just second to thing, you in cloud.

You've got to have modern platforms.

ready And transformations the read put foundation, to is to right, they're higher doing the you data bookings, should -- be the higher clients what big often that client so the right? doing into in these times

XX% There's are right? of XX% clients modernized, of cloud, in been haven't only haven't of roughly in Many the still the platforms. our those workloads put

have that a you are foundation create major modern, don't isolation. you If don't to ERP the data GenAI platforms in fuel

of big as to business or you've the there's big, do digital they're what's we've the in they to and go. more a be don't So do really now to the value a lot to get these build And AI proof like they larger order people as use and of driving ultimately core. but they're need complicated, the able got to that's complex sense concept, these transformations. to not see. And the of hard, they're Like a said, in transform in part them to just transformations

you -- so AI. to And jump it's again, can't

You've put all clients the of yet, is opportunity. got a which there and to lot our aren't pieces,

next of Faucette comes Your the line question Morgan James from from Stanley.

the time particularly and number talked different about moving Great. in ready we recognize et implement XXX on customers of at getting et stages. I How business? And full that I over and terms will new mentioned, How affecting line into you solutions, for that kind is of cetera. around time frame? preparing you've questions we bookings the Accenture's cetera, -- how implementation some the record like follow of AI, and everybody to then wanted or to about ramp the and million. about, should should like first, new think think

Yes.

RPA technology used the capturing with have Service, evolution, mainframe same cloud me AI-driven you GenAI, we strategy -- SynOps, that right? So maybe went then the and new around of when to and server, every client right? growth let and this playbook we wave like things opportunity just When to from as So automation in saw myWizard and right? is to a Software start from the just then

the AI, and there's are of generative new coming sort lot because we've technologies sales which, our these a fastest see of as earlier, you and The same interest, the first through seen for that our in in be starts them, have create $X help the of with want mover that's to we're what we use doing our and strategy strategy. investments We billion why the said technology, we're leader. ever with with to solutions to the I clients

So it. our be we want clients first the use in to mover helping

first invest what that of does, And transform. mover positioned did clients formula our with be they we with the the itself And like mover, is because because right, it -- digital, strategy platforms. we're The and our AI our serve first if it's the with the be and our technology then automation, adopt that to to all big right? with early second all clients, using proven to to of in capture in our a the be part need opportunity to we

requires a that Then got And working, just I ways right, to digital the went AI. build your new lot, responsible actually use and like you've of as to core. new it capabilities to change talent, through, upskill right,

first to they be they use up we of need use their reinvention. to their do are results time, their capacity AI the frees how we position, GenAI massive makes able be positioned enhances mover, then also investment then the to now and at the as It reinvest it right? are over our we the And course, achieve and of GenAI differentiated. using we enterprise. which to deliver, a And clients, starting that to partner the more already When course, tech we in lower which us are best competitive reimagine the allows to more our cost,

about right, as lot be jump right? of right? a And that core the use growth, built, step, You right? to technology, It's not the you've of got you it's got can't magic that digital AI think but because, a remember,

to going build you're productivity by function the to then you growth. But you get have change the go work function to as and way it, actually the to

clients to see as we're focused really in of on. be to positioning their And and the what both be going next kind this are decade our first ourselves we partner being places. be the of So mover

layer to larger Yes. deals our of were for deals as year. So terrific, and talk and that second And that's take right, X% for in quarter layering that's smaller deals. why X% you're they see the have the first half full do whole the volume the smaller we right, the deals, the of guidance And of right? going bit back year the half maybe to larger in guidance, in we it I'll question a little to work slower about have than year. our on how the the the we pressure and our But in relates

that HX. to Now kind we've really let talked this for and just that it before, feel guidance few me for we means but good And about what reasons is do a delivering reiterate. about of

And to that important The this than drives that And you year. back more year. about growth. that But in do first again, investing with advantage in really competitive inorganic that really the online growth, first talked coming our half but in invest. see we did of half the all is is organic that's Julie that do in HX, fuel we us last year that we the acquisitions of the to because that we have saw and ability

second in us done layer of that we years. larger as it these the the is to the the ones we as they but also see revenue, The will year. And thing relates deals, have previous to continuing that half benefit on from transformation back

both the And talked strategy, and pivot inorganic to scale resilience that our us terms to being benefit, of has being in to -- really new growth. strategy of areas where our in need to of just Julie to what continue about, clients our speaks

kind of deals of how so online, from comes when terms conversion together that's all revenue come And larger and that those they James. in

for about of the be context year. work that year. And see consulting is to about mid-single-digit of the and add now maybe managed probably the means to see we X% entire also I'll we growth just our a growing flattish, from the type type for services what work from What of X% will our

start before sense in a KC, typically, do of how investment, about type trying people a the think quickly, of And of time think should the to of margin how that same impacting get you I get But mean, as doing debt when we that we just to margin expansion. well. can trajectory just Accenture's you're to as about terms little how affects acquisitions, there's bit expansion? Great.

to just the have and that really discipline for of out of but of first full in that for profitability rigor I'm operate that. the of all, the the our really growth points X%, that year we the Well, EPS profitability half year. first the just I'm Thanks and for with outlook pleased Yes. half -- put I just our want to in. is we our growth and business continue Margin first profit to for year flat, the

the expansion half making Well, XX now see business. the continue high Again, business in where year, basis continue, you back people investment our Julie we're at right? people have to talked our look the really importantly, see in very it. in all the we investments we our of is of points and So our as about important, and levels

of We year interest strategy. we all still makes EPS, nonoperating our out at capital you. whole point a no balance. One on X%. higher to see for to X EPS with can allocation I In on cash. help our that In half, which half lot the higher our benefit of just first the you cash our first from -- X% We income, the continue concerns. sense income, the cash of from will thing with to about year did see in went We'll X, great

not income. half see the surprisingly year, have just cap interest lower we'll with model you'll the of But back that lower cash, -- lower in as you

EPS you and second working the half, the you're might something that that's through your want as just half So consider. modeling to first for

Bergin Your next question comes from the Cowen. line of TD from Bryan

and we are you some just really in waiting on internally how enterprises what I'm here back as about just into of Or on a your color economic kind of have that work? be for. longer shorter Just you're for release holds what backdrop? clients up, conversations leaders, thinking I'm share just data curious, here and hoping Julie, might to can generally programs a based recovery cycle lean slower kind So spending the catalyst are and with watching

think Remember, I Look, they of couple a be going just there's set budgets. to right? dynamics,

So we're in their is assuming budgets the most see, general, for year. calendar kind tied these are macro. constraint to uncertain of we of the And this

of we've budgets, and those the things. So kind got set are uncertain They macro.

right? everything all ends you a in So August, just -- year. talking And just as terms this, I know we're calendar bit about reminder through giving the of year Yes. reminder, a of that it's halfway know in guidance, over a little there's fiscal that our but

Okay, okay. sense. And just of it of here. revolutionary evolutionary kind GenAI, makes relates versus kind the questioning then That to as

growth? Just language how to large really to given needs anything we be interpret as your driver for models, work how that most do a clients done do much with these of

tech higher Or normalized drive might more of spending think become to comparable you potentially of that enterprises GenAI does just enables should meaning, growth, more take wave because this all of as normal? next about levels long for we does get there? enable a large this to So a level when growth how

bit kind of technology that What you a more to right? I'd as say that But about is is realize that. -- faster, think there building terms it. Each has you where one is on really of right, this of clients look go, digital fully at out lot continuum we core, and to the in prior our this of when little been waves, a especially are need

of Right these this what the see more in have way the we we past. our prior that's things now, kind as So like evolved see.

comes from question the of Baird. line from next Dave Your Koning

like your little just you much question, IT seeing do their attrition, of now? that employees, clients seeing demand right own my you lower take that guess, and low -- now? is I company, the now? employees employee issue a more right the just their attrition Are having them just are internally And probably bit every right own

be pandemic, up technology being they We obviously, to right? our advice, certainly are more their said We've have technology. technology during the at them seeing clients with important, invested our building should in so our -- internally

a lot depends those on they've it of, sure, your clients, our -- it So because not of all really positioning. clients, got

built And up, want it So it IT. smaller some a really of our got So the then they depends are. differentiator, clients, they really on who right? that's and not others where we've

of got sense So I doing outsourcing all clients as But their really it's in-house to certainly more, it's strategy. for part right? we've we map as got very clients mean, more it. over company-specific the because And what other makes sure,

Yes.

the on something guidance year? just The for normalized? just tax itself. just to rate, that And KC. clearly, Is more rate Or tax quick now lowered this one-off one that you is something Okay. that seems follow-up

Yes.

really that rate. things those years, is X together. tax our income, of from prior year there's that to year geographic it increase and tax equity any the our lastly come on the settlements same really really are previous are that So tax we There of and things rate, how the every do impact influence just any on need mix liabilities,

that's things going confluences they really X Depending where those influence the to So year. on rate. same or fall, our how are on every land tax we

-- this X-point to it range, drop aggregate, but year, able them our we we we so X%. by were in keep favorably saw And so

comes Your from line Jamie next Friedman Susquehanna. from of question the

are cloud. I curious, really doing was technology better back seem answer thoughtful other that Julie, big you I innovation role like your February prior how of on was than great like very have does a architectures, session context in it as about Accenture's I'm XX. picture software tech structure, question. broader in and a feel parts And But about realize of the services. technology, your

So your tech I'm the on perspective just of services broader context spending. in in interested

you spending, can need, constraining when to licenses. you're back spending, dial time, pause that you've you parts a right, for licenses the overall that." And we're can got So other where with easily got -- you've for you at to software, can your technology right? you you're for wait with question, of than to when invest providers what right? different Services signing in I It's absolutely. need you'd "Wait. things like same I more got where that you've service in just imagine No, saying, and go discretionary that. really these Yes. great and you're for up where seeing are it,

a services "It's not have bigger as other little a So cycles, really say, discretionary. to different than more opportunity it's

of that around. times, services to bought Because can licenses, of than got that and Let's the software going I'm cost the change significantly wait. be Even if the all you've right? lot I actually you've do to the the cost." a licenses, incur got of the wait higher all Because to

again, of anything uncertain you've than different macro. when an So sort see we got don't

they've And transformations you You still cut discretionary spending for big and really your it's in back. got that. seeing look replatform you're not that's because happening around course, discretionary, the to and why, of

So about normal of is it's consider of kind this of kind what like a mysterious macro. I in nothing kind it

of That's record that, the us, all billion a for year. even just right, $XX half right. with still have spend bookings And first we reminder, I think of the as with the with of

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

Okay. of Citi. That question comes from the line Shirvaikar Ashwin from

that ones of back the sort the of lens bookings, using them clients question signed at actually bookings. they Are revisiting going times Just to applying maybe of rapidly prior, year existing last evolving and/or relooking capabilities? AI

is as indicator kind then those implies, what And that can bookings use that of past extent growth in? and of obviously, can layer how that then we backlog happening? To future and soon

Yes.

just it. kind of -- maybe financial part Ashwin, mechanical of just the more take I'll the

what our been was change We that have services would a us year. what working about spending that's we backlog. in projects. And contracted, into have the guidance on not already new talked the that's sales, new factored dynamic smaller the work the really we And for and call we our seen

particularly was a interesting it. that was on and then LearnVantage other Got Udacity. the And I thought deal. question

so Could every different rationale, downstream maybe. talk walk be on? the and could us that There through mechanics approach maybe you and the deal, here. investing is seems you just to the of If a talent company bit impact in about

is AI I'm #X clients about the clients. to do -- do CEOs, item about Sure. rotation, they to the you #X. for and And have is what Thank talent what Talent for our right? you it reinvention super agenda we're means, doing have because critical because rotation think so right, an with the passionate when LearnVantage it's a

to get And technologies. in is on it, users, does make for foremost, to to right, Board training need become provides to everything example, and LearnVantage the decisions the business AI, the for to new ability C-suite, from be to deeper the to the able they first the what right the technologists technology

Board to And from so the really the it technologist. goes

right? able ourselves. approach essentially we Udacity, with is uses, same So $X provide Accenture to And the what we're billion spent over

learning do. use latest hours and employee. we per average we science -- our saw have learn And You XX to

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ready. So they are work

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created this has ability. Udacity So

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it. we're So about really excited

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So we highly, see LearnVantage is highly strategic.

that has it we And by which learning grow. we we're also expect and actually a -- the internally, doing -- expect have managed companies way, to service also the investing today are to manage now services to

excited. very So

corporates And then journey. finally, as we all people responsibility to our along have as the -- bring our a

consider It's help communities. worry should the AI expertise, clients our things right, for really our Boards. And bring It's to to we it we that people upskilling important And is to our right thing about important really it's like bring and feel so do. important. to people their all proven important, able displacement, their really, ability to be when

Great.

of are our day your day what continued of every people In Thank trust So you shareholders working that our thank assure to for I continue for to closing, do want you and earn thanks, everyone. to every that trust. support, all and all we to you.

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