Accenture (ACN) 20 Jun 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Accenture's Third 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'Conor. Please go ahead.

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

As Katie the Relations. O'Conor, I'm Managing Director, operator Head of just mentioned, Investor

Chair hear our short McClure, Financial time issued review Officer. had Julie will the and you've Chief you hope ago. opportunity call, Executive Officer; today's Sweet, On a our an and We news Chief KC we from to release

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

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

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

Julie. to me over let turn the call Now

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

to are leaders want given and quarters, excellent KC last thank the and extraordinary X in quarter, for these of years strong outstanding down Head get years, role we I who X who know who partner Each service you from an stepping Paul. who's Ellyn other Before of the into and on Jean-Marc, stewardship next XX former her been will three all in Angie, our including Investor December as have demonstrated KC successors, succeed X. Relations, developing over

our we great always, with a smooth transition next As leaders. leadership executing strong to of are the bench generation

client's our needs yet results, can quickly growth building agility to our actions the and as laser Now a I life of we this conditions next for QX resilience the fiscal in to seen pleased to year. business, quarter. adapt on be as our foundation stronger and to focused are again am our into bring market on quarter remain which go and to

large-scale response, industry deep moved decision-making pace and slower have call adjust end-to-end delays well. In strengths, reinventions. enable quickly in transformations, these with spending services, functional smaller and projects, As continue client we slowly, differently transformations, spending, fiscal prioritizing particularly you limiting revenue know, this more conditions clients year. convert spending to in with our as leveraging that a expertise of which these including while by we to than or the large-scale developed our beginning the expected And fiscal of unique year, discretionary what our we at

for while example, to partnerships expertise our that and GenAI, are culture machine leveraging demand, shift at scale including, areas to deep and agility us the our and for We continuing new of ecosystem learning also invest technology future gives to growth.

our clients. the strategy clients demonstrating accelerated transformations, year. the our to partner X With results Here fiscal into is these reinvention our be we our of and are strengths large-scale how prioritizing strategy quarters have

another quarterly than clients XX year XX with including Our success X bookings million, the $XX.X of than more $XXX greater is to reflected clients year-to-date, in bookings last bringing such of this with these at billion, our total bookings time.

our is focus being return strategy to This important of reinvention to part on stronger growth. the partner an

enter from back expected these revenue discretionary As when bring as well next at the bookings to increases these work the this capture ramps, in clients. and continue of strategic it year, we to deals our year, we to the is positioned are layer also throughout positioning spend large-scale comes in because

comprised GenAI we two of experimentation growth, now in important We in smaller in leaned primarily the also quarter, to achieved quarter, sales in in in revenue this year-to-date. $XXX into our FY revenue $XXX have million we And With over new also have GenAI hit $XXX bookings milestones. is as we compares GenAI million projects sales have of GenAI, area This are new which million mode. clients roughly in And $X from approximately year-to-date. and million billion 'XX. $XXX this

clients from long-term in reinvent our stages benefit needed and maturity adoption, the to toward early early positions rapid We're to which leadership take transformations. GenAI large-scale taking in frequently GenAI, critical Leading of is technology, with which the also actions and in to eye an help despite means this an its evolution. us lead still

used last decade, hot have scale built new into And strong a expertise sheet. strategic and have consulting. expertise build in in and continue expand over our geographies in leveraging We acquisitions and making this functional our industry to to areas, strength balance areas growth we the

billion of to number entire across capital total $X.X XX billion markets as bringing XX, geographic for capital FY acquisitions, our billion with in the across the $X.X acquisitions QX to invested of 'XX. of compared deployed $X.X We year-to-date

our we the GenAI, our with person, due learning training per XX to this people of creator, XX coming million an hours our hours in to years. organization GenAI quarter. prepare This workforce business talent increase averages in continue and invest as predominantly for approximately infusion representing we across continue As the a to

reaching our and of workforce AI workforce, data AI to approximately XX,XXX continue FY 'XX. the from also end of XX,XXX data against XX,XXX goal to practitioners We AI and skilled data doubling our by and steadily our increase

up our rolling publicly take We of to share share operating FX-adjusted revenues for closest traded flow quarter, market continue we basket our We local in slightly against billion how by $X competitors, the market billion. XX on global basis our is of margin cash adjusted basis currency expanded and and range. $XX.X calculate with of free which of X-quarter a above X.X% midpoint the points delivered

our I X, around want career to congratulate and Managing world our through to paths. reflecting June people to providing promoted XX including we to vibrant have Director, the Senior commitment Managing XXX Director XX,XXX

Great XX XX% on of India. Chile and in Rica, Finland Costa our Philippines; in and for more the to Best than are U.S; Workplaces; Place companies and Singapore; #XX people, listed on Work, We in Argentina, #X countries, to representing Indonesia; Brazil and #X top recognized work #X Business in place as Today's in the a XX #X in in the to work #X best

And prestigious an value of recognition XXX in brand list, the proud Global Top Most our XX% earn position strong to billion. to Brands Kantar are we BrandZ's to increase our Valuable #XX on with date, in $XX.X rank brand, highest

us consulting, strategy, uniquely depth technology, and and operations, scale new Our make industries technology of breadth functions, data, using and across across reinvent our and ways AI clients working. capable our of helping and

of yet joining little on to Before expertise our attracting great identifying, again more invest our integrating color strategic which importance ability the turning this and and a companies quarter, in to demonstrate both KC, I acquisitions want give our to Accenture.

training is learning area Udacity people. start the and part growth scale announced acquisition Udacity our of areas services learning and reskill of which clients critical their new our for of a last of future. growth. with our our to and Let's digital new a platform, technology We LearnVantage to help as completed we quarter upskill

-- agency platform. Building we drive customer-faced on to proprietary our We behavior, award-winning clients' a as with by of customer understanding human invested Unlimited, and focused agendas. insights data our deep help expertise evidenced engagement human understanding in its acquired an lab AI-powered growth consulting,

of seamless industry Lumery consulting services. marketing, and organizations technology experiences Australia, planning, businesses implementation global marketing across analytics and AI-powered leading provider insights, and analytics experience operational and including GemSeek our Bulgaria, technology and through platform acquired stacks, helps transform simplification. We services, consultancy acquisition closed a in leading that customers marketing helping We models. in provides customer It understand The predictive entire their deliver a advisory customer excellence

digital -- cloud global Mindcurv, experience -- analytics native company a we services. digital And data a composable in engineering and global software, and digital closed specializing commerce

technology in and in Now Services acquired let's solutions for Cognosante, provider turn industries. With customer a civilian safety intelligence the in health, several portfolio acquisition, We intelligence Federal for with will innovative industry agencies. its of as provide which federal service management and health highly U.S. support federal IT and business. new public and areas is the defense, defense to next We serving scaling creating and particular, technology, this justice public a for sector invested hot We globally public focus and, see health, and strategic years. VA, Italy.

And industry, we semiconductor another attractive for systems the invested focusing industry Teamexpat, testing in in integration lithography on segment.

European chain, Flo business is area. Oracle global specializes and major in investment also scale helping in growth Our leading a Group, consultancy in who supply supply a logistics, partner us chain

CLIMB, very we're Japan, in markets. growth. Over to in strong -- we experience scaling Finally, a continue revenue We technology-based acquired to KC. attractive geographic based where consultancy you,

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

results, QX were in continued with line investment our We are expectations reflect which scale. pleased and with our at

partner to clients, running discipline. with while our continue for business a We as serve and our trusted rigor

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

we our market to take growth, CMT improvement continue industry also see We and continue to share. in

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

over was in of significant XX.X%, people XX basis our business. points Adjusted includes last QX year margin and investments continued an operating and increase our

we billion repurchases dividends. billion Year-to-date, and Finally, through and $X.X to billion free invested returned we've flow across acquisitions. XX shareholders delivered cash $X $X.X of

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

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

approximately in X% and above X% slightly and was range, a the adjusted quarter. the for Turning midpoint now decline at to U.S. the our revenues. billion, local guidance beginning compared X.X% $XX.X quarter currency, the of a of in were FX the Revenues dollars estimated to the FX X% as headwind increase headwind

for Consulting of revenues currency. and a in the U.S. Services up currency. $X local quarter decline were in and X% X% billion, in X% $X.X U.S. Managed billion, in up revenues of decline dollars were X% local a dollars

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

geographic led North Turning offset and by with decline X% markets. Italy by declines Banking Public by and France. in growth grew & Communications in Markets. to was Capital a currency at a In local revenue X% Service, EMEA, local Revenue growth offset offset growth Media. Capital in in currency Public & Markets our revenues Banking America, declined decline partially In in Service, by

currency driven local by In growth Australia. Japan, Banking by X% growth a offset markets, partially Capital revenue & by and Industrial. growth in grew Argentina was Revenue and led Markets decline in

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

XX in recorded note business million that -- by with in I points, Before by basis and actives $X.XX costs QX margin an of our last by points, respectively. $XXX and I continue, in million actions, FY XXX want $XX this we optimization EPS These by operating year. margin costs associated in QX operating in to basis decreased 'XX, FY quarter, of $X.XX 'XX EPS

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

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

rate was adjusted XX% quarter quarter of effective compared rate last the XX.X% tax Our for adjusted with effective year. an for tax the third

diluted third last earnings quarter in Adjusted were diluted of quarter compared last outstanding the per $X.XX days in XX year. XX Days adjusted to third $X.XX services and days days were year. compared last quarter the EPS XX with share of

Free property and billion, resulting cash flow million. quarter was generated equipment of of billion, the by from net $XXX activities of for operating $X cash $X.X additions

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

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

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

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

In good capturing now QX. are to results in while to closing, about leadership. in long-term opportunities, on working remain invest business our focused deliver for feel market and QX continuing hard growth we We our

turn back Julie. let it Now to me

you, KC. Thank

demand in I of terms of the As the we're earlier, environment. seeing mentioned more same

we're Now how our be to context why on let strategy we're our uniquely little the reinvention AI. choice of helping give executing a be partner clients positioned on to me and

have across And are clients from With digital that with and a widely needed a GenAI realization truly new most of starting recognition the data part more implement near applications to clients enterprise is continuum. to It is strong all digital needed. cores GenAI migrating strong remember is are which strong small cognitive there's it the the while those clients ERP seeking a of AI the is varies AI the nearly core genuinely and to AI, projects the layer. now modern of across to scale while enterprise, ability the which a implementing difficult of because to a the layer, to to a important the coming cloud, what scale applications use technology move importance reinvention, finding heart with quickly, at of building on universal to investments security

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

after acting In go is opportunity catalyst clients coming more which work, And for significant creates as short, GenAI a us. digital is to companies to core are build why the change they for cost, truly this and ways aggressively us. the

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

Our technology has ecosystem important. more never and privileged been position

partners our clients our to working and backbone value. right AI to closely how the data needed We help that with understand and is tangible achieve ecosystem are business

give few me examples of building complex core. let reinvention a the digital work Now of and a you

new We cost are with of savings Currys, retailer European by new adoption a its unlock partnering accelerating leading and technologies. growth to technology

such cloud faster, new in-store to and core. platform from efficient us digital areas, centers, allows procurement solutions First, data and experiences, AI e-commerce, key to create a customer unified automation customized repair customers. service, a to powerful services center in to using operations their data we as more a and deploy generative their will foundation legacy move delivering prebuilt growth This

the supports cloud more transitioning goals, a move to a efficient by sustainability company's consumption to energy reducing platform infrastructure. The new

employees empowered online will both Now to stores. and better customers Currys offering in serve be their by high-touch experiences,

future customers. leading We're Southeastern health working operations, modernize headquartered current a Pennsylvania journey with serve way Independence generations Health a the and to transformation Group, of they IHG, in end-to-end improving organization on

members to proactively immediate health. to processes. AI to expected existing We will drive the to help and members' platform, X improvements generative new manage business in This technology migrate advanced lay leverage will nearly million a digital-first foundation

We to in helping quality, With health continues improve increase its rapidly employee retrain operations outcomes, are reskill opportunities Independence for also service areas new positioning and experiences health them staff, creating the and this efforts changing of better reinvention, enable development. their for ongoing care landscape. growth

their Digital core with work also tech, enterprise industry. design work our and the requires deep industry to expertise their as reinvent clients we AI to right data and

American retailer technology Macy's, are an iconic a modernization helping effort. with We

and a efficiency As a their growth. allow that be their mainframe enable This move agile strategic will platform, more will to will a we technology operational and Macy's scalability. execution partner, to migrate systems enhance cloud

are the line We to the diversification banking United growth, regulatory digital Bank with of sector, for the the financial helping the body in and transformation in strengthen system with to Arab of responsible vision. a national insurance stability the UAE's and Central sector, the and Emirates, country's contribute innovation

and with by improve Our licensed regulatory creating deliver support streamline advanced activities analytics, compliance. to institutions program AI-driven automation to supervisory processes along for capabilities financial will best-in-class

modernize UAE's by financial single enterprise a will will implementing a enhance as the portal data to service's all bank's also position holistic a which management the view of center. of financial global We ecosystem, the unified provide

growth businesses revenue streams services with to Media a OX, We are to the Virgin carrier the provider U.K. opening of realize and XG, leading market. support the telco partnering in promise in regional stimulating new

security. safe use data edge as behavior GenAI and which to computing, on improve monitoring inspection, AI, and such We will combines platform, customer to quality bring operations our embedded management enable This experience. orchestration workplace cases, market solutions edge built and will

OX handling can offer on clinician and businesses workflow venues building experience or in supporting that this busy sites, performance. scale and solutions of creating flexible, a Virgin can managed we Media with health services crowds communication while together safe our affordable now devices care, efficiency, growth growth. secure and boost And range Media work customer with OX enabling and and Whether Virgin it's operations, vital fun a to

critical core. growth -- double-digit in this continued We in is part digital digital Security the of security saw reinvention strong very a business our quarter.

with are that support with operations readiness. enhance U.S. data the capabilities posture will security cybersecurity its Navy We mission to strengthen and cutting-edge its partnering

More to and information important than are critically data national ever, security.

ensure Together, solution at to around sailors and our digital combat operations mission defensive world. operations. provide safeguard to protect assets cyber Navy Our help sea cyber evolving configured networks American are U.S. and sets threats, will defend Navy across we help can the the interest

a foundation, Once to clients explore opportunities strong have growth efficiencies with they GenAI. drive can new and

We are already new helping of part create leverage and the to as core built a value. leading beverage its journey a generative who digital global AI reinvention food company to strong now power

and days and Together, this cost a customize for and to with Once of content company engine engine deliver X year's content save significant to and produce effectively. to marketers XX% and pilot, worth shelf increase of scale, GenAI just optimizes content time scale, up content and to enables reduce targeted drive efficiency, e-commerce a expected they time digital we quickly X working experiences. costs creation sales. customer at that audit transform accelerates to more The console to developed the it empowers to sale

the speed, service efficiencies. with enhance parted value at strategically National drive financial Bank, one largest We implement and and have relationship-driven scale customer generative create country's material to operational to AI Australia institutions of

built the scaling delivering of been underway a and strategic cases platform XXX number the a existing within X of AI date, backlog. with with and value. have pilots on creation GenAI enterprise-grade use over robust bank, of tested bank's of in To a worked already data across the methodical those these and We platform use generative XX build cases secure

each a delivers to delivering ensuring from tangible also methodology stage co-created projects GenAI scalable We experiments business benefits. for deployment,

so, National of expertise Accenture developing doing policies Australia the approach While AI at AI and risk safety and and in-house the through Bank are putting core literacy. responsible alongside

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

Song this grew mid-single digits quarter.

modernization platform carrier of Powered to SAUDIA their platform helping flights customers platform national in more by words, a continuously an transform will traveler's SAUDIA time. to plan modify is will in Airlines' solution, one-stop the the provide just enabling while GenAI, trips their the experience. providing digital Saudi a Airlines, launch and journeys, are the flag of standards book support integrate evolving and conversational of The a Arabia personalized innovative We to vision services few experience. will and a redefining all digital travel over seamlessly This the world.

continue We X demand digital in manufacturing strong QX. Industry digits services. for high single see engineering grew and to

a reinvention large their Pacific Asia manufacturer supporting are towards software-defined We on automobile vehicles.

streams: optimize electronics; center will infotainment; driver development manage software This quality, software advanced We electrical help accelerate of four excellence of pressures assistance delivery and excellence cost and times. powertrain. create key a to and and center systems; will in-vehicle work

the its By enables experiences partnerships, providing empowering expertise software-defined realize and vehicle's enhance the are and advanced software, functions in-vehicle full drive leveraging passenger strategic cycle. the to of company driver strengthen them our life to we and throughout vehicles. evolve potential services and This and innovation,

will to the macro spending, manage to all we current in of for investing continue our and strengths leadership conditions And the while future. constrained leverage

Back to you, KC.

Julie. Thanks,

our to turning business Now outlook.

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

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

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

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

be results. margins, we operating to adjusted expect to fiscal 'XX 'XX For a expansion XX fiscal of continue XX.X%, basis

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

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

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

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

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

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

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

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

KC ask high could Hoping you to just level. you and just elaborate that both Maybe Julie. stronger a you to next just guys. I I'm year. excited mentioned for for wanted on Congrats growth of upfront at Angie.

But I a inorganic weak lot this moving a the global have hand, sector growth. and lot in strong one half with other On with pieces. of discretionary know there's the is a large the elections of second you deals, big spend, year. hand, on of uncertainty the you struggling have backlog, there's

next you just X%. recasting Can -- I is for year? outlook us some are know at, we're year. know just give worth as for maybe underlining, guidance high-level you So next give our considerations that what, can't consensus formal just I

And thanks question, for Tien-Tsin. Sure. the

spending. in obviously, develop of at for beginning things of expectations anchor you're year were what the let's our different year with the how So this growth just X seeing and terms quarters because, on strategy in into

and we these So We They leaned what clients do? reinventions. what need need these into they transformations. need, big large-scale do did

clients what seen so you've buying. us to that's is and do And go you've what what need, got they're the with

is into that these time X over with why this accelerated have at our transformation we of year than we $XXX million. have large bookings see more last so deals, And you which leaning of clients

do Now because we're that able are be to to uniquely services. layer in. market to transformations these they as and this positioned large-scale up, we to And they they more you'll of require revenue accelerating, very a ramp will start slowly. But in these convert combination know

expertise, the services, from help move the them Everything GenAI. do through to everyone faster industry to managed our ability towards with that wants eye our

to transformations are though with preparation even want really understands GenAI. a So they the GenAI, work often partner for who in

the how of reinvention with a that's there in, we uniquely so that so years. seeing acceleration And strategy that about couple as results of of next been a of -- And think clients faster? for this strategy, can a ramp And lean year with you the we compared executing do get course, and of quarter the we've -- of year. last to then that level bookings. you're those, And

remember, are deals is spending our second leaning seeing and where constrained we growth into constrained, in smaller smaller The in particularly discretionary projects. because, the is spending overall

GenAI did new we what growth. see But do, right? We the as

our people. an have ability to We pivot incredible

'XX. We're training our You by XX,XXX the at of AI the also in data can goal see our people. specialists and growing. XX,XXX now against end We started XX,XXX. We're of at

big that people. increase our because saw You preparing we're

It GenAI, a to be You're transformation. have but now not GenAI. you doing may understand

how that our uniquely understand we're GenAI is to translating. train scale able so people And to and at

last now to year X quarter We'll as and million quarters million revenue. getting look at our in bookings $X this $XXX the compared year $XXX into to billion

to all of for of in meaningful, at year. starting last terms numbers, the So be right, $XXX we million were

to So into we were, expect what is where understand to X GenAI. is catalyst say, quarters to from ago have the as we you lean continue what do. acting to very And doing interesting it's

just, I'll I'll here and inorganic. our in invest then ability So of course, finish to mention

now what does GenAI good to leading well positioned being still project it as reprioritizing. right "Hey, a great -- when every spending data about are we increase we're feel perspective I'm from the some very ready." it technology, pull-through, So people increases project doing. is and because other we're But But really of this not is understanding, now, is a because when of

future growth. the future strategic is is finally, remember, bring about all in think so invest our to to lot in That then growth. growth. ability as invest And I -- to just to gave a And we help how we drive organic about life acquisitions today it's script just

on FY clear all 'XX. We'll that So working, will But and we our it it. ramp is be we to see comment want like at strategy not trying to these deals up. also call

rate just within So very you this Yes. clear see the landed we But on pleased year, in maybe in our that we're fourth we our rate, growth just I'll And uptick do right? quarter. look fiscal have, QX, you feel in when to a add how growth just QX. where and with we for

growth that of year. our growth consulting consulting and think, expectation in I in since last is of return QX we had work of type QX, Tien-Tsin, included in And will importantly, the type to that work that haven't

Good. follow-up. less I'll be of my worthy

Just this on the pace piece, continue? inorganic can

let But about talk said terms our here. in I'll Yes. of about -- allocation. let's always talk capital We've add-on -- Julie this.

ability, we differentiator I it remains as ours have a and We to see we unchanged. be the execute, able the -- approach that of whenever market invest want that and something is and to think to

business we've allocation share able parts us and do our in and seen And importantly, as you've of different of all all -- And we're dividends terms capital continue over to the cycles. do we been buybacks able that well. when that,

financial a very have strong So standpoint, a we from balance sheet.

from fit Tien-Tsin. to and continue see to capital a ability down the as up have flex we allocation standpoint, We

for into make go drive we next we'll to Yes. to the decision as and think level Tien-Tsin, year. want what we I year as next

I we'll quarter. think So comment next

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

billion in the highest sequentially. I thing so, was years. noticed, or XX to up debt It was $X.X really One

have a you lot and debt, no cash. had of almost You've

So the too. strategy maybe just borrowing I money cash And geographic it's around positions, now? guess, what's

great Yes. that's a question. No,

small, you said -- in billion. started our mentioned, at It's debt. that have terms And $X.X now $X do of So our we're some very little and you we're bit we company size. a billion, for the a as about we of cash, year

a just have credit -- we've kind during billion. facility. and a we in had we're Dave, normal the We pandemic, during X-year credit facility. $X.X continue And exercising a put credit facility, do see, facility credit That's that some that you that just operation. we what treasury is about have of the -- right a That's to of

normal Margins and year, up the scale. a of And maybe lower as follow-up. kind just Okay. certainly this at end of

slower, the little maybe acquisitions. a growth the Just year this being

we think a a the the And pressure the forward? as of Or forward, higher, how spending putting margins we that few with little takes, puts moving parts look should kind of should just going margins? remain just and little next how we of quarters on acquisition does kind think of margin

Yes, sure.

obviously So 'XX. my to continuing I'll where But to out to are I'll what we maybe assume. comments -- point just year, this and keep we are just and

in that, of we our we'd stated XX and we could to this expansion, year ability So again, at quarter last be feel basis operating do we for the points confirm that full confident that. quarter. And Dave, margin

margin. you if we business So at run our operating -- look to

you margin we we've look just at pricing, and, the If gross and the mean saying margin we sell. talk about what pricing we on been importantly, when work overall, on that

important for what credentials. best think We ourselves operate been we an really us we've rigor our is be efficient run own I is with and operations -- Accenture in how that and our business and able to of discipline

selling business, we our costs, record the our bookings higher so billion of at As also across we $XX we which that feel that and continued in kind pressure good. looking you of we pricing really would had absorb expect,

points And we in if grew X% it, to example. and do look basis quarter, do X% We XX expansion. of margin were expansion. you points XX an to margin X, we grew basis this We're able as able at of quarter

with way feel the So run our we good rigor about discipline. we and business

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

KC. Congrats, Accenture. at run Great

You were awesome.

that number. $XX.X on an billion, services bookings spike the How to what of want And caused some give us I managed that maybe on renewals? flavor that in growth. is outsized ask So the new bookings, versus was on much

I'll numbers. give about I'll bit the the talk little a you Yes. --

a -- record is In for bookings of services. managed it terms

have based we've been obviously It and the been -- transformational deals As we're talking. Julie on is larger doing. that

-- of those they -- -- It's and managed have do managers larger those services outsourcing would services just you managed to work while them. portion me, clear, type Bryan, work. or type transformational consulting of be larger with expect, deals, do of as have, a They excuse

our at noted, really So And did last we're a services don't X both -- always of new. there's over expansions out when as bookings, than would we -- strong or XX, what managed healthy do there. no year, X were more in in say, break year. terms difference you always. we what mix, business in We you do QX. But able see I already this quarters we we very to rolling a always have have And of that's strive to

Yes. And color, little just Bryan. maybe a

-- where services. you help because provide As our -- OX to is a think we OX Virgin provide provide Media using great have reinvention, -- OX they're, to new about this a right idea platform edge Media of combination example Virgin

and they're we're And They're they at that for so course, our right also it clients, their operations, looking now, the growth, for transformation time, And with of same scale. efficiency. supporting can customer supporting looking growth.

we're example is The I'd embracing is say other GenAI. this how great a of thing

heard You've now in which the in past managed our about our -- become services. talk helps GenWizard. myWizard us We platform, that's

our to using has -- managed differentiator be technology of where that early embracing ready seeing real used, a we're embracing GenAI, in services. been And it's our

on digital our focused expertise for order focus. and And investments that faster. helping them seeing reinvent very leverage to we're our using in So faster you're clients transform our move and

it. looking last it just being for dimensions just at flat, operations When I follow-up, a just negative of the was that? look Got call-outs at know some breakout. quarter. I any And

bit it's So growth But and just to a the there turned prospects. trying little understand the here.

to it So our Think platform. in our differentiate in -- ticked part quarter about it's embracing again GenAI -- help a strategic two industry business. ways, as we're of sort it's that pleased right? and No, it there Yes. remain we we're our and of that really -- in accounting, this up and finance very #X really

-- that how we're time. to they're we do in really digitize, a and clients we to focus need we understand our And that "Okay, over there's about in ability seeing enterprise." so more need we much excited saying, need as to They're our the

early build in, our GenAI, their we're us. that enterprise in to GenAI platform, very have to less our time and -- with in SynOps build them over it's building building helps in we're days Again, help still partnering side by

And a so differentiator. think, really that's, we great

continue of clients, chain services. or banking core it's consumer for into our in our our or business supply whether goods then areas for industries to core our diversify we insurance that underwriting of the claims and financial a -- and with in are and industrial the And core

of So we -- about continued continue and really kind business and feel good prospects. its the

question line comes from Your Equity Research. of the next Rod Bourgeois from DeepDive

demand And seen well. it to same. the some very At KC appears areas. as of in key Julie, the certain growth mentioned more you've mending time, wishes you of the sort environment is same best that

in the consulting. enabling for outlook improvement and and and CMT interested the S&C? CMT those the particularly sense growth vertical about improvements talk in I'm then Can you is strategy growth what and a of

So in really doing entire our they're to team want on that clients with work CMT. the our compliment

of talking new the So need, OX and what start order debt about we've you are little on Virgin critical Media that's been clients these some our to with deal, technologies. to a rid now as while, things of for for focused they're they and working so our that do in see use on like because teams technology getting

technologies. the They're focused new on using

then network. still have focused small, GenAI, a finally, are that, number we So very then while of and being efficiencies. on And on clients it's working

So the would board, I what is challenged. the industry was say really, across

you're they with that focused We seeing on to and help, where in results. going result have been just our need --

strategy and on on do consulting, all clients need. it's again, being about focused then what our And

and for And costs so we've toward strategies. example pivoted many more people,

big for So our theme, and takeouts particularly is a -- cost strategy.

of focus We like ERP implementing platforms in on still modern digital are the growth seeing the things lot core. with a

to again, faster. about the player it ecosystem just with industry It's technology, players, Accenture, expertise. They not need do wanted clients the but at we're technology #X all And right? of it's these our

platforms within so context. doing and we're script putting industry so of about how you And an the number we're in saw a examples in these

takeout with industry more move platforms I'd people, remain working we on seeing data functional where laser-focused wrapped and with continue need And say the to they clients the just And that's growth. buy. cost what around so focused on the expertise, cloud and to more we're

cyclical due shift seeing just a you you're And phenomenon? seeing that Great. managed if mix shift to forces. some managed mix that purely is as think secular I'm into services revenue incrementally Or of services. are you curious shift mix towards And

Yes.

terms that have I of think real components in cyclical a it's sector talking the and in about. is, little driver both -- what both and -- the those you're what larger of of deals bit it's

the is based So it really larger on deals. just

faster. highly type able prioritizing And Accenture on really with the to large-scale is Accenture services a that. as of now. what uniquely both scale are about into is doing Clients where Managed component very our strategy with think just and managed this do transformations positioned being of is and So market. buying consulting lean to in moving both such those and able strategic this getting work in clients -- efficiencies services

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

And appointments. congrats, other and the on and KC, leaders retirements the

First performance. progressed question Can existing minus the currency about how local talk runoff kind to X% business the revenue-based on within of consulting I wanted ask performance? you base just

sustainable comment more conversion your the trying consulting reflection a if stabilization base a reaching existing ahead. should that's where point to returning offset understand new consulting the heard bookings growth. moving the than whether on of I XQ I'm you're really runoff potentially to here gauge and

Yes.

really of what So -- talk really we'll at think Bryan, -- our mentioned give in I by and have of already just guess as don't I be booked will We terms QX. new terms what base about new look -- of sales. what's coming understand what a you mean and is runoff. what it it what I that whether we'll maybe and and kind on from way. in we backlog We is we

kind convert we for at will two is -- year-over-year what it, those that those quarter and of next already then way we so where points, overall. from pipeline assess will the what both we that's And the and a of the to how with be sales of about basis, sold we we Bryan, we in kind see looking see how evaluate, and we our think going we've components revenue, just so talk I --

that it's number a And again, very consulting, in of that to will pleased do haven't And and that that growth. milestone see we a -- return quarters. I feel we had it think

on comment we'll in year, for anything next I year, that. -- next mean with And pleased we're next else So September.

And any XQ? for And here. just comment bookings, out Can Okay. bookings obviously, then very expectations solid worth you calling pipeline? on

don't -- bookings. feel don't we give pipeline, But guidance and Overall, good quarter to to good. but Yes. we next feel about -- our we book we

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

maybe growth activity. on opportunities. up Can robust, the the you when you are follow any looking acquisitions a acquisition to the doing of lot at those rate generally really of collectively sense in what what are terms across do you've or good It's give and us of providing the obviously collectively been acquisitions? Wanted been businesses you

even companies -- there's a tend How those. the And those how change into that accelerate you to growth if as absorbed Accenture, -- target are to directionally? rates I know

Yes.

I overall sure to think with in our growth terms of we higher that buy. at we -- -- all make typically answering they're have at we your business cases look from is I want acquisitions, they come when that the I'm companies question

then and we to organization, assess broader pretty And put a rate. we high that are for to, -- through have pretty bar a kind those acquisitions significant with along deliver base comes we that metrics, that going Accenture. with And synergy in an that cases of case without growth obviously are

key why that. is And you business strong important we just so but integration that track not you record. because a do, of deliver in we the we're have very what really how to great case is to do having need is maybe that's integrate half on And what to

get see it to our done years, throughout time. many continue able the is you'll you continuing X our that how is the really what we've we've can And so growth. organic maybe can see look you how sense to question just over And to your fill to last and business is grow been at

the growth then in leaned And on of one health prepared the in where care government you've and really was mentioned is it. areas quickly, remarks sector, the there, and obviously. Got strong

medium-term about -- as about that? thinking that in investment grower And potential segment? long-term should How drive are thinking to that be or to a you we continue the and how any needed

transformation there's going Thanks. that that's vertical. public about on We of service. a in really Obviously, good feel lot

health a driver. see a as as Defense big big You driver.

IRA it's been doing There's infrastructure whether U.S. well. has or support, the of lot EU in a as what the

the in course, health. of and of the -- and a service transformation hasn't So public digital lot happened

being and we so And now the that results. that seeing the in see you're time,

XX think So have we our the like groups. industry we and we Remember, very industries. investment confident, we all about feel do

key -- a of part strategy. have is our resilience and diversification growth We both our

any investing differently, at the we're growth so given And trajectory. depending time, on

public And making several service growth been being significantly as we're we see now. in those called big out we've the investing and next we this because quarter, this area, years, investments a

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

from question That Keith line of the Bachman Okay. BMO. comes from

special I just first, think ask you time. of congratulations as it the I'll and and I'll make interest And a Paul, make transition. in KC I concurrently question, wanted the direct to And Julie, to this you.

that. under do openly And pricing under think will then the Thank has over echo you would just your GenAI -- curious about area is growth? And the really one, about of has the been I'm BPO, as do months. to impact of you I think pretty material really competitors over one you wondered mid-single-digit how agency I'm interested digital on about pricing you to for you duress? how as to duress wanted Why And Number XX growth. XX that future Song. the think impacting I second comment pretty your And if late. And why. been talked on over ask next

we going that is And impact also the reason generative have agencies. significant like spend a I have to a asked with lot the companies significant AI time Adobe on question digital -- of is

reductions about comment with And wondering you generative generative of how think of potential because some associated Song. the talking could you And AI. the growth for are just value the on AI that's I'm of And if me. seat will it impact agencies

want Great. Song. quickly I'll and then touch KC, pricing, to you do

in and entire that had, continued pricing, say overall, just time, in would quite on our you pricing this some I Keith, correct for in pressure. we've of we've terms business, been commenting are

statement on I that's So way on reflect that question. the your would

tight a Yes. market. overall, it's It's

is and proposition creative are and, right? where the here's you and On what of see. unique agencies that's technology differentiated so an because not by managed are normally The have So business our where value digital part an we Song, agency you services. incredibly way, business,

it this of opportunity as because these value, with a put but see we to help as get it so fast clients are we our as other And services. we embracing huge all together possible

we the We've in done great. we So had playbook, And wave. this Remember done every our managed long when happy SynOps services. did technology. think quarter embrace we Song. right? We it see XXXX, this were in and with uptick in And We've to it really myWizard. remember, growth is we it's term,

That we clients we deliver our operate. what and and and And help be to they technology use use them is we do. how efficient technology how it, more business Our is we grow. help and

We're we going And be -- for going going GenAI very that and another clients, we're to exciting do to fast, embrace see help we it. so do and that we're we're going to what way as a yet opportunity. is to

really feel we good So about our Song business.

Great.

In thanks, the want Thanks all I you're and all always, what your and each trust and for again, for of for So everyone, other and our the closing, much thank our support so of clients as continued for questions every day. people joining. for today. doing for to, our time shareholders

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