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What changed in Accenture's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Accenture's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+334 added−401 removedSource: 10-K (2025-10-10) vs 10-K (2024-10-10)

Top changes in Accenture's 2025 10-K

334 paragraphs added · 401 removed · 252 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

121 edited+22 added−130 removed70 unchanged
Biggest changeBeatty has been with Accenture for 9 years. Melissa Burgum, 52, became our chief accounting officer in September 2022 and has served as our corporate controller since September 2021. Prior to that, Ms. Burgum served as our assistant corporate controller from December 2016 to September 2021 and as controller for Accenture Federal Services from May 2013 to December 2016.
Biggest changeBurgum served as our assistant corporate controller from December 2016 to September 2021 and as controller for Accenture Federal Services from May 2013 to December 2016. Prior to joining Accenture, Ms. Burgum held controllership roles at two public companies and was previously an auditor and consultant for Arthur Andersen. Ms. Burgum has been with Accenture for 12 years.
Our business depends on generating and maintaining client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.
Our business depends on generating and maintaining client demand for our solutions and services, including through the adaptation and expansion of our solutions and services in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.
Our financial results depend in part on the demand for our services and solutions, which could be negatively affected by numerous factors, many of which are beyond our control and unrelated to our work product.
Our financial results depend in part on the demand for our solutions and services, which could be negatively affected by numerous factors, many of which are beyond our control and unrelated to our work product.
As described above, volatile, negative or uncertain global economic and political conditions and lower growth or contraction in the markets we serve have adversely affected and could in the future adversely affect client demand for our services and solutions.
As described above, volatile, negative or uncertain global economic and political conditions and lower growth or contraction in the markets we serve have adversely affected and could in the future adversely affect client demand for our solutions and services.
Our success depends, in part, on our ability to continue to develop and implement services and solutions that anticipate and respond to rapid and continuing changes in technology and offerings to serve the evolving needs of our clients.
Our success depends, in part, on our ability to continue to develop and implement solutions and services that anticipate and respond to rapid and continuing changes in technology and offerings to serve the evolving needs of our clients.
Some of these technological developments have reduced and replaced, in whole or in part, some of our historical services and solutions and will continue to do so in the future. This has caused, and may in the future cause, clients to delay spending under existing contracts and engagements and to delay entering into new contracts while they evaluate new technologies.
Some of these technological developments have reduced and replaced, in whole or in part, some of our historical solutions and services and will continue to do so in the future. This has caused, and may in the future cause, clients to delay spending under existing contracts and engagements and to delay entering into new contracts while they evaluate new technologies.
Developments in the industries we serve, which may be rapid, also could shift demand to new services and solutions. If, as a result of new technologies or changes in the industries we serve, our clients demand new services and solutions, we may be less competitive in these new areas or need to make significant investment to meet that demand.
Developments in the industries we serve, which may be rapid, also could shift demand to new solutions and services. If, as a result of new technologies or changes in the industries we serve, our clients demand new solutions and services, we may be less competitive in these new areas or need to make significant investment to meet that demand.
If we do not sufficiently invest in new technology and adapt to industry developments, or evolve and expand our business at sufficient speed and scale, or if we do not make the right strategic investments to respond to these developments and successfully drive innovation, our services and solutions, our results of operations, and our ability to develop and maintain a competitive advantage and to execute on our growth strategy could be adversely affected.
If we do not sufficiently invest in new technology and adapt to industry developments, or evolve and expand our business at sufficient speed and scale, or if we do not make the right strategic investments to respond to these developments and successfully drive innovation, our solutions and services, our results of operations, and our ability to develop and maintain a competitive advantage and to execute on our growth strategy could be adversely affected.
In a particular geographic market, service or industry group, a small number of clients have contributed, or may, in the future contribute, a significant portion of the revenues of such geographic market, service or industry group, and any decision by such a client to delay, reduce, or eliminate spending on our services and solutions have had and could in the future have a disproportionate impact on the results of operations in the relevant geographic market, service or industry group.
In a particular geographic market, service or industry group, a small number of clients have contributed, or may, in the future contribute, a significant portion of the revenues of such geographic market, service or industry group, and any decision by such a client to delay, reduce, or eliminate spending on our solutions and services have had and could in the future have a disproportionate impact on the results of operations in the relevant geographic market, service or industry group.
Many of our contracts allow clients to terminate, delay, reduce or eliminate spending on the services and solutions we provide. Additionally, a client could choose not to retain us for additional stages of a project, try to renegotiate the terms of its contract or cancel or delay additional planned work.
Many of our contracts allow clients to terminate, delay, reduce or eliminate spending on the solutions and services we provide. Additionally, a client could choose not to retain us for additional stages of a project, try to renegotiate the terms of its contract or cancel or delay additional planned work.
We have made significant investments in AI and are continuing to incur significant development and operational costs to develop and deploy our AI services and solutions for ourselves and for our clients.
We have made significant investments in AI and are continuing to incur significant development and operational costs to develop and deploy our AI solutions and services for ourselves and for our clients.
Any failure to address concerns relating to the responsible use of AI technology in our services and solutions may cause harm to our reputation or financial liability and, as such, may increase our costs to address or mitigate such risks and issues.
Any failure to address concerns relating to the responsible use of AI technology in our solutions and services may cause harm to our reputation or financial liability and, as such, may increase our costs to address or mitigate such risks and issues.
Some competitors may have greater financial, marketing or other resources than we do and, therefore, may be better able to compete for new work and skilled professionals, may be able to innovate and provide new services and solutions faster than we can or may be able to anticipate the need for services and solutions before we do.
Some competitors may have greater financial, marketing or other resources than we do and, therefore, may be better able to compete for new work and skilled professionals, may be able to innovate and provide new solutions and services faster than we can or may be able to anticipate the need for solutions and services before we do.
We may also experience reputational damage from employees, advocacy groups, regulators, investors and other stakeholders that disagree with the services and solutions that we offer, the clients or markets that we serve, or the ways in which we operate our business.
We may also experience reputational damage from employees, advocacy groups, regulators, investors and other stakeholders that disagree with the solutions and services that we offer, the clients or markets that we serve, or the ways in which we operate our business.
They offer services and solutions that compete with some of our services and solutions. They may also form closer or preferred arrangements with our competitors. Some of our ecosystem partners are also large clients or suppliers of technology to us. The decisions we make vis-à-vis an ecosystem partner may impact our ongoing alliance relationships with other members of our ecosystem.
They offer solutions and services that compete with some of our solutions and services. They may also form closer or preferred arrangements with our competitors. Some of our ecosystem partners are also large clients or suppliers of technology to us. The decisions we make vis-à-vis an ecosystem partner may impact our ongoing alliance relationships with other members of our ecosystem.
In addition, our ecosystem partners may also experience reduced demand for their technology or software, including, for example, in response to changes in technology, which could lessen related demand for our services and solutions. We must anticipate and respond to continuous changes in technology and develop alliance relationships with new providers of relevant technology and services.
In addition, our ecosystem partners may also experience reduced demand for their technology or software, including, for example, in response to changes in technology, which could lessen related demand for our solutions and services. We must anticipate and respond to continuous changes in technology and develop alliance relationships with new providers of relevant technology and services.
Our contract profitability is highly dependent on our forecasts regarding the effort and cost necessary to deliver our services and solutions, which are based on available data and could turn out to be materially inaccurate.
Our contract profitability is highly dependent on our forecasts regarding the effort and cost necessary to deliver our solutions and services, which are based on available data and could turn out to be materially inaccurate.
In particular, large and complex arrangements often require that we utilize subcontractors or that our services and solutions incorporate or coordinate with the software, systems or infrastructure requirements of other vendors and service providers, including companies with which we have alliances.
In particular, large and complex arrangements often require that we utilize subcontractors or that our solutions and services incorporate or coordinate with the software, systems or infrastructure requirements of other vendors and service providers, including companies with which we have alliances.
By disrupting communications and travel and increasing the difficulty of obtaining and retaining highly skilled and qualified people, these types of events impact our ability to deliver our services and solutions to our clients.
By disrupting communications and travel and increasing the difficulty of obtaining and retaining highly skilled and qualified people, these types of events impact our ability to deliver our solutions and services to our clients.
At certain times and in certain geographical regions, we will find it difficult to hire and retain a sufficient number of employees with the skills or backgrounds to meet current and/or future demand. In these cases, we might need to redeploy existing people or increase our reliance on subcontractors to fill certain labor needs.
At certain times and in certain geographical regions, we will find it difficult to hire and retain a sufficient number of employees with the skills or backgrounds to meet current and/or future demand. In these cases, we might need to upskill and redeploy existing people or increase our reliance on subcontractors to fill certain labor needs.
While these events have not materially impacted our ability to deliver services to our clients, international conflicts are unpredictable and we might not be as successful in mitigating these operational risks in the future. We are unable to protect our people, facilities and systems, and those of our ecosystem partners, suppliers and clients, against all such events.
While these developments have not materially impacted our ability to deliver services to our clients, international conflicts are unpredictable and we might not be as successful in mitigating these operational risks in the future. We are unable to protect our people, facilities and systems, and those of our ecosystem partners, suppliers and clients, against all such events.
In addition, positions we take or do not take on these issues may be unpopular with some of our employees, our clients or potential clients, our investors, legislators or government regulators, as well as members of the media, or advocacy groups, which may impact our ability to attract or retain employees or the demand for our services.
In addition, positions we take, modify, or do not take on these issues may be unpopular with some of our employees, our clients or potential clients, our investors, legislators or government regulators, as well as members of the media or advocacy groups, which may impact our ability to attract or retain employees or the demand for our services.
Our growth strategy focuses on responding to these types of developments by driving innovation and making strategic investments in acquisitions, joint ventures and adjacencies to our current offerings that will enable us to expand our business into new growth areas.
Our growth strategy focuses on responding to these types of developments by driving innovation and making strategic investments in acquisitions, joint ventures, partnerships and adjacencies to our current offerings that will enable us to expand our business into new growth areas.
We cannot predict the impact to our income taxes of future OECD guidance and interpretations, related local country tax legislation, and local challenges to our Pillar Two positions. However, we expect Pillar Two to further increase complexity and uncertainty around income taxes.
We cannot predict the impact to our income taxes of future OECD guidance and interpretations, related local country tax legislation, and local challenges to our Pillar Two positions. However, we still expect Pillar Two to further increase complexity and uncertainty around income taxes.
The specific business or financial condition of a client, changes in management and changes in a client’s strategy are also all factors that can result in terminations, cancellations or delays. Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action.
The specific business or financial condition of a client, changes in management and changes in a client’s strategy are also all factors that can result in terminations, cancellations or delays. Risks and uncertainties related to the development and use of AI, including advanced AI, could harm our business, damage our reputation or give rise to legal or regulatory action.
If we are not effective in managing our operating costs in response to changes in demand or pricing, or if we are unable to cost-effectively hire and retain people with the knowledge and skills necessary to deliver our services and solutions, particularly in areas of new technologies and offerings and in the right geographic locations, we may incur increased costs, which could reduce our ability to continue to invest in our business in an amount necessary to achieve our planned rates of growth and our desired levels of profitability.
If we are not effective in managing our operating costs in response to changes in demand or pricing, or if we are unable to cost-effectively hire, develop, upskill and retain enough people with the knowledge and skills necessary to deliver our solutions and services, particularly in areas of new technologies and offerings and in the right geographic locations, we may incur increased costs, which could reduce our ability to continue to invest in our business in an amount necessary to achieve our planned rates of growth and our desired levels of profitability.
The rates we are able to charge for our services and solutions are affected by a number of factors, including: • general economic and political conditions; • our clients’ desire to reduce their costs; • the competitive environment in our industry; • the introduction of new technologies (such as generative AI), services or products by competitors, which could reduce our ability to obtain favorable pricing and impact our overall economics for the services or solutions we offer; • our ability to accurately estimate our service delivery costs, upon which our pricing is sometimes determined, including our ability to estimate the impact of inflation and foreign exchange on our service delivery costs over long-term contracts; and • the procurement practices of clients and their use of third-party advisors.
The rates we are able to charge for our solutions and services are affected by a number of factors, including: • general economic and political conditions; • our clients’ desire to reduce their costs; • the competitive environment in our industry; • the introduction of new technologies (such as advanced AI), services or products by competitors, ecosystem partners and clients, which could reduce our ability to obtain favorable pricing and impact our overall economics for the solutions or services we offer; • our ability to accurately estimate our service delivery costs, upon which our pricing is sometimes determined, including our ability to estimate the impact of inflation and foreign exchange on our service delivery costs over long-term contracts; and • the procurement practices of clients and their use of third-party advisors.
Previously, he served as our Financial Services lead for Europe from November 2019 to March 2020, Financial Services lead for Italy, Central Europe and Greece from October 2017 to October 2019 and global Banking industry lead for Strategy from March 2015 to September 2017. Mr. Macchi has been with Accenture for 34 years.
Previously, he served as our Financial Services lead for Europe from November 2019 to March 2020, Financial Services lead for Italy, Central Europe and Greece from October 2017 to October 2019 and global Banking industry lead for Strategy from March 2015 to September 2017. Mr. Macchi has been with Accenture for 35 years.
For example, if we are unable to hire or retrain our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we may not be able to innovate and deliver new services and solutions to fulfill client demand.
For example, if we are unable to hire or upskill our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we may not be able to innovate and deliver new solutions and services to fulfill client demand.
Damage to our reputation could also reduce the value and effectiveness of the Accenture brand name and could reduce investor confidence in us, materially adversely affecting our share price. Our brand and reputation are also associated with our public commitments to various corporate environmental, social and governance (ESG) initiatives.
Damage to our reputation could also reduce the value and effectiveness of the Accenture brand name and could reduce investor confidence in us, materially adversely affecting our share price. Our brand and reputation are also associated with our various corporate environmental, social and governance (ESG) initiatives.
Our disclosures on these matters and any failure or perceived failure to achieve or accurately report on our commitments, could harm our reputation and adversely affect our client relationships or our recruitment and retention efforts, as well as expose us to potential legal liability.
Our disclosures on these matters and any failure or perceived failure to achieve or accurately report on our initiatives, could harm our reputation and adversely affect our client relationships or our recruitment and retention efforts, as well as expose us to potential legal liability.
Risk Factors 21 We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks. We are dependent on information technology networks and systems to securely process, transmit and store electronic information and to communicate among our locations around the world and with our people, clients, ecosystem partners and vendors.
We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks. We are dependent on information technology networks and systems to securely process, transmit and store electronic information and to communicate among our locations around the world and with our people, clients, ecosystem partners and vendors.
We are increasingly applying AI-based technologies, including generative AI, to our services and solutions, to how we deliver work to our clients, and to our own internal operations. In addition, we are creating new offerings to implement AI solutions for clients.
We are increasingly applying AI-based technologies to our solutions and services, to how we deliver work to our clients, and to our own internal operations. In addition, we are creating new offerings to implement AI solutions for clients.
The technology companies described above, including many of our ecosystem partners, are increasingly able to offer services related to their software, platform, cloud migration and other solutions, or are developing software, platform, cloud migration and other solutions that require integration services to a lesser extent or replace them in their entirety.
The technology companies described above, including many of our ecosystem partners and new AI-native companies, are increasingly able to offer services related to their AI, software, platform, cloud migration and other solutions, or are developing AI, software, platform, cloud migration and other solutions that require integration services to a lesser extent or replace them in their entirety.
Ireland and other countries where we operate have enacted Pillar Two, the OECD’s global minimum tax rate, which will apply to us beginning with fiscal year 2025. Other countries are also actively considering changes to their tax laws to adopt certain parts of the OECD’s two-pillar framework.
Ireland and other countries where we operate have enacted Pillar Two, the OECD’s global minimum tax rate, which applies to us beginning with fiscal year 2025. Other countries are also actively considering changes to their tax laws to adopt certain parts of the OECD’s two-pillar framework.
If we do not obtain the expected benefits from our alliance relationships for any reason, we may be less competitive, our ability to offer attractive solutions to our clients may be negatively affected, and our results of operations could be adversely affected.
Risk Factors 16 If we do not obtain the expected benefits from our alliance relationships for any reason, we may be less competitive, our ability to offer attractive solutions to our clients may be negatively affected, and our results of operations could be adversely affected.
We have a global portfolio of patents and pending patent applications covering various technology areas, including AI, cloud, metaverse, cybersecurity, blockchain, automation, extended reality, analytics and quantum. We leverage patent, trade secret and copyright laws as well as contractual arrangements and confidentiality procedures to protect the intellectual property in our innovative services and solutions.
We have a global portfolio of patents and pending patent applications covering various technology areas, including AI, cloud, cybersecurity, automation, analytics and quantum. We leverage patent, trade secret and copyright laws as well as contractual arrangements and confidentiality procedures to protect the intellectual property in our innovative solutions and services.
Some competitors are more established in certain markets, and may make executing our growth strategy to expand in these markets more challenging. Additionally, competitors may also offer more aggressive pricing or contractual terms, which may affect our ability to win work.
Some competitors are more established in certain markets, and may make executing our growth strategy to expand in these markets more challenging. Additionally, competitors may also offer more aggressive pricing or contractual terms, or alternative commercial models, which may affect our ability to win work.
Ryoji Sekido, 57, became our co-chief executive officer—Asia Pacific and chief executive officer—Asia Oceania in September 2024. From April 2023 to September 2024, Mr. Sekido served as our Technology lead for Growth Markets. Prior to March 2023, Mr. Sekido served as the Technology and Cloud First lead for Asia Pacific, Middle East and Africa.
Business 10 Ryoji Sekido, 58, became our co-chief executive officer—Asia Pacific and chief executive officer—Asia Oceania in September 2024. From April 2023 to September 2024, Mr. Sekido served as our Technology lead for Growth Markets. Prior to March 2023, Mr. Sekido served as the Technology and Cloud First lead for Asia Pacific, Middle East and Africa.
Risk Factors 23 If we do not successfully manage and develop our relationships with key ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected. We have alliances with companies whose capabilities complement our own.
If we do not successfully manage and develop our relationships with our ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected. We have alliances with companies whose capabilities complement our own.
Technological developments may materially affect the cost and use of technology by our clients and, in the case of cloud, data and AI solutions, could affect the nature of how we generate revenue.
Risk Factors 12 Technological developments may materially affect the cost and use of technology by our clients and, in the case of cloud, AI and data solutions, could affect the nature of how we generate revenue.
In addition, if we do not obtain the shareholder approval needed to continue granting equity awards under our share plans in the amounts we believe are necessary, our ability to attract and retain people could be negatively affected. Table of Contents ACCENTURE 2024 FORM 10-K Item 1A.
In addition, if we do not obtain Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 14 the shareholder approval needed to continue granting equity awards under our share plans in the amounts we believe are necessary, our ability to attract and retain people could be negatively affected.
Evolving rules, regulations, and industry standards governing AI may require us to incur significant costs to modify, maintain, or align our business practices, services and solutions to comply with US and non-US rules and regulations, the nature of which cannot be determined at this time and may be inconsistent from jurisdiction to jurisdiction.
Risk Factors 13 Evolving rules, regulations and industry standards governing AI may require us to incur significant costs to modify, maintain, or align our business practices, solutions and services to comply with U.S. and non-U.S. rules and regulations, the nature of which cannot be determined at this time and may be inconsistent from jurisdiction to jurisdiction.
We use our investment in R&D—on which we spent $1.2 billion, $1.3 billion and $1.1 billion in fiscal 2024, 2023 and 2022, respectively—to help clients address new realities in the marketplace and to face the future with confidence.
We use our investment in R&D—on which we spent $0.8 billion, $1.2 billion and $1.3 billion in fiscal 2025, 2024 and 2023, respectively—to help clients address new realities in the marketplace and to face the future with confidence.
A very significant portion of our revenue and services and solutions are based on technology or software provided by a few major ecosystem partners. See “Business—Services.” The business that we conduct through these alliances could decrease or fail to grow for a variety of reasons. The priorities and objectives of our ecosystem partners may differ from ours.
A very significant portion of our revenue and solutions and services are based on technology, including platforms and software, provided by our ecosystem partners. See “Business—Ecosystem Partner Relationships.” The business that we conduct through these alliances could decrease or fail to grow for a variety of reasons. The priorities and objectives of our ecosystem partners may differ from ours.
Risk Factors 22 • accounting firms and consultancies that provide consulting, managed services and other IT services and solutions; • solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups and other companies that can scale rapidly to focus on or disrupt certain markets and provide new or alternative products, services or delivery models; and • in-house IT departments of large corporations that use their own resources, rather than engage an outside firm, such as the growing number of companies that are setting up global capability centers (“GCC’s”).
Risk Factors 15 • off-shore IT service providers in lower-cost locations, particularly in India; • accounting firms and consultancies that provide consulting, managed services and other IT solutions and services; • solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups and other companies that can scale rapidly to focus on or disrupt certain markets and provide new or alternative products, end-to-end solutions, services, or commercial or delivery models; and • in-house IT departments of large corporations that use their own resources, rather than engage an outside firm, such as the growing number of companies that are setting up global capability centers (“GCC’s”).
However, our judgments might not be sustained as a result of these audits, investigations and tax proceedings, and the amounts ultimately paid could be materially different from the amounts previously recorded.
Risk Factors 18 liabilities. However, our judgments might not be sustained as a result of these audits, investigations and tax proceedings, and the amounts ultimately paid could be materially different from the amounts previously recorded.
We are subject to numerous laws and regulations designed to protect this information, including privacy and cybersecurity laws such as the European Union’s General Data Protection Regulation (“GDPR”), the United Kingdom’s GDPR, U.S. states’ recent comprehensive privacy legislation, as well as various other U.S. federal and state laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws in other regions, and related contractual obligations.
We are subject to numerous laws and regulations designed to protect this information, including privacy and cybersecurity laws such as the European Union’s General Data Protection Regulation (“GDPR”), Digital Operational Resilience Act and Network and Information Security 2 Directive, the United Kingdom’s GDPR, U.S. states’ recent comprehensive privacy legislation, as well as various other U.S. federal and state laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws in other regions, and related contractual obligations.
“Accenture Leadership” is comprised of members of our global management committee (our primary management and leadership team, which consists of approximately 50 of our most senior leaders), senior managing directors and managing directors. Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 18 Item 1A.
“Accenture Leadership” is comprised of members of our global management committee (our primary management and leadership team, which consists of approximately 55 of our most senior leaders), senior managing directors and managing directors. Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 11 Item 1A.
We also continue to steadily increase our Data & AI workforce, reaching approximately 57,000 skilled Data & AI practitioners at the end of fiscal 2024, against our goal of doubling our Data & AI workforce to 80,000 by the end of fiscal 2026.
We also continue to steadily increase our AI and data workforce, reaching approximately 77,000 skilled AI and data practitioners at the end of fiscal 2025, against our goal of doubling our AI and data workforce to 80,000 by the end of fiscal 2026.
AI technologies are complex and rapidly evolving, and we face significant competition, including from our own clients, who may develop their own internal AI-related capabilities, which can lead to reduced demand for our services or solutions.
AI technologies are complex and rapidly evolving, and we face significant competition, including from our clients and ecosystem partners, who may develop their own internal AI-related capabilities, as well as new AI-native companies, which can lead to reduced demand for our solutions or services.
As our organization grows and evolves, it might become increasingly difficult to maintain effective standards across a large enterprise and effectively institutionalize our knowledge or to effectively change the strategy, operations or culture of our Company in a timely manner.
Our size and scale present significant management and organizational challenges. As our organization grows and evolves, it might become increasingly difficult to maintain effective standards across a large enterprise and effectively institutionalize our knowledge or to effectively change the strategy, operations or culture of our Company in a timely manner.
Unfavorable fluctuations in foreign currency exchange rates have had an adverse effect, and could in the future have a material adverse effect, on our results of operations.
Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had an adverse effect, and could in the future have a material adverse effect, on our results of operations.
Threat actors may leverage emerging AI technologies to develop new hacking tools and attack vectors, exploit vulnerabilities, obscure their activities, and increase the difficulty of threat attribution.
Threat actors are leveraging AI technologies to develop new hacking tools and attack vectors, exploit vulnerabilities, obscure their activities, and increase the difficulty of threat attribution.
Health emergencies or pandemics; acts of terrorist violence; political, social and civil unrest; regional and international war and other hostilities and international responses to these wars and hostilities; natural disasters, sea level rise, floods, droughts and water scarcity, heat waves, wildfires and storms, occurrences of which may increase in frequency and severity as a result of climate change; or the threat of or perceived potential for these events; and other acts of god have had and could in the future have significantly negative impacts on us.
Health emergencies or pandemics; acts of terrorist violence; political, social and civil unrest; regional and international war and other hostilities and international responses to these wars and hostilities; natural disasters, sea level rise, floods, droughts and water scarcity, heat waves, wildfires and storms, and earthquakes; or the threat of or perceived potential for these events; and other acts of god have had and could in the future have significantly negative impacts on us.
Our competitors include large multinational IT service providers, including the services arms of large global technology providers; off-shore IT service providers in lower-cost locations, particularly in India; accounting firms and consultancies that provide consulting, managed services and other IT services and solutions; solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups; and in-house IT departments of large corporations that use their own resources rather than engage an outside firm, such as global capability centers ( “GCC’s”).
Our competitors include large multinational IT service providers, including the services arms of large global technology providers; off-shore IT service providers in lower-cost locations, particularly in India; accounting firms and consultancies that provide consulting, managed services and other IT solutions and services; solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups and other companies that can scaled rapidly to focus on or disrupt certain markets and provide new or alternative products, end-to-end solutions, services, or commercial or delivery models; and in-house IT departments of large corporations that use their own resources rather than engage an outside firm, such as global capability centers (“GCC’s”).
Similarly, unauthorized access to or through, denial of access to, downtime or other incidents involving, our software and IT supply chain or software-as-a-service providers, our or our service providers’ information systems or those we develop for our clients, whether by our employees or third parties, including a cyberattack by computer programmers, hackers, members of organized crime and/or state-sponsored organizations, who continuously develop and deploy viruses, ransomware, malware or other malicious software programs or social engineering attacks, has and could in the future result in negative publicity, significant remediation costs, legal liability, damage to our reputation and government sanctions and could have a material adverse effect on our results of operations — see risk factor below entitled “Our business could be materially adversely affected if we incur legal liability.” Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols.
Similarly, unauthorized access to or through, denial of access to, downtime or other incidents involving, our software and IT supply chain or software-as-a-service providers, our or our service providers’ information systems or those we develop for our clients, whether by our employees or third parties, including a cyberattack by computer programmers, hackers, members of organized crime and/or state-sponsored organizations, who continuously develop and deploy social engineering methods, phishing frameworks and viruses, ransomware, malware or other malicious software programs, has and could in the future result in negative publicity, significant remediation costs, legal liability, damage to our reputation and government sanctions and could have a material adverse effect on our results of operations—see risk factor below entitled “Our business could be materially adversely affected if we incur legal liability.” Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, including as a result of evolving AI technologies and threat actors’ increasingly mature infrastructure and systems capable of broadly deploying zero-day attacks.
Several jurisdictions where we operate are considering or have proposed or enacted legislation and policies regulating AI and non-personal data, such as the European Union’s AI Act and the U.S.’s Executive Order on AI.
Several jurisdictions where we operate are considering or have proposed or enacted legislation and policies regulating AI and non-personal data, such as the European Union’s AI Act.
Egawa has served as our market unit lead in Japan. Prior to September 2015, Mr. Egawa led our Products industry group in Japan. Prior to that role, he led our Consumer Goods business in Japan. He has partnered closely with numerous global clients on their digital transformations and was integral in the opening of Accenture’s Innovation Hub in Tokyo. Mr.
Prior to September 2015, Mr. Egawa led our Products industry group in Japan. Prior to that role, he led our Consumer Goods business in Japan. He has partnered closely with numerous global clients on their digital transformations and was integral in the opening of Accenture’s Innovation Hub in Tokyo. Mr. Egawa has been with Accenture for 36 years.
We must hire or reskill, retain and inspire appropriate numbers of talented people with diverse skills, backgrounds, perspectives, and lived experiences in order to serve clients across the globe, respond quickly to rapid and ongoing changes in demand, technology, industry and the macroeconomic environment, and continuously innovate to grow our business.
We must hire or upskill, retain and inspire appropriate numbers of talented people in order to serve clients across the globe, respond quickly to rapid and ongoing changes in demand, technology, industry and the macroeconomic environment, and continuously innovate to grow our business.
If we are unable to maintain our relationships with current partners and identify new and emerging providers of relevant technology to expand our network of ecosystem partners, we may not be able to differentiate our services or compete effectively in the market.
If we are unable to maintain our relationships with current partners and identify new and emerging providers of relevant technology to expand our network of ecosystem partners, we may not be able to differentiate our services or compete effectively in the market. Table of Contents ACCENTURE 2025 FORM 10-K Item 1A.
Changing demand patterns from economic and political volatility and uncertainty, including as a result of increasing geopolitical tensions, inflation, economic downturns, changes in global trade policies, global health emergencies and their impact on us, our clients and the industries we serve, have in the past had a negative impact and could in the future have a significant negative impact on our results of operations.
Changing demand patterns from increased economic and political volatility and uncertainty, including as a result of increasing geopolitical tensions, inflation, economic downturns, changes in global trade policies, including the threat or imposition of tariffs or other trade restrictions and related retaliatory actions, protectionism, nationalism, global health emergencies and their impact on us, our clients and the industries we serve, have in the past had a negative impact and could in the future have a significant negative impact on our results of operations.
In providing services and solutions to clients, we often manage, utilize and store sensitive or confidential client, Accenture or other third-party data, including customer and other personal data and proprietary information, and we expect these activities to increase, including through the use of AI, the Internet of Things and analytics.
In providing solutions and services to clients, we often manage, utilize and store sensitive or confidential client, Accenture or other third-party data, including customer and other personal data and proprietary information, and we expect these activities to increase.
We believe the Accenture brand name and our reputation are important corporate assets that help distinguish our services and solutions from those of competitors and also contribute to our efforts to recruit and retain talented employees.
Our ability to attract and retain business and employees may depend on our reputation in the marketplace. We believe the Accenture brand name and our reputation are important corporate assets that help distinguish our solutions and services from those of competitors and also contribute to our efforts to recruit and retain talented employees.
We are particularly dependent on retaining members of Accenture Leadership with critical capabilities. If we are unable to do so, our ability to innovate, generate new business opportunities and effectively lead large and complex transformations and client relationships could be jeopardized. We depend on identifying, developing and retaining top talent to innovate and lead our businesses.
If we are unable to do so, our ability to innovate, generate new business opportunities and effectively lead large and complex transformations and client relationships could be jeopardized. We depend on identifying, developing and retaining top talent to innovate and lead our businesses.
In these situations, we have engaged, and may in the future engage, in actions to rebalance our workforce, including reducing the rate of new hires and increasing involuntary terminations as a means to keep our supply of people and skills in balance with client demand.
In these situations, we have engaged, and may in the future engage, in actions to rebalance our workforce, including reducing the rate of new hires and increasing involuntary terminations as a means to keep our supply of people and skills in balance with client demand, such as the three-pronged talent strategy initiated in the fourth quarter of fiscal 2025.
Tax authorities have disagreed, and may in the future disagree, with our judgments, and are taking increasingly aggressive positions opposing the judgments we make, including with respect to our intercompany transactions. We regularly assess the likely outcomes of our audits, investigations and tax proceedings to determine the appropriateness of our tax liabilities.
Tax authorities have disagreed, and may in the future disagree, with our judgments, and are taking increasingly aggressive positions opposing the judgments we make, including with respect to our intercompany transactions. We regularly assess the likely outcomes of our audits, investigations and tax proceedings to determine the appropriateness of our tax Table of Contents ACCENTURE 2025 FORM 10-K Item 1A.
Competitors may be willing, at times, to take on more risk or price contracts lower than us in an effort to enter the market or increase market share. Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 24 Our profitability could suffer if our cost-management strategies are unsuccessful, and we may not be able to improve our profitability.
Competitors may be willing, at times, to take on more risk or price contracts lower than us in an effort to enter the market or increase market share. Our profitability could suffer if our cost-management strategies are unsuccessful, and we may not be able to improve our profitability.
Risk Factors In addition to the other information set forth in this report, you should carefully consider the following factors which could materially adversely affect our business, financial condition, results of operations (including revenues and profitability) and/or stock price. Our business is also subject to general risks and uncertainties that may broadly affect companies, including us.
Risk Factors In addition to the other information set forth in this report, you should carefully consider the following factors which could materially adversely affect our business, financial condition, results of operations (including revenues and profitability) and/or stock price.
The Consolidated Financial Statements reflect the ownership interests in Accenture Canada Holdings Inc. held by certain current and former members of Accenture Leadership as noncontrolling interests. The noncontrolling ownership interests were less than 1% as of August 31, 2024.
We operate our business through subsidiaries of Accenture plc. The Consolidated Financial Statements reflect the ownership interests in Accenture Canada Holdings Inc. held by certain current and former members of Accenture Leadership as noncontrolling interests. The noncontrolling ownership interests were less than 1% as of August 31, 2025.
Similarly, if we experience unanticipated delivery difficulties due to our management, the failure of third parties or our clients to meet their commitments, or for any other reason, our contracts could yield lower profit margins than planned or be unprofitable. We are increasingly entering into contracts for large, complex client engagements to transform our clients’ businesses.
Similarly, if we experience unanticipated delivery difficulties due to our management, the failure of third parties or our clients to meet their commitments, or for any other reason, our contracts could yield lower profit margins than planned or be unprofitable.
As these technologies evolve, some services and tasks currently performed by our people will be replaced by automation, including AI-enabled solutions, which will lead to reduced demand for our services and/or adversely affect the utilization rate of our professionals, if demand for those services is not replaced by demand for new services.
As these technologies evolve, some services and tasks currently performed by our people have been and will continue to be replaced by automation, including AI-enabled solutions, which will lead to reduced demand for our services and/or adversely affect the utilization rate of our professionals, if demand for those services is not replaced by demand for new solutions and services or if the pace and level of spending on new solutions or services are not sufficient to make up any shortfall.
These include our proprietary platforms, software, reusable knowledge capital, and other innovations. We also have policies to respect the intellectual property rights of third parties, such as our clients, partners, vendors and others.
These include our proprietary platforms, software, reusable knowledge capital, and other innovations. We also have policies to respect the intellectual property rights of third parties, such as our clients, partners, vendors and others. To protect Accenture’s brands, we rely on intellectual property laws and trademark registrations held around the world.
He served as senior managing director—Communications, Media & Technology in North America, from 2013 to 2019. Mr. Walsh has been with Accenture for 38 years. Organizational Structure Accenture plc was incorporated in Ireland on June 10, 2009 as a public limited company. We operate our business through subsidiaries of Accenture plc.
From November 2019 to March 2020, he served as our group chief executive—Communications, Media & Technology. He served as senior managing director—Communications, Media & Technology in North America, from 2013 to 2019. Mr. Walsh has been with Accenture for 39 years. Organizational Structure Accenture plc was incorporated in Ireland on June 10, 2009 as a public limited company.
If we fail to continue to develop leading AI services and solutions, including generative AI, we may lose our leadership position in this area and fail to realize the anticipated benefits of our investments in AI.
If we fail to continue to develop leading AI solutions and services that meet our clients’ and our own internal needs, we may lose our leadership position in this area and fail to realize the anticipated benefits of our investments in advanced AI.
The less we are able to differentiate our services and solutions and/or clearly convey the value of our services and solutions, the more risk we have in winning new work in sufficient volumes and at our target pricing and overall economics.
The less we are able to differentiate our solutions and services and/or clearly Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 17 convey the value of our solutions and services, the more risk we have in winning new work in sufficient volumes and at our target pricing and overall economics.
Business 17 Manish Sharma, 56, became our chief executive officer—North America in September 2023 and our chief executive officer—the Americas in September 2024. Prior to that, Mr. Sharma served as our chief operating officer from March 2022 to September 2023. From March 2020 to March 2022, Mr. Sharma served as our group chief executive—Operations.
Sharma served as our chief executive officer—the Americas from September 2024 to September 2025, chief executive officer—North America from September 2023 to September 2024 and chief operating officer from March 2022 to September 2023. From March 2020 to March 2022, Mr. Sharma served as our group chief executive—Operations.
Sweet has been with Accenture for 14 years and has served as a director since September 2019. Joel Unruch, 46, became our general counsel in September 2019 and has served as our corporate secretary since June 2015. Mr. Unruch also served as our chief compliance officer from September 2019 to January 2020. Mr.
Joel Unruch, 47, became our general counsel in September 2019 and has served as our corporate secretary since June 2015. Mr. Unruch also served as our chief compliance officer from September 2019 to January 2020. Mr.
These more integrated services and solutions may represent more attractive alternatives to clients than some of our services and solutions, which may materially adversely affect our competitive position and our results of operations. Our ability to attract and retain business and employees may depend on our reputation in the marketplace.
These more integrated solutions and services may represent more attractive alternatives to clients than some of our solutions and services, which may materially adversely affect our competitive position and our results of operations.
Examples of areas of significant change include digital-, cloud- and security-related offerings, which are continually evolving, as well as developments in areas such as AI, including generative AI, augmented and virtual reality, automation, blockchain, Internet of Things, quantum and edge computing, infrastructure and network engineering, intelligent connected products, digital Table of Contents ACCENTURE 2024 FORM 10-K Item 1A.
Examples of areas of significant change include advanced AI, which includes generative, agentic and physical AI, digital-, cloud- and security-related offerings, which are continually evolving, as well as developments in areas such as software, augmented and virtual reality, automation, blockchain, Internet of Things, quantum and edge computing, infrastructure and network engineering, intelligent connected products, digital engineering and manufacturing, and robotics solutions.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFurthermore, if insufficient funding is appropriated to the government entity to cover termination costs, we may not be able to fully recover our investments. • Political and economic factors such as pending elections, the outcome of recent elections, changes in leadership among key executive or legislative decision makers, revisions to governmental tax or other policies and reduced tax revenues can affect the number and terms of new government contracts signed or the speed at which new contracts are signed, decrease future levels of spending and authorizations for programs that we bid, shift spending priorities to programs in areas for which we do not provide services and/or lead to changes in enforcement or how compliance with relevant rules or laws is assessed. • Our ability to work for the U.S. government is impacted by the fact that we are an Irish company.
Biggest changeThese and similar spending reductions and contract reviews have resulted in and are likely to continue to result in contract terminations, delays and cancellations of new procurements, and reductions in price and contract scope at AFS as well as at other state and local governments, all of which have had an adverse effect on AFS’s results, and could in the future have a material impact on our results of operations or financial condition. • Political and economic factors such as pending elections, the outcome of recent elections, changes in leadership among key executive or legislative decision makers, revisions to governmental tax or other policies and reduced tax revenues can affect the number and terms of new government contracts signed or the speed at which new contracts are signed, decrease future levels of spending and authorizations for programs that we bid, shift spending priorities to programs in areas for which we do not provide services and/or lead to changes in enforcement or how compliance with relevant rules or laws is assessed. • Our ability to work for the U.S. government is impacted by the fact that we are an Irish company.
Changes in laws and regulations could also mandate significant and costly changes to the way we implement our services and solutions or could impose additional taxes on our services and solutions.
Changes in laws and regulations could also mandate significant and costly changes to the way we implement our solutions and services or could impose additional taxes on our solutions and services.
Negative findings from existing and future audits, investigations or inquiries, or failure to comply with applicable IT security or supply chain requirements, could affect our future sales and profitability by preventing us, by operation of law or in practice, from receiving new government contracts for some period of time, or result in other adverse consequences described in the following paragraphs.
Negative findings from existing and future audits, investigations or inquiries, or failure to comply with applicable IT security, supply chain, or other requirements, could affect our future sales and profitability by preventing us, by operation of law or in practice, from receiving new government contracts for some period of time, or result in other adverse consequences described in the following paragraphs.
If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.
If we are unable to protect or enforce our intellectual property rights, or if our solutions or services infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.
Even where we obtain intellectual property protection, our intellectual property rights may not prevent or deter competitors, former employees, or other third parties from reverse engineering our solutions or proprietary methodologies and processes or independently developing services or solutions similar to or duplicative of ours.
Even where we obtain intellectual property protection, our intellectual property rights may not prevent or deter competitors, former employees, or other third parties from reverse engineering our solutions or proprietary methodologies and processes or independently developing solutions or services similar to or duplicative of ours.
These claims could harm our reputation, cause us to incur substantial costs or prevent us from offering some services or solutions in the future. Any related proceedings could require us to expend significant resources over an extended period of time.
These claims could harm our reputation, cause us to incur substantial costs or prevent us from offering some solutions or services in the future. Any related proceedings could require us to expend significant resources over an extended period of time.
Further, we rely on third-party software, hardware, data and other intellectual property in providing some of our services and solutions.
Further, we rely on third-party software, hardware, data and other intellectual property in providing some of our solutions and services.
If we lose our ability to continue using any such software, hardware, data or intellectual property for any reason, including because it is found to infringe the rights of others, we will need to obtain substitutes or seek alternative means of obtaining the technology necessary to continue to provide such services and solutions.
If we lose our ability to continue using any such software, hardware, data or intellectual property for any reason, including because it is found to infringe the rights of others, we will need to obtain substitutes or seek alternative means of obtaining the technology necessary to continue to provide such solutions and services.
We are subject to numerous, changing, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, including ESG regulation and reporting requirements, anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and labor relations, product liability, health and safety, environmental, human rights and AI regulations, such as the European Union’s AI Act.
We are subject to numerous, changing, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, boycotts, immigration, internal and disclosure control obligations, securities regulation, including ESG regulation and reporting requirements, anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and labor relations, product liability, health and safety, environmental, human rights and AI regulations, such as the European Union’s AI Act.
Our success depends, in part, upon our ability to obtain intellectual property protection for our proprietary platforms, methodologies, processes, software, hardware and other solutions. Existing laws of the various countries in which we provide services or solutions may offer only limited intellectual property protection of our services or solutions, and the protection in some countries may be very limited.
Our success depends, in part, upon our ability to obtain intellectual property protection for our proprietary assets, platforms, methodologies, processes, software, hardware and other solutions. Existing laws of the various countries in which we provide solutions or services may offer only limited intellectual property protection of our solutions or services, and the protection in some countries may be very limited.
Department of Justice (“DOJ”) initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to an assessor who was evaluating on behalf of the U.S. government an AFS service offering and whether the service offering fully implemented required federal security controls.
Department of Justice initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to an assessor who was evaluating on behalf of the U.S. government an AFS service offering and whether the service offering fully implemented required federal security controls.
Our processes and controls for reporting ESG matters across our operations are evolving along with multiple disparate standards for identifying, measuring, and reporting ESG metrics, including ESG-related disclosures that may be required by the SEC, European and other regulators, and such standards may change over time, which could result in significant revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future.
Our processes and controls for reporting ESG matters across our operations are evolving along with multiple disparate standards for identifying, measuring, and reporting ESG metrics, including ESG-related disclosures that may be required by the SEC, European and other regulators, and such standards may change over time, which could result in significant revisions to our current ambitions, reported progress in achieving such ambitions, or ability to achieve such ambitions in the future.
Elections, changes in government or political developments, including government closures or shutdowns, budget deficits, shortfalls or uncertainties, government spending reductions or other debt constraints could result in our projects being reduced in price or scope or terminated altogether, which also could limit our recovery of incurred costs, reimbursable expenses and profits on work completed prior to the termination.
Elections, changes in government or political developments, including government closures or shutdowns, budget deficits, shortfalls or uncertainties, government spending reductions or other debt constraints have resulted and could in the future result in our projects being reduced in price or scope, delayed or terminated altogether, which also could limit our recovery of incurred costs, reimbursable expenses and profits on work completed prior to the termination.
These risks include, but are not limited to, the following: • Government entities, particularly in the United States, often reserve the right to audit our contract costs and conduct inquiries and investigations of our business practices and compliance with government contract requirements.
Our government work carries various risks inherent in the government contracting process. These risks include, but are not limited to, the following: • Government entities, particularly in the United States, often reserve the right to audit our contract costs and conduct inquiries and investigations of our business practices and compliance with government contract requirements.
For example, changes in laws and regulations to limit using off-shore resources in connection with our work or to penalize companies that use off-shore resources, which have been proposed from time to time in various jurisdictions, could adversely affect our results of operations.
For example, changes in laws and regulations to limit using off-shore resources in connection with our work or to penalize companies that use off-shore resources, which have been proposed from time to time in various jurisdictions, could reduce the demand for our services and adversely affect our cost structure, profitability and results of operations.
Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and regulatory requirements designed to mitigate the effects of climate change on the environment, as well as legal and regulatory requirements requiring climate, human rights and supply chain-related disclosures.
Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and regulatory requirements related to climate change, human rights and supply chain-related matters.
For example, these contracts often contain high or unlimited liability for breaches and feature less favorable payment terms and sometimes require us to take on liability for the performance of third parties. • Government entities typically fund projects through appropriated monies.
For example, these contracts often contain high or unlimited liability for breaches and feature less favorable payment terms and sometimes require us to take on liability for the performance of third parties. Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 23 • Government entities typically fund projects through appropriated monies.
In addition, we cannot be sure that our services and solutions, including, for example, our AI, software and hardware solutions, or the solutions of others that we offer to our clients, do not infringe on the intellectual property rights of third parties (including competitors as well as non-practicing holders of intellectual property assets), and these third parties could claim that we or our clients are infringing upon their intellectual property rights.
In addition, we cannot be sure that our solutions and services, including, for example, our AI, software and hardware solutions, or the solutions of others that we offer to our clients, do not infringe on the intellectual property rights of third parties (including competitors as well as non-practicing holders of intellectual property assets), and these third parties could Table of Contents ACCENTURE 2025 FORM 10-K Item 1A.
Due to the varying degrees of development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rights.
Due to the varying degrees of Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 24 development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rights.
While these projects are often planned and executed as multi-year projects, government entities usually reserve the right to change the scope of or terminate these Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 31 projects for lack of approved funding and/or at their convenience.
While these projects are often planned and executed as multi-year projects, government entities usually reserve the right to change the scope of or terminate these projects for lack of approved funding and/or at their convenience.
Any claims or litigation in this area could be time-consuming and costly, damage our Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 32 reputation and/or require us to incur additional costs to obtain the right to continue to offer a service or solution to our clients.
Any claims or litigation in this area could be time-consuming and costly, damage our reputation and/or require us to incur additional costs to obtain the right to continue to offer a service or solution to our clients.
As a result, there is uncertainty concerning the scope of patent and other intellectual property protection for AI models, software and business methods, which are fields in which we rely on intellectual property laws to protect our rights.
For example, the intellectual property legal landscape relating to AI is expected to continue to evolve in many countries in which we operate. As a result, there is uncertainty concerning the scope of patent and other intellectual property protection for AI models and outputs, which are fields in which we rely on intellectual property laws to protect our rights.
While we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions as well as caps on amounts recoverable.
While we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject to various exclusions as well as caps on amounts recoverable. Even if we believe a claim is covered Table of Contents ACCENTURE 2025 FORM 10-K Item 1A.
Item 1A. Risk Factors 29 In addition, we engage in platform trust and safety services on behalf of clients, including content moderation, which could have a negative impact on our employees due to the nature of the materials they review.
Moreover, as we expand our solutions and services into new areas, we may be exposed to additional and evolving risks specific to these new areas. In addition, we engage in platform trust and safety services on behalf of clients, including content moderation, which could have a negative impact on our employees due to the nature of the materials they review.
False Claims Act, and administrative sanctions, which may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with other agencies of that government. The inherent limitations of internal controls may not prevent or detect all improper or illegal activities. • U.S. government contracting regulations impose strict compliance and heightened disclosure obligations.
False Claims Act, and administrative sanctions, which may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with other agencies of that government.
If new laws or regulations are more stringent than current legal or regulatory requirements, we may experience increased compliance burdens and costs to meet such obligations.
New laws, regulations or interpretations may be more stringent than, or conflict with, other legal or regulatory requirements, which may result in increased compliance burdens and costs or changes to our operations to satisfy such obligations.
Our ability to achieve our ESG commitments (such as our 2040 net-zero greenhouse gas emissions target and our 2025 gender parity goal) is subject to numerous risks, many of which are outside of our control.
Our ability to achieve our ESG ambitions (such as our 2040 net-zero greenhouse gas emissions target) is subject to numerous risks, many of which are outside of our control. In addition, standards for tracking and reporting on ESG matters, including climate change and human rights related matters, have not been harmonized and continue to evolve.
Our work with government clients exposes us to additional risks inherent in the government contracting environment. Our clients include national, provincial, state and local governmental entities. Our government work carries various risks inherent in the government contracting process.
Risk Factors 22 by insurance, insurers may dispute our entitlement to recovery for a variety of potential reasons, which may affect the timing and, if they prevail, the amount of our recovery. Our work with government clients exposes us to additional risks inherent in the government contracting environment. Our clients include national, provincial, state and local governmental entities.
Nonetheless, we could be subject to criticism in connection with our incorporation in Ireland.
Nonetheless, we could be subject to criticism in connection with our incorporation in Ireland. Table of Contents ACCENTURE 2024 FORM 10-K Item 1B. Unresolved Staff Comments 26 Item 1B. Unresolved Staff Comments None.
Even if we believe a claim is covered by insurance, insurers may dispute our entitlement to recovery for a variety of potential reasons, which may affect the timing and, if they prevail, the amount of our recovery. Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.
Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.
Removed
Examples of such risks include: (1) the availability and cost of low- or non-carbon-based energy sources and technologies and the ability of our suppliers to harness new technologies to reduce emissions; (2) evolving regulatory requirements affecting ESG standards or disclosures; (3) the availability of suppliers that can meet our sustainability, diversity and other standards; and (4) our ability to recruit, develop, and retain sufficient diverse talent.
Added
Item 1A. Risk Factors 20 culture, effectively manage and monitor our people and operations, effectively communicate our core values, policies and procedures, strategies and goals, and motivate, engage and retain our people, particularly given our world-wide operations, rate of new hires, and the significant percentage of our employees who have the option to work remotely.
Removed
In addition, standards for tracking and reporting on ESG Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 30 matters, including climate change and human rights related matters, have not been harmonized and continue to evolve.
Added
The size and scope of our operations increase the possibility that we will have employees who engage in unlawful or fraudulent activity, or otherwise expose us to unacceptable business risks, despite our efforts to train them and maintain internal controls to prevent such instances.
Removed
For example, the intellectual property legal landscape relating to AI (including generative AI) is expected to continue to evolve in many countries in which we operate.
Added
For example, employee misconduct could involve the improper use of sensitive or confidential information entrusted to us, or obtained inappropriately, or the failure to comply with legislation or regulations regarding the protection of sensitive or confidential information, including personal data and proprietary information.
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Furthermore, the inappropriate use of social networking sites and unapproved technologies, such as public-facing, free AI tools, by our employees could result in breaches of confidentiality, unauthorized disclosure of non-public company information or damage to our reputation.
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If we do not continue to develop and implement the right processes and tools to manage our enterprise and instill our culture and core values into all of our employees, our ability to compete successfully and achieve our business objectives could be impaired.
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In addition, from time to time, we have made, and may continue to make, changes to our operating model, including how we are organized, as the needs and size of our business change, and if we do not successfully implement the changes or operate effectively under any new operating model, including the Reinvention Services change effective September 1, 2025, our business and results of operation may be negatively impacted.
Added
We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses. We expect to continue pursuing strategic acquisitions, investments and joint ventures to enhance or add to our skills and capabilities or offerings of solutions and services, or to enable us to expand in certain geographic and other markets.
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We have in the past and may again in the future increase the amount of capital invested in such opportunities. These acquisitions and other transactions and investments involve challenges and risks, such as that we may not succeed in completing targeted transactions, including as a result of the market becoming increasingly competitive, or achieve desired results of operations.
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To the extent that we increase the capital invested in such opportunities, the risks associated with such investments, further described below, also increase. Furthermore, we face risks in successfully integrating any businesses we might acquire, and these risks may be magnified by the size and number of transactions we have executed.
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Ongoing business may be disrupted, and our management’s attention may be diverted by acquisition, investment, transition or integration activities.
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In addition, we might need to dedicate additional management and other resources, and our organizational structure could make it difficult for us to efficiently integrate acquired businesses into our ongoing operations and assimilate and retain employees of those businesses into our culture and operations.
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The loss of key executives, employees, customers, suppliers, vendors and other business partners of businesses we acquire may adversely impact the value of the assets, operations or businesses.
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Furthermore, acquisitions or joint ventures may result in significant costs and expenses, including those related to retention payments, equity compensation, severance pay, early retirement costs, intangible asset amortization and asset impairment charges, enhancing controls, procedures and policies including those related to financial reporting, disclosure, and cyber and information security, assumed litigation and other liabilities, and legal, accounting and financial advisory fees, which could negatively affect our profitability as these costs and expenses grow along with the increased capital invested in such acquisitions and joint ventures.
Added
We may have difficulties as a result of entering into new markets where we have limited or no direct prior experience or where competitors may have stronger market positions. In some cases, we have failed to, and may in the future fail to fully realize the expected benefits or strategic objectives of any acquisition, investment or joint venture we undertake.
Added
We might not achieve our expected return on investment or may lose money. We may be adversely impacted by liabilities that we assume from a company we acquire or in which we invest, including from that company’s known and unknown obligations, intellectual property or other assets, terminated employees, current or former clients or other third parties.
Added
In addition, we may fail to identify or adequately assess the magnitude of certain liabilities, shortcomings or other circumstances prior to acquiring, investing in or partnering with a company, including potential exposure to regulatory sanctions or liabilities resulting from an acquisition target’s previous activities, or from an acquisition’s controls related to financial reporting, disclosure, and cyber and information security environment.
Added
The number of transactions we execute annually may increase this risk. If any of these circumstances occurs, they could result in unexpected regulatory or legal exposure, including litigation with new or existing clients, unfavorable accounting treatment, unexpected increases in taxes or other adverse effects on our relationships with clients and our business.
Added
In addition, we have a lesser degree of control over the business operations of the joint ventures and businesses in which we have made minority investments or in which we have acquired less than 100% of the equity. This lesser degree of control may expose us to additional reputational, financial, legal, compliance or operational risks.
Added
Litigation, indemnification claims and other unforeseen claims and liabilities may arise from the acquisition or operation of acquired businesses. For example, we may face litigation or other claims as a result of certain terms and conditions of the acquisition agreement, such as earnout payments or closing working capital adjustments. Alternatively, shareholder litigation may arise as a result of proposed acquisitions.
Added
If we are unable to complete the number and kind of investments for which we plan, or if we are inefficient or unsuccessful at integrating acquired businesses into our operations, we may not be able to achieve our planned rates of growth or improve our market share, profitability or competitive position in specific markets or services.
Added
Table of Contents ACCENTURE 2025 FORM 10-K Item 1A. Risk Factors 21 We also periodically evaluate, and have engaged in, the disposition of assets and businesses. Divestitures could involve difficulties in the separation of operations, services, products and people, the diversion of management’s attention, the disruption of our business and the potential loss of key employees.
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After reaching an agreement with a buyer for the disposition of a business, the transaction may be subject to the satisfaction of pre-closing conditions, including obtaining necessary regulatory and government approvals, which, if not satisfied or obtained, may prevent us from completing the transaction.
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Divestitures may also involve continued financial involvement in or liability with respect to the divested assets and businesses, such as indemnities or other financial obligations, in which the performance of the divested assets or businesses could impact our results of operations. Any divestiture we undertake could adversely affect our results of operations.
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Legal and Regulatory Risks Our business could be materially adversely affected if we incur legal liability. We are subject to, and may become a party to, a variety of litigation or other claims and suits that arise from time to time in the ordinary course of our business.
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Our business is subject to the risk of litigation involving current and former employees, clients, ecosystem partners, subcontractors, suppliers, competitors, shareholders, government agencies or others through private actions, class actions, whistleblower claims, administrative proceedings, regulatory actions or other litigation.
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Regardless of the merits of the claims, the cost to defend current and future litigation may be significant, and such matters can be time-consuming and divert management’s attention and resources.
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The results of litigation and other legal proceedings are inherently uncertain, and adverse judgments or settlements in some or all of these legal disputes may result in materially adverse monetary damages, fines, penalties, debarment or injunctive relief against us and/or require changes to our business practices or other actions that could materially adversely affect our business, results of operations, or reputation.
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Any claims or litigation, even if fully indemnified or insured, could damage our reputation and make it more difficult to compete effectively or to obtain adequate insurance in the future or otherwise have a material adverse effect.
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We could be subject to significant legal liability and litigation expense if we fail to meet our contractual obligations, contribute to internal control or other deficiencies of a client or otherwise breach obligations to third parties, including clients, ecosystem partners, employees and former employees, and other parties with whom we conduct business, or if our subcontractors breach or dispute the terms of our agreements with them and impede our ability to meet our obligations to our clients, or if our solutions or services cause bodily injuries or death to our people, clients or the public, or property damage.
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For example, by taking over the operation of certain portions of our clients’ businesses, including functions and systems that are critical to the core businesses of our clients, by contributing to the design, development, manufacturing and/or engineering of client products, or by providing various operational technology, digital manufacturing and robotics or other industrial automation equipment solutions, and advisory, management and engineering services for infrastructure projects, we may be exposed to additional and evolving operational, regulatory, reputational or other risks specific to these areas, including risks related to data security, product liability, health and safety, hazardous materials and other environmental risks.
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A failure of a client’s system, product or infrastructure based on our solutions or services could also subject us to regulatory scrutiny or claims for significant damages that could materially adversely affect our results of operations.
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In order to remain competitive, we increasingly enter into agreements based on our clients’ contract terms after conducting an assessment of the risk of doing so, which may expose us to additional risk.
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In addition, the contracting practices of competitors, along with the demands of increasingly sophisticated clients, may cause contract terms and conditions that are unfavorable to us to become new standards in the industry. We may commit to providing solutions or services that we are unable to deliver or whose delivery may reduce our profitability or cause us financial loss.
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If we cannot or do not meet our contractual obligations and if our potential liability is not adequately limited through the terms of our agreements, liability limitations are not enforced or a third party alleges fraud or other wrongdoing to prevent us from relying upon those contractual protections, we might face significant legal liability and litigation expense and our results of operations could be materially adversely affected.
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Similarly, we periodically are and in the future could become the target of litigation, investigations, or other proceedings initiated by government authorities or private actors alleging that our activities or positions related to ESG (including inclusion and diversity) are anti-competitive, discriminatory or otherwise unlawful.
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The inherent limitations of internal controls may not prevent or detect all improper or illegal activities. • On January 21, 2025, an executive order was issued requiring U.S. federal contractors to certify that they do not operate any programs promoting diversity, equity and inclusion that violate any applicable federal anti-discrimination laws.
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Additionally, various U.S federal and state government agencies and departments may initiate legal proceedings asserting our actions or programs violate the U.S False Claims Act, civil rights laws or other similar federal or state orders, laws or regulations.
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A violation of these or similar federal or state orders, laws or regulations, may expose us to penalties and sanctions discussed above and jeopardize our ability to continue to do work with the U.S. federal government and certain state governments, which may materially adversely affect our future results of operations. • U.S. government contracting regulations impose strict compliance and heightened disclosure obligations.
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Furthermore, if insufficient funding is appropriated to the government entity to cover termination costs, we may not be able to fully recover our investments. • In 2025, the U.S. administration began efforts to reduce federal spending and the size of the federal workforce under the guidance of the Department of Government Efficiency.
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In addition, the General Services Administration (GSA)–the U.S. federal procurement agency–has instructed all federal agencies to review their contracts with consulting firms and technology product resellers contracting with the U.S. federal government, including AFS.
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It is also possible that compliance with sanctions imposed by one country could lead to reputational harm or other negative impacts to our business in another country or countries.
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Risk Factors 25 claim that we or our clients are infringing upon their intellectual property rights.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur CISO leads all aspects of Accenture’s global cybersecurity program, including security operations, client data protection, cyber risk reduction strategies, incident response, cybersecurity integration of acquisitions and our industry-leading behavioral change program. Our CISO joined Accenture in 1995. Prior to being appointed CISO in 2020, he helped create Accenture’s information security capability and led the implementation of information security technology.
Biggest changeWe have protocols by which cybersecurity incidents that meet established reporting thresholds are escalated within the company and, where appropriate, reported promptly to the Board. Our CISO leads all aspects of Accenture’s global cybersecurity program, including security operations, client data protection, cyber risk reduction strategies, incident response, cybersecurity integration of acquisitions and our industry-leading behavioral change program.
Accenture leadership reviews and monitors CDP monthly metrics, which are intended to provide oversight and accountability. All Accenture people complete annual core information security and data privacy training, delivered in multiple courses throughout the year, to stay up-to-date on security practices and threats.
Accenture leadership reviews and monitors CDP monthly metrics, which are intended to provide oversight and accountability. All Accenture people are required to complete annual core information security and data privacy training, delivered in multiple courses throughout the year, to stay up-to-date on security practices and threats.
Our CISO reports to our Chief Operating Officer and is supported by a team of over 800 people with expertise in technical architecture and security operations; governance, risk and compliance; client data protection; behavioral change; and cyber incident response, many of whom hold cybersecurity certifications and possess deep technical knowledge and experience.
Our CISO reports to our Chief Operating Officer and is supported by a team of over 1,000 people with expertise in technical architecture and security operations; governance, risk and compliance; client data protection; behavioral change; and cyber incident response, many of whom hold cybersecurity certifications and possess deep technical knowledge and experience.
In addition, our people in internal- and client-data-sensitive roles complete specialized, targeted security training to increase knowledge about role-specific threats, concepts and practices. These interactive learning programs are focused on strengthening foundational knowledge and responding to emerging threats. Agile and flexible, our training program has garnered industry recognition for its innovative approach and effectiveness.
In addition, our people in data-sensitive roles are provided specialized, targeted security training to increase knowledge about role-specific threats, concepts and practices. These interactive learning programs are focused on strengthening foundational knowledge and responding to emerging threats. Agile and flexible, our training program has garnered industry recognition for its innovative approach and effectiveness.
Cybersecurity 34 management program, the Board devotes time and attention to cybersecurity and data privacy-related risks, with the Audit Committee of the Board of Directors responsible for overseeing information technology risk exposures, including cybersecurity, data privacy and data security.
As part of our Board of Directors’ role in overseeing the Company’s enterprise risk management program, the Board devotes time and attention to cybersecurity and data privacy-related risks, with the Audit Committee of the Board of Directors responsible for overseeing information technology risk exposures, including cybersecurity, data privacy and data security.
Risk Factors – “We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks”.
Risk Factors – “We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks”. To date these risks and incidents have not had a material impact on us, including our business strategy, Table of Contents ACCENTURE 2025 FORM 10-K Item 1C.
Previously, he managed large technology transformations for Accenture and for clients in the United States, Japan and Australia.
Our CISO joined Accenture in 1995. Prior to being appointed CISO in 2020, he helped create Accenture’s information security capability and led the implementation of information security technology. Previously, he managed large technology transformations for Accenture and for clients in the United States, Japan and Australia.
Our enterprise risk management program and disclosure controls and procedures are designed to appropriately escalate key risks to the Board of Directors, as well as to analyze potential risks for disclosure. As part of our Board of Directors’ role in overseeing the Company’s enterprise risk Table of Contents ACCENTURE 2024 FORM 10-K Item 1C.
Cybersecurity Governance Our enterprise risk management program is an annual and ongoing process designed to identify, assess and manage Accenture’s risk exposures over multiple time horizons. Our enterprise risk management program and disclosure controls and procedures are designed to appropriately escalate key risks to the Board of Directors, as well as to analyze potential risks for disclosure.
Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols. Cybersecurity Governance Our enterprise risk management program is an annual and ongoing process designed to identify, assess and manage Accenture’s risk exposures over the short-, intermediate- and long-term.
Cybersecurity 27 results of operations, and financial condition; however, there is no assurance that such impacts will not be material in the future. Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols.
Recent topics included evolving generative AI threats, social engineering resistance and deepfake readiness. The Audit Committee regularly updates the Board on such matters and the Board also periodically receives reports from management directly. We have protocols by which cybersecurity incidents that meet established reporting thresholds are escalated within the company and, where appropriate, reported promptly to the Board.
Recent topics included integrated third-party risk management, the evolving AI security governance and innovation landscape and client data protection. The Audit Committee regularly updates the Board on such matters and the Board also periodically receives reports from management directly.
Removed
To date these risks and incidents have not had a material impact on us, including our business strategy, results of operations, and financial condition; however, there is no assurance that such impacts will not be material in the future.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We have major offices in the world’s leading business centers, including Boston, Chicago, New York, San Francisco, Dublin, Frankfurt, London, Madrid, Milan, Paris, Rome, Bangalore, Beijing, Manila, Mumbai, São Paolo, Shanghai, Singapore, Sydney and Tokyo, among others. In total, we have facilities and operations in more than 200 cities in 52 countries around the world.
Biggest changeItem 2. Properties We have major offices in the world’s leading business centers, including Boston, Chicago, New York, San Francisco, São Paolo, Dublin, Frankfurt, London, Madrid, Milan, Paris, Rome, Bangalore, Beijing, Manila, Mumbai, Shanghai, Singapore, Sydney and Tokyo, among others. In total, we have facilities and operations in more than 200 cities in 52 countries around the world.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeDividends For information about our dividend activity during fiscal 2024, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” On September 25, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on October 10, 2024, payable on November 15, 2024.
Biggest changeDividends For information about our dividend activity during fiscal 2025, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” On September 22, 2025, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.63 per share on our Class A ordinary shares for shareholders of record at the close of business on October 10, 2025, payable on November 14, 2025.
For the remainder of fiscal 2025, we expect to declare additional quarterly dividends in December 2024 and March and June 2025, to be paid in February, May and August 2025, respectively, subject to the approval of the Board of Directors.
For the remainder of fiscal 2026, we expect to declare additional quarterly dividends in December 2025 and March and June 2026, to be paid in February, May and August 2026, respectively, subject to the approval of the Board of Directors.
Item 4. Mine Safety Disclosures Not applicable. Table of Contents ACCENTURE 2024 FORM 10-K Part II 35 Part II Item 5.
Item 4. Mine Safety Disclosures Not applicable. Table of Contents ACCENTURE 2025 FORM 10-K Part II 29 Part II Item 5.
As of September 30, 2024, there were 367 holders of record of Accenture plc Class A ordinary shares. There is no trading market for Accenture plc Class X ordinary shares. As of September 30, 2024, there were 14 holders of record of Accenture plc Class X ordinary shares.
As of September 26, 2025, there were 356 holders of record of Accenture plc Class A ordinary shares. There is no trading market for Accenture plc Class X ordinary shares. As of September 26, 2025, there were 14 holders of record of Accenture plc Class X ordinary shares.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeFor year-to-date information on all of our share purchases, redemptions and exchanges and further discussion of our share purchase activity, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Share Purchases and Redemptions.” Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) (in millions of U.S. dollars) June 1, 2024 — June 30, 2024 1,268,456 $ 291.18 1,247,913 $ 2,937 July 1, 2024 — July 31, 2024 395,110 315.91 382,304 2,815 August 1, 2024 — August 31, 2024 408,997 327.47 370,091 2,694 Total (4) 2,072,563 $ 303.05 2,000,308 (1) Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by purchase or redemption for cash and any acquired by means of employee forfeiture.
Biggest changeFor year-to-date information on all of our share purchases, redemptions and exchanges and further discussion of our share purchase activity, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Share Purchases and Redemptions.” Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) (in millions of U.S. dollars) June 1, 2025 — June 30, 2025 633,762 $ 305.70 606,123 $ 3,124 July 1, 2025 — July 31, 2025 961,398 289.01 945,536 2,851 August 1, 2025 — August 31, 2025 8,341 259.47 — 2,851 Total (4) 1,603,501 $ 295.45 1,551,659 (1) Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by purchase or redemption for cash and any acquired by means of employee forfeiture.
The open-market purchase program does not have an expiration date. (3) As of August 31, 2024, our aggregate available authorization for share purchases and redemptions was $2,694 million, which management has the discretion to use for either our publicly announced open-market share purchase program or our other share purchase programs.
The open-market purchase program does not have an expiration date. (3) As of August 31, 2025, our aggregate available authorization for share purchases and redemptions was $2,851 million, which management has the discretion to use for either our publicly announced open-market share purchase program or our other share purchase programs.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 36 Purchases of Accenture plc Class A Ordinary Shares The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the fourth quarter of fiscal 2024.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 30 Purchases of Accenture plc Class A Ordinary Shares The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the fourth quarter of fiscal 2025.
Since August 2001 and as of August 31, 2024, the Board of Directors of Accenture plc has authorized an aggregate of $50.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.
Since August 2001 and as of August 31, 2025, the Board of Directors of Accenture plc has authorized an aggregate of $54.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.
(2) Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the fourth quarter of fiscal 2024, we purchased 2,000,308 Accenture plc Class A ordinary shares under this program for an aggregate price of $605 million.
(2) Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the fourth quarter of fiscal 2025, we purchased 1,551,659 Accenture plc Class A ordinary shares under this program for an aggregate price of $458 million.
On September 25, 2024, the Board of Directors of Accenture plc approved $4,000 million in additional share repurchase authority, bringing Accenture’s total outstanding authority to $6,694 million. (4) During the fourth quarter of fiscal 2024, Accenture purchased 72,255 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs.
On September 22, 2025, the Board of Directors of Accenture plc approved $5,000 million in additional share repurchase authority, bringing Accenture’s total outstanding authority to $7,851 million. (4) During the fourth quarter of fiscal 2025, Accenture purchased 51,842 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeFor additional information regarding business optimization costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” • Revenues of $64.9 billion, an increase of 1% in U.S. dollars and 2% in local currency; • New bookings of $81.2 billion, an increase of 13% in U.S. dollars and 14% in local currency; • Operating margin of 14.8%, compared to 13.7% in fiscal 2023; adjusted operating margin was 15.5% compared to 15.4% in fiscal 2023; • Diluted earnings per share of $11.44, a 6% increase over $10.77 for fiscal 2023; adjusted earnings per share increased 2% to $11.95 compared to $11.67 for fiscal 2023; and • Cash returned to shareholders of $7.8 billion, including share purchases of $4.5 billion and dividends of $3.2 billion.
Biggest changeFor additional information regarding our business optimization actions and related costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” • Revenues of $69.7 billion, an increase of 7% in both U.S. dollars and local currency; • New bookings of $80.6 billion, a decrease of 1% in both U.S. dollars and local currency; Table of Contents ACCENTURE 2025 FORM 10-K
All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2024” means the 12-month period that ended on August 31, 2024. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.
All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2025” means the 12-month period that ended on August 31, 2025. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.
Item 6. [Reserved] Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7.
Item 6. [Reserved] Table of Contents ACCENTURE 2025 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7.
We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $438 million and $1,063 million, respectively, in business optimization costs recorded during fiscal 2024 and 2023 and, with respect to effective tax rate and diluted earnings per share, the impact of a $253 million investment gain related to our investment in Duck Creek Technologies recorded during fiscal 2023 as discussed further in our Results of Operations.
We have presented operating income, operating margin, effective tax rate and diluted earnings per share for fiscal 2025 and 2024 on a non-GAAP or “adjusted” basis to exclude the impact of business optimization costs.
This approach is used for all results where the functional currency is not the U.S. dollar. Overview Accenture is a leading global professional services company, providing a broad range of services and solutions across Strategy & Consulting, Technology, Operations, Industry X and Song.
This approach is used for all results where the functional currency is not the U.S. dollar.
In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market. Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.
Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment, new and rapidly changing technologies, and levels of business confidence. We continue to see significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business.
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We serve clients in three geographic markets: North America, EMEA (Europe, Middle East and Africa) and Growth Markets (Asia Pacific and Latin America).
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Overview Accenture is a leading solutions and global professional services company that helps enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed across the enterprise, bringing together our people, proprietary assets and platforms, and deep ecosystem relationships.
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We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading organizations build their digital core, optimize their operations, accelerate revenue growth and enhance services—creating tangible value at speed and scale.
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Through our Reinvention Services we bring together our capabilities across strategy, consulting, technology, operations, Song and Industry X with our deep industry expertise to create and deliver solutions and services for our clients. We serve clients in three geographic markets: the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.
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There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business. These conditions have slowed the pace and level of client spending, particularly for smaller contracts with a shorter duration and for our consulting services.
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While the discretionary environment is unchanged, clients continue to prioritize large-scale transformations, which include becoming AI-ready. In addition, the U.S. administration is reducing federal spending and the size of the federal workforce under the guidance of the Department of Government Efficiency.
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Clients continue to prioritize large-scale transformations, which convert to revenue over a longer period. Key Metrics Key metrics for fiscal 2024 compared to fiscal 2023 are included below.
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We are seeing impacts from these efforts in our federal government business (“Accenture Federal Services, or AFS”), including delays in new procurements, reductions in price and contract scope, and contract terminations. These changes have had an adverse effect on AFS’s results and could in the future have a material impact on our results of operations or financial condition.
Added
For a discussion of risks related to these and other recent developments, see Item 1A, “Risk Factors.” Key Metrics Key metrics for fiscal 2025 compared to fiscal 2024 are included below.
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During the fourth quarter of fiscal 2025, we initiated business optimization actions and recorded $615 million in related costs, which includes $344 million associated with a refreshed talent strategy, as well as asset impairments of approximately $271 million primarily related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities.
Added
In fiscal 2024, we recorded $438 million in business optimization costs associated with actions initiated in fiscal 2023 and completed in fiscal 2024.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe commentary below provides insight into other factors affecting geographic market performance and operating income, including the impact of foreign currency exchange rates where significant, for fiscal 2024 compared with fiscal 2023: • North America operating income increased primarily due to revenue growth, lower business optimization costs and lower labor costs, partially offset by a decline in consulting contract profitability and higher acquisition-related costs. • EMEA operating income increased primarily due to the positive impact of foreign currency exchange rates which resulted in an increase in U.S. dollar revenues, lower labor costs and lower business optimization costs, partially offset by declines in consulting revenues in local currency and consulting contract profitability. • Growth Markets operating income decreased as revenue growth in local currency and lower labor costs were more than offset by lower contract profitability and the negative impact of foreign currency exchange rates which resulted in a decline in U.S. dollar revenues.
Biggest changeThe commentary below provides insight into other factors affecting geographic market performance and operating income for fiscal 2025 compared with fiscal 2024: • Americas operating income increased due to revenue growth, partially offset by higher business optimization costs. • EMEA operating income increased due to revenue growth and lower business optimization costs. • Asia Pacific operating income increased due to revenue growth and lower business optimization costs.
We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions, given that compensation costs are the most significant portion of our operating expenses.
We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our solutions and services, given that compensation costs are the most significant portion of our operating expenses.
Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to: match people and skills with the types or amounts of services and solutions clients are demanding; recover or offset increases in compensation; deploy our employees globally on a timely basis; manage attrition; and/or effectively assimilate new employees.
Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to: match people and skills with the types or amounts of solutions and services clients are demanding; recover or offset increases in compensation; deploy our employees globally on a timely basis; manage attrition; and/or effectively assimilate new employees.
New bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large managed services contracts. The types of services and solutions clients are demanding and the pace and level of their spending may impact the conversion of new bookings to revenues.
New bookings can vary significantly quarter to quarter depending in part on the timing of the signing of a small number of large managed services contracts. The types of solutions and services clients are demanding and the pace and level of their spending may impact the conversion of new bookings to revenues.
We may use our available or additional funds to, among other things: • facilitate purchases, redemptions and exchanges of shares and pay dividends; • acquire complementary businesses or technologies; • take advantage of opportunities, including more rapid expansion; • develop new services and solutions; or • repay outstanding borrowings and other debt.
We may use our available or additional funds to, among other things: • facilitate purchases, redemptions and exchanges of shares and pay dividends; • acquire complementary businesses or technologies; • take advantage of opportunities, including more rapid expansion; • develop new solutions and services; or • repay outstanding borrowings and other debt.
For more information on our hedging programs, see Foreign Currency Risk under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Results of Operations for Fiscal 2023 Compared to Fiscal 2022 Our Annual Report on Form 10-K for the fiscal year ended August 31, 2023 includes a discussion and analysis of our financial condition and results of operations for the year ended August 31, 2022 in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
For more information on our hedging programs, see Foreign Currency Risk under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Results of Operations for Fiscal 2024 Compared to Fiscal 2023 Our Annual Report on Form 10-K for the fiscal year ended August 31, 2024 includes a discussion and analysis of our financial condition and results of operations for the year ended August 31, 2023 in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Table of Contents ACCENTURE 2025 FORM 10-K Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Liquidity and Capital Resources Our primary sources of liquidity are cash flows from operations, available cash reserves, debt capacity available under variou s credit facilities and other borrowings. We could raise additional funds through other public or private debt or equity financings.
Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Liquidity and Capital Resources Our primary sources of liquidity are cash flows from operations, available cash reserves, debt capacity available under variou s credit facilities and other borrowings. We could raise additional funds through other public or private debt or equity financings.
For further discussion of these transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” New Accounting Pronouncements See Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Table of Contents ACCENTURE 2024 FORM 10-K Item 7A.
For further discussion of these transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” New Accounting Pronouncements See Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Table of Contents ACCENTURE 2025 FORM 10-K Item 7A.
Revenue for our services is a function of the nature of each service to be provided, the skills required and the outcome sought, as well as estimated cost, risk, contract terms and other factors. Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
Revenue for our services is a function of the nature of each service to be provided, the skills required and the outcome sought, as well as estimated cost, risk, contract terms and other factors. Table of Contents ACCENTURE 2025 FORM 10-K Item 7.
In addition, clients continue to be focused on initiatives designed to deliver cost savings and supply chain and operational resilience, as well as projects to accelerate growth and improve customer experiences. While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, especially for smaller contracts with a shorter duration.
In addition, clients continue to be focused on initiatives designed to deliver cost savings, supply chain and operational resilience, as well as to accelerate growth and improve customer experiences. While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.
Where practical, we seek to manage foreign currency exposure for costs not incurred in the same currency as the related revenues, such as the costs associated with our global delivery model, by using currency protection provisions in our customer contracts and through our hedging programs.
Most of our costs are incurred in the same currency as the related revenues. Where practical, we seek to manage foreign currency exposure for costs not incurred in the same currency as the related revenues, such as the costs associated with our global delivery model, by using currency protection provisions in our customer contracts and through our hedging programs.
For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Subsequent Events See Note 10 (Borrowings and Indebtedness) and Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Obligations and Commitments As of August 31, 2024, we had commitments of $3.4 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation.
For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Subsequent Events See Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Obligations and Commitments As of August 31, 2025, we had commitments of $3 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation.
See Note 10 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data” for further information regarding our outstanding borrowings and other debt. As of August 31, 2024, Cash and cash equivalents were $5.0 billion, compared with $9.0 billion as of August 31, 2023.
See Note 10 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data” for further information regarding our outstanding borrowings and other debt. As of August 31, 2025, Cash and cash equivalents were $11.5 billion, compared with $5.0 billion as of August 31, 2024.
Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40 The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice.
Table of Contents ACCENTURE 2025 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34 The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice.
Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41 No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested.
Table of Contents ACCENTURE 2025 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35 No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested.
Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Results of Operations for Fiscal 2024 Compared to Fiscal 2023 Revenues Revenues by geographic market, industry group and type of work are as follows: Fiscal Percent Increase (Decrease) U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Results of Operations for Fiscal 2025 Compared to Fiscal 2024 Revenues Revenues by geographic market, industry group and type of work are as follows: Fiscal Percent Increase (Decrease) U.S.
For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Earnings Per Share Excluding Business Optimization Costs and Investment Gain (Non-GAAP) The business optimization costs of $327 million, net of related taxes, decreased diluted earnings per share by $0.51 for fiscal 2024.
For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Earnings Per Share Excluding Business Optimization Costs (Non-GAAP) The business optimization costs of $489 million and $327 million, net of related taxes, decreased diluted earnings per share by $0.78 and $0.51 for fiscal 2025 and fiscal 2024, respectively.
Revenues by Segment/Geographic Market Our three reportable operating segments are our geographic markets, North America, EMEA and Growth Markets. In addition to reporting revenues by geographic market and industry group, we also report revenues by two types of work: consulting and managed services, which represent the services sold by our geographic markets.
Revenues by Segment/Geographic Market Our three reportable operating segments are our geographic markets, the Americas, EMEA and Asia Pacific. In addition to reporting revenues by geographic market and industry group, we also report revenues by two types of work: consulting and managed services, which represent the services sold by our geographic markets.
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Non-GAAP Financial Measures We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis excluding the business optimization costs recorded in fiscal 2024 and fiscal 2023, and, with respect to effective tax rate and diluted earnings per share, the impact of an investment gain recorded in fiscal 2023, as we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior periods.
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Non-GAAP Financial Measures We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “ adjusted ” basis exclu ding the business optimization costs recorded in fiscal 2025 and 2024 as we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior periods.
Dollars Percent Increase (Decrease) Local Currency (in billions of U.S. dollars) 2024 2023 Consulting $ 37.0 $ 36.2 2 % 3 % Managed Services 44.2 36.0 23 24 Total New Bookings $ 81.2 $ 72.2 13 % 14 % We provide information regarding our new bookings, which include new contracts, including those acquired through acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides useful trend information regarding changes in the volume of our new business over time.
Dollars Percent Increase (Decrease) Local Currency (in billions of U.S. dollars) 2025 2024 Consulting $ 37.6 $ 37.0 2 % 2 % Managed Services 43.0 44.2 (3) (3) Total New Bookings $ 80.6 $ 81.2 (1) % (1) % We provide information regarding our new bookings, which include new contracts, including those acquired through acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides useful trend information regarding changes in the volume of our new business over time.
For the fourth quarter of fiscal 2024, annualized attrition, excluding involuntary terminations, was 14%, consistent with the third quarter of fiscal 2024. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.
For the fourth quarter of fiscal 2025, annualized attrition, excluding involuntary terminations, was 15%, down from 16% in the third quarter of fiscal 2025. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.
See “Business—Organizational Structure.” Noncontrolling interests also includes amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc. Earnings Per Share Diluted earnings per share were $11.44 for fiscal 2024, compared with $10.77 for fiscal 2023.
See “Business—Organizational Structure.” Noncontrolling interests also include amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc. Earnings Per Share Diluted earnings per share were $12.15 for fiscal 2025, compared with $11.44 for fiscal 2024.
Net Income Attributable to Noncontrolling Interests Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of Accenture Leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary.
Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Net Income Attributable to Noncontrolling Interests Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of Accenture Leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary.
Payments under these commitments are estimated to be made as follows: (in millions of U.S. dollars) Payments (1) Less than 1 year $ 1,068 1-3 years 1,352 3-5 years 870 More than 5 years 80 Total $ 3,370 (1) Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
Payments under these commitments are estimated to be made as follows: (in millions of U.S. dollars) Payments (1) Less than 1 year $ 1,154 1-3 years 1,275 3-5 years 513 More than 5 years 38 Total $ 2,980 (1) Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
People Metrics Utilization Workforce Annualized Voluntary Attrition 92% 774,000+ 13% up from 91% in fiscal 2023 compared to approximately 733,000 as of August 31, 2023 consistent with fiscal 2023 Utilization for fiscal 2024 was 92%, up from 91% in fiscal 2023. We hire to meet current and projected future demand.
People Metrics Utilization Workforce Voluntary Attrition 92% 779,000+ 14% consistent with fiscal 2024 compared to approximately 774,000 as of August 31, 2024 compared to 13% in fiscal 2024 Utilization for fiscal 2025 was 92%, consistent with fiscal 2024. We hire to meet current and projected future demand.
Quantitative and Qualitative Disclosures About Market Risk 49
Quantitative and Qualitative Disclosures About Market Risk 42
Dollars Percent Increase (Decrease) Local Currency Percent of Total Revenues for Fiscal (in billions of U.S. dollars) 2024 2023 2024 2023 Geographic Markets North America (1) $ 30.7 $ 30.3 1 % 2 % 47 % 47 % EMEA (2) 22.8 22.3 2 — 35 35 Growth Markets (1) (2) 11.3 11.5 (2) 7 17 18 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Industry Groups Communications, Media & Technology $ 10.8 $ 11.5 (5) % (4) % 17 % 18 % Financial Services 11.6 12.1 (4) (3) 18 19 Health & Public Service 13.8 12.6 10 10 21 20 Products 19.6 19.1 2 2 30 30 Resources 9.1 8.9 2 4 14 14 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Type of Work Consulting $ 33.2 $ 33.6 (1) % (1) % 51 % 52 % Managed Services 31.7 30.5 4 5 49 48 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Amounts in table may not total due to rounding.
Dollars Percent Increase (Decrease) Local Currency Percent of Total Revenues for Fiscal (in billions of U.S. dollars) 2025 2024 2025 2024 Geographic Markets Americas (1) $ 35.1 $ 32.6 8 % 9 % 50 % 50 % EMEA 24.6 22.8 8 6 35 35 Asia Pacific (1) 10.0 9.5 5 4 14 15 Total Revenues $ 69.7 $ 64.9 7 % 7 % 100 % 100 % Industry Groups Communications, Media & Technology $ 11.5 $ 10.8 6 % 6 % 16 % 17 % Financial Services 12.8 11.6 10 10 18 18 Health & Public Service 14.8 13.8 7 6 21 21 Products 21.2 19.6 8 8 30 30 Resources 9.5 9.1 5 5 14 14 Total Revenues $ 69.7 $ 64.9 7 % 7 % 100 % 100 % Type of Work Consulting $ 35.1 $ 33.2 6 % 5 % 50 % 51 % Managed Services 34.6 31.7 9 9 50 49 Total Revenues $ 69.7 $ 64.9 7 % 7 % 100 % 100 % Amounts in table may not total due to rounding.
Income Tax Expense Excluding Business Optimization Costs and Investment Gain (Non-GAAP) Excluding the business optimization costs of $438 million and related reduction in tax expense of $111 million, our adjusted effective tax rate was 23.6% for fiscal 2024.
Income Tax Expense Excluding Business Optimization Costs (Non-GAAP) Excluding the business optimization costs of $615 million and related reduction in tax expense of $126 million, our adjusted effective tax rate was 23.6% for fiscal 2025.
While we believe that this non-GAAP financial information is useful in evaluating our operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
While we believe that this non-GAAP financial information is useful in evaluating our operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.
Cost of Services Cost of services for fiscal 2024 increased $354 million, or 1%, over fiscal 2023, and decreased as a percentage of revenues to 67.4% from 67.7% during this period. Gross margin for fiscal 2024 increased to 32.6% compared to 32.3% in fiscal 2023.
Cost of Services Cost of services for fiscal 2025 increased $3,703 million, or 8%, over fiscal 2024, and increased as a percentage of revenues to 68.1% over 67.4% during this period. Gross margin for fiscal 2025 decreased as a percentage of revenues to 31.9% from 32.6% during fiscal 2024.
Operating Income and Operating Margin Excluding Business Optimization Costs (Non-GAAP) The business optimization costs reduced operating margin for fiscal 2024 and 2023 by 70 and 170 basis points, respectively. Adjusted operating margin for fiscal 2024 increased 10 basis points to 15.5% compared with fiscal 2023.
Operating Income and Operating Margin Excluding Business Optimization Costs (Non-GAAP) The business optimization costs reduced operating margin for fiscal 2025 and fiscal 2024 by 90 and 70 basis points, respectively. Adjusted operating margin for fiscal 2025 was 15.6% compared to adjusted operating margin for fiscal 2024 of 15.5%.
Share Purchases and Redemptions We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal 2025.
Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Share Purchases and Redemptions We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal 2026.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table: Fiscal Change (in millions of U.S. dollars) 2024 2023 Net cash provided by (used in): Operating activities $ 9,131 $ 9,524 $ (393) Investing activities (7,062) (2,622) (4,439) Financing activities (6,064) (5,645) (418) Effect of exchange rate changes on cash and cash equivalents (46) (101) 55 Net increase (decrease) in cash and cash equivalents $ (4,041) $ 1,155 $ (5,196) Amounts in table may not total due to rounding.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table: Fiscal Change (in millions of U.S. dollars) 2025 2024 Net cash provided by (used in): Operating activities $ 11,474 $ 9,131 $ 2,343 Investing activities (2,020) (7,062) 5,042 Financing activities (2,948) (6,064) 3,115 Effect of exchange rate changes on cash and cash equivalents (32) (46) 14 Net increase (decrease) in cash and cash equivalents $ 6,474 $ (4,041) $ 10,515 Amounts in table may not total due to rounding.
Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2025 revenue growth in U.S. dollars will be approximately 1.5% higher than our revenue growth in local currency.
There was minimal currency translation impact for fiscal 2025 compared to fiscal 2024. Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2026 revenue growth in U.S. dollars will be approximately 2% higher than our revenue growth in local currency.
For additional information, see Note 6 (Business Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Financing activities: The $418 million increase in cash used was due to higher cash dividends paid and net purchases of shares, as well as higher purchases of noncontrolling interests, partially offset by higher net proceeds from borrowings.
For additional information, see Note 6 (Business Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Financing activities: The $3,115 million decrease in cash used was primarily due to higher net proceeds from borrowings.
The business environment is competitive, and we continue to experience lower pricing across the business. We define pricing as contract profitability or margin on the work that we sell . In our consulting business, revenues for fiscal 2024 decreased 1% in both U.S. dollars and local currency compared to fiscal 2023.
We define pricing as the contract profitability or margin on the work that we sell. In our consulting business, revenues for fiscal 2025 increased 6% in U.S. dollars and 5% in local currency compared to fiscal 2024.
Geographic Markets The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for fiscal 2024 compared to fiscal 2023: • North America revenues increased 2% in local currency, led by growth in Public Service and Industrial, partially offset by declines in Banking & Capital Markets, Communications & Media and Software & Platforms.
Geographic Markets The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for fiscal 2025 compared to fiscal 2024: • Americas revenues increased 9% in local currency, led by growth in Banking & Capital Markets, Industrials and Software & Platforms.
In our managed services business, revenues for fiscal 2024 increased 4% in U.S. dollars and 5% in local currency compared to fiscal 2023. Managed services revenue growth in local currency in fiscal 2024 was driven by very strong growth in Growth Markets, solid growth in EMEA and modest growth in North America.
In our managed services business, revenues for fiscal 2025 increased 9% in both U.S. dollars and local currency compared to fiscal 2024. Managed services revenue growth in local currency for fiscal 2025 was driven by very strong growth in the Americas and strong growth in EMEA and Asia Pacific.
If the U.S. dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be lower.
If the Table of Contents ACCENTURE 2025 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33 U.S. dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be lower.
Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation, subcontractor and other payroll costs, and non-payroll costs such as facilities, technology and travel. Cost of services includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of acquisitions.
Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation and other payroll costs, as well as non-payroll costs such as subcontractors, facilities, technology and travel.
We continue to experience growing demand to assist clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. In addition, clients continue to be focused on transforming their operations through technology, data and AI, and leveraging our digital platforms and talent to drive productivity and operational cost savings.
We continue to experience growing demand to assist clients with reinvented operations, application development and maintenance, and infrastructure management including cloud and security. Clients continue to be focused on transforming their operations through technology, AI and data, and leveraging our proprietary assets and platforms and talent to drive productivity and cost savings.
Operating income for fiscal 2024 increased $786 million, or 9%, compared with fiscal 2023. Operating margin for fiscal 2024 was 14.8%, compared with 13.7% for fiscal 2023. Geographic Markets We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2024 was similar to that disclosed for revenue for each geographic market.
Geographic Markets We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2025 was similar to that disclosed for revenue for each geographic market. Additionally, operating costs for our geographic markets increased in line with revenues.
Operating expenses by category are as follows: Fiscal (in millions of U.S. dollars) 2024 2023 Increase (Decrease) Operating Expenses $ 55,301 85.2 % $ 55,302 86.3 % $ (1) Cost of services 43,734 67.4 43,380 67.7 354 Sales and marketing 6,847 10.6 6,583 10.3 264 General and administrative costs 4,281 6.6 4,276 6.7 5 Business optimization costs 438 0.7 1,063 1.7 (625) Amounts in table may not total due to rounding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Operating expenses by category are as follows: Fiscal (in millions of U.S. dollars) 2025 2024 Increase (Decrease) Operating Expenses $ 59,447 85.3 % $ 55,301 85.2 % $ 4,147 Cost of services 47,438 68.1 43,734 67.4 3,703 Sales and marketing 7,043 10.1 6,847 10.6 197 General and administrative costs 4,351 6.2 4,281 6.6 70 Business optimization costs 615 0.9 438 0.7 177 Amounts in table may not total due to rounding.
(1) In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.
(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation.
Our workforce, the majority of which serves our clients, increased to approximately 774,000 as of August 31, 2024, compared to approximately 733,000 as of August 31, 2023. The year-over-year increase in our workforce reflects people added in connection with acquisitions and hiring for specific skills. For fiscal 2024, attrition, excluding involuntary terminations, was 13%, consistent with fiscal 2023.
Our workforce, the majority of which serves our clients, increased to approximately 779,000 as of August 31, 2025, compared to approximately 774,000 as of August 31, 2024. For fiscal 2025, attrition, excluding involuntary terminations, was 14%, compared to 13% in fiscal 2024.
Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 48 other means.
Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice.
Sales and marketing costs are driven primarily by compensation costs for business development activities; Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43 marketing- and advertising-related activities; and certain acquisition-related costs.
Sales and marketing costs are driven primarily by compensation costs for business development activities; marketing- and advertising-related activities; and certain acquisition-related costs. General and administrative costs primarily include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs. Table of Contents ACCENTURE 2025 FORM 10-K Item 7.
Sales and Marketing Sales and marketing expense for fiscal 2024 increased $264 million, or 4%, over fiscal 2023, and increased as a percentage of revenues to 10.6% over 10.3% during this period due to higher selling and other business development costs.
The decrease in gross margin was primarily due to higher payroll costs. Sales and Marketing Sales and marketing expense for fiscal 2025 increased $197 million, or 3%, over fiscal 2024, and decreased as a percentage of revenues to 10.1% from 10.6% during this period due to lower payroll and non-payroll costs.
General and Administrative Costs General and administrative costs for fiscal 2024 increased $5 million over fiscal 2023, and decreased as a percentage of revenues to 6.6% from 6.7% during this period. Business Optimization Costs During fiscal 2024 and 2023, we recorded business optimization costs of $438 million and $1,063 million, respectively, primarily for employee severance.
General and Administrative Costs General and administrative costs for fiscal 2025 increased $70 million, or 2%, over fiscal 2024, and decreased as a percentage of revenues to 6.2% from 6.6% during this period primarily due to lower payroll costs.
Revenues were driven by an increase in Italy, offset by declines in France and the United Kingdom. • Growth Markets revenues increased 7% in local currency, led by growth in Banking & Capital Markets, Industrial and Chemicals & Natural Resources. Revenue growth was driven by Japan and Argentina, partially offset by declines in Australia and Brazil.
Revenue growth was driven by the United Kingdom and Germany, partially offset by a decline in France. • Asia Pacific revenues increased 4% in local currency, led by growth in Utilities, Banking & Capital Markets, Public Service and Insurance, partially offset by a decline in Chemicals & Natural Resources.
We experienced local currency revenue growth that was very strong in Health & Public Service, solid in Resources and modest in Products, partially offset by a decline in Communications, Media & Technology and a modest decline in Financial Services. Revenue growth in local currency was solid in managed services, partially offset by a slight decline in consulting during fiscal 2024.
We experienced local currency revenue growth that was very strong in Financial Services & Products, strong in Health & Public Service and Communications, Media & Technology and solid in Resources. Revenue growth in local currency was very strong in managed services and solid in consulting. While the business environment remained competitive, pricing improved in several areas of our business.
Revenues for fiscal 2024 increased 1% in U.S. dollars and 2% in local currency compared to fiscal 2023. During fiscal 2024, revenue growth in local currency was strong in Growth Markets and modest in North America, while EMEA was flat.
Revenues for fiscal 2025 increased 7% in both U.S. dollars and local currency compared to fiscal 2024. During fiscal 2025, revenue growth in local currency was very strong in the Americas, strong in EMEA and solid in Asia Pacific.
(1) The income tax effect of business optimization costs and gain on an investment include both the current and deferred income tax impact and was calculated by using the relevant tax rate of the country where the adjustments were recorded.
Fiscal 2024 As Reported $ 11.44 Business optimization costs 0.69 Tax effect of business optimization costs (1) (0.18) 2024 As Adjusted $ 11.95 2025 As Reported $ 12.15 Business optimization costs 0.98 Tax effect of business optimization costs (1) (0.20) 2025 As Adjusted $ 12.93 (1) The income tax effect of business optimization costs includes both the current and deferred income tax impact and was calculated by using the relevant tax rate of the country where the adjustments were recorded.
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Operating Income and Operating Margin Operating income and operating margin for each of the geographic markets are as follows: Fiscal 2024 2023 (in millions of U.S. dollars) Operating Income Operating Margin Operating Income Operating Margin Increase (Decrease) North America $ 4,952 16 % $ 4,474 15 % $ 479 EMEA (1) 2,804 12 2,483 11 320 Growth Markets (1) 1,840 16 1,853 16 (13) Total $ 9,596 14.8 % $ 8,810 13.7 % $ 786 Amounts in table may not total due to rounding.
Operating Income and Operating Margin Operating income and operating margin for each of the geographic markets is as follows: Fiscal 2025 2024 (in millions of U.S. dollars) Operating Income Operating Margin Operating Income Operating Margin Increase (Decrease) Americas (1) $ 5,324 15 % $ 5,080 16 % $ 245 EMEA 3,091 13 2,804 12 287 Asia Pacific (1) 1,810 18 1,713 18 98 Total $ 10,226 14.7 % $ 9,596 14.8 % $ 630 Amounts in table may not total due to rounding.
(1) In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.
(2) Costs recorded in connection with business optimization actions initiated in fiscal 2023 and completed in fiscal 2024, primarily for employee severance. (3) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market.
During fiscal 2024, Other income (expense), net decreased $206 million from fiscal 2023, primarily due to lower gains on investments. Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Income Tax Expense The effective tax rate for fiscal 2024 was 23.5%, compared with 23.4% for fiscal 2023.
During fiscal 2025, Other income (expense), net decreased $47 million, or 43%, from fiscal 2024, primarily due to higher gains on investments. Income Tax Expense The effective tax rate for fiscal 2025 was 23.7%, compared with 23.5% for fiscal 2024.
Dollars Percent Increase (Decrease) Local Currency (in millions of U.S. dollars) 2024 2023 Geographic Markets North America (1) $ 30,741 $ 30,296 1 % 2 % EMEA (2) 22,818 22,293 2 — Growth Markets (1) (2) 11,338 11,524 (2) 7 Total Revenues $ 64,896 $ 64,112 1 % 2 % Industry Groups Communications, Media & Technology $ 10,837 $ 11,453 (5) % (4) % Financial Services 11,610 12,132 (4) (3) Health & Public Service 13,841 12,560 10 10 Products 19,554 19,104 2 2 Resources 9,054 8,863 2 4 Total Revenues $ 64,896 $ 64,112 1 % 2 % Type of Work Consulting $ 33,195 $ 33,613 (1) % (1) % Managed Services 31,701 30,499 4 5 Total Revenues $ 64,896 $ 64,112 1 % 2 % Amounts in table may not total due to rounding.
Dollars Percent Increase (Decrease) Local Currency (in millions of U.S. dollars) 2025 2024 Geographic Markets Americas (1) $ 35,057 $ 32,552 8 % 9 % EMEA 24,644 22,818 8 6 Asia Pacific (1) 9,972 9,526 5 4 Total Revenues $ 69,673 $ 64,896 7 % 7 % Industry Groups Communications, Media & Technology $ 11,454 $ 10,837 6 % 6 % Financial Services 12,774 11,610 10 10 Health & Public Service 14,763 13,841 7 6 Products 21,197 19,554 8 8 Resources 9,485 9,054 5 5 Total Revenues $ 69,673 $ 64,896 7 % 7 % Type of Work Consulting $ 35,107 $ 33,195 6 % 5 % Managed Services 34,566 31,701 9 9 Total Revenues $ 69,673 $ 64,896 7 % 7 % (1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America.
This includes moving to the cloud, embedding security and responsible AI across the enterprise and leveraging our change capabilities to help our clients build new skills and drive the successful adoption of new processes and technologies.
Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, leveraging cloud, enterprise platforms, security, AI and data, including advanced AI, as well as our change capabilities to help clients build new skills and drive the successful adoption of new processes and technologies.
Excluding the business optimization costs of $1,063 million and related reduction in tax expense of $247 million, and the investment gain of $253 million and related tax expense of $9 million, our adjusted effective tax rate was 23.9% for fiscal 2023.
Excluding the business optimization costs of $438 million and related reduction in tax expense of $111 million, our adjusted effective tax rate was 23.6% for fiscal 2024. Table of Contents ACCENTURE 2025 FORM 10-K Item 7.
Argentina revenues grew in local currency due primarily to hyperinflation. Operating Expenses Operating expenses for fiscal 2024 decreased $1 million from fiscal 2023, and decreased as a percentage of revenues to 85.2% from 86.3% during this period. The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs.
Revenue growth was driven by Japan and Australia, partially offset by a decline in Singapore. Operating Expenses Operating expenses for fiscal 2025 increased $4,147 million over fiscal 2024, and increased as a percentage of revenues to 85.3% from 85.2% in fiscal 2024. The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs.
Prior period amounts have been reclassified to conform with the current period presentation. Other Income (Expense), net Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension expense, as well as gains and losses associated with our investments.
Interest Expense Interest expense for fiscal 2025 was $229 million, an increase of $170 million over fiscal 2024. The increase was primarily due to an increase in long-term debt. Other Income (Expense), net Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension expense, as well as gains and losses associated with our investments.
Operating activities: The $393 million decrease in operating cash flows was primarily due to changes in operating assets and liabilities, including receivables from clients and contract assets, partially offset by higher net income. Investing activities: The $4,439 million increase in cash used was primarily due to higher spending on business acquisitions.
Operating activities: The $2,343 million increase in operating cash flows was primarily due to higher net income and lower cash outflows for certain compensation payments compared to the prior year. Investing activities: The $5,042 million decrease in cash used was primarily due to lower spending on business acquisitions.
The increase in adjusted diluted earnings per share is due to the following factors: Fiscal FY23 As Adjusted $ 11.67 Higher revenue and operating results 0.19 Lower share count 0.05 Lower effective tax rate 0.05 Higher non-operating income 0.02 Higher net income attributable to noncontrolling interests (0.03) FY24 As Adjusted $ 11.95 Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
The increase in adjusted diluted earnings per share for fiscal 2025 compared to fiscal 2024 is due to the following factors: Fiscal 2024 As Adjusted $ 11.95 Higher revenue and operating results 0.97 Lower share count 0.07 Lower effective tax rate 0.01 Lower non-operating income (0.07) 2025 As Adjusted $ 12.93 Our operating income and diluted earnings per share are affected by currency exchange rate fluctuations on revenues and costs.
Fiscal 2024 2023 (in millions of U.S. dollars) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Increase (Decrease) North America $ 4,952 $ 68 $ 5,021 16 % $ 4,474 $ 465 $ 4,939 16 % $ 82 EMEA (2) 2,804 249 3,052 13 2,483 438 2,922 13 131 Growth Markets (2) 1,840 122 1,961 17 1,853 160 2,013 17 (51) Total $ 9,596 $ 438 $ 10,034 15.5 % $ 8,810 $ 1,063 $ 9,873 15.4 % $ 161 Amounts in table may not total due to rounding.
Fiscal 2025 2024 (in millions of U.S. dollars) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Operating Income (GAAP) Business Optimization (2) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Increase (Decrease) Americas (3) $ 5,324 $ 420 $ 5,745 16 % $ 5,080 $ 83 $ 5,163 16 % $ 582 EMEA 3,091 132 3,223 13 2,804 249 3,052 13 171 Asia Pacific (3) 1,810 63 1,873 19 1,713 107 1,819 19 54 Total $ 10,226 $ 615 $ 10,841 15.6 % $ 9,596 $ 438 $ 10,034 15.5 % $ 807 Amounts in table may not total due to rounding.
(1) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation. Table of Contents ACCENTURE 2025 FORM 10-K Item 7.
Revenue growth was driven by the United States. • EMEA revenues were flat in local currency, as growth in Public Service was offset by declines in Communications & Media and Banking & Capital Markets.
Revenue growth was driven by the United States. • EMEA revenues increased 6% in local currency, led by growth in Public Service, Life Sciences, Insurance, Health and Consumer Goods, Retail & Travel Services.
(2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation. .
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Revenues Fiscal Percent Increase (Decrease) U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Operating income for fiscal 2025 increased $630 million, or 7%, compared with fiscal 2024. Operating margin for fiscal 2025 was 14.7%, compared with 14.8% for fiscal 2024.
Removed
The decline in consulting revenue in local currency in fiscal 2024 was driven by a decline in EMEA, partially offset by modest growth in Growth Markets and slight growth in North America. Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, in particular technology, data, and AI led digital transformations.
Added
Management's Discussion and Analysis of Financial Condition and Results of Operations 32 • Operating margin of 14.7%, a decrease from 14.8% in fiscal 2024; adjusted operating margin of 15.6%, an increase compared to 15.5% in fiscal 2024; • Diluted earnings per share of $12.15, a 6% increase over diluted earnings per share of $11.44 in fiscal 2024; adjusted earnings per share of $12.93, an 8% increase over adjusted earnings per share of $11.95 in fiscal 2024; and • Cash returned to shareholders of $8.3 billion, including dividends of $3.7 billion and share purchases of $4.6 billion.
Removed
The U.S. dollar strengthened against various currencies during fiscal 2024, resulting in unfavorable currency translation and U.S. dollar revenue growth that was approximately 1% lower than our Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 39 revenue growth in local currency for the year.
Added
Consulting revenue growth in local currency for fiscal 2025 was driven by strong growth in the Americas, solid growth in EMEA and modest growth in Asia Pacific.
Removed
(2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
Added
Cost of services and the related gross margin may be impacted by several factors, including contract profitability, which includes the pricing on the work that we sell, as well as by the investments we make in our business and our people, such as research and development to build assets, platforms and industry and functional solutions, learning and professional development and strategic acquisitions.
Removed
General and administrative costs primarily include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs.
Added
Business Optimization Costs During the fourth quarter of fiscal 2025, we initiated business optimization actions and recorded $615 million in related costs, which includes $344 million related to a talent rotation that we are making in a compressed timeline, as well as asset impairments of approximately $271 million primarily related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities.
Removed
The increase in gross margin for fiscal 2024 was primarily due to lower labor costs, partially offset by higher non-payroll costs, primarily for travel compared to fiscal 2023.
Added
During fiscal 2024, we recorded business optimization costs of $438 million associated with actions initiated in fiscal 2023 and completed in fiscal 2024, primarily for employee severance.
Removed
These business optimization initiatives were completed as of August 31, 2024.
Added
(1) Costs recorded in connection with business optimization actions initiated in fiscal 2025, including $344 million for employee severance associated with headcount reductions we are making in a compressed timeline and $271 million for asset impairments primarily related to the divestiture of two acquisitions in the Americas that are no longer aligned with our strategic priorities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−0 removed11 unchanged
Biggest changeThese hedges, the most significant of which are U.S. dollar/Euro, U.S. dollar/Indian rupee, U.S. dollar/Japanese yen, U.S. dollar/U.K. pound, U.S. dollar/Swiss franc, U.S. dollar/Chinese yuan, U.S. dollar/Australian dollar and U.S. dollar/Philippine peso, are intended to offset remeasurement of the underlying assets and liabilities.
Biggest changeThese hedges, the most significant of which are U.S. dollar/Japanese yen, U.S. dollar/Indian rupee, U.S. dollar/Euro, U.S. dollar/U.K. pound, U.S. dollar/Australian dollar, U.S. dollar/Swiss franc, U.S. dollar/Philippine peso and U.S. dollar/Chinese yuan, are intended to offset remeasurement of the underlying assets and liabilities.
We have minimal exposure on our long-term investments in privately held companies as these investments were not material in relation to our consolidated financial position, results of operations or cash flows as of August 31, 2024. Table of Contents ACCENTURE 2024 FORM 10-K Item 7A.
We have minimal exposure on our long-term investments in privately held companies as these investments were not material in relation to our consolidated financial position, results of operations or cash flows as of August 31, 2025. Table of Contents ACCENTURE 2025 FORM 10-K Item 7A.
Interest Rate Risk The interest rate risk associated with our borrowing and investing activities as of August 31, 2024 is not material in relation to our consolidated financial position, results of operations or cash flows.
Interest Rate Risk The interest rate risk associated with our borrowing and investing activities as of August 31, 2025 is not material in relation to our consolidated financial position, results of operations or cash flows.
Quantitative and Qualitative Disclosures About Market Risk 50 We record our marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values.
Quantitative and Qualitative Disclosures About Market Risk 43 We record our marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values.
A 10% change in the levels of foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately $655 million and $856 million as of August 31, 2024 and 2023, respectively.
A 10% change in the levels of foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately $722 million and $655 million as of August 31, 2025 and 2024, respectively.
As of August 31, 2024, it was anticipated that approximately $22 million of net gains, net of tax, currently recorded in Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.
As of August 31, 2025, it was anticipated that approximately $115 million of net losses, net of tax, currently recorded in Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.

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