Accenture (ACN) Q4 2024 earnings summary

Executive summary

• FY24 new bookings reached a record $81.2B, up 14% in local currency, with Q4 bookings at $20.1B, and significant investment in GenAI and client reinventions positioning for FY25 growth.

• FY24 revenues were $64.9B (2% local currency growth), with Q4 revenues at $16.4B (5% local currency growth), and continued market share gains.

• Adjusted EPS for FY24 was $11.95 (up 2% YoY); Q4 adjusted EPS was $2.79 (up 3% YoY); adjusted operating margin expanded by 10 bps to 15.5%.

• Returned $7.8B to shareholders in FY24 through $4.5B in share repurchases and $3.2B in dividends, with a 15% increase in dividend per share and $4B additional share repurchase authority.

• Completed business optimization actions and invested heavily in acquisitions, R&D, and talent, especially in GenAI; leadership transition with new CFO announced.

Financial highlights

• Q4 revenue: $16.4B (3% USD, 5% local currency growth); full-year revenue: $64.9B (2% local currency growth).

• Q4 adjusted operating margin: 15% (up 10 bps YoY); adjusted EPS: $2.79 (3% YoY growth); Q4 GAAP EPS: $2.66 (up 24% YoY).

• Q4 free cash flow: $3.2B; full-year free cash flow: $8.6B (free cash flow to net income ratio: 1.2).

• Q4 bookings: $20.1B (21% USD, 24% local currency growth); book-to-bill: 1.2 overall, 1.0 Consulting, 1.4 Managed Services.

• Market capitalization as of August 31, 2024, was $214.0B with 625.9M shares outstanding.

Outlook and guidance

• FY25 revenue expected to grow 3%-6% in local currency (inorganic contribution just over 3%), with $3B planned for acquisitions.

• FY25 adjusted/GAAP EPS expected at $12.55-$12.91 (5%-8% growth); free cash flow guidance: $8.8B-$9.5B.

• Operating margin guidance: 15.6%-15.8% (10-100 bps expansion over FY24 adjusted results).

• At least $8.3B to be returned to shareholders via dividends and repurchases; modest long-term debt issuance planned.

• Q1 FY25 revenue guidance: $16.85B–$17.45B (2%–6% local currency growth).