Item 1. Financial Statements

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Item 1. Financial Statements

Consolidated Balance Sheets

February 28, 2025 and August 31, 2024


	February 28, 2025		August 31, 2024
ASSETS	(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	8,490,438	$	5,004,469
Short-term investments	5,062		5,396
Receivables and contract assets	14,281,294		13,664,847
Other current assets	2,530,858		2,183,069
Total current assets	25,307,652		20,857,781
NON-CURRENT ASSETS:
Contract assets	141,561		120,260
Investments	441,720		334,664
Property and equipment, net	1,510,841		1,521,119
Lease assets	2,595,342		2,757,396
Goodwill	20,948,597		21,120,179
Deferred contract costs	929,143		862,140
Deferred tax assets	3,962,252		4,147,496
Intangibles	2,615,648		2,904,031
Other non-current assets	1,417,000		1,307,297
Total non-current assets	34,562,104		35,074,582
TOTAL ASSETS	$	59,869,756	$	55,932,363
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings	$	115,179	$	946,229
Accounts payable	2,614,866		2,743,807
Deferred revenues	5,460,618		5,174,923
Accrued payroll and related benefits	6,071,242		7,050,833
Income taxes payable	622,374		719,084
Lease liabilities	691,158		726,202
Other accrued liabilities	1,554,918		1,615,049
Total current liabilities	17,130,355		18,976,127
NON-CURRENT LIABILITIES:
Long-term debt	5,042,111		78,628
Deferred revenues	638,448		641,091
Retirement obligation	1,862,043		1,815,867
Deferred tax liabilities	451,648		428,845
Income taxes payable	1,274,620		1,514,869
Lease liabilities	2,211,882		2,369,490
Other non-current liabilities	1,076,701		939,198
Total non-current liabilities	12,557,453		7,787,988
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of February 28, 2025 and August 31, 2024	57		57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 678,351,420 and 672,484,852 shares issued as of February 28, 2025 and August 31, 2024, respectively	15		15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 303,318 and 307,754 shares issued and outstanding as of February 28, 2025 and August 31, 2024, respectively	—		—
Restricted share units	1,983,239		2,614,608
Additional paid-in capital	16,685,363		14,710,857
Treasury shares, at cost: Ordinary, 40,000 shares as of February 28, 2025 and August 31, 2024; Class A ordinary, 51,906,694 and 47,204,565 shares as of February 28, 2025 and August 31, 2024, respectively	(12,324,187)		(10,564,572)
Retained earnings	25,209,996		23,082,423
Accumulated other comprehensive loss	(2,308,430)		(1,554,742)
Total Accenture plc shareholders’ equity	29,246,053		28,288,646
Noncontrolling interests	935,895		879,602
Total shareholders’ equity	30,181,948		29,168,248
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	59,869,756	$	55,932,363

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE FORM 10-Q						4

Consolidated Income Statements

For the Three and Six Months Ended February 28, 2025 and February 29, 2024

(Unaudited)


	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
REVENUES:
Revenues	$	16,659,301	$	15,799,514	$	34,348,846	$	32,023,817
OPERATING EXPENSES:
Cost of services	11,684,313		10,921,045		23,551,029		21,697,407
Sales and marketing	1,676,781		1,631,185		3,487,890		3,341,076
General and administrative costs	1,053,493		1,085,448		2,116,736		2,118,947
Business optimization costs	—		115,409		—		255,073
Total operating expenses	14,414,587		13,753,087		29,155,655		27,412,503
OPERATING INCOME	2,244,714		2,046,427		5,193,191		4,611,314
Interest income	76,113		65,269		152,140		167,249
Interest expense	(64,669)		(10,305)		(94,711)		(24,800)
Other income (expense), net	32,616		(5,652)		(6,601)		(41,371)

INCOME BEFORE INCOME TAXES	2,288,774		2,095,739		5,244,019		4,712,392
Income tax expense	466,333		386,537		1,105,388		993,209
NET INCOME	1,822,441		1,709,202		4,138,631		3,719,183
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.	(1,685)		(1,675)		(3,855)		(3,691)
Net income attributable to noncontrolling interests – other	(32,681)		(32,668)		(67,807)		(67,189)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,788,075	$	1,674,859	$	4,066,969	$	3,648,303
Weighted average Class A ordinary shares:
Basic	626,824,946		629,016,555		626,247,762		628,488,831
Diluted	634,211,978		636,797,814		634,543,212		637,069,356
Earnings per Class A ordinary share:
Basic	$	2.85	$	2.66	$	6.49	$	5.80
Diluted	$	2.82	$	2.63	$	6.42	$	5.73
Cash dividends per share	$	1.48	$	1.29	$	2.96	$	2.58

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q						5

Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended February 28, 2025 and February 29, 2024

(Unaudited)


	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
NET INCOME	$	1,822,441	$	1,709,202	$	4,138,631	$	3,719,183
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation	(166,903)		(91,773)		(641,886)		(23,581)
Defined benefit plans	3,419		5,238		(12,339)		41,630
Cash flow hedges	(95,552)		56,610		(99,463)		67,912

OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC	(259,036)		(29,925)		(753,688)		85,961
Other comprehensive income (loss) attributable to noncontrolling interests	(2,703)		(2,257)		(12,796)		(372)
COMPREHENSIVE INCOME	$	1,560,702	$	1,677,020	$	3,372,147	$	3,804,772

COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,529,039	$	1,644,934	$	3,313,281	$	3,734,264
Comprehensive income attributable to noncontrolling interests	31,663		32,086		58,866		70,508
COMPREHENSIVE INCOME	$	1,560,702	$	1,677,020	$	3,372,147	$	3,804,772

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q						6

Consolidated Shareholders’ Equity Statement

For the Three Months Ended February 28, 2025

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares			$		No. Shares
Balance as of November 30, 2024	$	57	40	$	15	674,279	$	—	308	$	2,777,423	$	15,364,338	$	(11,304,512)	(49,289)	$	24,402,568	$	(2,049,394)	$	29,190,495	$	911,928	$	30,102,423
Net income																	1,788,075				1,788,075		34,366		1,822,441
Other comprehensive income (loss)																			(259,036)		(259,036)		(2,703)		(261,739)
Purchases of Class A shares												1,181		(1,444,442)		(4,000)					(1,443,261)		(1,181)		(1,444,442)

Share-based compensation expense										686,114											686,114				686,114
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(5)			(3,376)									(3,376)				(3,376)
Issuances of Class A shares for employee share programs						4,072				(1,517,697)		1,317,409		424,767		1,342	(15,134)				209,345		942		210,287
Dividends										37,399							(965,513)				(928,114)		(878)		(928,992)
Other, net												5,811									5,811		(6,579)		(768)
Balance as of February 28, 2025	$	57	40	$	15	678,351	$	—	303	$	1,983,239	$	16,685,363	$	(12,324,187)	(51,947)	$	25,209,996	$	(2,308,430)	$	29,246,053	$	935,895	$	30,181,948

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q						7

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended February 29, 2024

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares			$		No. Shares
Balance as of November 30, 2023	$	57	40	$	15	666,512	$	—	318	$	2,553,022	$	13,353,477	$	(8,032,018)	(39,560)	$	20,429,413	$	(1,627,215)	$	26,676,751	$	808,686	$	27,485,437
Net income																	1,674,859				1,674,859		34,343		1,709,202
Other comprehensive income (loss)																			(29,925)		(29,925)		(2,257)		(32,182)
Purchases of Class A shares												1,153		(1,318,412)		(3,742)					(1,317,259)		(1,153)		(1,318,412)

Share-based compensation expense										641,871											641,871				641,871
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(3)			(3,434)									(3,434)				(3,434)
Issuances of Class A shares for employee share programs						3,893				(1,369,402)		1,197,930		559,618		1,685	(103,022)				285,124		249		285,373
Dividends										37,847							(849,613)				(811,766)		(812)		(812,578)
Other, net												6,632									6,632		(5,485)		1,147
Balance as of February 29, 2024	$	57	40	$	15	670,405	$	—	315	$	1,863,338	$	14,555,758	$	(8,790,812)	(41,617)	$	21,151,637	$	(1,657,140)	$	27,122,853	$	833,571	$	27,956,424

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q						8

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 28, 2025

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares			$		No. Shares
Balance as of August 31, 2024	$	57	40	$	15	672,485	$	—	308	$	2,614,608	$	14,710,857	$	(10,564,572)	(47,245)	$	23,082,423	$	(1,554,742)	$	28,288,646	$	879,602	$	29,168,248
Net income																	4,066,969				4,066,969		71,662		4,138,631
Other comprehensive income (loss)																			(753,688)		(753,688)		(12,796)		(766,484)
Purchases of Class A shares												1,923		(2,341,837)		(6,528)					(2,339,914)		(1,923)		(2,341,837)

Share-based compensation expense										1,099,811		56,728									1,156,539				1,156,539
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(5)			(4,245)									(4,245)				(4,245)
Issuances of Class A shares for employee share programs						5,866				(1,802,162)		1,922,662		582,222		1,826	(15,625)				687,097		557		687,654
Dividends										70,982							(1,923,771)				(1,852,789)		(1,761)		(1,854,550)
Other, net												(2,562)									(2,562)		554		(2,008)
Balance as of February 28, 2025	$	57	40	$	15	678,351	$	—	303	$	1,983,239	$	16,685,363	$	(12,324,187)	(51,947)	$	25,209,996	$	(2,308,430)	$	29,246,053	$	935,895	$	30,181,948

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q						9

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 29, 2024

(Unaudited)


	Ordinary Shares			Class A Ordinary Shares			Class X Ordinary Shares			Restricted Share Units		Additional Paid-in Capital		Treasury Shares			Retained Earnings		Accumulated Other Comprehensive Loss		Total Accenture plc Shareholders’ Equity		Noncontrolling Interests		Total Shareholders’ Equity
	$		No. Shares	$		No. Shares	$		No. Shares			$		No. Shares
Balance as of August 31, 2023	$	57	40	$	15	664,616	$	—	325	$	2,403,374	$	12,778,782	$	(7,062,512)	(36,391)	$	19,316,224	$	(1,743,101)	$	25,692,839	$	765,754	$	26,458,593
Net income																	3,648,303				3,648,303		70,880		3,719,183
Other comprehensive income (loss)																			85,961		85,961		(372)		85,589
Purchases of Class A shares												2,203		(2,506,701)		(7,552)					(2,504,498)		(2,203)		(2,506,701)

Share-based compensation expense										1,007,582		57,289									1,064,871				1,064,871
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(10)			(6,273)									(6,273)				(6,273)
Issuances of Class A shares for employee share programs						5,789				(1,614,744)		1,723,265		778,401		2,326	(124,773)				762,149		658		762,807
Dividends										67,126							(1,688,117)				(1,620,991)		(1,643)		(1,622,634)
Other, net												492									492		497		989
Balance as of February 29, 2024	$	57	40	$	15	670,405	$	—	315	$	1,863,338	$	14,555,758	$	(8,790,812)	(41,617)	$	21,151,637	$	(1,657,140)	$	27,122,853	$	833,571	$	27,956,424

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q						10

Consolidated Cash Flows Statements

For the Six Months Ended February 28, 2025 and February 29, 2024

(Unaudited)


	February 28, 2025		February 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,138,631	$	3,719,183
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	1,114,210		1,050,328
Share-based compensation expense	1,156,539		1,064,871


Deferred tax expense (benefit)	193,355		(34,140)
Other, net	(72,523)		(167,097)
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(922,099)		(647,335)
Other current and non-current assets	(887,421)		(627,563)
Accounts payable	(80,374)		(313,941)
Deferred revenues, current and non-current	445,795		432,849
Accrued payroll and related benefits	(784,696)		(1,540,799)
Income taxes payable, current and non-current	(294,315)		(309,203)
Other current and non-current liabilities	(131,216)		(27,559)
Net cash provided by (used in) operating activities	3,875,886		2,599,594
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment	(323,017)		(178,756)
Purchases of businesses and investments, net of cash acquired	(492,355)		(2,909,480)
Proceeds from the sale of businesses and investments	15,433		20,905

Other investing, net	7,131		3,653
Net cash provided by (used in) investing activities	(792,808)		(3,063,678)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	687,654		762,807
Purchases of shares	(2,346,082)		(2,512,974)
Proceeds from debt	5,061,085		—
Repayments of debt	(931,885)		—
Cash dividends paid	(1,854,550)		(1,622,634)
Other financing, net	(69,502)		(44,853)
Net cash provided by (used in) financing activities	546,720		(3,417,654)
Effect of exchange rate changes on cash and cash equivalents	(143,829)		(42,187)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,485,969		(3,923,925)
CASH AND CASH EQUIVALENTS, beginning of period	5,004,469		9,045,032
CASH AND CASH EQUIVALENTS, end of period	$	8,490,438	$	5,121,107
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	1,308,343	$	1,487,004

The accompanying Notes are an integral part of these Consolidated Financial Statements.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						11

1. Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2024 included in our Annual Report on Form 10-K filed with the SEC on October 10, 2024.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and six months ended February 28, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of February 28, 2025 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $26,704 and $27,561, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

Investments

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).

Our non-current investments are as follows:


	February 28, 2025		August 31, 2024
Equity method investments	$	127,183	$	128,634
Investments without readily determinable fair values	314,537		206,030
Total non-current investments	$	441,720	$	334,664

For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of Other income (expense), net.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						12

Depreciation and Amortization

As of February 28, 2025 and August 31, 2024, total accumulated depreciation was $2,780,723 and $2,713,855, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and six months ended February 28, 2025 and February 29, 2024, respectively.


	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Depreciation	$	133,809	$	134,997	$	266,908	$	268,242
Amortization—Deferred transition	79,131		92,865		164,455		191,356
Amortization—Intangible assets	152,162		119,625		312,376		231,256
Operating lease cost	173,866		173,215		360,395		348,229
Other	5,902		8,226		10,076		11,245
Total depreciation, amortization and other	$	544,870	$	528,928	$	1,114,210	$	1,050,328

New Accounting Pronouncements

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures.

On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option. We are in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not our financial position or results of operations.

On November 4, 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires entities to disclose specified information about certain expenses in the notes to the financial statements, including employee compensation. The ASU will be effective beginning with our annual fiscal 2028 financial statements. We are currently evaluating the impact of this standard on our disclosures.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						13

2. Revenues

Disaggregation of Revenue

See Note 12 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $31 billion and $30 billion as of February 28, 2025 and August 31, 2024, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately 50% of our remaining performance obligations as of February 28, 2025 as revenue in fiscal 2025, an additional 26% in fiscal 2026, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and six months ended February 28, 2025 and February 29, 2024, respectively.

Contract Balances

Deferred transition revenues were $638,448 and $641,091 as of February 28, 2025 and August 31, 2024, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $929,143 and $862,140 as of February 28, 2025 and August 31, 2024, respectively, and are included in Deferred contract costs. Generally, deferred transition costs are recoverable under the contract in the event of early termination and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets.

The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues):


	February 28, 2025		August 31, 2024
Receivables	$	12,437,308	$	11,873,442
Contract assets (current)	1,843,986		1,791,405
Receivables and contract assets, net of allowance (current)	14,281,294		13,664,847
Contract assets (non-current)	141,561		120,260
Deferred revenues (current)	5,460,618		5,174,923
Deferred revenues (non-current)	638,448		641,091

Changes in the contract asset and liability balances during the six months ended February 28, 2025 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three and six months ended February 28, 2025 that were included in Deferred revenues as of November 30, 2024 and August 31, 2024 were $2.6 billion and $3.7 billion, respectively. Revenues recognized during the three and six months ended February 29, 2024 that were included in Deferred revenues as of November 30, 2023 and August 31, 2023 were $2.5 billion and $3.6 billion, respectively.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						14

3. Earnings Per Share

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Basic earnings per share
Net income attributable to Accenture plc	$	1,788,075	$	1,674,859	$	4,066,969	$	3,648,303
Basic weighted average Class A ordinary shares	626,824,946		629,016,555		626,247,762		628,488,831
Basic earnings per share	$	2.85	$	2.66	$	6.49	$	5.80
Diluted earnings per share
Net income attributable to Accenture plc	$	1,788,075	$	1,674,859	$	4,066,969	$	3,648,303
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)	1,685		1,675		3,855		3,691
Net income for diluted earnings per share calculation	$	1,789,760	$	1,676,534	$	4,070,824	$	3,651,994
Basic weighted average Class A ordinary shares	626,824,946		629,016,555		626,247,762		628,488,831
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)	590,760		629,053		593,312		635,356
Diluted effect of employee compensation related to Class A ordinary shares	6,619,249		6,804,596		7,406,861		7,665,966
Diluted effect of share purchase plans related to Class A ordinary shares	177,023		347,610		295,277		279,203
Diluted weighted average Class A ordinary shares (2)	634,211,978		636,797,814		634,543,212		637,069,356
Diluted earnings per share	$	2.82	$	2.63	$	6.42	$	5.73

(1)Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests - other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares.

(2)The weighted average diluted shares outstanding for the calculation of diluted earnings per share excludes an immaterial amount of shares issuable upon the vesting of restricted stock units because their effects were antidilutive.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						15

4. Accumulated Other Comprehensive Loss

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc:


	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Foreign currency translation
Beginning balance	$	(1,770,726)	$	(1,442,440)	$	(1,295,743)	$	(1,510,632)
Foreign currency translation	(174,026)		(93,076)		(660,113)		(25,287)
Income tax benefit (expense)	4,506		(1,014)		5,536		1,226
Portion attributable to noncontrolling interests	2,617		2,317		12,691		480
Foreign currency translation, net of tax	(166,903)		(91,773)		(641,886)		(23,581)
Ending balance	(1,937,629)		(1,534,213)		(1,937,629)		(1,534,213)

Defined benefit plans
Beginning balance	(269,930)		(190,111)		(254,172)		(226,503)



Reclassifications into net periodic pension and post-retirement expense	4,255		6,514		(13,425)		50,808
Income tax benefit (expense)	(833)		(1,272)		1,074		(9,137)
Portion attributable to noncontrolling interests	(3)		(4)		12		(41)
Defined benefit plans, net of tax	3,419		5,238		(12,339)		41,630
Ending balance	(266,511)		(184,873)		(266,511)		(184,873)

Cash flow hedges
Beginning balance	(8,738)		5,336		(4,827)		(5,966)
Unrealized gain (loss)	(113,620)		73,761		(99,022)		97,375
Reclassification adjustments into Cost of services	1,830		(4,846)		(5,647)		(15,446)
Income tax benefit (expense)	16,149		(12,249)		5,113		(13,950)
Portion attributable to noncontrolling interests	89		(56)		93		(67)
Cash flow hedges, net of tax	(95,552)		56,610		(99,463)		67,912
Ending balance (1)	(104,290)		61,946		(104,290)		61,946










Accumulated other comprehensive loss	$	(2,308,430)	$	(1,657,140)	$	(2,308,430)	$	(1,657,140)

(1)As of February 28, 2025, $37,989 of net unrealized losses related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						16

5. Business Combinations

During the six months ended February 28, 2025, we completed individually immaterial acquisitions for total consideration of $421,133, net of cash acquired. The pro forma effects of these acquisitions on our operations were not material.

6. Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill by reportable segment are as follows:


	August 31, 2024		Additions/ Adjustments		Foreign Currency Translation		February 28, 2025
Americas (1)	$	11,960,650	$	99,352	$	(45,723)	$	12,014,279
EMEA	7,341,686		271,892		(405,797)		7,207,781
Asia Pacific (1)	1,817,843		(6,239)		(85,067)		1,726,537
Total	$	21,120,179	$	365,005	$	(536,587)	$	20,948,597

(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.

Goodwill includes immaterial adjustments related to prior period acquisitions.

Intangible Assets

Our definite-lived intangible assets by major asset class are as follows:


	August 31, 2024						February 28, 2025
Intangible Asset Class	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer-related	$	3,924,339	$	(1,336,679)	$	2,587,660	$	3,764,310	$	(1,408,538)	$	2,355,772
Technology	335,845		(183,182)		152,663		334,512		(210,947)		123,565
Patents	120,457		(72,518)		47,939		117,222		(72,550)		44,672
Other	150,098		(34,329)		115,769		132,111		(40,472)		91,639
Total	$	4,530,739	$	(1,626,708)	$	2,904,031	$	4,348,155	$	(1,732,507)	$	2,615,648

Total amortization related to our intangible assets was $152,162 and $312,376 for the three and six months ended February 28, 2025, respectively. Total amortization related to our intangible assets was $119,625 and $231,256 for the three and six months ended February 29, 2024, respectively. Estimated future amortization related to intangible assets held as of February 28, 2025 is as follows:


Fiscal Year	Estimated Amortization
Remainder of 2025	$	293,918
2026	539,240
2027	474,343
2028	439,497
2029	350,938
Thereafter	517,712
Total	$	2,615,648


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						17

7. Shareholders’ Equity

Dividends

Our dividend activity during the six months ended February 28, 2025 is as follows:


	Dividend Per Share			Accenture plc Class A Ordinary Shares					Accenture Canada Holdings Inc. Exchangeable Shares				Total Cash Outlay
Dividend Payment Date			Record Date		Cash Outlay			Record Date		Cash Outlay
November 15, 2024	$	1.48		October 10, 2024		$	924,675		October 9, 2024		$	883	$	925,558
February 14, 2025	1.48			January 16, 2025		928,114			January 15, 2025		878		928,992

Total Dividends						$	1,852,789				$	1,761	$	1,854,550

The payment of cash dividends includes the net effect of $70,982 of additional restricted stock units being issued as a part of our share plans, which resulted in 186,690 restricted share units being issued.

Subsequent Event

On March 19, 2025, 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 April 10, 2025 payable on May 15, 2025.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						18

8. Financial Instruments

Derivatives

In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.

Cash Flow Hedges

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and six months ended February 28, 2025 and February 29, 2024, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $12,442 and $16,698 for the three and six months ended February 28, 2025, respectively, and net losses of $26,056 and $46,336 for the three and six months ended February 29, 2024, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

The notional and fair values of all derivative instruments are as follows:


	February 28, 2025		August 31, 2024
Assets
Cash Flow Hedges
Other current assets	$	33,066	$	51,152
Other non-current assets	15,208		28,363
Other Derivatives
Other current assets	16,573		39,733
Total assets	$	64,847	$	119,248
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	71,055	$	29,247
Other non-current liabilities	62,522		35,346
Other Derivatives
Other accrued liabilities	32,627		25,974
Total liabilities	$	166,204	$	90,567
Total fair value	$	(101,357)	$	28,681
Total notional value	$	14,313,926	$	14,824,483

We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, we record derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:


	February 28, 2025		August 31, 2024
Net derivative assets	$	35,734	$	91,127
Net derivative liabilities	137,091		62,446
Total fair value	$	(101,357)	$	28,681


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						19

9. Borrowings and Indebtedness

On October 4, 2024, Accenture Capital Inc. (“Accenture Capital”), a wholly owned finance subsidiary of Accenture plc, issued $5 billion aggregate principal amount of senior unsecured notes. Net proceeds from the offering are being used for general corporate purposes, including repayment of outstanding commercial paper borrowings. Interest on the senior unsecured notes is payable semi-annually in arrears. Accenture Capital may redeem the senior unsecured notes at any time in whole, or from time to time, in part at specified redemption prices. Accenture plc and Accenture Capital are not subject to any financial covenants under the senior unsecured notes.

The following is a summary of total outstanding debt as of February 28, 2025 and August 31, 2024, respectively:


	February 28, 2025		August 31, 2024
Current portion of long-term debt and bank borrowings
Commercial paper (1)	$	99,951	$	931,507
Other (2)	15,228		14,722
Total current portion of long-term debt and bank borrowings	$	115,179	$	946,229

Long-term debt
Senior notes – 3.90% due 2027	$	1,100,000	$	—
Senior notes – 4.05% due 2029	1,200,000		—
Senior notes – 4.25% due 2031	1,200,000		—
Senior notes – 4.50% due 2034	1,500,000		—
Total principal amount (3)	$	5,000,000	$	—
Less: unamortized debt discount and issuance costs	(36,297)		—
Total carrying amount	$	4,963,703	$	—
Other (2)	78,408		78,628
Total long-term debt	$	5,042,111	$	78,628

(1)The carrying amounts of the commercial paper as of February 28, 2025 and August 31, 2024 include the remaining principal outstanding of $100,000 and $935,000, respectively, net of total unamortized discounts of $49 and $3,493, respectively. The weighted-average effective interest rate for the commercial paper was 4.5% and 5.4% as of February 28, 2025 and August 31, 2024, respectively.

(2)Amounts primarily include finance lease liabilities.

(3)The total estimated fair value of our senior notes was $4.9 billion as of February 28, 2025. The fair value was determined based on quoted prices as of the last trading day of the second quarter of fiscal 2025 and is classified as Level 1 within the fair value hierarchy.

As of February 28, 2025, future principal payments for total outstanding debt, excluding finance leases, are summarized as follows:


Fiscal Year	Amount
Remainder of 2025	$	100,000
2026	—
2027	—
2028	1,100,000
2029	—
Thereafter	3,900,000
Total	$	5,100,000


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						20

As of February 28, 2025, we had the following borrowing facilities:


	Credit Facilities
Syndicated loan facility (1)	$	5,500,000
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2)	1,901,169
Local guaranteed and non-guaranteed lines of credit (3)	279,268
Total	$	7,680,437

(1)This facility, which matures on May 14, 2029, provides unsecured, revolving borrowing capacity for general corporate purposes, including the issuance of letters of credit and short-term commercial paper. Borrowings under this facility will accrue interest at the applicable risk-free rate plus a spread. We continue to be in compliance with relevant covenant terms. The facility is subject to annual commitment fees.

(2)We maintain separate, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local currency financing for the majority of our operations. Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets. As of February 28, 2025 and August 31, 2024, we had no borrowings under these facilities.

(3)We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. As of February 28, 2025 and August 31, 2024, we had no borrowings under these various facilities.

We had an aggregate of $1,244,873 and $1,269,178 of letters of credit outstanding and $100,000 and $935,000 (excluding unamortized discounts) of commercial paper outstanding as of February 28, 2025 and August 31, 2024, respectively. The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.

10. Income Taxes

We apply an estimated annual effective tax rate to our year-to-date operating results to determine the interim provision for income tax expense. In addition, we recognize taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs.

Our effective tax rates for the three months ended February 28, 2025 and February 29, 2024 were 20.4% and 18.4%, respectively. The higher effective tax rate for the three months ended February 28, 2025 was primarily due to lower tax benefits from share-based payments. Our effective tax rate for both the six months ended February 28, 2025 and February 29, 2024 was 21.1%.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						21

11. Commitments and Contingencies

Indemnifications and Guarantees

In the normal course of business and in conjunction with certain client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters.

As of February 28, 2025 and August 31, 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $1,995,000 and $2,370,000, respectively, of which all but approximately $64,000 and $61,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of February 28, 2025 and August 31, 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,867,566 ($1,683,583 net of recourse provisions) and $1,758,783 ($1,609,046 net of recourse provisions), respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. In general, we would only be liable for these guarantees in the event we defaulted in performing our obligations under each contract, the probability of which we believe is remote.

To date, we have not been required to make any significant payment under any of the arrangements described above. We have assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations, indemnification provisions, letters of credit and surety bonds, and believe that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole.

Legal Contingencies

As of February 28, 2025, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. Based on the present status of these matters, except as otherwise noted below, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on our results of operations or financial condition.

On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc. (“Marriott”) in the U.S. District Court for the District of Maryland. The complaint alleges negligence by us, and seeks monetary damages, costs and attorneys’ fees and other related relief, relating to a data security incident involving unauthorized access to the reservations database of Starwood Worldwide Resorts, Inc. (“Starwood”), which was acquired by Marriott on September 23, 2016. Since 2009, we have provided certain IT infrastructure outsourcing services to Starwood. On May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we appealed. On August 17, 2023, the appeals court vacated the class certification and remanded the case to the district court for consideration of, among other things, the class action waiver signed by Starwood customer plaintiffs. On November 29, 2023, the district court reinstated the classes previously certified by the court in May 2022. We are appealing the district court’s decision. We continue to believe the lawsuit is without merit and we will vigorously defend it. At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition.

After Accenture Federal Services (“AFS”) made a voluntary disclosure to the U.S. government, the U.S. 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. AFS is responding to an administrative subpoena and cooperating with DOJ’s investigation. This matter could subject us to adverse consequences, including civil and criminal penalties, including under the civil U.S. False Claims Act and/or other statutes, and administrative sanctions, such as termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with agencies of the U.S. government. We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.


Table of Contents						Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						22

12. Segment Reporting

Our reportable segments are our three geographic markets, which are the Americas, EMEA and Asia Pacific.

Information regarding reportable segments, industry groups and type of work is as follows:


	Revenues
	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Geographic Markets
Americas (1)	$	8,553,098	$	7,815,543	$	17,286,193	$	15,842,515
EMEA	5,803,875		5,598,850		12,215,827		11,402,492
Asia Pacific (1)	2,302,328		2,385,121		4,846,826		4,778,810
Total Revenues	$	16,659,301	$	15,799,514	$	34,348,846	$	32,023,817
Industry Groups
Communications, Media & Technology	$	2,729,655	$	2,654,137	$	5,587,540	$	5,323,585
Financial Services	3,010,430		2,808,930		6,179,265		5,842,508
Health & Public Service	3,608,912		3,334,039		7,421,521		6,711,505
Products	5,051,839		4,761,838		10,477,156		9,621,825
Resources	2,258,465		2,240,570		4,683,364		4,524,394
Total Revenues	$	16,659,301	$	15,799,514	$	34,348,846	$	32,023,817
Type of Work
Consulting	$	8,282,260	$	8,021,034	$	17,327,488	$	16,477,540
Managed Services	8,377,041		7,778,480		17,021,358		15,546,277
Total Revenues	$	16,659,301	$	15,799,514	$	34,348,846	$	32,023,817


	Operating Income
	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Geographic Markets
Americas (1)	$	1,240,443	$	1,083,257	$	2,617,677	$	2,376,238
EMEA	639,235		529,012		1,675,212		1,352,613
Asia Pacific (1)	365,036		434,158		900,302		882,463
Total Operating Income	$	2,244,714	$	2,046,427	$	5,193,191	$	4,611,314


Table of Contents
ACCENTURE FORM 10-Q						Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			23

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