Accenture raises Q1 2023 fiscal outlook

Julie Sweet Accenture

Accenture has announced a robust fiscal result for the first quarter of 2023, reporting revenues of $18.7bn, an increase of five per cent in US dollars and 15 per cent in local currency.

While a foreign-exchange impact was anticipated on the quarter’s results, Accenture’s revenues were approximately $150m above this adjusted range.

The fiscal outlook for 2023 has been updated, with the EPS expectations rising to $11.52 from $11.20. Growth of 8-11 percent is expected in local currency and a negative 5 percent with foreign exchange.

Consulting revenues and managed services both reported revenue increases. Consulting revenues for Q1 were $8.44bn, up 1 percent in US dollars and 10 percent in local currency compared with Q1 2022. Managed services brought in $7.30 bn, an increase of 11 percent in US dollars and 20 percent in local currency.

Operating income was $2.59bn, a 7 percent increase over the same period last year, and operating margin was 16.5 percent, an expansion of 20 basis points. New bookings contributed $16.2 billion, with bookings of $8.1 billion for consulting and managed services.

Cash dividends for the year totalled $706m, with another payment of $1.12 declared for the close of business on 10 Jan 2023. The dividend, payable on 15 February, represents a 15 percent increase over the quarterly dividend rate of $0.97 per share in fiscal 2022.

Accenture CEO provides comment on latest results

Julie Sweet, chair and CEO, of Accenture, said, “Our strong first quarter results reflect our laser focus on creating value for our clients, as well as the significant investments in our business and capabilities we make year in and year out to meet the evolving needs of our clients. Today, all strategies lead to technology, and Accenture’s depth and breadth, leading ecosystem relationships, and continuous innovation are enabling clients to digitize faster, build greater resiliency and optimize costs. Thanks to our extraordinary people, we continue to deliver 360° value for all our stakeholders and are pleased to share our goals, progress and performance in our newly enhanced 360° Value Reporting Experience.”