Accenture sails ahead with strong fourth quarter performance

Image of Accenture | Accenture fourth quarter

Accenture has reported its fourth-quarter results with revenues of $16bn, meeting expectations set back in Q3 and an increase of four percent in US dollars and local currency.

The company reported total revenues for the FY23 at $64.1bn, an increase of four percent in US dollars and eight percent in local currency.

GAAP Operating income for fiscal 2023 decreased to $8.81bn, or 13.7 percent of revenues, compared with $9.37bn, or 15.2 percent of revenues, in fiscal 2022. Adjusted operating income for the full fiscal year was $9.87bn, or 15.4 percent of revenues, an expansion of 20 basis points from fiscal 2022.

GAAP net income for the full fiscal year was $7bn, compared with $6.99bn in fiscal 2022.

Consulting revenues for the quarter fell two percent to $8.2bn, compared with Q4 2022. Managed Services revenues were $7.79bn, an increase of ten percent in both US dollars and local currency compared with Q4 2022.

Q4 performance saw the vast majority of its industry groups increase in revenue with financial services revenue at $3.03bn, an increase of three percent; health and public service revenue at $3.27bn, an increase of 13 percent; products revenue at $4.75bn, an increase of six percent; and resource revenue at $2.23bn, an increase of ten percent.

Communications, media and technology, however, let the company down for the second quarter running with a revenue of $2.71bn, a decrease of 12 percent in both US dollars and local currency compared with the fourth quarter of fiscal 2022.

The results were accompanied by the recent announcement of the company supporting the Mount Sinai Health System with the migration of its enterprise electronic medical record system, Epic, to the Microsoft Azure cloud environment. This marks the largest production instance of Epic running on Azure, a significant development in the healthcare industry.

Julie Sweet, chair and CEO, Accenture, said: “I am extremely proud that we have achieved another strong year of financial performance in fiscal year 2023. Our ability to remain laser-focused on meeting the needs of our clients is reflected in new bookings of $72bn in fiscal 2023; 106 clients with quarterly bookings of more than $100m and reaching a record 300 Diamond clients, our largest relationships.

“Our clients’ generative AI bookings of $300m in the last six months position us at the heart of the beginning of AI-fueled reinvention. I would like to thank our extraordinary 733,000 people who made these results possible and focus every day on creating 360° value for all our stakeholders.”

The company’s success lends itself to the many strategic collaborations and partnerships which saw the company continuously implement and invest in AI. Over the year, Accenture has expanded its partnership with Google Cloud to help organizations reinvent their businesses with GenAI and has also collaborated with companies such as Bira 91, Coca-Cola Bottlers Japan, Nautilus Consulting, Open Cosmos and many more.

Accenture expects revenues for the first quarter of fiscal 2024 to be in the range of $15.85bn -$16.45bn, or -2 to two percent in local currency which reflects the company’s assumption of a positive 2.5 percent foreign-exchange impact compared with the first quarter of fiscal 2023. For fiscal 2024, the company expects revenue growth to be in the range of two-five percent in local currency.