Accenture plc
For the period ended May 31, 2026. Filed Jun 18, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 31, 2026 · Filed Jun 18, 2026
ACN$260.50-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-02-28; filed 2026-03-19.
0001467373-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-05-31; filed 2026-06-18.
0001467373-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 142 previous paragraphs and 143 current paragraphs.
88 unchanged; 47 reworded; 7 added; 4 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•New bookings of $19.3 billion, a decrease of 2% in U.S. dollars and 3% in local currency;
Current report
•Three Months. Revenues increased 1% in local currency, led by growth in Software & Platforms, High Tech and Industrials, partially offset by a decline in Public Service. Revenue growth was driven by the United States.
Current report
•Three Months. Revenues increased 8% in local currency, led by growth in Public Service, Banking & Capital Markets and Insurance. Revenue growth was driven by Japan, Australia and Singapore.
Current report
General and administrative costs for the third quarter of fiscal 2026 increased $67 million, or 6%, over the third quarter of fiscal 2025, and remained flat as a percentage of revenues at 6.1% during this period. General and administrative costs for the nine months ended May 31, 2026 increased $308 million, or 10%, over the nine months ended May 31, 2025, and increased as a percentage of revenues to 6.3% over 6.1% during this period.
Current report
•Three Months. Operating income increased due to revenue growth in local currency and the positive impact of foreign currency exchange rates, which resulted in an increase in U.S. dollar revenues and lower payroll costs as a percentage of revenues, partially offset by higher non-payroll costs, including an increase in sub-contractor costs.
Current report
•Nine Months. Operating income increased due to revenue growth in local currency and the positive impact of foreign currency exchange rates, which resulted in an increase in U.S. dollar revenues, partially offset by higher non-payroll costs and the impact of business optimization costs.
Current report
Operating activities: The $1,708 million increase in operating cash flows was primarily due to higher net income, higher accruals for certain compensation payments reflected in accrued payroll and benefits, and the timing of vendor accruals and payments in accounts payable and other current and non-current liabilities.
Removed paragraphs (4)
Previous report
•Revenues of $18.0 billion, an increase of 8% in U.S. dollars and 4% in local currency;
Previous report
•Three Months. Revenues increased 10% in local currency, led by growth in Banking & Capital Markets, Communications & Media and Public Service. Revenue growth was driven by Japan and Australia.
Previous report
General and administrative costs for the second quarter of fiscal 2026 increased $163 million, or 16%, over the second quarter of fiscal 2025, and increased as a percentage of revenues to 6.7% over 6.3% during this period primarily due to higher non-payroll costs, partially offset by lower payroll costs. General and administrative costs for the six months ended February 28, 2026 increased $241 million, or 11%, over the six months ended February 28, 2025, and increased as a percentage of revenues to 6.4% over 6.2% during this period.
Previous report
Operating activities: The $1,606 million increase in operating cash flows was primarily due to changes in operating assets and liabilities, including higher collections on net client balances (receivables from clients, contract assets and deferred revenues).
Reworded paragraphs (47)
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our operations, results of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target,” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to those identified below. Many of the following risks, uncertainties and other factors identified below may be amplified by conflict in the Middle East, as well as any escalation or expansion of economic disruption or the conflict’s current scope.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our operations, results of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target,” “strategy,” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to those identified below. Many of the following risks, uncertainties and other factors identified below may be amplified by conflict in the Middle East, as well as any escalation or expansion of economic disruption or the conflict’s current scope.
Previous wording
Accenture is a leading solutions and 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. 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.
Current wording
Accenture helps enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed for organizations across industries. We bring together the talent of our people, with proprietary assets and platforms, deep process and industry expertise, and ecosystem relationships to deliver end-to-end solutions and measurable outcomes at scale. Through our Reinvention Services, we offer broad expertise across Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering and Talent, with advanced capabilities in AI and Data, Industry and Process, and Technology. We serve clients in three geographic markets: the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.
Previous wording
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. While the discretionary environment is unchanged, clients continue to prioritize large-scale transformations, which include becoming AI-ready.
Current wording
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, including as a result of conflict in the Middle East, which has impacted and may continue to impact our business. While the discretionary environment is unchanged, clients continue to prioritize large-scale transformations, which include becoming AI-ready.
Previous wording
Key metrics for the second quarter of fiscal 2026 compared to thesecond quarter of fiscal 2025 are included below.
Current wording
Key metrics for the third quarter of fiscal 2026 compared to thethird quarter of fiscal 2025 are included below.
Previous wording
•New bookings of $22.1 billion, an increase of 6% in U.S. dollars and 1% in local currency;
Current wording
•Revenues of $18.7 billion, an increase of 6% in U.S. dollars and 3% in local currency;
Previous wording
•Operating margin of 13.8%, compared to operating margin of 13.5% in the second quarter of fiscal 2025;
Current wording
•Operating margin of 17.0%, compared to operating margin of 16.8% in the third quarter of fiscal 2025;
Previous wording
•Diluted earnings per share of $2.93, compared to diluted earnings per share of $2.82, a 4% increase over the second quarter of fiscal 2025;
Current wording
•Diluted earnings per share of $3.80, compared to diluted earnings per share of $3.49, a 9% increase over the third quarter of fiscal 2025;
Previous wording
•Cash returned to shareholders of $2.7 billion, including dividends of $1.0 billion and share purchases of $1.7 billion.
Current wording
•Cash returned to shareholders of $2.2 billion, including dividends of $1.0 billion and share purchases of $1.2 billion.
Previous wording
Revenues for the second quarter of fiscal 2026 increased 8% in U.S. dollars and 4% in local currency compared to the second quarter of fiscal 2025. During the second quarter of fiscal 2026, revenue growth in local currency was very strong in Asia Pacific and modest in the Americas and EMEA. We experienced local currency revenue growth that was very strong in Communications, Media & Technology, strong in Financial Services and modest in Products and Resources, partially offset by a slight decline in Health & Public Service. Revenue growth in local currency was solid in managed services and modest in consulting. While the business environment remained competitive, pricing improved in some areas of our business. We define pricing as the contract profitability or margin on the work that we sell.
Current wording
Revenues for the third quarter of fiscal 2026 increased 6% in U.S. dollars and 3% in local currency compared to the third quarter of fiscal 2025. During the third quarter of fiscal 2026, revenue growth in local currency was very strong in Asia Pacific, solid in EMEA and slight in the Americas. We experienced local currency revenue growth that was very strong in Communications, Media & Technology, modest in Financial Services and Products, slight in Resources and flat in Health & Public Service. Revenue growth in local currency was solid in managed services and slight in consulting. While the business environment remained competitive, pricing was relatively stable. We define pricing as the contract profitability or margin on the work that we sell.
Previous wording
In our consulting business, revenues for the second quarter of fiscal 2026 increased 7% in U.S. dollars and 3% in local currency compared to the second quarter of fiscal 2025. Consulting revenue growth in local currency for the second quarter of fiscal 2026 was driven by very strong growth in Asia Pacific and modest growth in the Americas, partially offset by a modest decline in
Current wording
In our consulting business, revenues for the third quarter of fiscal 2026 increased 4% in U.S. dollars and 1% in local currency compared to the third quarter of fiscal 2025. Consulting revenue growth in local currency for the third quarter of fiscal 2026 was driven by very strong growth in Asia Pacific, while the Americas and EMEA were flat. Our consulting revenue continues to be
Previous wording
EMEA. 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. 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 also continue to see a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.
Current wording
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. 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 also continue to see a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.
Previous wording
In our managed services business, revenues for the second quarter of fiscal 2026 increased 10% in U.S. dollars and 5% in local currency compared to the second quarter of fiscal 2025. Managed services revenue growth in local currency for the second quarter of fiscal 2026 was driven by very strong growth in Asia Pacific, strong growth in EMEA and solid growth in the Americas. 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.
Current wording
In our managed services business, revenues for the third quarter of fiscal 2026 increased 8% in U.S. dollars and 5% in local currency compared to the third quarter of fiscal 2025. Managed services revenue growth in local currency for the third quarter of fiscal 2026 was driven by very strong growth in EMEA, strong growth in Asia Pacific and modest growth in the Americas. We continue 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.
Previous wording
As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations. While a significant portion of our revenues are in U.S. dollars, the majority of our revenues are denominated in other currencies, including the Euro, Japanese yen and U.K. pound. There continues to be volatility in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had and could in the future have a material effect on our financial results. If the U.S. dollar weakens against other currencies, resulting in favorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be higher. 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. The U.S. dollar weakened against various currencies during the three and six months ended February 28, 2026 compared to the three and six months ended February 28, 2025, resulting in favorable currency translation and U.S. dollar revenue growth that was approximately 4.4% and 2.8% higher, respectively, than our revenue growth in local currency. Assuming that exchange rates stay within recent ranges for the remainder of fiscal 2026, we estimate that our full fiscal 2026 revenue growth in U.S. dollars will be approximately 2% higher than our revenue growth in local currency.
Current wording
As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations. While a significant portion of our revenues are in U.S. dollars, the majority of our revenues are denominated in other currencies, including the Euro, U.K. pound and Japanese yen. There continues to be volatility in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had and could in the future have a material effect on our financial results. If the U.S. dollar weakens against other currencies, resulting in favorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be higher. 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. The U.S. dollar weakened against various currencies during the three and nine months ended May 31, 2026 compared to the three and nine months ended May 31, 2025, resulting in favorable currency translation and U.S. dollar revenue growth that was approximately 2.5% and 2.7% higher, respectively, than our revenue growth in local currency. Assuming that exchange rates stay within recent ranges for the remainder of fiscal 2026, we estimate that our full fiscal 2026 revenue growth in U.S. dollars will be approximately 2% higher than our revenue growth in local currency.
Previous wording
Utilization for the second quarter of fiscal 2026 was 93%, compared to 91% in the second quarter of fiscal 2025. We hire to meet current and projected future demand. 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 workforce, the majority of which serves our clients, was approximately 786,000 as of February 28, 2026, compared to approximately 779,000 as of August 31, 2025 and 801,000 as of February 28, 2025.
Current wording
Utilization for the third quarter of fiscal 2026 was 93%, compared to 92% in the third quarter of fiscal 2025. We hire to meet current and projected future demand. 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 workforce, the majority of which serves our clients, was approximately 799,000 as of May 31, 2026, compared to approximately 779,000 as of August 31, 2025 and 791,000 as of May 31, 2025.
Previous wording
For the second quarter of fiscal 2026, annualized attrition, excluding involuntary terminations, was 13%, consistent with the second 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.
Current wording
For the third quarter of fiscal 2026, annualized attrition, excluding involuntary terminations, was 14%, 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.
Previous wording
Results of Operations for the Three and Six Months Ended February 28, 2026 Compared to the Three and Six Months Ended February 28, 2025
Current wording
Results of Operations for the Three and Nine Months Ended May 31, 2026 Compared to the Three and Nine Months Ended May 31, 2025
Previous wording
The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for the three and six months ended February 28, 2026 compared to the three and six months ended February 28, 2025:
Current wording
The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for the three and nine months ended May 31, 2026 compared to the three and nine months ended May 31, 2025:
Previous wording
•Three Months. Revenues increased 3% in local currency, led by growth in Banking & Capital Markets, Software & Platforms and Industrials, partially offset by a decline in Public Service, driven by our U.S. federal business. Revenue growth was driven by the United States.
Current wording
•Nine Months. Revenues increased 3% in local currency, led by growth in Banking & Capital Markets, Industrials and Software & Platforms, partially offset by a decline in Public Service, driven by our U.S. federal business. Revenue growth was driven by the United States.
Previous wording
•Three Months. Revenues increased 2% in local currency, led by growth in Insurance, Life Sciences and Public Service. Revenue growth was driven by the United Kingdom and Italy.
Current wording
•Three Months. Revenues increased 4% in local currency, led by growth in Public Service and Software & Platforms. Revenue growth was driven by the United Kingdom and Italy, partially offset by a decline in Germany.
Previous wording
•Six Months. Revenues increased 3% in local currency, led by growth in Insurance, Banking & Capital Markets and Life Sciences. Revenue growth was driven by the United Kingdom and Italy.
Current wording
•Nine Months. Revenues increased 3% in local currency, led by growth in Public Service, Insurance and Banking & Capital Markets. Revenue growth was driven by the United Kingdom and Italy.
Previous wording
•Six Months. Revenues increased 9% in local currency, led by growth in Banking & Capital Markets, Communications & Media and Public Service. Revenue growth was driven by Japan and Australia.
Current wording
•Nine Months. Revenues increased 9% in local currency, led by growth in Banking & Capital Markets, Public Service and Communications & Media. Revenue growth was driven by Japan, Australia and Singapore.
Previous wording
Operating expenses for the second quarter of fiscal 2026 increased $1,136 million, or 8%, compared to the second quarter of fiscal 2025, and decreased as a percentage of revenues to 86.2% from 86.5% during this period. Operating expenses for the six months ended February 28, 2026 increased $2,263 million, or 8%, compared to the six months ended February 28, 2025, and increased as a percentage of revenues to 85.4% over 84.9% during this period.
Current wording
Operating expenses for the third quarter of fiscal 2026 increased $798 million, or 5%, compared to the third quarter of fiscal 2025, and decreased as a percentage of revenues to 83.0% from 83.2% during this period. Operating expenses for the nine months ended May 31, 2026 increased $3,061 million, or 7%, compared to the nine months ended May 31, 2025, and increased as a percentage of revenues to 84.6% over 84.3% during this period.
Previous wording
Cost of services for the second quarter of fiscal 2026 increased $900 million, or 8%, over the second quarter of fiscal 2025, and decreased as a percentage of revenues to 69.7% compared to 70.1% during this period. Gross margin for the second quarter of fiscal 2026 increased as a percentage of revenues to 30.3% compared to 29.9% during the second quarter of fiscal 2025 primarily due to lower non-payroll costs, including lower subcontractor costs.
Current wording
Cost of services for the third quarter of fiscal 2026 increased $683 million, or 6%, over the third quarter of fiscal 2025, and increased as a percentage of revenues to 67.2% compared to 67.1% during this period. Gross margin for the third quarter of fiscal 2026 decreased as a percentage of revenues to 32.8% compared to 32.9% during the third quarter of fiscal 2025. The decrease in gross margin was primarily due to higher non-payroll costs, including higher subcontractor costs, largely offset by lower payroll costs.
Previous wording
Cost of services for the six months ended February 28, 2026 increased $1,579 million, or 7%, over the six months ended February 28, 2025, and decreased as a percentage of revenues to 68.3% compared to 68.6% during this period. Gross margin for the six months ended February 28, 2026 increased as a percentage of revenues to 31.7% compared to 31.4% during the six months ended February 28, 2025 primarily due to lower non-payroll costs, including lower subcontractor costs.
Current wording
Cost of services for the nine months ended May 31, 2026 increased $2,261 million, or 6%, over the nine months ended May 31, 2025, and decreased as a percentage of revenues to 67.9% compared to 68.1% during this period. Gross margin for the nine months ended May 31, 2026 increased as a percentage of revenues to 32.1% compared to 31.9% during the nine months ended May 31, 2025. The increase in gross margin was primarily due to lower payroll costs, partially offset by an increase in non-payroll costs.
Previous wording
Sales and marketing expense for the second quarter of fiscal 2026 increased $72 million, or 4%, over the second quarter of fiscal 2025, and decreased as a percentage of revenues to 9.7% from 10.1% during this period. Sales and marketing expense for the six months ended February 28, 2026 increased $136 million, or 4%, over the six months ended February 28, 2025, and decreased as a percentage of revenues to 9.9% from 10.2% during this period. The decrease as a percentage of revenues for the three and six months ended February 28, 2026 was primarily due to lower selling and business development costs.
Current wording
Sales and marketing expense for the third quarter of fiscal 2026 increased $49 million, or 3%, over the third quarter of fiscal 2025, and decreased as a percentage of revenues to 9.7% from 9.9% during this period. Sales and marketing expense for the nine months ended May 31, 2026 increased $184 million, or 4%, over the nine months ended May 31, 2025, and decreased as a percentage of revenues to 9.8% from 10.1% during this period. The decrease as a percentage of revenues for the nine months ended May 31, 2026 was primarily due to lower selling and business development costs.
Previous wording
Operating income for the second quarter of fiscal 2026 increased $249 million, or 11%, compared with the second quarter of fiscal 2025. Operating margin for the second quarter of fiscal 2026 was 13.8%, compared with 13.5% for the second quarter of fiscal 2025. Operating income for the six months ended February 28, 2026 increased $174 million, or 3%, compared with the six months ended February 28, 2025. Operating margin for the six months ended February 28, 2026 was 14.6%, compared with 15.1% for the six months ended February 28, 2025.
Current wording
Operating income for the third quarter of fiscal 2026 increased $193 million, or 6%, compared with the third quarter of fiscal 2025. Operating margin for the third quarter of fiscal 2026 was 17.0%, compared with 16.8% for the third quarter of fiscal 2025. Operating income for the nine months ended May 31, 2026 increased $367 million, or 4%, compared with the nine months ended May 31, 2025. Operating margin for the nine months ended May 31, 2026 was 15.4%, compared with 15.7% for the nine months ended May 31, 2025.
Previous wording
We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during the three and six months ended February 28, 2026 was similar to that disclosed for revenue for each geographic market. Additionally, payroll costs for our geographic markets increased in line with revenues. The commentary below provides insight into other factors affecting geographic market performance and operating income for the three and six months ended February 28, 2026 compared with the three and six months ended February 28, 2025:
Current wording
We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during the three and nine months ended May 31, 2026 was similar to that disclosed for revenue for each geographic market. Additionally, payroll costs for our geographic markets increased in line with revenues, except as described below. The commentary below provides insight into other factors affecting geographic market performance and operating income for the three and nine months ended May 31, 2026 compared with the three and nine months ended May 31, 2025:
Previous wording
•Three Months. Operating income increased due to revenue growth.
Current wording
•Three Months. Operating income decreased as revenue growth was offset by higher non-payroll costs.
Previous wording
•Six Months. Operating income increased due to revenue growth, partially offset by the impact of business optimization costs.
Current wording
•Nine Months. Operating income increased due to revenue growth, partially offset by the impact of business optimization costs.
Previous wording
•Six Months. Opera ting income decreased as revenue growth was offset byhigher non-payroll costs and the impact of business optimization costs.
Current wording
•Three Months. Opera ting income decreased as revenue growth was offset by higher non-payroll costs, including an increase in facility and technology costs.
Previous wording
•Six Months. Operating income decreased as revenue growth was offset by higher non-payroll costs and the impact of business optimization costs.
Current wording
•Nine Months. Opera ting income decreased as revenue growth was offset by higher non-payroll costs and the impact of business optimization costs.
Previous wording
The business optimization costs reduced operating margin for the six months ended February 28, 2026 by 80 basis points. Adjusted operating margin for the six months ended February 28, 2026 was 15.4%.
Current wording
The business optimization costs reduced operating margin for the nine months ended May 31, 2026 by approximately 60 basis points. Adjusted operating margin for the nine months ended May 31, 2026 was 15.9%.
Previous wording
Interest income for the second quarter of fiscal 2026 was $79 million, an increase of $2 million, or 3%, over the second quarter of fiscal 2025. Interest income for the six months ended February 28, 2026 was $185 million, an increase of $33 million, or 21%, over the six months ended February 28, 2025. The increase for the six months ended February 28, 2026 was primarily due to a higher average cash balance.
Current wording
Interest income for the third quarter of fiscal 2026 was $75 million, a decrease of $4 million, or 5%, from the third quarter of fiscal 2025. Interest income for the nine months ended May 31, 2026 was $260 million, an increase of $29 million, or 12%, over the nine months ended May 31, 2025. The increase for the nine months ended May 31, 2026 was primarily due to a higher average cash balance.
Previous wording
Interest expense for the second quarter of fiscal 2026 was $64 million, a decrease of $1 million, or 2%, from the second quarter of fiscal 2025. Interest expense for the six months ended February 28, 2026 was $129 million, an increase of $34 million, or 36%, over the six months ended February 28, 2025. The increase for the six months ended February 28, 2026 was primarily due to a higher average long-term debt balance.
Current wording
Interest expense for the third quarter of fiscal 2026 was $71 million, an increase of $3 million, or 5%, over the third quarter of fiscal 2025. Interest expense for the nine months ended May 31, 2026 was $200 million, an increase of $37 million, or 23%, over the nine months ended May 31, 2025. The increase for the nine months ended May 31, 2026 was primarily due to a higher average long-term debt balance.
Previous wording
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. During the second quarter of fiscal 2026, Other income (expense), net decreased $84 million from the second quarter of fiscal 2025 primarily due to lower gains on investments. During thesix months ended February 28, 2026, Other income (expense), net increased $8 million over the six months ended February 28, 2025.
Current wording
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. During the three and nine months ended May 31, 2026, Other income (expense), net increased $13 million and $21 million over the three and nine months ended May 31, 2025, respectively, primarily due to lower foreign currency exchange losses.
Previous wording
The effective tax rates for the second quarter of fiscal 2026 and 2025 were 24.3% and 20.4%, respectively. The higher effective tax rate was primarily due to reduced tax benefits from share-based payments and final determinations of prior year taxes, partially offset by reduced tax expense from changes in the geographic distribution of earnings. The effective tax rates for the six months ended February 28, 2026 and 2025 were 24.4% and 21.1%, respectively. The higher effective tax rate for the six months ended February 28, 2026 was primarily due to reduced tax benefits from adjustments to prior year tax liabilities and share-based payments.
Current wording
The effective tax rates for the third quarter of fiscal 2026 and 2025 were 24.2% and 24.0%, respectively. The effective tax rates for the nine months ended May 31, 2026 and 2025 were 24.3% and 22.1%, respectively. The higher effective tax rate for the nine months ended May 31, 2026 was primarily due to reduced tax benefits from share-based payments and adjustments to prior year tax liabilities.
Previous wording
Excluding the business optimization costs of $308 million, and related reduction in tax expense of $57 million, our adjusted effective tax rate was 24.1% for the six months ended February 28, 2026.
Current wording
Excluding the business optimization costs of $308 million, and related reduction in tax expense of $57 million, our adjusted effective tax rate was 24.1% for the nine months ended May 31, 2026.
Previous wording
Diluted earnings per share were $2.93 for the second quarter of fiscal 2026, compared with $2.82 for the second quarter of fiscal 2025. Diluted earnings per share were $6.47 for the six months ended February 28, 2026, compared with $6.42 for the six months ended February 28, 2025. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 1, “Financial Statements.”
Current wording
Diluted earnings per share were $3.80 for the third quarter of fiscal 2026, compared with $3.49 for the third quarter of fiscal 2025. Diluted earnings per share were $10.27 for the nine months ended May 31, 2026, compared with $9.90 for the nine months ended May 31, 2025. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 1, “Financial Statements.”
Previous wording
The increase in diluted earnings per share for thesecond quarter of fiscal 2026 compared to thesecond quarter of fiscal 2025 was due to the following factors:
Current wording
The increase in diluted earnings per share for thethird quarter of fiscal 2026 compared to thethird quarter of fiscal 2025 was due to the following factors:
Previous wording
The business optimization costs of $250 million, net of related taxes, decreased diluted earnings per share by $0.40 for the six months ended February 28, 2026. Adjusted diluted earnings per share were$6.87 for thesix months ended February 28, 2026.
Current wording
The business optimization costs of $250 million, net of related taxes, decreased diluted earnings per share by $0.40 for the nine months ended May 31, 2026. Adjusted diluted earnings per share were$10.67 for thenine months ended May 31, 2026.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Amounts in table may not total due to rounding
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•Six Months. Revenues increased 4% in local currency, led by growth in Banking & Capital Markets, Industrials and Software & Platforms, partially offset by a decline in Public Service, driven by our U.S. federal business. Revenue growth was driven by the United States.
Previous report — wording carried elsewhere
•Three Months. Operating income increased due to revenue growth.
Previous report — wording carried elsewhere
•Three Months. Opera ting income increased due to revenue growth, partially offset by higher non-payroll costs.