Accenture plc
For the period ended Aug 31, 2026. Filed Oct 16, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Oct 16, 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-K
Period ended 2025-08-31; filed 2025-10-10.
0001467373-25-000217
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-08-31; filed 2026-10-16.
0001467373-26-000049
Item 7. 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 132 previous paragraphs and 128 current paragraphs.
79 unchanged; 38 reworded; 8 added; 13 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 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 (8)
Current report
Accenture is a business reinvention and technology company. Our people bring deep insights across industries and functions, with capabilities spanning strategy, process, operating model, change management, talent, data, technology and AI. We deliver this expertise through consulting, managed services, proprietary assets and platforms, and increasingly, software. We serve clients in three geographic markets: the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.
Current report
•New bookings of $84.5 billion, an increase of 5% in U.S. dollars and 3% in local currency;
Current report
General and administrative costs for fiscal 2026 increased $468 million, or 11%, over fiscal 2025, and increased as a percentage of revenues to 6.5% from 6.2% during this period due to higher non-payroll costs.
Current report
During the first quarter of fiscal 2026, we completed our six-month business optimization program and recorded $308 million and $615 million during fiscal 2026 and 2025, respectively, primarily for employee severance. For additional information, see Note 16 (Segment Reporting) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current report
•EMEA 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.
Current report
•Asia Pacific operating income decreased as revenue growth was offset by higher non-payroll costs, including higher facilities and technology costs.
Current report
Amounts in tables may not total due to rounding.
Current report
Operating activities: The $889 million increase in operating cash flows was primarily due to higher net income and the timing of vendor accruals and payments in accounts payable, partially offset by higher net client balances (receivables and contract assets net of deferred revenue) and the timing of miscellaneous accruals and payments in other current and non-current liabilities.
Removed paragraphs (13)
Previous report
Accenture is a leading solutions and global professional 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.
Previous report
In addition, the U.S. administration is reducing federal spending and the size of the federal workforce under the guidance of the Department of Government Efficiency. We are seeing impacts from these efforts in our federal government business (“Accenture Federal Services, or AFS”), including delays in new procurements, reductions in price and contract scope, and contract terminations. These changes have had an adverse effect on AFS’s results and could in the future have a material impact on our results of operations or financial condition. For a discussion of risks related to these and other recent developments, see Item 1A, “Risk Factors.”
Previous report
•Revenues of $69.7 billion, an increase of 7% in both U.S. dollars and local currency;
Previous report
•New bookings of $80.6 billion, a decrease of 1% in both U.S. dollars and local currency;
Previous report
(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.
Previous report
(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.
Previous report
General and administrative costs for fiscal 2025 increased $70 million, or 2%, over fiscal 2024, and decreased as a percentage of revenues to 6.2% from 6.6% during this period primarily due to lower payroll costs.
Previous report
During the fourth quarter of fiscal 2025, we initiated business optimization actions and recorded $615 million in related costs, which includes $344 million related to a talent rotation that we are making in a compressed timeline, as well as asset impairments of approximately $271 million primarily related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities. During fiscal 2024, we recorded business optimization costs of $438 million associated with actions initiated in fiscal 2023 and completed in fiscal 2024, primarily for employee severance. For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Previous report
(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.
Previous report
•Asia Pacific operating income increaseddue to revenue growth and lower business optimization costs.
Previous report
(1)Costs recorded in connection with business optimization actions initiated in fiscal 2025, including $344 million for employee severance associated with headcount reductions we are making in a compressed timeline and $271 million for asset impairments primarily related to the divestiture of two acquisitions in the Americas that are no longer aligned with our strategic priorities.
Previous report
(3)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.
Previous report
Operating activities: The $2,343 million increase in operating cash flows was primarily due to higher net income and lower cash outflows for certain compensation payments compared to the prior year.
Reworded paragraphs (38)
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 forfiscal 2025 compared to fiscal 2024 are included below. We have presented operating income, operating margin, effective tax rate and diluted earnings per share for fiscal 2025 and 2024 on a non-GAAP or “adjusted” basis to exclude the impact of business optimization costs. During the fourth quarter of fiscal 2025, we initiated business optimization actions and recorded $615 million in related costs, which includes $344 million associated with a refreshed talent strategy, as well as asset impairments of approximately $271 million primarily related to the divestiture of two acquisitions that are no longer aligned with our strategic priorities. In fiscal 2024, we recorded $438 million in business optimization costs associated with actions initiated in fiscal 2023 and completed in fiscal 2024. For additional information regarding our business optimization actions and related costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current wording
Key metrics forfiscal 2026 compared tofiscal 2025 are included below. We have presented operating income, operating margin, effective tax rate and diluted earnings per share forfiscal 2026 and 2025 on a non-GAAP or “adjusted” basis to exclude the impact of business optimization costs. During the first quarter of fiscal 2026, we completed our six-month business optimization program and recorded costs of $308 million and $615 million during fiscal 2026 and 2025, respectively. For additional information regarding our business optimization actions and related costs, see Note 16 (Segment Reporting) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Previous wording
•Operating margin of 14.7%, a decrease from 14.8% in fiscal 2024; adjusted operating margin of 15.6%, an increase compared to 15.5% in fiscal 2024;
Current wording
•Operating margin of 15.4%, compared to 14.7% in fiscal 2025; adjusted operating margin of 15.8%, compared to 15.6% in fiscal 2025;
Previous wording
•Diluted earnings per share of $12.15, a 6% increase over diluted earnings per share of $11.44 in fiscal 2024; adjusted earnings per share of $12.93, an 8% increase over adjusted earnings per share of $11.95 in fiscal 2024; and
Current wording
•Diluted earnings per share of $13.56, a 12% increase over diluted earnings per share of $12.15 in fiscal 2025; adjusted earnings per share of $13.97, an 8% increase over adjusted earnings per share of $12.93 in fiscal 2025;
Previous wording
•Cash returned to shareholders of $8.3 billion, including dividends of $3.7 billion and share purchases of $4.6 billion.
Current wording
•Cash returned to shareholders of $11.5 billion, including share purchases of $7.5 billion and dividends of $4.0 billion.
Previous wording
Revenues for fiscal 2025 increased 7% in both U.S. dollars and local currency compared to fiscal 2024. During fiscal 2025, revenue growth in local currency was very strong in the Americas, strong in EMEA and solid in Asia Pacific. We experienced local currency revenue growth that was very strong in Financial Services & Products, strong in Health & Public Service and Communications, Media & Technology and solid in Resources. Revenue growth in local currency was very strong in managed services and solid in consulting. While the business environment remained competitive, pricing improved in several areas of our business. We define pricing as the contract profitability or margin on the work that we sell.
Current wording
Revenues for fiscal 2026 increased 6% in U.S. dollars and 5% in local currency compared to fiscal 2025. During fiscal 2026, revenue growth in local currency was very strong in Asia Pacific and solid in EMEA and the Americas. We experienced local currency revenue growth that was very strong in Communications, Media & Technology, strong in Financial Services, solid in Products and modest in Resources and Health & Public Service. Revenue growth in local currency was strong in managed services and modest in consulting. The business environment remained competitive, and we experienced lower pricing in many areas of the business during the fourth quarter of fiscal 2026. For the full fiscal year 2026, pricing was relatively stable compared to fiscal 2025. We define pricing as the contract profitability or margin on the work that we sell.
Previous wording
In our consulting business, revenues for fiscal 2025 increased 6% in U.S. dollars and 5% in local currency compared to fiscal 2024. Consulting revenue growth in local currency for fiscal 2025 was driven by strong growth in the Americas, solid growth in EMEA and modest growth in Asia Pacific. 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 are seeing a slower pace and level of client spending, particularly for smaller contracts with a shorter duration.
Current wording
In our consulting business, revenues for fiscal 2026 increased 5% in U.S. dollars and 3% in local currency compared to fiscal 2025. Consulting revenue growth in local currency for fiscal 2026 was driven by very strong growth in Asia Pacific, solid growth in the Americas and slight growth in EMEA. Our consulting revenue continues to be driven by helping our clients accelerate their reinvention and drive business outcomes, by redesigning processes and operating models, modernizing and implementing technology and data foundations, and leveraging cloud, software enterprise platforms, security, AI and data, 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, particularly large transformation programs, the discretionary spending environment continues to impact smaller contracts with a shorter duration.
Previous wording
In our managed services business, revenues for fiscal 2025 increased 9% in both U.S. dollars and local currency compared to fiscal 2024. Managed services revenue growth in local currency for fiscal 2025 was driven by very strong growth in the Americas and strong growth in EMEA and Asia Pacific. 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 fiscal 2026 increased 8% in U.S. dollars and 6% in local currency compared to fiscal 2025. Managed services revenue growth in local currency for fiscal 2026 was driven by very strong growth in Asia Pacific and EMEA and solid growth in the Americas. We continue to assist clients with reinvented operations, application development and maintenance, and infrastructure management including cloud, security, AI and data. 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
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 fiscal 2026, resulting in favorable currency translation and U.S. dollar revenue growth that was approximately 2% higher than our revenue growth in local currency for the year. Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2027 revenue growth in U.S. dollars will be approximately equal to our revenue growth in local currency.
Previous wording
Utilization for fiscal 2025 was 92%, consistent with fiscal 2024. 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, increased to approximately 779,000 as of August 31, 2025, compared to approximately 774,000 as of August 31, 2024.
Current wording
Utilization for fiscal 2026 was 93%, up from 92% in 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 814,000 as of August 31, 2026, compared to approximately 779,000 as of August 31, 2025.
Previous wording
For fiscal 2025, attrition, excluding involuntary terminations, was 14%, compared to 13% in fiscal 2024. For the fourth quarter of fiscal 2025, annualized attrition, excluding involuntary terminations, was 15%, 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.
Current wording
For fiscal 2026, attrition, excluding involuntary terminations, was 13%, down from 14% in fiscal 2025. For the fourth quarter of fiscal 2026, annualized attrition, excluding involuntary terminations, was 13%, down from 14% in the third quarter of fiscal 2026. 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
Information regarding our new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. New bookings involve estimates and judgments. There are no third-party standards or requirements governing the calculation of bookings. We do not update our new bookings for material subsequent terminations or reductions related to bookings originally recorded in prior fiscal years. New bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations.
Current wording
Information regarding our new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. New bookings involve estimates and judgments. There are no third-party standards or requirements governing the calculation of bookings. We do not update our new bookings for material subsequent terminations or reductions related to bookings originally recorded in prior periods. New bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations.
Previous wording
The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Only the non-cancelable portion of these contracts is included in our remaining performance obligations disclosed in Note 2 (Revenues) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Accordingly, a significant portion of what we consider contract bookings is not included in our remaining performance obligations.
Current wording
The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Only the non-cancelable portion of these contracts is included in our remaining performance obligations disclosed in Note 2 (Revenues) to our Consolidated Financial Statements under Item 8, “Financial Statements and
Previous wording
No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested. If future events, including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective tax rate. We currently do not foresee any event that would require us to distribute these indefinitely reinvested earnings. For additional information, see Note 11 (Income Taxes) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current wording
No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested. If future events, including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective tax rate. We currently do not foresee any event that would require us to distribute these indefinitely reinvested earnings. For
Previous wording
•Americas revenues increased 9% in local currency, led by growth in Banking & Capital Markets, Industrials and Software & Platforms. Revenue growth was driven by the United States.
Current wording
•Americas revenues increased 4% in local currency, led by growth in Banking & Capital Markets, Software & Platforms, High Tech and Industrials, partially offset by a decline in Public Service, including our U.S. federal business. Revenue growth was driven by the United States.
Previous wording
•EMEA revenues increased 6% in local currency, led by growth in Public Service, Life Sciences, Insurance, Health and Consumer Goods, Retail & Travel Services. Revenue growth was driven by the United Kingdom and Germany, partially offset by a decline in France.
Current wording
•EMEA revenues increased 4% in local currency, led by growth in Public Service, Banking & Capital Markets and Software & Platforms, partially offset by a decline in Energy. Revenue growth was driven by the United Kingdom and Italy.
Previous wording
•Asia Pacific revenues increased 4% in local currency, led by growth in Utilities, Banking & Capital Markets, Public Service and Insurance, partially offset by a decline in Chemicals & Natural Resources. Revenue growth was driven by Japan and Australia, partially offset by a decline in Singapore.
Current wording
•Asia Pacific revenues increased 8% in local currency, led by growth in Banking & Capital Markets, Public Service, Communications & Media and Insurance. Revenue growth was driven by Japan, Australia and Singapore.
Previous wording
Operating expenses for fiscal 2025 increased $4,147 million over fiscal 2024, and increased as a percentage of revenues to 85.3% from 85.2% in fiscal 2024.
Current wording
Operating expenses for fiscal 2026 increased $3,330 million over fiscal 2025, and decreased as a percentage of revenues to 84.6% from 85.3% in fiscal 2025.
Previous wording
Cost of services for fiscal 2025 increased $3,703 million, or 8%, over fiscal 2024, and increased as a percentage of revenues to 68.1% over 67.4% during this period. Gross margin for fiscal 2025 decreased as a percentage of revenues to 31.9% from 32.6% during fiscal 2024. The decrease in gross margin was primarily due to higher payroll costs.
Current wording
Cost of services for fiscal 2026 increased $2,970 million, or 6%, over fiscal 2025, and decreased as a percentage of revenues to 68.0% from 68.1% during this period. Gross margin for fiscal 2026 increased as a percentage of revenues to 32.0% from 31.9% during fiscal 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 fiscal 2025 increased $197 million, or 3%, over fiscal 2024, and decreased as a percentage of revenues to 10.1% from 10.6% during this period due to lower payroll and non-payroll costs.
Current wording
Sales and marketing expense for fiscal 2026 increased $200 million, or 3%, over fiscal 2025, and decreased as a percentage of revenues to 9.8% from 10.1% during this period due to lower payroll costs, including selling and business development costs.
Previous wording
Operating income for fiscal 2025 increased $630 million, or 7%, compared with fiscal 2024. Operating margin for fiscal 2025 was 14.7%, compared with 14.8% for fiscal 2024.
Current wording
Operating income for fiscal 2026 increased $1,180 million, or 12%, compared with fiscal 2025. Operating margin for fiscal 2026 was 15.4%, compared with 14.7% for fiscal 2025.
Previous wording
We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2025 was similar to that disclosed for revenue for each geographic market. Additionally, operating 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 fiscal 2025 compared with fiscal 2024:
Current wording
We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 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 fiscal 2026 compared with fiscal 2025:
Previous wording
•Americas operating income increased due to revenue growth, partially offset by higher business optimization costs.
Current wording
•Americas operating income increased due to revenue growth, lower payroll costs as a percentage of revenue and lower business optimization costs, partially offset by higher non-payroll costs.
Previous wording
The business optimization costs reduced operating margin for fiscal 2025 and fiscal 2024 by 90 and 70 basis points, respectively. Adjusted operating margin for fiscal 2025 was 15.6% compared to adjusted operating margin for fiscal 2024 of 15.5%.
Current wording
The business optimization costs reduced operating margin for fiscal 2026 and fiscal 2025 by 40 and 90 basis points, respectively. Adjusted operating margin for fiscal 2026 was 15.8% compared to adjusted operating margin for fiscal 2025 of 15.6%.
Previous wording
(2)Costs recorded in connection with business optimization actions initiated in fiscal 2023 and completed in fiscal 2024, primarily for employee severance.
Current wording
(1)Costs recorded in connection with business optimization actions initiated during the fourth quarter of fiscal 2025 and completed during the first quarter of fiscal 2026, primarily for employee severance.
Previous wording
Interest income for fiscal 2025 was $336 million, an increase of $64 million, or 24%, over fiscal 2024. The increase was primarily due to a higher average cash balance.
Current wording
Interest income for fiscal 2026 was $363 million, an increase of $27 million, or 8%, over fiscal 2025. The increase was primarily due to a higher average cash balance.
Previous wording
Interest expense for fiscal 2025 was $229 million, an increase of $170 million over fiscal 2024. The increase was primarily due to an increase in long-term debt.
Current wording
Interest expense for fiscal 2026 was $303 million, an increase of $75 million over fiscal 2025. The increase 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 fiscal 2025, Other income (expense), net decreased $47 million, or 43%, from fiscal 2024, primarily due to higher gains on investments.
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 fiscal 2026, Other expense, net increased $31 million, or 48%, over fiscal 2025, primarily due to lower gains on investments.
Previous wording
The effective tax rate for fiscal 2025 was 23.7%, compared with 23.5% for fiscal 2024.
Current wording
The effective tax rate for fiscal 2026 was 25.1%, compared with 23.7% for fiscal 2025. The higher effective tax rate was primarily due to reduced tax benefits from share-based payments.
Previous wording
Excluding the business optimization costs of $615 million and related reduction in tax expense of $126 million, our adjusted effective tax rate was 23.6% for fiscal 2025. Excluding the business optimization costs of $438 million and related reduction in tax expense of $111 million, our adjusted effective tax rate was 23.6% for fiscal 2024.
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 24.9% for fiscal 2026. Excluding the business optimization costs of $615 million and related reduction in tax expense of $126 million, our adjusted effective tax rate was 23.6% for fiscal 2025.
Previous wording
Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of Accenture Leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary. See “Business—Organizational Structure.” Noncontrolling interests also include amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc.
Current wording
Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some former members of Accenture leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary. Noncontrolling interests also include amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc.
Previous wording
Diluted earnings per share were $12.15 for fiscal 2025, compared with $11.44 for fiscal 2024. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current wording
Diluted earnings per share were $13.56 for fiscal 2026, compared with $12.15 for fiscal 2025. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Previous wording
The business optimization costs of $489 million and $327 million, net of related taxes, decreased diluted earnings per share by $0.78 and $0.51 for fiscal 2025 and fiscal 2024, respectively. Adjusted diluted earnings per share were $12.93 and $11.95 for fiscal 2025 and fiscal 2024, respectively.
Current wording
The business optimization costs of $250 million and $489 million, net of related taxes, decreased diluted earnings per share by $0.41 and $0.78 for fiscal 2026 and fiscal 2025, respectively. Adjusted diluted earnings per share were $13.97 and $12.93 for fiscal 2026 and fiscal 2025, respectively.
Previous wording
As of August 31, 2025, Cash and cash equivalents were $11.5 billion, compared with $5.0 billion as of August 31, 2024.
Current wording
As of August 31, 2026, Cash and cash equivalents were $12.8 billion, compared with $11.5 billion as of August 31, 2025.
Previous wording
Investing activities: The $5,042 million decrease in cash used was primarily due to lower spending on business acquisitions. For additional information, see Note 6 (Business Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current wording
Investing activities: The $3,617 million increase in cash used was primarily due to higher spending on business acquisitions. For additional information, see Note 6 (Business Combinations) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Previous wording
Financing activities: The $3,115 million decrease in cash used was primarily due to higher net proceeds from borrowings. For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Current wording
Financing activities: The $2,366 million increase in cash used was primarily due to higher net purchases of shares, partially offset by higher net proceeds from borrowings. For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Previous wording
On September 30, 2024, we filed a registration statement on Form S-3, pursuant to which Accenture plc’s wholly owned finance subsidiaries Accenture Capital and Accenture Global Capital DAC may issue debt securities. As of August 31, 2025, we had outstanding long-term debt in the form of senior unsecured notes issued by Accenture Capital in an aggregate principal amount of $5 billion, which mature from 2027 through 2034. Accenture plc fully and unconditionally guarantees these notes, as well as all future debt securities that may be issued by these entities.
Current wording
On September 30, 2024, we filed a registration statement on Form S-3, pursuant to which Accenture plc’s wholly owned finance subsidiaries Accenture Capital and Accenture Global Capital DAC may issue debt securities. As of August 31, 2026, we had outstanding long-term debt in the form of fixed-rate senior unsecured notes and floating-rate senior unsecured notes issued by Accenture Capital in an aggregate principal amount of $10 billion, which mature from 2027 through 2036. Accenture plc fully and unconditionally guarantees these notes, as well as all future debt securities that may be issued by these entities.
Previous wording
As of August 31, 2025, we had commitments of $3 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation. Payments under these commitments are estimated to be made as follows:
Current wording
As of August 31, 2026, we had commitments of $2.9 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation. Payments under these commitments are estimated to be made as follows:
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Revenues of $74.2 billion, an increase of 6% in U.S. dollars and 5% in local currency;
Current report — wording carried from elsewhere
Supplementary Data.” Accordingly, a significant portion of what we consider contract bookings is not included in our remaining performance obligations.
Current report — wording carried from elsewhere
additional information, see Note 11 (Income Taxes) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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. There was minimal currency translation impact for fiscal 2025 compared to fiscal 2024. Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2026 revenue growth in U.S. dollars will be approximately 2% higher than our revenue growth in local currency.
Previous report — wording carried elsewhere
•EMEA operating income increased due to revenue growth and lower business optimization costs.