| | | | | |
| Health & Public Service |
| FY25 Revenues of $14.8B |
| Percent of Group’s FY25 Revenue |
| |
| 32% | 68% |
| Health | Public Service |
| Healthcare providers, such as hospitals, public health systems, policy-making authorities, health insurers (payers) and industry organizations and associations | Human and social services agencies; defense departments and military forces; public safety authorities, including justice departments; educational institutions; non-profit organizations; cities; transportation agencies; and postal, customs, revenue and tax agencies |
|
|
Our work with clients in the U.S. federal government is delivered through Accenture Federal Services, a U.S. company and a wholly owned subsidiary of Accenture LLP, and represented approximately 36% of Health & Public Service revenues, 15% of Americas revenues and 8% of total revenues in fiscal 2025. For risks related to our government contracting work, see Item 1A, Risk Factors—“Our work with government clients exposes us to additional risks inherent in the government contracting environment”.
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 1. Business | 6 |
| | | | | | | | |
Products |
| FY25 Revenues of $21.2B |
Percent of Group’s FY25 Revenue |
| | |
| 45% | 35% | 20% |
| Consumer Goods, Retail & Travel Services | Industrials | Life Sciences |
Food and beverage, household goods, personal care, fashion/apparel; supermarkets, mass-merchandise discounters, department, quick serve and convenience stores and specialty retailers; aviation, hospitality and travel services companies, tobacco, agribusiness and consumer health companies | Automotive & mobility, industrial & electrical equipment manufacturers, industrial suppliers, construction, infrastructure, heavy equipment, consumer durables, business services, freight, logistics, aerospace & defense, rail and public transportation companies | Biopharmaceutical, medical technology and distributors |
|
| | | | | | | | |
Resources |
| FY25 Revenues of $9.5B |
Percent of Group’s FY25 Revenue |
| | |
| 28% | 25% | 47% |
| Chemicals & Natural Resources | Energy | Utilities |
Mining, petrochemicals, specialty chemicals, polymers and plastics, gases and agricultural chemicals companies, as well as the metals and forest products industries | Oil and gas companies, including upstream, midstream, downstream, oilfield services, clean energy and energy trading companies | Power generators and developers, including nuclear, renewables and other conventional generators; electric and gas transmission and distribution operators, energy and energy service retailers; water, waste and recycling service providers |
|
|
| (in billions of U.S. dollars) | 2025 | 2024 | |
|
| % | | $ | 807 | |
Amounts in table may not total due to rounding.
(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.
(2)Costs recorded in connection with business optimization actions initiated in fiscal 2023 and completed in fiscal 2024, primarily for employee severance.
(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.
Interest Income
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.
Interest Expense
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.
Other Income (Expense), net
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.
Income Tax Expense
The effective tax rate for fiscal 2025 was 23.7%, compared with 23.5% for fiscal 2024.
Income Tax Expense Excluding Business Optimization Costs (Non-GAAP)
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.
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| | | |
ACCENTURE 2025 FORM 10-K | | Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | 39 |
Net Income Attributable to Noncontrolling Interests
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.
Earnings Per Share
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.”
Earnings Per Share Excluding Business Optimization Costs (Non-GAAP)
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.
| | | | | |
| Fiscal |
| 2024 As Reported | $ | 11.44 | |
| Business optimization costs | 0.69 | |
| Tax effect of business optimization costs (1) | (0.18) | |
| 2024 As Adjusted | $ | 11.95 | |
| |
| 2025 As Reported | $ | 12.15 | |
| Business optimization costs | 0.98 | |
| Tax effect of business optimization costs (1) | (0.20) | |
| 2025 As Adjusted | $ | 12.93 | |
(1)The income tax effect of business optimization costs includes both the current and deferred income tax impact and was calculated by using the relevant tax rate of the country where the adjustments were recorded.
The increase in adjusted diluted earnings per share for fiscal 2025 compared to fiscal 2024 is due to the following factors:
| | | | | |
| Fiscal |
| 2024 As Adjusted | $ | 11.95 | |
| Higher revenue and operating results | 0.97 | |
| Lower share count | 0.07 | |
| Lower effective tax rate | 0.01 | |
| Lower non-operating income | (0.07) | |
|
| 2025 As Adjusted | $ | 12.93 | |
Our operating income and diluted earnings per share are affected by currency exchange rate fluctuations on revenues and costs. Most of our costs are incurred in the same currency as the related revenues. Where practical, we seek to manage foreign currency exposure for costs not incurred in the same currency as the related revenues, such as the costs associated with our global delivery model, by using currency protection provisions in our customer contracts and through our hedging programs. We seek to manage our costs, taking into consideration the residual positive and negative effects of changes in foreign exchange rates on those costs. For more information on our hedging programs, see Foreign Currency Risk under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Results of Operations for Fiscal 2024 Compared to Fiscal 2023
Our Annual Report on Form 10-K for the fiscal year ended August 31, 2024 includes a discussion and analysis of our financial condition and results of operations for the year ended August 31, 2023 in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | 40 |
Liquidity and Capital Resources
Our primary sources of liquidity are cash flows from operations, available cash reserves, debt capacity available under various credit facilities and other borrowings. We could raise additional funds through other public or private debt or equity financings. We may use our available or additional funds to, among other things:
•facilitate purchases, redemptions and exchanges of shares and pay dividends;
•acquire complementary businesses or technologies;
•take advantage of opportunities, including more rapid expansion;
•develop new solutions and services; or
•repay outstanding borrowings and other debt.
See Note 10 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data” for further information regarding our outstanding borrowings and other debt.
As of August 31, 2025, Cash and cash equivalents were $11.5 billion, compared with $5.0 billion as of August 31, 2024.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table:
| | | | | | | | | | | | | | | | | |
| | Fiscal | Change |
| (in millions of U.S. dollars) | 2025 | | 2024 | |
| Net cash provided by (used in): | | | | | |
| Operating activities | $ | 11,474 | | | $ | 9,131 | | | $ | 2,343 | |
| Investing activities | (2,020) | | | (7,062) | | | 5,042 | |
| Financing activities | (2,948) | | | (6,064) | | | 3,115 | |
| Effect of exchange rate changes on cash and cash equivalents | (32) | | | (46) | | | 14 | |
| Net increase (decrease) in cash and cash equivalents | $ | 6,474 | | | $ | (4,041) | | | $ | 10,515 | |
Amounts in table may not total due to rounding.
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.
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.”
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.”
We believe that our current and longer-term working capital, investments and other general corporate funding requirements will be satisfied for the next twelve months and thereafter through cash flows from operations and, to the extent necessary, from our borrowing facilities and future financial market activities.
Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free flow of funds. Domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.
Borrowings and Indebtedness
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.
For additional information regarding our outstanding borrowings, credit facilities and other debt, see Note 10 (Borrowings and Indebtedness) to our Consolidated Financial Statements under Item 8, “Financial Statements and supplementary Data.”
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | 41 |
Share Purchases and Redemptions
We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal 2026. The number of shares ultimately repurchased under our open-market share purchase program may vary depending on numerous factors, including, without limitation, share price and other market conditions, our ongoing capital allocation planning, the levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic and/or business conditions, and board and management discretion. Additionally, as these factors may change over the course of the year, the amount of share repurchase activity during any particular period cannot be predicted and may fluctuate from time to time. Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice. For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Subsequent Events
See Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Obligations and Commitments
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:
| | | | | | | | |
| (in millions of U.S. dollars) | | Payments (1) |
| Less than 1 year | | $ | 1,154 | |
| 1-3 years | | 1,275 | |
| 3-5 years | | 513 | |
| More than 5 years | | 38 | |
| Total | | $ | 2,980 | |
(1)Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
For information about borrowing facilities and leases, see Note 10 (Borrowings and Indebtedness) and Note 8 (Leases) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Off-Balance Sheet Arrangements
In the normal course of business and in conjunction with some client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters. To date, we have not been required to make any significant payment under any of these arrangements. For further discussion of these transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
New Accounting Pronouncements
See Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 7A. Quantitative and Qualitative Disclosures About Market Risk | 42 |
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
All of our market risk sensitive instruments were entered into for purposes other than trading.
Foreign Currency Risk
We are exposed to foreign currency risk in the ordinary course of business. We hedge material cash flow exposures when feasible using forward contracts. These instruments are subject to fluctuations in foreign currency exchange rates and credit risk. Credit risk is managed through careful selection and ongoing evaluation of the financial institutions utilized as counterparties.
Certain of these hedge positions are undesignated hedges of balance sheet exposures such as intercompany loans and typically have maturities of less than one year. These hedges, the most significant of which are U.S. dollar/Japanese yen, U.S. dollar/Indian rupee, U.S. dollar/Euro, U.S. dollar/U.K. pound, U.S. dollar/Australian dollar, U.S. dollar/Swiss franc, U.S. dollar/Philippine peso and U.S. dollar/Chinese yuan, are intended to offset remeasurement of the underlying assets and liabilities. Changes in the fair value of these derivatives are recorded in Other income (expense), net in the Consolidated Income Statements. Additionally, we have hedge positions that are designated cash flow hedges of certain intercompany charges relating to our global delivery model. These hedges, the most significant of which are U.S. dollar/Indian rupee, U.S. dollar/Philippine peso, Euro/Indian rupee and U.K. pound/Indian rupee, typically have maturities not exceeding three years and are intended to partially offset the impact of foreign currency movements on future costs relating to our global delivery resources. For additional information, see Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
For designated cash flow hedges, gains and losses currently recorded in Accumulated other comprehensive loss are expected to be reclassified into earnings at the time when certain anticipated intercompany charges are accrued as Cost of services. As of August 31, 2025, it was anticipated that approximately $115 million of net losses, net of tax, currently recorded in Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.
We use sensitivity analysis to determine the effects that market foreign currency exchange rate fluctuations may have on the fair value of our hedge portfolio. The sensitivity of the hedge portfolio is computed based on the market value of future cash flows as affected by changes in exchange rates. This sensitivity analysis represents the hypothetical changes in value of the hedge position and does not reflect the offsetting gain or loss on the underlying exposure. A 10% change in the levels of foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately $722 million and $655 million as of August 31, 2025 and 2024, respectively.
Interest Rate Risk
The interest rate risk associated with our borrowing and investing activities as of August 31, 2025 is not material in relation to our consolidated financial position, results of operations or cash flows. While we may do so in the future, we have not used derivative financial instruments to alter the interest rate characteristics of our investment holdings or debt instruments.
Equity Investment Risk
Our non-marketable and marketable equity securities are subject to a wide variety of market-related risks that could substantially reduce or increase the fair value of our investments.
Our non-marketable equity securities are investments in privately held companies which are often in a start-up or development stage, which is inherently risky. The technologies or products these companies have under development are typically in the early stages and may never materialize, which could result in a loss of a substantial part of our investment in these companies. The evaluations of privately held companies are based on information that we request from these companies, which is not subject to the same disclosure regulations as U.S. publicly traded companies, and as such, the basis for these evaluations is subject to the timing and accuracy of the data received from these companies. We have minimal exposure on our long-term investments in privately held companies as these investments were not material in relation to our consolidated financial position, results of operations or cash flows as of August 31, 2025.
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 7A. Quantitative and Qualitative Disclosures About Market Risk | 43 |
We record our marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values.
The carrying values of our investments accounted for under the equity method generally do not fluctuate based on market price changes; however, these investments could be impaired if the carrying value exceeds the fair value.
Item 8. Financial Statements and Supplementary Data
See the Index to Consolidated Financial Statements and financial statements commencing on page F-1, which are incorporated herein by reference.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and our principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the principal executive officer and the principal financial officer of Accenture plc have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective at the reasonable assurance level.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:
i.pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
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| | | |
ACCENTURE 2025 FORM 10-K | | Item 9A. Controls and Procedures | 44 |
ii.provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and our Board of Directors; and
iii.provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). Based on its evaluation, our management concluded that our internal control over financial reporting was effective as of the end of the fiscal year covered by this Annual Report on Form 10-K.
KPMG LLP, an independent registered public accounting firm, has audited the Consolidated Financial Statements included in this Annual Report on Form 10-K and, as part of their audit, has issued its auditor’s report, included herein, on the effectiveness of our internal control over financial reporting. See “Report of Independent Registered Public Accounting Firm” on page F-2.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting that occurred during the fourth quarter of fiscal 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
Trading Arrangements
or by our executive officers or directors during the fourth quarter of fiscal 2025. All of the trading arrangements listed below are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). | | | | | | | | | | | | | | | | | |
| Name | Title | Date of Adoption or Termination | Duration of Plan (1) | Aggregate number of Class A ordinary shares to be sold pursuant to the trading agreement | |
| | Adopted on | October 22, 2025 - July 24, 2026 | | | (2) |
| | Adopted on | October 22, 2025 - July 24, 2026 | | (2) |
| | | Adopted on | October 22, 2025 - July 24, 2026 | | | (2) |
| | Adopted on | October 27, 2025 - July 24, 2026 | | |
(1) Each plan will expire on the earlier of the expiration date or the completion of all transactions under the trading arrangement.
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| | | |
ACCENTURE 2025 FORM 10-K | | Item 9A. Controls and Procedures | 45 |
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
None.
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Part III | 46 |
Part III
Item 10. Directors, Executive Officers and Corporate Governance
There have been no material changes to the procedures by which security holders may recommend nominees to our Board of Directors from those described in the proxy statement for our 2025 Annual General Meeting of Shareholders filed with the SEC on December 16, 2024.
Information about our executive officers is contained in the discussion entitled “Information about our Executive Officers” in Part I of this Form 10-K. The remaining information called for by Item 10 will be included in the sections captioned “Appointment of Directors,” “Corporate Governance” and “Beneficial Ownership” included in the definitive proxy statement relating to the 2026 Annual General Meeting of Shareholders of Accenture plc to be held on January 28, 2026 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2025 fiscal year covered by this Form 10-K.
Item 11. Executive Compensation
The information called for by Item 11 will be included in the sections captioned “Executive Compensation” and “Director Compensation” included in the definitive proxy statement relating to the 2026 Annual General Meeting of Shareholders of Accenture plc to be held on January 28, 2026 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2025 fiscal year covered by this Form 10-K.
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ACCENTURE 2025 FORM 10-K | | Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters | 47 |
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
Securities Authorized for Issuance under Equity Compensation Plans
The following table sets forth, as of August 31, 2025, certain information related to our compensation plans under which Accenture plc Class A ordinary shares may be issued.
| | | | | | | | | | | | | | | | | | | | | | | |
| Plan Category | | Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | | | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (3) | | Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in 1st Column) |
| Equity compensation plans approved by shareholders: | | | | | | | |
| 2001 Share Incentive Plan | | 1,872 | | (1) | | $ | — | | | — | |
| Amended and Restated 2010 Share Incentive Plan | | 16,388,598 | | (2) | | — | | | 20,971,852 | |
| Amended and Restated 2010 Employee Share Purchase Plan | | — | | | | N/A | | 46,056,389 | |
| Equity compensation plans not approved by shareholders | | — | | | | N/A | | — | |
| Total | | 16,390,470 | | | | | | 67,028,241 | |
(1)Consists of 1,872 restricted share units.
(2)Consists of 16,388,598 restricted share units, with performance-based awards assuming maximum performance.
(3)Restricted share units have no exercise price.
The remaining information called for by Item 12 will be included in the section captioned “Beneficial Ownership” included in the definitive proxy statement relating to the 2026 Annual General Meeting of Shareholders of Accenture plc to be held on January 28, 2026 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2025 fiscal year covered by this Form 10-K.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information called for by Item 13 will be included in the section captioned “Corporate Governance” included in the definitive proxy statement relating to the 2026 Annual General Meeting of Shareholders of Accenture plc to be held on January 28, 2026 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2025 fiscal year covered by this Form 10-K.
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ACCENTURE 2025 FORM 10-K | | Item 14. Principal Accountant Fees and Services | 48 |
Item 14. Principal Accountant Fees and Services
The information called for by Item 14 will be included in the section captioned “Audit” included in the definitive proxy statement relating to the 2026 Annual General Meeting of Shareholders of Accenture plc to be held on January 28, 2026 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2025 fiscal year covered by this Form 10-K.
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ACCENTURE 2025 FORM 10-K | | Part IV | 49 |
Part IV
Item 15. Exhibits, Financial Statement Schedules
(a) List of documents filed as part of this report:
1. Financial Statements as of August 31, 2025 and 2024 and for the three years ended August 31, 2025—Included in Part II of this Form 10-K:
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Comprehensive Income
Consolidated Shareholders’ Equity Statements
Consolidated Cash Flows Statements
Notes to Consolidated Financial Statements
2. Financial Statement Schedules:
None
3. Exhibit Index:
| | | | | | | | | | |
Exhibit
Number | | Exhibit | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 4.1 | | | | |
| 4.2 | | | | |
| 4.3 | | Officer’s Certificate of Accenture Capital Inc., dated as of October 4, 2024, containing Form of 3.900% Note due 2027, Form of 4.050% Note due 2029, Form of 4.250% Note due 2031 and Form of 4.500% Note due 2034 (incorporated by reference to Exhibit 4.2 to Accenture plc’s 8-K filed on October 4, 2024) | | |
| 10.1 | | | | |
| 10.2 | | Assumption Agreement of the Amended and Restated Voting Agreement, dated September 1, 2009 (incorporated by reference to Exhibit 10.4 to the 8-K12B) | | |
| 10.3* | | | | |
| 10.4 | | Assumption and General Amendment Agreement between Accenture plc and Accenture Ltd, dated September 1, 2009 (incorporated by reference to Exhibit 10.1 to the 8-K12B) | | |
| 10.5* | | | | |
| 10.6* | | | | |
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 15. Exhibits, Financial Statement Schedules | 50 |
| | | | | | | | | | |
| 10.7* | | | | |
| 10.8 | | | | |
| 10.9 | | | | |
| 10.10 | | First Supplemental Agreement to Support Agreement among Accenture plc, Accenture Ltd and Accenture Canada Holdings Inc., dated September 1, 2009 (incorporated by reference to Exhibit 10.2 to the 8-K12B) | | |
| 10.11* | | | | |
| 10.12* | | | | |
| 10.13 | | | | |
| 10.14 | | | | |
| 10.15 | | Form of Exchange Trust Agreement by and between Accenture Ltd and Accenture Canada Holdings Inc. and CIBC Mellon Trust Company, made as of May 23, 2001 (incorporated by reference to Exhibit 10.12 to the July 2, 2001 Form S-1/A) | | |
| 10.16 | | First Supplemental Agreement to Exchange Trust Agreement among Accenture plc, Accenture Ltd, Accenture Canada Holdings Inc. and Accenture Inc., dated September 1, 2009 (incorporated by reference to Exhibit 10.3 to the 8-K12B) | | |
| 10.17* | | | | |
| 10.18* | | | | |
| 10.19* | | Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the February 28, 2023 10-Q) | | |
| 10.20* | | Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the February 29, 2024 10-Q) | | |
| 10.21* | | Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the February 28, 2025 10-Q) | | |
| 10.22* | | | | |
| 10.23* | | | | |
| 10.24* | | Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2023 10-Q) | | |
| 10.25* | | Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 29, 2024 10-Q) | | |
| 10.26* | | Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2025 10-Q) | | |
| 10.27* | | | | |
| 10.28* | | | | |
| 10.29* | | Form of Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.4 to the February 29, 2024 10-Q) | | |
| 10.30* | | Form of Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.4 to the February 28, 2025 10-Q) | | |
| 10.31* | | | | |
| 10.32* | | | | |
| 10.33* | | | | |
| 10.34* | | | | |
| 10.35* | | | | |
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Item 15. Exhibits, Financial Statement Schedules | 51 |
| | | | | | | | | | |
| 10.36* | | | | |
| 19.1 | | | | |
| 21.1 | | | | |
| 23.1 | | | | |
| 23.2 | | Consent of KPMG LLP related to the Accenture plc 2010 Employee Share Purchase Plan (filed herewith) | | |
| 24.1 | | Power of Attorney (included on the signature page hereto) | | |
| 31.1 | | Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | | |
| 31.2 | | Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | | |
| 32.1 | | Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | | |
| 32.2 | | Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | | |
| 97.1* | | | | |
| 99.1 | | Amended and Restated Accenture plc 2010 Employee Share Purchase Plan Financial Statements (filed herewith) | | |
| 101 | | The following financial information from Accenture plc’s Annual Report on Form 10-K for the fiscal year ended August 31, 2025, formatted in Inline XBRL: (i) Consolidated Balance Sheets as of August 31, 2025 and August 31, 2024, (ii) Consolidated Income Statements for the years ended August 31, 2025, 2024 and 2023, (iii) Consolidated Statements of Comprehensive Income for the years ended August 31, 2025, 2024 and 2023, (iv) Consolidated Shareholders’ Equity Statements for the years ended August 31, 2025, 2024 and 2023, (v) Consolidated Cash Flows Statements for the years ended August 31, 2025, 2024 and 2023, and (vi) the Notes to Consolidated Financial Statements | | |
| 104 | | The cover page from Accenture plc’s Annual Report on Form 10-K for the year ended August 31, 2025, formatted in Inline XBRL (included as Exhibit 101) | | |
| | | | | |
| (*) | Indicates management contract or compensatory plan or arrangement. |
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
Item 16. Form 10-K Summary
Not applicable.
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Signatures | 52 |
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf on October 10, 2025 by the undersigned, thereunto duly authorized.
| | | | | |
| ACCENTURE PLC |
| |
| By: | /s/ JULIE SWEET |
| Name: Julie Sweet
Title: Chief Executive Officer |
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Julie Sweet, Angie Park and Joel Unruch, and each of them, as his or her true and lawful attorneys-in-fact and agents, with power to act with or without the others and with full power of substitution and resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents and each of them may deem necessary or desirable to enable the registrant to comply with the U.S. Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the U.S. Securities and Exchange Commission thereunder in connection with the registrant’s Annual Report on Form 10-K for the fiscal year ended August 31, 2025 (the “Annual Report”), including specifically, but without limiting the generality of the foregoing, power and authority to sign the name of the registrant and the name of the undersigned, individually and in his or her capacity as a director or officer of the registrant, to the Annual Report as filed with the U.S. Securities and Exchange Commission, to any and all amendments thereto, and to any and all instruments or documents filed as part thereof or in connection therewith; and each of the undersigned hereby ratifies and confirms all that said attorneys and agents and each of them shall do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on October 10, 2025 by the following persons on behalf of the registrant and in the capacities indicated.
| | | | | | | | |
| Signature | | Title |
| | |
| | |
/s/ JULIE SWEET | | Chief Executive Officer, Chair of the Board and Director |
| Julie Sweet | | (principal executive officer) |
| | |
/s/ ANGIE PARK | | Chief Financial Officer |
| Angie Park | | (principal financial officer) |
| | |
/s/ MELISSA A. BURGUM | | Chief Accounting Officer |
| Melissa A. Burgum | | (principal accounting officer) |
| | |
/s/ ARUN SARIN | | Lead Director |
| Arun Sarin | | |
| | |
/s/ JAIME ARDILA | | Director |
| Jaime Ardila | | |
| | |
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Signatures | 53 |
| | | | | | | | |
| | |
| | |
/s/ MARTIN BRUDERMÜLLER | | Director |
| Martin Brudermüller | | |
| | |
/s/ ALAN JOPE | | Director |
| Alan Jope | | |
| | |
/s/ NANCY MCKINSTRY | | Director |
| Nancy McKinstry | | |
| | |
/s/ JENNIFER NASON | | Director |
| Jennifer Nason | | |
| | |
/s/ PAULA A. PRICE | | Director |
| Paula A. Price | | |
| | |
/s/ VENKATA S.M. RENDUCHINTALA | | Director |
| Venkata S.M. Renduchintala | | |
| | |
/s/ TRACEY T. TRAVIS | | Director |
| Tracey T. Travis | | |
| | |
/s/ MASAHIKO UOTANI | | Director |
| Masahiko Uotani | | |
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Index to Consolidated Financial Statements | F-1 |
Accenture plc
Index to Consolidated Financial Statements
| | | | | | | | |
| | |
| | | Page |
| | |
Consolidated Financial Statements as of August 31, 2025 and 2024 and for the years ended August 31, 2025, 2024 and 2023: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Report of Independent Registered Public Accounting Firm | F-2 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Accenture plc:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Accenture plc and subsidiaries (the Company) as of August 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended August 31, 2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of August 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of August 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended August 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of August 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Report of Independent Registered Public Accounting Firm | F-3 |
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Estimated costs to complete certain technology integration consulting services contracts
As discussed in Notes 1 and 2 to the consolidated financial statements, revenues from contracts for technology integration consulting services where the Company designs, builds, and implements new or enhanced system applications and related processes for its clients are recognized over time since control of the system is transferred continuously to the client. Generally, revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations, which typically occurs over time periods ranging from six months to two years.
We identified the evaluation of estimated costs to complete certain technology integration consulting services contracts as a critical audit matter. Subjective auditor judgment was required to evaluate the estimate of costs to complete the contracts.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process for estimating costs to complete technology integration consulting services contracts, including controls over the estimate of costs to complete the contracts. We tested the estimated costs to complete for certain technology integration consulting services contracts by evaluating:
•the scope of the work and timing of delivery for consistency with the underlying contractual terms;
•the estimated costs to complete in relation to progress toward satisfying the Company’s performance obligations, based on internal and customer-facing information;
•changes to estimated costs, if any, including the amount and timing of the change based on internal information or contractual changes; and
•actual costs incurred subsequent to the balance sheet date to assess if they were consistent with the estimate for that time period.
We evaluated the Company’s ability to estimate costs by comparing estimates developed at contract inception to actual costs ultimately incurred to satisfy the performance obligation.
Unrecognized tax benefits
As discussed in Note 11 to the consolidated financial statements, the Company has $2,410 million of unrecognized tax benefits as of August 31, 2025. As discussed in Note 1 to the consolidated financial statements, the Company recognizes tax positions when it believes such positions are more likely than not of being sustained if challenged. Recognized tax positions are measured at the largest amount of benefit greater than 50 percent likely of being realized. The Company uses estimates and assumptions in determining the amount of unrecognized tax benefits.
We identified the evaluation of the Company’s unrecognized tax benefits related to transfer pricing and certain other intercompany transactions as a critical audit matter. Complex auditor judgment was required in evaluating the Company’s interpretation of tax law and its analysis of the recognition and measurement of its tax positions.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s unrecognized tax benefits process, including controls over transfer pricing and certain other intercompany transactions. We involved tax and transfer pricing professionals with specialized skills and knowledge, who assisted in:
•evaluating the Company’s interpretation of tax laws and income tax consequences of intercompany transactions, including internal restructurings and intra-entity transfers of assets;
| | | | | | | | | | | |
| | | |
ACCENTURE 2025 FORM 10-K | | Report of Independent Registered Public Accounting Firm | F-4 |
•assessing transfer pricing studies for compliance with applicable laws and regulations;
•analyzing the Company’s tax positions, including the methodology over the measurement of unrecognized tax benefits related to transfer pricing;
•evaluating the Company’s determination of unrecognized tax benefits, including the associated effect in other jurisdictions; and
•inspecting settlements with applicable taxing authorities.
In addition, we evaluated the Company’s ability to estimate its unrecognized tax benefits by comparing historical unrecognized tax benefits to actual results upon the conclusion of examinations by applicable taxing authorities.
/s/
We have served as the Company’s auditor since 2002.
October 10, 2025
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts) | |
ACCENTURE 2025 FORM 10-K | | F-5 |
| | | |
Consolidated Balance Sheets
August 31, 2025 and 2024 | | | | | | | | | | | |
| August 31,
2025 | | August 31,
2024 |
| | |
| ASSETS | | | |
| CURRENT ASSETS: | | | |
| Cash and cash equivalents | $ | | | | $ | | |
| Short-term investments | | | | | |
| Receivables and contract assets | | | | | |
| Other current assets | | | | | |
| Total current assets | | | | | |
| NON-CURRENT ASSETS: | | | |
| Contract assets | | | | | |
| Investments | | | | | |
| Property and equipment, net | | | | | |
| Lease assets | | | | | |
| Goodwill | | | | | |
| Deferred contract costs | | | | | |
| Deferred tax assets | | | | | |
| Intangibles | | | | | |
| Other non-current assets | | | | | |
| Total non-current assets | | | | | |
| TOTAL ASSETS | $ | | | | $ | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
| CURRENT LIABILITIES: | | | |
| Current portion of long-term debt and bank borrowings | $ | | | | $ | | |
| Accounts payable | | | | | |
| Deferred revenues | | | | | |
| Accrued payroll and related benefits | | | | | |
| Income taxes payable | | | | | |
| Lease liabilities | | | | | |
| | |
| Other accrued liabilities | | | | | |
| Total current liabilities | | | | | |
| NON-CURRENT LIABILITIES: | | | |
| Long-term debt | | | | | |
| Deferred revenues | | | | | |
| Retirement obligation | | | | | |
| Deferred tax liabilities | | | | | |
| Income taxes payable | | | | | |
| Lease liabilities | | | | | |
| Other non-current liabilities | | | | | |
| Total non-current liabilities | | | | | |
| COMMITMENTS AND CONTINGENCIES | | | |
| SHAREHOLDERS’ EQUITY: | | | |
Ordinary shares, par value euros per share, shares authorized and issued as of August 31, 2025 and August 31, 2024 | | | | | |
Class A ordinary shares, par value $ per share, shares authorized, and shares issued as of August 31, 2025 and August 31, 2024, respectively | | | | | |
Class X ordinary shares, par value $ per share, shares authorized, and shares issued and outstanding as of August 31, 2025 and August 31, 2024, respectively | | | | | |
| Restricted share units | | | | | |
| Additional paid-in capital | | | | | |
Treasury shares, at cost: Ordinary, shares as of August 31, 2025 and August 31, 2024; Class A ordinary, and shares as of August 31, 2025 and August 31, 2024, respectively | () | | | () | |
| Retained earnings | | | | | |
| Accumulated other comprehensive loss | () | | | () | |
| Total Accenture plc shareholders’ equity | | | | | |
| Noncontrolling interests | | | | | |
| Total shareholders’ equity | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts) | |
ACCENTURE 2025 FORM 10-K | | F-6 |
| | | |
Consolidated Income Statements
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| REVENUES: | | | | | |
| Revenues | $ | | | | $ | | | | $ | | |
| OPERATING EXPENSES: | | | | | |
| Cost of services | | | | | | | | |
| Sales and marketing | | | | | | | | |
| General and administrative costs | | | | | | | | |
| | | | | |
| Business optimization costs | | | | | | | | |
| Total operating expenses | | | | | | | | |
| OPERATING INCOME | | | | | | | | |
| Interest income | | | | | | | | |
| Interest expense | () | | | () | | | () | |
| Other income (expense), net | () | | | () | | | | |
| | | | | |
| | | | | |
| | | | | |
| INCOME BEFORE INCOME TAXES | | | | | | | | |
| Income tax expense | | | | | | | | |
| NET INCOME | | | | | | | | |
| Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. | () | | | () | | | () | |
| Net income attributable to noncontrolling interests – other | () | | | () | | | () | |
| NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | | | | $ | | | | $ | | |
| Weighted average Class A ordinary shares: | | | | | |
| Basic | | | | | | | | |
| Diluted | | | | | | | | |
| Earnings per Class A ordinary share: | | | | | |
| Basic | $ | | | | $ | | | | $ | | |
| Diluted | $ | | | | $ | | | | $ | | |
| Cash dividends per share | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars) | |
ACCENTURE 2025 FORM 10-K | | F-7 |
| | | |
Consolidated Statements of Comprehensive Income
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| NET INCOME | $ | | | | $ | | | | $ | | |
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | | | | | |
| Foreign currency translation | | | | | | | | |
| Defined benefit plans | | | | () | | | | |
| Cash flow hedges | () | | | | | | () | |
| | | | |
| OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | | | | | | | | |
| Other comprehensive income (loss) attributable to noncontrolling interests | | | | | | | | |
| COMPREHENSIVE INCOME | $ | | | | $ | | | | $ | | |
| | | | | |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | | | | $ | | | | $ | | |
| Comprehensive income attributable to noncontrolling interests | | | | | | | | |
| COMPREHENSIVE INCOME | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |
ACCENTURE 2025 FORM 10-K | | F-8 |
| | | |
Consolidated Shareholders’ Equity Statements
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary
Shares | | Class A
Ordinary
Shares | | Class X
Ordinary
Shares | | Restricted Share Units | | Additional Paid-in Capital | | Treasury Shares | | | | Accumulated Other Comprehensive Loss | | Total Accenture plc Shareholders’ Equity | | Noncontrolling Interests | | Total Shareholders’ Equity |
| $ | | No. Shares | | $ | | No. Shares | | $ | | No. Shares | | | | $ | | No. Shares | | Retained Earnings | | | | |
| Balance as of August 31, 2022 | $ | | | | | | | $ | | | | | | | $ | | | | | | | $ | | | | $ | | | | $ | () | | | () | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases of Class A shares | | | | | | | | | | | | | | | | | | () | | | () | | | | | | | () | | | () | | | () | |
| Cancellation of treasury shares | | | | | | | () | | | | | | | | | () | | | | | | | | | () | | | | | | | | | | | |
| Share-based compensation expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | | | | | | | | | | | () | | | | | () | | | | | | | | | | | () | | | | | () | |
| Issuances of Class A shares for employee share programs | | | | | | | | | | | | | | () | | | | | | | | | | | | () | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | () | | | | | () | | | () | | | () | |
| Other, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | () | | | () | |
| Balance as of August 31, 2023 | $ | | | | | | | $ | | | | | | | $ | | | | | | | $ | | | | $ | | | | $ | () | | | () | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |
ACCENTURE 2025 FORM 10-K | | F-9 |
| | | |
Consolidated Shareholders’ Equity Statements — (continued)
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary
Shares | | Class A
Ordinary
Shares | | Class X
Ordinary
Shares | | Restricted Share Units | | Additional Paid-in Capital | | Treasury Shares | | | | Accumulated Other Comprehensive Loss | | Total Accenture plc Shareholders’ Equity | | Noncontrolling Interests | | Total Shareholders’ Equity |
| $ | | No. Shares | | $ | | No. Shares | | $ | | No. Shares | | | | $ | | No. Shares | | Retained Earnings | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases of Class A shares | | | | | | | | | | | | | | | | | | () | | | () | | | | | | | () | | | () | | | () | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Share-based compensation expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | | | | | | | | | | | () | | | | | () | | | | | | | | | | | () | | | | | () | |
| Issuances of Class A shares for employee share programs | | | | | | | | | | | | | | () | | | | | | | | | | | | () | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | () | | | | | () | | | () | | | () | |
| Other, net | | | | | | | | | | | | | | | () | | | | | | | | | | | () | | | () | | | () | |
| Balance as of August 31, 2024 | $ | | | | | | | $ | | | | | | | $ | | | | | | | $ | | | | $ | | | | $ | () | | | () | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |
ACCENTURE 2025 FORM 10-K | | F-10 |
| | | |
Consolidated Shareholders’ Equity Statements — (continued)
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ordinary
Shares | | Class A
Ordinary
Shares | | Class X
Ordinary
Shares | | Restricted Share Units | | Additional Paid-in Capital | | Treasury Shares | | | | Accumulated Other Comprehensive Loss | | Total Accenture plc Shareholders’ Equity | | Noncontrolling Interests | | Total Shareholders’ Equity |
| $ | | No. Shares | | $ | | No. Shares | | $ | | No. Shares | | | | $ | | No. Shares | | Retained Earnings | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases of Class A shares | | | | | | | | | | | | | | | | | | () | | | () | | | | | | | () | | | () | | | () | |
| Cancellation of treasury shares | | | | | () | | | () | | | | | | | | | () | | | | | | | | | () | | | | | | | | | | | |
| Share-based compensation expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | | | | | | | | | | | () | | | | | () | | | | | | | | | | | () | | | | | () | |
| Issuances of Class A shares for employee share programs | | | | | | | | | | | | | | () | | | | | | | | | | | | () | | | | | | | | | | | | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | () | | | | | () | | | () | | | () | |
| Other, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance as of August 31, 2025 | $ | | | | | | | $ | | | | | | | $ | | | | | | | $ | | | | $ | | | | $ | () | | | () | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Consolidated Financial Statements (In thousands of U.S. dollars) | |
ACCENTURE 2025 FORM 10-K | | F-11 |
| | | |
Consolidated Cash Flows Statements
For the Years Ended August 31, 2025, 2024 and 2023
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | |
| Net income | $ | | | | $ | | | | $ | | |
| Adjustments to reconcile Net income to Net cash provided by (used in) operating activities— | | | | | |
| Depreciation, amortization and other | | | | | | | | |
| Share-based compensation expense | | | | | | | | |
| Deferred tax expense (benefit) | | | | () | | | () | |
| Other, net | () | | | () | | | () | |
| Change in assets and liabilities, net of acquisitions— | | | | | |
| Receivables and contract assets, current and non-current | () | | | () | | | | |
| Other current and non-current assets | () | | | () | | | () | |
| Accounts payable | () | | | | | | () | |
| Deferred revenues, current and non-current | | | | | | | | |
| Accrued payroll and related benefits | | | | () | | | () | |
| Income taxes payable, current and non-current | () | | | | | | | |
| Other current and non-current liabilities | () | | | () | | | () | |
| Net cash provided by (used in) operating activities | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | |
| Purchases of property and equipment | () | | | () | | | () | |
| Purchases of businesses and investments, net of cash acquired | () | | | () | | | () | |
| Proceeds from the sale of businesses and investments, net of cash transferred | | | | | | | | |
| Other investing, net | | | | | | | | |
| Net cash provided by (used in) investing activities | () | | | () | | | () | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | |
| Proceeds from issuance of shares | | | | | | | | |
| Purchases of shares | () | | | () | | | () | |
| Proceeds from debt | | | | | | | | |
| Repayments of debt | () | | | () | | | | |
| Cash dividends paid | () | | | () | | | () | |
| Other financing, net | () | | | () | | | () | |
| Net cash provided by (used in) financing activities | () | | | () | | | () | |
| Effect of exchange rate changes on cash and cash equivalents | () | | | () | | | () | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | | | () | | | | |
CASH AND CASH EQUIVALENTS, beginning of period | | | | | | | | |
CASH AND CASH EQUIVALENTS, end of period | $ | | | | $ | | | | $ | | |
| SUPPLEMENTAL CASH FLOW INFORMATION: | | | | | |
| Interest paid | $ | | | | $ | | | | $ | | |
| Income taxes paid, net | $ | | | | $ | | | | $ | | |
The accompanying Notes are an integral part of these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-12 |
| | | |
1.
geographic markets: the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.% as of August 31, 2025 and 2024, respectively.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-13 |
| | | |
Non-Technology Integration Consulting Services
Our contracts for non-technology integration consulting services are typically less than in duration. Revenues are generally recognized over time as our clients benefit from the services as they are performed, or the contract, for which the related services lack an alternative use, includes termination provisions enabling payment for performance completed to date. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g., time-and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms. Revenues from fixed-price contracts are generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. For non-technology integration consulting contracts which do not qualify to recognize revenue over time, we recognize revenues at a point in time when the client obtains control of the promised good or service.
Contract Estimates
Estimates of total contract revenues and costs are continuously monitored over the lives of our contracts, and recorded revenues and cost estimates are subject to revision as the contract progresses. If at any time the estimate of contract profitability indicates an anticipated loss on a technology integration consulting contract, we recognize the loss in the quarter it first becomes probable and reasonably estimable.
Contract Balances
The timing of revenue recognition, billings and cash collections results in Receivables, Contract assets, and Deferred revenues (Contract liabilities) on our Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. In limited circumstances, we agree to extend financing to certain clients. The terms vary by contract, but generally payment for services is contractually linked to the achievement of specified performance milestones. When the period between payment and transfer of goods or services is one year or less, we do not assess the existence of, and therefore, do not adjust the promised amount of consideration for the effects of a significant financing component. Our receivables are rights to consideration that are conditional only upon the passage of time as compared to our contract assets, which are rights to consideration conditional upon additional factors. When we bill or receive payments from our clients before revenue is recognized, we record Contract liabilities. Contract assets and liabilities are reported on our Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-14 |
| | | |
and $, respectively. The change in the allowance is primarily due to changes in gross client receivables, contract assets and immaterial write-offs.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-15 |
| | | |
| | $ | | | | Investments without readily determinable fair values | | | | | |
| Total non-current investments | $ | | | | $ | | |
Depreciation and Amortization
| | $ | | | $ | | | Amortization—Deferred transition | | | | | | | |
Amortization—Intangible assets | | | | | | | |
| Operating lease cost | | | | | | | |
| Other | | | | | | | |
| Total depreciation, amortization and other | $ | | | | $ | | | $ | | |
to years| Furniture and fixtures | to years |
| Leasehold improvements | Lesser of lease term or years |
impairment existed as of August 31, 2025 or 2024, as each reportable segment’s estimated fair value substantially exceeded its carrying value.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-16 |
| | | |
Operating Expenses
| | $ | | | | $ | | | | Advertising costs (1) | | | | | | | | |
| Provision for (release of) doubtful accounts (2) | | | | | | | | |
(1)Advertising costs are expensed as incurred.
Business Optimization
Actions Initiated in Fiscal 2025
During the fourth quarter of fiscal 2025, we began implementing a refreshed three-pronged talent strategy to meet current and future client demand: investing in upskilling people, which has been and continues to be our primary focus; exiting people in a compressed timeline where reskilling is not a viable path for the skills we need; and identifying areas to drive even more operating efficiencies in our business, including through AI. We recorded $ million in business optimization costs during the fourth quarter of fiscal 2025. This includes employee severance of approximately $ million associated with headcount reductions that we are making in a compressed timeline, as well as asset impairments of approximately $ million primarily related to the divestiture of acquisitions in the Americas that are no longer aligned with our strategic priorities. We expect to record additional costs of approximately $ million in the first quarter of fiscal 2026, primarily for employee severance, for a total of approximately $ million over the six-month period. The actual amount and timing of costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.
Actions Initiated in Fiscal 2023
During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs. We recorded a total of $ billion related to these actions, primarily for employee severance, which were completed as of August 31, 2024.
| | $ | | | | | | | EMEA | | | | | | | | |
| Asia Pacific (1) | | | | | | | | |
| Total business optimization costs | $ | | | | $ | | | | | | .
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-17 |
| | | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-18 |
| | | |
2.
billion and $ billion as of August 31, 2025 and 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 % of our remaining performance obligations as of August 31, 2025 as revenue in fiscal 2026, an additional % in fiscal 2027, and the balance thereafter.Contract Estimates
Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for both fiscal 2025 and 2024.
Contract Balances
Deferred transition revenues were $ and $ as of August 31, 2025 and 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. Generally, deferred amounts are protected in the event of early termination of the contract 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. Deferred transition costs were $ and $ as of August 31, 2025 and 2024, respectively, and are included in Deferred contract costs. Deferred transition amortization expense for fiscal 2025, 2024 and 2023 was $, $ and $, respectively.
| | $ | | |
| Contract assets (current) | | | | | |
| Receivables and contract assets, net of allowance (current) | | | | | |
| Contract assets (non-current) | | | | | |
| Deferred revenues (current) | | | | | |
| Deferred revenues (non-current) | | | | | |
Changes in the contract asset and liability balances during fiscal 2025, were a result of normal business activity and not materially impacted by any other factors.
Revenues recognized during fiscal 2025 that were included in Deferred revenues as of August 31, 2024 were $ billion. Revenues recognized during fiscal 2024 that were included in Deferred revenues as of August 31, 2023 were $ billion.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-19 |
| | | |
3.
| | $ | | | | $ | | | | Basic weighted average Class A ordinary shares | | | | | | | | |
| Basic earnings per share | $ | | | | $ | | | | $ | | |
| Diluted Earnings per share | | | | | |
| Net income attributable to Accenture plc | $ | | | | $ | | | | $ | | |
| Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1) | | | | | | | | |
| Net income for diluted earnings per share calculation | $ | | | | $ | | | | $ | | |
| Basic weighted average Class A ordinary shares | | | | | | | | |
| Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) | | | | | | | | |
| Diluted effect of employee compensation related to Class A ordinary shares | | | | | | | | |
| Diluted effect of share purchase plans related to Class A ordinary shares | | | | | | | | |
| Diluted weighted average Class A ordinary shares (2) | | | | | | | | |
| Diluted earnings per share | $ | | | | $ | | | | $ | | |
(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 -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.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-20 |
| | | |
4.
) | | $ | () | | | $ | () | | | Foreign currency translation | | | | | | | | |
| Income tax benefit (expense) | () | | | | | | | |
| Portion attributable to noncontrolling interests | () | | | () | | | () | |
| Foreign currency translation, net of tax | | | | | | | | |
| Ending balance | () | | | () | | | () | |
| | | | | |
| Defined benefit plans | | | | | |
| Beginning balance | () | | | () | | | () | |
| Actuarial gains (losses) | | | | () | | | | |
| Pension settlement | () | | | () | | | () | |
| Prior service costs arising during the period | | | | () | | | | |
Reclassifications into net periodic pension and
post-retirement expense | | | | | | | | |
| Income tax benefit (expense) | () | | | | | | () | |
| Portion attributable to noncontrolling interests | () | | | | | | () | |
| Defined benefit plans, net of tax | | | | () | | | | |
| Ending balance | () | | | () | | | () | |
| | | | | |
| Cash flow hedges | | | | | |
| Beginning balance | () | | | () | | | | |
| Unrealized gain (loss) | () | | | | | | () | |
| Reclassification adjustments into Cost of services | | | | () | | | | |
| Income tax benefit (expense) | | | | | | | | |
| Portion attributable to noncontrolling interests | | | | () | | | | |
| Cash flow hedges, net of tax | () | | | | | | () | |
| Ending balance (1) | () | | | () | | | () | |
| | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Accumulated other comprehensive loss | $ | () | | | $ | () | | | $ | () | |
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.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-21 |
| | | |
5.
| | $ | | | (1)The carrying amounts of the commercial paper as of August 31, 2025 and August 31, 2024 include the remaining principal outstanding of $ and $, respectively, net of total unamortized discounts of $ and $, respectively. The weighted-average effective interest rate for the commercial paper was % and % as of August 31, 2025 and August 31, 2024, respectively.
(2)Amounts primarily include finance lease liabilities.
(3)The total estimated fair value of our senior notes was $ billion as of August 31, 2025. The fair value was determined based on quoted prices as of the last trading day of fiscal 2025 and is classified as Level 2 within the fair value hierarchy.
| | 2027 | | |
| 2028 | | |
| 2029 | | |
| 2030 | | |
| Thereafter | | |
| Total | $ | | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-28 |
| | | |
| | | Separate, uncommitted, unsecured multicurrency revolving credit facilities (2) | | | |
| Local guaranteed and non-guaranteed lines of credit (3) | | | |
| Total | $ | | | | (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 August 31, 2025 and 2024, we had 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 August 31, 2025 and 2024, we had borrowings under these various facilities.
and $ of letters of credit outstanding and $ and $ (excluding unamortized discounts) of commercial paper outstanding as of August 31, 2025 and 2024, respectively. The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-29 |
| | | |
11.
| | $ | | | | $ | | |
| U.S. state and local | | | | | | | | |
| Non-U.S. | | | | | | | | |
| Total current tax expense | | | | | | | | |
| Deferred taxes | | | | | |
| U.S. federal | | | | () | | | () | |
| U.S. state and local | | | | () | | | () | |
| Non-U.S. | | | | | | | | |
| Total deferred tax (benefit) expense | | | | () | | | () | |
| Total | $ | | | | $ | | | | $ | | |
| | $ | | | | $ | | | | Non-U.S. sources | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | |
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The OBBBA contains a number of provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The act has multiple effective dates that generally apply to us beginning with fiscal year 2026, and we expect the impacts on our consolidated financial statements to be immaterial.
% | | | % | | | % | | U.S. state and local taxes, net | | | | | | | | |
| Non-U.S. operations taxed at other rates | | | | | | | | |
| Final determinations (1) | () | | | () | | | () | |
Other net activity in unrecognized tax benefits
| | | | | | | | |
| | | | |
| Excess tax benefits from share based payments | () | | | () | | | () | |
| | | | |
| Foreign-derived intangible income deduction | () | | | () | | | () | |
| Other, net | | | | | | | | |
| Effective income tax rate | | % | | | % | | | % |
(1)Final determinations include final agreements with tax authorities and expirations of statutes of limitations.
(2)Prior period amounts have been reclassified to conform with the current period presentation.
As of August 31, 2025, we had not recognized a deferred tax liability on approximately $ of undistributed earnings for certain foreign subsidiaries, because these earnings are intended to be indefinitely reinvested. If such earnings were distributed, some countries may impose additional taxes. The unrecognized deferred tax liability (the amount payable if distributed) is approximately $.
Portions of our operations are subject to reduced tax rates or are free of tax under various tax holidays which expire through fiscal 2034. The income tax benefits attributable to the tax status of these subsidiaries were estimated to be approximately $, $ and $ in fiscal 2025, 2024 and 2023, respectively.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-30 |
| | | |
| | $ | | | | | |
| Compensation and benefits | | | | | |
| Share-based compensation | | | | | |
| Tax credit carryforwards | | | | | |
| Net operating loss carryforwards | | | | | |
| | |
| Deferred amortization deductions | | | | | |
| Indirect effects of unrecognized tax benefits | | | | | |
| Licenses and other intangibles | | | | | |
| Leases | | | | | |
| Capitalized research costs | | | | | |
| Other | | | | | |
| Total deferred tax assets | | | | | |
| Valuation allowance | () | | | () | |
| Deferred tax assets, net of valuation allowance | | | | | |
| Deferred tax liabilities | | | |
| Pensions | () | | | () | |
| | |
| Investments in subsidiaries | () | | | () | |
| Intangibles | () | | | () | |
| Leases | () | | | () | |
| Revenue recognition | () | | | () | |
| Other | () | | | () | |
| Total deferred tax liabilities | () | | | () | |
| Net deferred tax assets | $ | | | | $ | | |
(1)Prior period amounts have been reclassified to conform with the current period presentation.
We recorded valuation allowances of $ and $ as of August 31, 2025 and 2024, respectively, against deferred tax assets principally associated with certain tax credit and tax net operating loss carryforwards, as we believe it is more likely than not that these assets will not be realized. For all other deferred tax assets, we believe it is more likely than not that the results of future operations will generate sufficient taxable income to realize these deferred tax assets. During fiscal 2025 and 2024, we recorded net increases of $ and $ in the valuation allowance, respectively, primarily related to valuation allowances on certain tax credit carryforwards, as we believe it is more likely than not that these assets will not be realized.
We had tax credit carryforwards as of August 31, 2025 of $, of which $ will expire between 2026 and 2035 and $ has an indefinite carryforward period. We had net operating loss carryforwards as of August 31, 2025 of $. Of this amount, $ expires between 2026 and 2035, $ expires between 2036 and 2045, and $ has an indefinite carryforward period.
As of August 31, 2025, we had $ of unrecognized tax benefits, of which $, if recognized, would favorably affect our effective tax rate. As of August 31, 2024, we had $ of unrecognized tax benefits, of which $, if recognized, would favorably affect our effective tax rate. The remaining unrecognized tax benefits as of August 31, 2025 and 2024 of $ and $, respectively, represent items recorded as offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, state income taxes and timing adjustments.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-31 |
| | | |
| | $ | | | | Additions for tax positions related to the current year | | | | | |
| Additions for tax positions related to prior years | | | | | |
| Reductions for tax positions related to prior years | () | | | () | |
| Statute of limitations expirations | () | | | () | |
| Settlements with tax authorities | () | | | () | |
| Cumulative translation adjustment | () | | | | |
| Balance, end of year | $ | | | | $ | | |
We recognize interest and penalties related to unrecognized tax benefits in our Income tax expense. During fiscal 2025, 2024 and 2023, we recognized a benefit of $ and expense of $ and $ in interest and penalties, respectively. Accrued interest and penalties related to unrecognized tax benefits of $ ($, net of tax benefits) and $ ($, net of tax benefits) were reflected on our Consolidated Balance Sheets as of August 31, 2025 and 2024, respectively.
As a global company, we file tax returns in numerous tax jurisdictions including the U.S. and Ireland, where in both jurisdictions the tax years from fiscal 2021 forward remain open for examination. We participate in the U.S. Internal Revenue Service (“IRS”) Compliance Assurance Process (“CAP”). In CAP, the IRS examines tax years on a contemporaneous basis, and most issues are resolved prior to filing the tax return. We also participate in the Irish Cooperative Compliance Framework (“CCF”) which promotes a collaborative approach to tax return review between taxpayers and Irish Revenue. In addition, we are negotiating a bilateral Advance Pricing Agreement (“APA”) with the U.S. and Ireland that covers fiscal 2021 through fiscal 2025. We expect through this APA to gain certainty and avoid prolonged disputes on the pricing of intercompany transactions between the U.S. and Ireland. We expect to conclude the APA in fiscal 2026 or fiscal 2027.
We are currently under audit in U.S. state and other non-U.S. tax jurisdictions. However, with limited exceptions, we are no longer subject to examination by those taxing authorities for years before 2017. Although the outcome of tax audits is always uncertain and could result in significant cash tax payments, we do not believe the outcome of these audits will have a material adverse effect on our consolidated financial position or results of operations. We believe that it is reasonably possible that our unrecognized tax benefits could decrease by approximately $ or increase by approximately $ in the next 12 months as a result of settlements, lapses of statutes of limitations, tax audit activity and other agreements with taxing authorities. The majority of these amounts relate to transfer pricing matters in both U.S. and non-U.S. tax jurisdictions.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-32 |
| | | |
12.
% | | | % | | | % | | | % | | | % | | | % | | | % | | | % | | | % | | Discount rate for determining net periodic pension expense | | % | | | % | | | % | | | % | | | % | | | % | | | % | | | % | | | % |
| Long term rate of return on plan assets | | % | | | % | | | % | | | % | | | % | | | % | | | % | | | % | | | % |
| Rate of increase in future compensation for determining projected benefit obligation | | % | | | % | | | % | | | % | | | % | | | % | | N/A | | N/A | | N/A |
| Rate of increase in future compensation for determining net periodic pension expense | | % | | | % | | | % | | | % | | | % | | | % | | N/A | | N/A | | N/A |
| Interest crediting rate for determining projected benefit obligation | N/A | | | % | | N/A | | | % | | N/A | | | % | | N/A | | N/A | | N/A |
| Interest crediting rate for determining net periodic pension expense | N/A | | | % | | N/A | | | % | | N/A | | | % | | N/A | | N/A | | N/A |
We utilize a full yield curve approach to estimate the service and interest cost components by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This approach provides a correlation between projected benefit cash flows and the corresponding yield curve spot rates and provides a precise measurement of service and interest costs. The discount rate assumptions are based on the expected duration of the benefit payments for each of our defined benefit pension and postretirement plans as of the annual measurement date and are subject to change each year.
The expected long-term rate of return on plan assets should, over time, approximate the actual long-term returns on defined benefit pension and postretirement plan assets and is based on historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the asset portfolio.
Assumed U.S. Health Care Cost Trend
Our U.S. postretirement plan assumed annual rate of increase in the per capita cost of health care benefits is % for the plan year ending August 31, 2026. The rate is assumed to decrease on a straight-line basis to % for the plan year ending August 31, 2050 and remain at that level thereafter.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-33 |
| | | |
Benefit Obligation, Plan Assets and Funded Status
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Service cost | | | | | | | | | | | | | | | | | |
| Interest cost | | | | | | | | | | | | | | | | | |
| Participant contributions | | | | | | | | | | | | | | | | | |
| Acquisitions/divestitures/transfers | | | | | | | | | | | | | | | | | |
| Amendments | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Actuarial (gain) loss | () | | | () | | | () | | | | | | () | | | | |
| Benefits paid | () | | | () | | | () | | | () | | | () | | | () | |
| Exchange rate impact | | | | | | | | | | () | | | | | | () | |
| Benefit obligation, end of year | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Reconciliation of fair value of plan assets | | | | | | | | | | | |
| Fair value of plan assets, beginning of year | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Actual return on plan assets | | | | | | | | | | | | | | | | | |
| Acquisitions/divestitures/transfers | | | | () | | | | | | | | | | | | | |
| Employer contributions | | | | | | | | | | | | | | | | | |
| Participant contributions | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| Benefits paid | () | | | () | | | () | | | () | | | () | | | () | |
| Exchange rate impact | | | | | | | | | | () | | | | | | | |
| | | | | | | | | | |
| Fair value of plan assets, end of year | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Funded status, end of year | $ | () | | | $ | () | | | $ | () | | | $ | () | | | $ | () | | | $ | () | |
| Amounts recognized in the Consolidated Balance Sheets | | | | | | | | | | | |
| Non-current assets | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Current liabilities | () | | | () | | | () | | | () | | | () | | | () | |
| Non-current liabilities | () | | | () | | | () | | | () | | | () | | | () | |
| Funded status, end of year | $ | () | | | $ | () | | | $ | () | | | $ | () | | | $ | () | | | $ | () | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-34 |
| | | |
| | $ | | | | $ | | | | $ | | | | $ | () | | | $ | () | | | Prior service (credit) cost | | | | () | | | | | | () | | | | | | | |
| Accumulated other comprehensive (gain) loss, pre-tax | $ | | | | $ | | | | $ | | | | $ | | | | $ | () | | | $ | () | |
Funded Status for Defined Benefit Plans
| | $ | | | | $ | | | | $ | | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Fair value of plan assets | | | | | | | | | | | | | | | | | |
| | $ | | | | $ | | | | $ | | | | Fair value of plan assets | | | | | | | | | | | |
Investment Strategies
U.S. Pension Plans
The overall investment objective of the defined benefit pension plans is to match the duration of the plans’ assets to the plans’ liabilities while managing risk in order to meet current defined benefit pension obligations. The plans’ future prospects, their current financial conditions, our current funding levels and other relevant factors suggest that the plans can tolerate some interim fluctuations in market value and rates of return in order to achieve long-term objectives without undue risk to the plans’ ability to meet their current benefit obligations. We recognize that asset allocation of the defined benefit pension plans’ assets is an important factor in determining long-term performance. Actual asset allocations at any point in time may
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-35 |
| | | |
% | | | % | | | % | | | % | | | % | | | % | | Debt securities | | | | | | | | | | | | | | | | | |
| Cash and short-term investments | | | | | | | | | | | | | | | | | |
| Insurance contracts | | | | | | | | | | | | | | | | | |
| Other | | | | | | | | | | | | | | | | | |
| Total | | % | | | % | | | % | | | % | | | % | | | % |
Fair Value Measurements
Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
The three-level hierarchy of fair value measurements is based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:
•Level 1—Quoted prices for identical instruments in active markets;
•Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and
•Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-36 |
| | | |
| | $ | | | | $ | | | | $ | | | | | | | | | |
| Fixed Income | | | | | | | |
U.S. government, state and local debt securities
| | | | | | | | | | | |
| Non-U.S. government debt securities | | | | | | | | | | | |
| Non-U.S. corporate debt securities | | | | | | | | | | | |
| Mutual fund debt securities | | | | | | | | | | | |
| Cash and short-term investments | | | | | | | | | | | |
| Insurance contracts | | | | | | | | | | | |
| Other | | | | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | | | $ | | |
The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is set to an actuarially calculated present value of the underlying liabilities.
The U.S. Plans have $ in Level 2 assets, primarily made up of U.S. corporate debt securities of $ and U.S. government, state and local debt securities of $.
| | Changes in fair value | | |
| Ending Balance | $ | | |
| | $ | | | | $ | | | | $ | | | | | | | | | |
| Fixed Income | | | | | | | |
| U.S. government, state and local debt securities | | | | | | | | | | | |
| Non-U.S. government debt securities | | | | | | | | | | | |
| Non-U.S. corporate debt securities | | | | | | | | | | | |
| Mutual fund debt securities | | | | | | | | | | | |
| Cash and short-term investments | | | | | | | | | | | |
| Insurance contracts | | | | | | | | | | | |
| Other | | | | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | | | $ | | |
The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is set to an actuarially calculated present value of the underlying liabilities.
The U.S. Plans have $ in Level 2 assets, primarily made up of U.S. corporate debt securities of $ and U.S. government, state and local debt securities of $.
| | Changes in fair value | | |
| Ending Balance | $ | | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-37 |
| | | |
Estimated Future Benefit Payments
| | $ | | | | $ | | | | 2027 | | | | | | | | |
| 2028 | | | | | | | | |
| 2029 | | | | | | | | |
| 2030 | | | | | | | | |
| 2031-2035 | | | | | | | | |
Defined Contribution Plans
, $ and $ in fiscal 2025, 2024 and 2023, respectively.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-38 |
| | | |
13.
Accenture plc Class A ordinary shares are currently authorized for awards under the Amended 2010 SIP. As of August 31, 2025, there were shares available for future grants. Accenture plc Class A ordinary shares covered by awards that terminate, lapse or are cancelled may again be used to satisfy awards under the Amended 2010 SIP. We issue new Accenture plc Class A ordinary shares and shares from treasury for shares delivered under the Amended 2010 SIP. | | $ | | | | $ | | | | Income tax benefit related to share-based compensation included in Net income | | | | | | | | |
Restricted Share Units
Under the Amended 2010 SIP, participants may be, and previously under the predecessor 2001 Share Incentive Plan were, granted restricted share units, each of which represent an unfunded, unsecured right to receive an Accenture plc Class A ordinary share on the date specified in the participant’s award agreement. The fair value of the awards is based on our stock price on the date of grant. The restricted share units granted under these plans are subject to cliff or graded vesting, generally ranging from two to . For awards with graded vesting, compensation expense is recognized over the vesting term of each separately vesting portion. Compensation expense is recognized on a straight-line basis for awards with cliff vesting.
| | $ | | | | Granted (1) | | | | | |
| Vested (2) | () | | | | |
| Forfeited | () | | | | |
| Nonvested balance as of August 31, 2025 | | | | $ | | |
(1)The weighted average grant-date fair value for restricted share units granted for fiscal 2025, 2024 and 2023 was $, $ and $, respectively.
, $ and $, respectively.
As of August 31, 2025, there was $ of total unrecognized restricted share unit compensation expense related to nonvested awards, which is expected to be recognized over a weighted average period of years. As of August 31, 2025, there were restricted share units vested but not yet delivered as Accenture plc Class A ordinary shares.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-39 |
| | | |
Accenture plc Class A ordinary shares may be issued under the 2010 ESPP. As of August 31, 2025, we had issued Accenture plc Class A ordinary shares under the 2010 ESPP. We issued , and shares to employees in fiscal 2025, 2024 and 2023, respectively, under the 2010 ESPP.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-40 |
| | | |
14.
authorized ordinary shares, par value € per share. Each ordinary share of Accenture plc entitles its holder to receive payments upon a liquidation of Accenture plc; however, a holder of an ordinary share is not entitled to vote on matters submitted to a vote of shareholders of Accenture plc or to receive dividends. Class A Ordinary Shares
An Accenture plc Class A ordinary share entitles its holder to vote per share, and holders of those shares do not have cumulative voting rights. Each Class A ordinary share entitles its holder to a pro rata part of any dividend at the times and in the amounts, if any, which Accenture plc’s Board of Directors from time to time determines to declare, subject to any preferred dividend rights attaching to any preferred shares. Each Class A ordinary share is entitled on a winding-up of Accenture plc to be paid a pro rata part of the value of the assets of Accenture plc remaining after payment of its liabilities, subject to any preferred rights on liquidation attaching to any preferred shares.
Class X Ordinary Shares
Most of our pre-incorporation partners who received Accenture Canada Holdings Inc. exchangeable shares in connection with our transition to a corporate structure received a corresponding number of Accenture plc Class X ordinary shares. An Accenture plc Class X ordinary share entitles its holder to vote per share, and holders of those shares do not have cumulative voting rights. A Class X ordinary share does not entitle its holder to receive dividends, and holders of those shares are not entitled to be paid any amount upon a winding-up of Accenture plc. Accenture plc may redeem, at its option, any Class X ordinary share for a redemption price equal to the par value of the Class X ordinary share. Accenture plc has separately agreed with the original holders of Accenture Canada Holdings Inc. exchangeable shares not to redeem any Class X ordinary share of such holder if the redemption would reduce the number of Class X ordinary shares held by that holder to a number that is less than the number of Accenture Canada Holdings Inc. exchangeable shares owned by that holder, as the case may be. Accenture plc will redeem Class X ordinary shares upon the redemption or exchange of Accenture Canada Holdings Inc. exchangeable shares so that the aggregate number of Class X ordinary shares outstanding at any time does not exceed the aggregate number of Accenture Canada Holdings Inc. exchangeable shares outstanding. Class X ordinary shares are not transferable without the consent of Accenture plc.
Equity of Subsidiaries Redeemable or Exchangeable for Accenture plc Class A Ordinary Shares
Accenture Canada Holdings Inc. Exchangeable Shares
Pre-incorporation partners resident in Canada and New Zealand received Accenture Canada Holdings Inc. exchangeable shares in connection with our transition to a corporate structure. Holders of Accenture Canada Holdings Inc. exchangeable shares may exchange their shares for Accenture plc Class A ordinary shares at any time on a -for-one basis. We may, at our option, satisfy this exchange with cash at a price per share generally equal to the market price of an Accenture plc Class A ordinary share at the time of the exchange. Each exchangeable share of Accenture Canada Holdings Inc. entitles its holder to receive distributions equal to any distributions to which an Accenture plc Class A ordinary share entitles its holder.
Share Purchases and Redemptions
The Board of Directors of Accenture plc has authorized funding for our publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares and for purchases and redemptions of Accenture plc Class A ordinary shares and Accenture Canada Holdings Inc. exchangeable shares held by current and former members of Accenture Leadership and their permitted transferees. As of August 31, 2025, our aggregate available authorization was $ for our publicly announced open-market share purchase and these other share purchase programs.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-41 |
| | | |
| | $ | | | | | | | $ | | | | Other share purchase programs | | | | | | | | | | | |
| Other purchases (2) | | | | | | | | | | | |
| Total | | | | $ | | | | | | | $ | | |
(1)We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.
Cancellation of Treasury Shares
During fiscal 2025, we cancelled Accenture plc Class A ordinary shares that were held as treasury shares and had an aggregate cost of $. The effect of the cancellation of these treasury shares was recognized in Class A ordinary shares and Additional paid-in capital with the residual recorded in Retained earnings. There was no effect on total shareholders’ equity as a result of this cancellation.
Dividends
| | October 10, 2024 | | $ | | | | October 9, 2024 | | $ | | | | $ | | | | February 14, 2025 | | | | | January 16, 2025 | | | | | January 15, 2025 | | | | | | |
| May 15, 2025 | | | | | April 10, 2025 | | | | | April 9, 2025 | | | | | | |
| August 15, 2025 | | | | | July 10, 2025 | | | | | July 9, 2025 | | | | | | |
| Total Dividends | | | | | | $ | | | | | | $ | | | | $ | | |
The payment of cash dividends includes the net effect of $ of additional restricted stock units being issued as a part of our share plans, which resulted in restricted share units being issued.
Subsequent Events
On September 22, 2025, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ per share on our Class A ordinary shares for shareholders of record at the close of business on October 10, 2025, payable on November 14, 2025.
On September 22, 2025, the Board of Directors of Accenture plc approved $ in additional share repurchase authority, bringing Accenture’s total outstanding authority to $.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-42 |
| | | |
15.
As of August 31, 2025 and 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ and $, respectively, of which all but approximately $ and $, 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 August 31, 2025 and 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ ($ net of recourse provisions) and $ ($ 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 August 31, 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 appealed the district court’s decision, and on June 3, 2025, the appeals court again reversed the class certification and declined to order another remand to the district court on those certification issues. We continue to believe the lawsuit is without merit and we will continue to vigorously defend it. At
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-43 |
| | | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-44 |
| | | |
16.
reportable segments are our geographic markets: Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific. Each market represents a strategic business unit providing consulting and managed services to clients across different industries. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer who evaluate our reportable segments based on segment revenue and operating income. Company resources are aligned to reportable segments based on market demand.
Information regarding our geographic markets is as follows.
| | $ | | | | $ | | | | $ | | | | Less: | | | | | | | |
| Payroll costs | | | | | | | | | | | |
| Non-payroll costs including subcontractor costs (2) | | | | | | | | | | | |
| Depreciation and amortization (3) | | | | | | | | | | | |
| Business optimization costs (4) | | | | | | | | | | | |
| Operating income | | | | | | | | | | | |
| Net assets as of August 31, 2025 (5) | | | | | | | | | | | |
| Property & equipment, net as of August 31, 2025 | | | | | | | | | | | |
| | | | | | | |
| Fiscal 2024 (1) | | | | | | | |
| | | | | | |
| Revenues | $ | | | | $ | | | | $ | | | | $ | | |
| Less: | | | | | | | |
| Payroll costs | | | | | | | | | | | |
| Non-payroll costs including subcontractor costs (2) | | | | | | | | | | | |
| Depreciation and amortization (3) | | | | | | | | | | | |
| Business optimization costs (4) | | | | | | | | | | | |
| Operating income | | | | | | | | | | | |
| Net assets as of August 31, 2024 (5) | | | | | | | | | | | |
| Property & equipment, net as of August 31, 2024 | | | | | | | | | | | |
| | | | | | | |
| Fiscal 2023 (1) | | | | | | | |
| Revenues | $ | | | | $ | | | | $ | | | | $ | | |
| Less: | | | | | | | |
| Payroll costs | | | | | | | | | | | |
| Non-payroll costs including subcontractor costs (2) | | | | | | | | | | | |
| Depreciation and amortization (3) | | | | | | | | | | | |
| Business optimization costs (4) | | | | | | | | | | | |
| Operating income | | | | | | | | | | | |
| Net assets as of August 31, 2023 (5) | | | | | | | | | | | |
| Property & equipment, net as of August 31, 2023 | | | | | | | | | | | |
(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. Additionally, during the fourth quarter of fiscal 2025, we retrospectively adopted Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures. Prior period amounts have been reclassified to conform with the current period presentation.
(2)Non-payroll costs primarily include subcontractor costs and other non-payroll such as facilities, technology and travel costs.
(3)Amounts include depreciation on property and equipment and amortization of intangible assets and deferred transition costs.
(4)Costs recorded in connection with business optimization actions initiated in fiscal 2025 include $ million for employee severance associated with headcount reductions we are making in a compressed timeline and $ million for asset impairments primarily related to the divestiture of two acquisitions in the Americas that are no longer aligned with our strategic priorities. Costs recorded in connection with business optimization actions initiated in fiscal 2023 and completed in fiscal 2024 primarily include employee severance.
(5)We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues.
The accounting policies of the reportable segments are the same as those described in Note 1 (Summary of Significant Accounting Policies) to these Consolidated Financial Statements.
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-45 |
| | | |
% | | | % | | | % | | India | | | | | | | | |
| Ireland | | | | | | | | |
| | $ | | | | $ | | | | Financial Services | | | | | | | | |
| Health & Public Service | | | | | | | | |
| Products | | | | | | | | |
| Resources | | | | | | | | |
| | | | |
| Total | $ | | | | $ | | | | $ | | |
| Type of Work | | | | | |
| Consulting | $ | | | | $ | | | | $ | | |
| Managed Services | | | | | | | | |
| Total | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | |
| | Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |
ACCENTURE 2025 FORM 10-K | | F-46 |
| | | |
17.
| | $ | | | | $ | | | | $ | | | | $ | | | | Cost of services | | | | | | | | | | | | | | |
| Operating income | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | |
| Net income attributable to Accenture plc | | | | | | | | | | | | | | |
| Weighted average Class A ordinary shares: | | | | | | | | | |
| —Basic | | | | | | | | | | | | | | |
| —Diluted | | | | | | | | | | | | | | |
| Earnings per Class A ordinary share: | | | | | | | | | |
| —Basic | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| —Diluted | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal 2024 | First
Quarter | | Second
Quarter | | Third
Quarter | | Fourth
Quarter | | Annual |
| Revenues | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Cost of services | | | | | | | | | | | | | | |
| Operating income | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | |
| Net income attributable to Accenture plc | | | | | | | | | | | | | | |
| Weighted average Class A ordinary shares: | | | | | | | | | |
| —Basic | | | | | | | | | | | | | | |
| —Diluted | | | | | | | | | | | | | | |
| Earnings per Class A ordinary share: | | | | | | | | | |
| —Basic | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| —Diluted | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
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