Accenture ACN · USD

Segment ReportingOperating segments are components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker(s). Our three 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. Amounts are attributed to geographic markets based on where clients are located. Our expenses primarily consist of employee compensation costs, subcontractor costs and facilities and technology costs.

Revenues Disaggregation of Revenue See Note 16 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues. Remaining Performance Obligations We had remaining performance obligations of approximately $34 billion and $30 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 65% of our remaining performance obligations as of August 31, 2025 as revenue in fiscal 2026, an additional 16% 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 $642,361 and $641,091 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 $1,025,391 and $862,140 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 $337,072, $352,045 and $339,139, respectively.

Commitments and Contingencies Indemnifications and Guarantees In the normal course of business and in conjunction with certain client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters. These arrangements with clients can include provisions whereby we have joint and several liability in relation to the performance of certain contractual obligations along with third parties also providing services and products for a specific project. In addition, our consulting arrangements may include warranty provisions that our solutions will substantially operate in accordance with the applicable system requirements. Indemnification provisions are also included in arrangements under which we agree to hold the indemnified party harmless with respect to third-party claims related to such matters as title to assets sold or licensed or certain intellectual property rights. Typically, we have contractual recourse against third parties for certain payments we made in connection with arrangements where third-party nonperformance has given rise to the client’s claim. Payments we made under any of the arrangements described above are generally conditioned on the client making a claim, which may be disputed by us typically under dispute resolution procedures specified in the particular arrangement. The limitations of liability under these arrangements may be expressly limited or may not be expressly specified in terms of time and/or amount. 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 $2,225,000 and $2,370,000, respectively, of which all but approximately $55,000 and $61,000, 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.

Borrowings and Indebtedness On October 4, 2024, Accenture Capital Inc. (“Accenture Capital”), a wholly owned finance subsidiary of Accenture plc, issued $5 billion aggregate principal amount of senior unsecured notes. Net proceeds from the offering are being used for general corporate purposes, including repayment of outstanding commercial paper borrowings. Interest on the senior unsecured notes is payable semi-annually in arrears. Accenture Capital may redeem the senior unsecured notes at any time in whole, or from time to time, in part at specified redemption prices. Accenture plc and Accenture Capital are not subject to any financial covenants under the senior unsecured notes.The following is a summary of total outstanding debt as of August 31, 2025 and August 31, 2024, respectively:August 31, 2025August 31, 2024Current portion of long-term debt and bank borrowingsCommercial paper (1)$99,963 $931,507 Other (2)14,521 14,722 Total current portion of long-term debt and bank borrowings$114,484 $946,229 Long-term debtSenior notes – 3.90% due 2027$1,100,000 $— Senior notes – 4.05% due 20291,200,000 — Senior notes – 4.25% due 20311,200,000 — Senior notes – 4.50% due 20341,500,000 — Total principal amount (3)$5,000,000 $— Less: unamortized debt discount and issuance costs(32,774)— Total carrying amount$4,967,226 $— Other (2)66,943 78,628 Total long-term debt$5,034,169 $78,628 (1)The carrying amounts of the commercial paper as of August 31, 2025 and August 31, 2024 include the remaining principal outstanding of $100,000 and $935,000, respectively, net of total unamortized discounts of $37 and $3,493, respectively. The weighted-average effective interest rate for the commercial paper was 4.5% and 5.4% 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 $5.0 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.

Income Taxes Fiscal 202520242023Current taxesU.S. federal$238,115 $408,281 $422,435 U.S. state and local88,612 173,024 220,043 Non-U.S.1,753,918 1,792,809 1,762,277 Total current tax expense2,080,645 2,374,114 2,404,755 Deferred taxesU.S. federal53,095 (154,553)(334,942)U.S. state and local33,112 (55,141)(63,098)Non-U.S.271,141 115,706 129,087 Total deferred tax (benefit) expense 357,348 (93,988)(268,953)Total$2,437,993 $2,280,126 $2,135,802 The components of Income before income taxes are as follows: Fiscal 202520242023U.S. sources$1,071,581 $1,628,818 $1,562,011 Non-U.S. sources9,198,812 8,070,505 7,577,321 Total$10,270,393 $9,699,323 $9,139,332 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.The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Fiscal 202520242023 (2)U.S. federal statutory income tax rate21.0 %21.0 %21.0 %U.S. state and local taxes, net0.7 0.9 1.1 Non-U.S. operations taxed at other rates— 1.0 1.4 Final determinations (1)(1.5)(1.2)(1.0)Other net activity in unrecognized tax benefits3.0 2.7 3.2 Excess tax benefits from share based payments(0.6)(1.0)(1.3)Foreign-derived intangible income deduction(1.4)(1.5)(2.1)Other, net2.5 1.6 1.1 Effective income tax rate23.7 %23.5 %23.4 %(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 $6,600,000 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 $340,000.

Share-Based CompensationShare Incentive Plans The Amended and Restated Accenture plc 2010 Share Incentive Plan (the “Amended 2010 SIP”), is administered by the Compensation, Culture & People Committee of the Board of Directors of Accenture and provides for the grant of nonqualified share options, incentive stock options, restricted share units and other share-based awards. A maximum of 141,000,000 Accenture plc Class A ordinary shares are currently authorized for awards under the Amended 2010 SIP. As of August 31, 2025, there were 20,971,852 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.A summary of information with respect to share-based compensation is as follows: Fiscal 202520242023Total share-based compensation expense included in Net income$2,093,878 $1,941,590 $1,913,051 Income tax benefit related to share-based compensation included in Net income581,521 572,904 585,767 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 five years. 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. Restricted share unit activity during fiscal 2025 is as follows: Number of RestrictedShare UnitsWeighted AverageGrant-Date Fair ValueNonvested balance as of August 31, 202415,823,227 $311.06 Granted (1)7,642,010 346.49 Vested (2)(6,119,669)310.36 Forfeited(1,360,494)345.82 Nonvested balance as of August 31, 202515,985,074 $325.33 (1)The weighted average grant-date fair value for restricted share units granted for fiscal 2025, 2024 and 2023 was $346.49, $341.78 and $267.37, respectively.

LeasesAs a lessee, substantially all of our lease obligation is for office real estate. Our significant judgments used in determining our lease obligation include whether a contract is or contains a lease and the determination of the discount rate used to calculate the lease liability. We elected the practical expedient not to separate lease and associated non-lease components, accounting for them as a single combined lease component, for our office real estate and automobile leases. Our leases may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancelable only by the payment of penalties. Our lease assets and liabilities include these options in the lease term when it is reasonably certain that they will be exercised. In certain cases, we sublease excess office real estate to third-party tenants.Lease assets and liabilities recognized at the lease commencement date are determined predominantly as the present value of the payments due over the lease term. Since we cannot determine the implicit rate in our leases, we use our incremental borrowing rate on that date to calculate the present value. Our incremental borrowing rate approximates the rate at which we could borrow, on a secured basis for a similar term, an amount equal to our lease payments in a similar economic environment.When we are the lessee, all leases are recognized as lease liabilities and associated lease assets on the Consolidated Balance Sheet. Lease liabilities represent our obligation to make payments arising from the lease. Lease assets represent our right to use an underlying asset for the lease term and may also include advance payments, initial direct costs, or lease incentives. Payments that depend upon an index or rate, such as the Consumer Price Index (CPI), are included in the recognition of lease assets and liabilities at the commencement-date rate. Other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost, are recognized in the Consolidated Income Statement in the period incurred.As of August 31, 2025 and 2024, we had no material finance leases. Operating lease expense is recorded on a straight-line basis over the lease term.

Business CombinationsWe completed a number of individually immaterial acquisitions during fiscal 2025, 2024 and 2023. These acquisitions were completed primarily to expand our solutions and services offerings. The table below gives additional details related to these acquisitions:Fiscal202520242023Total consideration$1,168,698 $6,456,648 $2,482,109 Goodwill1,054,190 5,320,890 2,094,972 Intangible assets199,120 1,265,290 544,661 The intangible assets primarily consist of customer-related intangibles, which are being amortized over four to eighteen years. The goodwill was allocated among our reportable operating segments and is partially deductible for U.S. federal income tax purposes.