US-based IT major Accenture announced its results for Q3FY22 on Thursday, June 23, beating revenue expectations for the quarter ending May 31. Accenture reported revenues of $16.2 billion, up 22% year-on-year (YoY).
The IT major’s operating income was up 23% and came in at $2.6 billion, and its operating margin was at 16.1%. The company also reported its second-highest bookings of $17 billion. For 2022, it now expects revenue growth to be in the range of 25.5-26.5%, as compared to 24-26% previously.
For Q4, Accenture tempered its revenue forecast, and additionally, toned down its profit forecast for the 2022 fiscal (Accenture follows a September-August financial year).
Accenture CEO Julie Sweet said in a statement: “Our very strong financial results for the third quarter reflect continued broad-based demand across markets, services, and industries, and the continued recognition of the outstanding talent of our 710,000 people. We continue to gain significant market share, and our services have never been more relevant as our clients turn to us as the trusted partner for the solutions they need to accelerate growth and become more resilient and efficient.”
The company expects its earnings per share for the fiscal to be in the range of $10.61 to $10.70, down from its previously estimated range of $10.61 to $10.81.
Amid worries of high inflation, Accenture said revenues for the quarter reflect a foreign-exchange impact of -5%, up from the -4% it previously forecast. For the fourth quarter, Accenture expects revenue to be in the range of $15 billion to $15.5 billion, assuming a -8% foreign-exchange impact as compared to the same period last year.
For the fiscal, Accenture said it now assumes foreign exchange impact to be -4.5% as compared to 2021. Previously, it had placed this at -3%.
Over half of Accenture’s revenues come from locations outside the United States, and with the dollar appreciating against other currencies, it dents profits of companies that have to convert the currencies of the countries they have operations in into dollars.
Accenture’s headcount for the quarter went up by 11,928, with voluntary attrition at 20%.Accenture’s earnings often signal the way the results of Indian IT giants will shape up. Indian IT companies' earnings for the first quarter of FY23 are slated for next month. Ahead of Accenture’s results, shares of TCS, Infosys, and other Indian IT gained on Thursday.