Accenture reported very strong financial results for the fourth quarter and full fiscal year ended Aug. 31, 2018.
For the fourth quarter, net revenues were $10.1 billion, an increase of 11 percent in both U.S. dollars and local currency compared with the fourth quarter of fiscal 2017. Diluted earnings per share were $1.58, a 7 percent increase from $1.48 for the fourth quarter last year. Operating margin for the fourth quarter of fiscal 2018 was 14.3 percent, an expansion of 10 basis points. Operating cash flow was $2.1 billion and free cash flow was $1.9 billion. New bookings were $10.8 billion.
For the full fiscal year, net revenues were $39.6 billion, an increase of 14 percent in U.S. dollars and 10.5 percent in local currency compared with fiscal 2017. GAAP diluted earnings per share were $6.34, compared with $5.44 in fiscal 2017. EPS for fiscal 2018 included $0.40 in charges related to tax law changes; EPS for fiscal 2017 included a pension settlement charge of $0.47 per share. Excluding these items, diluted EPS for fiscal 2018 were $6.74, compared with $5.91 in fiscal 2017. Operating margin for fiscal 2018 was 14.8 percent, compared with 13.3 percent for fiscal 2017, which included the impact of the pension settlement charge. Excluding the pension settlement charge, operating margin for fiscal 2017 was 14.8 percent. Operating cash flow for fiscal 2018 was $6.0 billion and free cash flow was $5.4 billion. New bookings were $42.8 billion.
Accenture’s Board of Directors has declared a semi-annual cash dividend of $1.46 per share, an increase of $0.13 per share, or 10 percent, over its previous semi-annual dividend, declared in March. In addition, the Board has approved moving from a semi-annual to a quarterly schedule for the payment of dividends starting in the first quarter of fiscal 2020. The Board has also approved $5.0 billion in additional share repurchase authority.
Pierre Nanterme, Accenture’s chairman and CEO, said, “We are very pleased with our outstanding financial results for the fourth quarter and the full fiscal year 2018. For the year, our broad-based revenue growth of 10.5 percent in local currency and record new bookings of $42.8 billion reflect continued excellent demand for our services. We also delivered 14 percent EPS growth on an adjusted basis, generated very strong free cash flow and returned $4.3 billion in cash to our shareholders.
“We continue to benefit from the significant investments we have made to further strengthen our leadership position in high-growth areas such as digital, cloud and security services, which accounted for approximately 60 percent of total revenues for the year. Our growth strategy and innovation-led approach are clearly resonating with our clients. With our durable business model and disciplined management, we are very well-positioned to continue gaining market share and delivering value for our clients and shareholders.”
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