Accenture's 10-K filing for 2025 reveals several key financial and operational insights. The company plans to utilize a significant portion of its cash generated from operations for share repurchases during fiscal 2026. The amount of shares to be repurchased is subject to various factors, including share price, market conditions, capital allocation planning, cash and debt balances, acquisition activity, economic conditions, and management discretion.
As of August 31, 2025, the company had commitments of $3 billion related to cloud hosting arrangements, software subscriptions, information technology services, and other obligations. The payments under these commitments are estimated to be made over the next few years, with approximately $1.15 billion due in less than a year and $1.28 billion due in 1-3 years.
Accenture is exposed to foreign currency risk in its ordinary course of business. The company hedges material cash flow exposures using forward contracts to manage fluctuations in foreign currency exchange rates and credit risk. The most significant hedge positions include 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.
Additionally, the company has hedge positions designated as cash flow hedges of certain intercompany charges relating to its global delivery model. These hedges are intended to offset the impact of foreign currency movements on future costs and are expected to result in approximately $115 million of net losses, net of tax, being reclassified into earnings within the next 12 months.
Regarding market risk, Accenture states that the interest rate risk associated with its borrowing and investing activities as of August 31, 2025, is not material in relation to its consolidated financial position, results of operations, or cash flows. The company has not used derivative financial instruments to alter the interest rate characteristics of its investment holdings or debt instruments.
Accenture also discloses its equity investment risk, noting that its non-marketable equity securities are subject to a wide variety of market-related risks. These include investments in privately held companies, often in start-up or development stages, which carry inherent risks. The company's evaluations of these privately held companies are based on information that is not subject to the same disclosure regulations as U.S. publicly traded companies.
Today the company's shares have moved -0.37% to a price of $252.04. Check out the company's full 10-K submission here.
