Accenture's 2025 Form 10-K reveals key insights into the company's financial condition and operations. The report highlights the company's intention to utilize a significant portion of its cash generated from operations for share repurchases during fiscal 2026. 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 that cannot be canceled without incurring termination fees. The payments under these commitments are estimated to be made over the next few years, with approximately $1.15 billion due within one year.
The report also discusses the company's exposure to foreign currency risk and its risk management strategies. Accenture hedges material cash flow exposures using forward contracts and carefully manages credit risk through the selection and evaluation of financial institutions as counterparties. The report provides details of the hedge positions, such as U.S. dollar/Japanese yen, U.S. dollar/Indian rupee, U.S. dollar/Euro, and others, intended to offset remeasurement of underlying assets and liabilities. Additionally, the report indicates that approximately $115 million of net losses, net of tax, currently recorded in Accumulated other comprehensive loss are expected to be reclassified into Cost of services within the next 12 months.
Regarding market risk, the report states that the interest rate risk associated with Accenture's borrowing and investing activities as of August 31, 2025, is not considered 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.
The report also addresses equity investment risk, stating that Accenture's non-marketable equity securities are subject to a wide variety of market-related risks that could substantially reduce or increase the fair value of its investments. The company's investments in privately held companies are highlighted as inherently risky due to the early-stage nature of the technologies or products under development. However, the report indicates that the company has minimal exposure on its long-term investments in privately held companies as of August 31, 2025.
As a result of these announcements, the company's shares have moved -0.37% on the market, and are now trading at a price of $252.04. Check out the company's full 10-K submission here.
