Accenture's 10-K filing for the fiscal year 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. As of August 31, 2025, it had commitments of $3 billion related to cloud hosting arrangements, software subscriptions, information technology services, and other obligations in the ordinary course of business. The payments under these commitments are estimated to be $1.154 billion in less than 1 year, $1.275 billion in 1-3 years, $513 million in 3-5 years, and $38 million in more than 5 years.
Accenture is exposed to foreign currency risk in the ordinary course of business and hedges material cash flow exposures using forward contracts. The company's hedge positions are intended to offset remeasurement of underlying assets and liabilities, and it uses sensitivity analysis to determine the effects of market foreign currency exchange rate fluctuations on the fair value of its hedge portfolio.
Regarding market risk, a 10% change in the levels of foreign currency exchange rates against the U.S. dollar would have resulted in a change in the fair value of Accenture's hedge instruments of approximately $722 million as of August 31, 2025. Additionally, the company's interest rate risk associated with its borrowing and investing activities is not considered material in relation to its consolidated financial position, results of operations, or cash flows.
Accenture also holds non-marketable and marketable equity securities subject to market-related risks. Its non-marketable equity securities are investments in privately held companies, which are often in a start-up or development stage, and evaluations of these investments are based on information received from the companies. As of August 31, 2025, the company's long-term investments in privately held companies were not material in relation to its consolidated financial position, results of operations, or cash flows.
These specific financial and operational details from Accenture's 10-K filing provide a comprehensive view of the company's strategic financial management and risk mitigation strategies. Following these announcements, the company's shares moved -0.37%, and are now trading at a price of $252.04. For the full picture, make sure to review Accenture's 10-K report.
