Accenture's 2025 Form 10-K reveals several key financial and operational insights. The company intends to utilize a significant portion of its cash generated from operations for share repurchases during fiscal 2026. The exact number of shares to be repurchased is subject to various factors such as share price, market conditions, capital allocation planning, cash and debt balances, acquisition activity, economic conditions, and management discretion.
As of August 31, 2025, Accenture had commitments of $3 billion related to cloud hosting arrangements, software subscriptions, information technology services, and other obligations, with estimated payments scheduled over the next several years.
In terms of market risk, the company is exposed to foreign currency risk and manages this through hedging material cash flow exposures using forward contracts. These hedges are intended to offset remeasurement of underlying assets and liabilities, and changes in their fair value are recorded in the Consolidated Income Statements. Additionally, Accenture has hedge positions designated as cash flow hedges of certain intercompany charges related to its global delivery model.
The company also conducts sensitivity analysis to determine the effects of market foreign currency exchange rate fluctuations on the fair value of its hedge portfolio. A 10% change in 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.
Regarding interest rate risk, as of August 31, 2025, it was deemed not material in relation to Accenture's consolidated financial position, results of operations, or cash flows, and the company had not used derivative financial instruments to alter the interest rate characteristics of its investment holdings or debt instruments.
In terms of equity investment risk, Accenture's non-marketable equity securities are subject to various market-related risks that could substantially reduce or increase their fair value. These investments, primarily in privately held companies, are inherently risky due to the early-stage development of the technologies or products and the limited disclosure regulations compared to publicly traded companies.
The market has reacted to these announcements by moving the company's shares -4.4% to a price of $240.94. For the full picture, make sure to review Accenture's 10-K report.
