Accenture: Near-Term Challenges, Long-Term Prospects Intact

JHVEPhoto Global consulting firm Accenture (NYSE: ACN ) may face some near-term headwinds from curtailing advertising and marketing activity as a result of macro challenges. The company’s long-term prospects however are solid. Business Overview Accenture is one of the world’s largest consulting firms. The company is widely diversified with operations in all continents around the world (the company classifies their operations into three geographic markets (i) North America (ii) Europe and (iii) “Growth Markets” namely Asia Pacific, Latin America, Africa and Middle East) and serves clients across a broad range of industries including technology, health, financial services and products. For FY 2022 (year ended August 2022), Accenture reported revenues of USD 61.6 billion, a record increase of 22% YoY. All geographic segments reported growth. North America, Accenture’s biggest market accounting for 45% of revenues, saw revenues increase 23% YoY to USD 29.1 billion, accelerating from last year’s 13% YoY revenue growth. Europe, Accenture’s second biggest market accounting for about a third of revenues, saw revenues rise 21% YoY to USD 20.3 billion, again accelerating from the previous year when revenues rose 16% YoY. Growth Markets, the smallest market accounting for around a fifth of revenues, saw revenues increase 21% […]

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