Accenture (ACN) AI Stock Analysis

• Market Cap: $154.57B
• Dividend Yield: 2.44%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.71
• Revenue Growth: 7.36%
• EPS Growth: 6.18%
• Country: US
• Employees: 801,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.03
• Shares Outstanding: 620,138,900
• 10 Day Avg. Volume: 3,735,591
• 30 Day Avg. Volume: 5,349,665
• PEG Ratio: 3.40
• Price to Book (P/B): 5.21
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 14.94
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: $287.65
• Price Target Upside: 15.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 80 Outperform
• Price Target: $287.00 ▲(15.15% Upside)

Accenture's overall stock score of 80 reflects its strong financial performance, positive earnings call, and reasonable valuation. The company's robust revenue growth, strategic positioning in AI, and effective client engagement are significant strengths. Technical analysis indicates potential short-term bullish momentum, though caution is advised due to overbought signals. The stock is fairly valued, offering a modest income stream through dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

AI Investment and Growth

Significant investment in AI positions Accenture as a leader in tech innovation, driving future growth and competitive advantage.

Client Engagement

Strong client engagement reflects robust demand for services, enhancing revenue stability and market presence.

Negative Factors

Federal Business Impact

Challenges in the federal segment could hinder growth, requiring strategic adjustments to mitigate long-term impact.

Business Optimization Charges

Significant charges for optimization may affect short-term profitability, indicating potential restructuring challenges.

Slower Enterprise AI Adoption

Slower AI adoption could delay expected benefits from AI investments, impacting growth projections.

Accenture Business Overview & Revenue Model

Company Description

Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management, intelligent automation comprises robotic process automation, natural language processing, and virtual agents, and liquid application management services, as well as program, project, and service management services; strategy consulting services; critical data elements, data management and governance, data platform and architecture, product-based organization and skills, business adoption, and value realization services; engineering, and research and development digitization; smart connected product design and development; product platform engineering and modernization; product as-a-service enablement; products related to production and operations; autonomous robotics systems; the digital transformation of capital projects; and digital industrial workforce solutions. It also provides data-enabled operating models; technology consulting and artificial intelligence services; services related to talent and organization/human potential; digital commerce; infrastructure services, such as hybrid cloud, network, digital workplace and collaboration, service and experience management, infrastructure as code, and managed edge and IoT devices; cyber defense, applied cybersecurity, managed security, OT security, security strategy and risk, and industry security products; services related to technology innovation; and intelligent automation services. In addition, the company offers cloud, ecosystem, marketing, supply chain management, zero-based budgeting, customer experience, finance consulting, mergers and acquisitions, and sustainability services. Accenture plc was founded in 1951 and is based in Dublin, Ireland.

How the Company Makes Money

Accenture generates revenue primarily through its consulting, technology services, and outsourcing segments. The consulting segment includes strategy and operations consulting, while the technology services segment encompasses application development, system integration, and technology infrastructure services. The outsourcing segment involves managing clients' business processes and IT services. Key revenue streams include fees for services rendered, project-based contracts, and long-term agreements with clients. Accenture also benefits from strategic partnerships with major technology providers such as Microsoft, Salesforce, and SAP, which enhance its service offerings and provide additional revenue opportunities through collaborative projects and solutions.

Accenture Financial Statement Overview

Summary

Accenture shows strong financial performance with consistent revenue and profit growth. The balance sheet is solid with prudent leverage, and cash flow generation is robust, though there is room for improvement in cash flow management.

Income Statement

Accenture demonstrates strong revenue growth with a consistent upward trajectory over the years, highlighted by a 1.74% growth in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 31.91% and a net profit margin of 11.02%. EBIT and EBITDA margins are robust at 15.07% and 18.57%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.26, indicating prudent leverage use. Return on equity stands at a strong 24.61%, showcasing effective utilization of shareholder funds. The equity ratio of 47.71% suggests a stable capital structure, though the increase in total debt over the years warrants monitoring.

Cash Flow

Accenture's cash flow performance is commendable, with a 6.15% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.49 and free cash flow to net income ratio of 0.95 highlight efficient cash conversion. However, the operating cash flow coverage ratio of 0.56 suggests room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.67B	69.67B	64.90B	64.11B	61.59B	50.53B
Gross Profit	22.24B	22.24B	21.16B	20.73B	19.70B	16.36B
EBITDA	12.13B	12.94B	10.84B	10.25B	10.27B	9.71B
Net Income	7.68B	7.68B	7.26B	6.87B	6.88B	5.91B
Balance Sheet
Total Assets	65.39B	65.39B	55.93B	51.25B	47.26B	43.18B
Cash, Cash Equivalents and Short-Term Investments	11.48B	11.48B	5.01B	9.05B	7.89B	8.17B
Total Debt	8.18B	8.18B	4.12B	3.15B	3.33B	3.51B
Total Liabilities	33.15B	33.15B	26.76B	24.79B	24.52B	23.08B
Stockholders Equity	31.20B	31.20B	28.29B	25.69B	22.11B	19.53B
Cash Flow
Free Cash Flow	10.87B	10.87B	8.61B	9.00B	8.82B	8.40B
Operating Cash Flow	11.47B	11.47B	9.13B	9.52B	9.54B	8.98B
Investing Cash Flow	-2.02B	-2.02B	-7.06B	-2.62B	-4.26B	-4.31B
Financing Cash Flow	-2.95B	-2.95B	-6.06B	-5.65B	-5.31B	-4.93B

Accenture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 249.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACN, the sentiment is Positive. The current price of 249.25 is above the 20-day moving average (MA) of 246.14, above the 50-day MA of 245.75, and below the 200-day MA of 293.55, indicating a neutral trend. The MACD of 1.41 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACN.

Accenture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	―	$154.57B	20.39	25.82%	2.44%	7.36%	6.18%
CTSH	―	$34.84B	16.63	14.50%	1.72%	7.44%	-4.57%
IBM	―	$289.82B	36.87	30.25%	2.38%	4.51%	21.89%
INFY	―	$70.02B	21.39	29.15%	3.12%	4.62%	1.06%
WIT	―	$28.59B	17.79	16.39%	3.10%	-1.97%	48.61%
FI	―	$35.44B	10.08	13.64%	―	5.16%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Accenture Corporate Events

Accenture’s Earnings Call: AI Growth and Financial Strength

Accenture’s recent earnings call painted a picture of robust financial health and strategic progress, particularly in the realm of artificial intelligence (AI). The company celebrated significant achievements in revenue growth and client engagement, although it acknowledged challenges in its federal business and the slower-than-anticipated adoption of enterprise AI. Overall, the positive developments in revenue and strategic positioning were emphasized as outweighing the challenges faced.