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Accenture (ACN)
NYSE:ACN
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Accenture
(NYSE:ACN)
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Rating:79Outperform
Price Target:
$311.00
â–²(15.19% Upside)
Accenture's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth in advanced AI and strategic partnerships. Technical analysis supports a bullish trend, though the stock faces some resistance. Valuation is fair, with a reasonable P/E ratio and moderate dividend yield. The company's strategic focus and operational efficiency position it well for continued growth, despite some sector-specific challenges.
Positive Factors
Advanced AI Growth
The significant growth in advanced AI bookings indicates Accenture's strong position in a rapidly expanding market, enhancing its competitive edge and long-term revenue potential.
Strategic Partnerships
Accenture's strategic partnerships with major tech firms bolster its service offerings and market reach, driving sustained revenue growth and innovation.
Cash Flow Generation
Strong free cash flow generation supports Accenture's ability to fund operations and strategic investments, ensuring financial stability and growth potential.
Negative Factors
Business Optimization Costs
High business optimization costs could pressure margins and indicate challenges in operational efficiency, potentially impacting profitability.
Public Service Sector Challenges
Declines in the public service sector may hinder overall growth, reflecting sector-specific challenges that could persist and affect future performance.
Discretionary Spending Caution
Continued caution in discretionary spending could limit growth opportunities, affecting revenue from sectors reliant on such expenditures.
Accenture (ACN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$166.96B
Dividend Yield2.25%
Average Volume (3M)3.74M
Price to Earnings (P/E)22.3
Beta (1Y)0.58
Revenue Growth6.58%
EPS Growth1.19%
CountryUS
Employees801,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.94
Shares Outstanding615,306,760
10 Day Avg. Volume3,879,433
30 Day Avg. Volume3,738,066
Financial Highlights & Ratios
PEG Ratio3.40
Price to Book (P/B)5.21
Price to Sales (P/S)2.33
P/FCF Ratio14.94
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit7.00
Enterprise Value/Ebitda12.81
Forecast
1Y Price Target
$294.14Price Target Upside8.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Accenture Business Overview & Revenue Model
Company DescriptionAccenture 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 MoneyAccenture generates revenue primarily through its consulting and professional services, which can be grouped into several key segments: Strategy & Consulting, Digital, Technology, and Operations. The company's revenue model is predominantly based on project-based fees, time and materials contracts, and fixed-price contracts for various services. Key revenue streams include strategic advisory services, technology implementation projects, digital transformation consulting, and managed services. Additionally, Accenture has established strategic partnerships with major technology firms, such as Microsoft, SAP, and Oracle, which enhance its service offerings and create additional revenue opportunities through joint solutions and market reach. The company's focus on innovation and investment in emerging technologies also contributes to its earnings by attracting clients seeking to adopt cutting-edge solutions.
Accenture Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Accenture is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Accenture is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAccenture Earnings Call Summary
Earnings Call Date:Dec 18, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong bookings and revenue growth, particularly in advanced AI and strategic partnerships. However, business optimization costs and challenges in discretionary spending and public service sectors were noted.Q1-2026 Updates
Positive Updates
Record Bookings and Revenue
Accenture reported bookings of $20.9 billion, with revenue reaching $18.7 billion, growing 5% in local currency.
Advanced AI Growth
Advanced AI bookings this quarter were $2.2 billion, nearly doubling from Q1 last year, with revenue reaching approximately $1.1 billion.
Strong Operating Margin and EPS Growth
Adjusted operating margin expanded by 30 basis points year over year, and adjusted EPS grew by 10% compared to Q1 last year.
Strategic Acquisitions
Accenture announced the acquisition of a 65% stake in DLB Associates, among six strategic acquisitions this quarter.
Partnership Strategy Success
60% of Q1 revenue came from work with top 10 ecosystem partners, outpacing overall growth.
Negative Updates
Business Optimization Costs
Accenture recorded $308 million in costs related to business optimization actions, bringing the total to $923 million over the past six months.
Challenges in Public Service Sector
Growth in the Americas was partially offset by a decline in public service.
Discretionary Spend
No significant change in the market for discretionary spending, with a continued cautious outlook.
Company Guidance
During Accenture's first-quarter fiscal 2026 conference call, the company reported strong financial metrics, with notable highlights including $20.9 billion in bookings, generating $18.7 billion in revenue, a 5% increase in local currency. Key operational metrics revealed an adjusted operating margin expansion of 30 basis points year over year, leading to a 10% growth in adjusted EPS from the previous year. The company's advanced AI bookings surged to $2.2 billion, nearly doubling from the previous year, and revenue from this segment reached approximately $1.1 billion. Accenture emphasized its strategic focus on partnerships, with 60% of Q1 revenue derived from collaborations with top ecosystem partners. The firm also outlined plans to invest around $3 billion in acquisitions for fiscal 2026, reflecting its commitment to long-term growth and innovation.Accenture Financial Statement Overview
Summary
Accenture demonstrates strong financial performance with robust profitability, efficient operations, and a stable financial structure. The income statement shows healthy margins and steady revenue growth. The balance sheet reflects a solid financial position with low leverage, though a slight increase in debt is noted. Cash flow analysis indicates strong free cash flow generation and efficient cash management.Income Statement
Accenture's income statement shows strong profitability with a consistent gross profit margin around 32% and a net profit margin above 10%. The EBIT and EBITDA margins are healthy, indicating efficient operations. Revenue growth is steady, with a notable increase in the TTM period. Overall, the company demonstrates robust revenue generation and profitability.Balance Sheet
The balance sheet reflects a solid financial position with a low debt-to-equity ratio, indicating conservative leverage. Return on equity is strong, showcasing effective use of shareholder funds. The equity ratio suggests a stable capital structure. However, the increase in total debt over time is a point to monitor.Cash Flow
Cash flow analysis reveals strong free cash flow generation and growth, with a high free cash flow to net income ratio. Operating cash flow is consistently positive, supporting the company's ability to fund operations and investments. The cash flow metrics indicate efficient cash management and financial health.| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 69.67B | 64.90B | 64.11B | 61.59B | 50.53B |
| Gross Profit | 22.24B | 21.16B | 20.73B | 19.70B | 16.36B |
| EBITDA | 12.94B | 10.84B | 10.25B | 10.27B | 9.71B |
| Net Income | 7.68B | 7.26B | 6.87B | 6.88B | 5.91B |
Balance Sheet | |||||
| Total Assets | 65.39B | 55.93B | 51.25B | 47.26B | 43.18B |
| Cash, Cash Equivalents and Short-Term Investments | 11.48B | 5.01B | 9.05B | 7.89B | 8.17B |
| Total Debt | 8.18B | 4.12B | 3.15B | 3.33B | 3.51B |
| Total Liabilities | 33.15B | 26.76B | 24.79B | 24.52B | 23.08B |
| Stockholders Equity | 31.20B | 28.29B | 25.69B | 22.11B | 19.53B |
Cash Flow | |||||
| Free Cash Flow | 10.87B | 8.61B | 9.00B | 8.82B | 8.40B |
| Operating Cash Flow | 11.47B | 9.13B | 9.52B | 9.54B | 8.98B |
| Investing Cash Flow | -2.02B | -7.06B | -2.62B | -4.26B | -4.31B |
| Financing Cash Flow | -2.95B | -6.06B | -5.65B | -5.31B | -4.93B |
Accenture Technical Analysis
Neutral
270.00
Price Trends
256.26
Positive
250.60
Positive
272.93
Negative
Market Momentum
4.50
Positive
57.73
Neutral
48.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACN, the sentiment is Neutral. The current price of 270 is below the 20-day moving average (MA) of 270.32, above the 50-day MA of 256.26, and below the 200-day MA of 272.93, indicating a neutral trend. The MACD of 4.50 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACN.
Accenture Risk Analysis
Accenture disclosed 21 risk factors in its most recent earnings report. Accenture reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Accenture Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.02B | 19.50 | 14.50% | 1.46% | 7.44% | -4.57% | |
79 Outperform | $285.79B | 36.13 | 30.25% | 2.21% | 4.51% | 21.89% | |
79 Outperform | $166.96B | 22.32 | 25.35% | 2.25% | 6.58% | 1.19% | |
76 Outperform | $74.30B | 22.86 | 29.15% | 2.58% | 4.62% | 1.06% | |
74 Outperform | $30.83B | 19.05 | 16.39% | 2.78% | -1.97% | 48.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACN
Accenture
270.00
-71.68
-20.98%
CTSH
Cognizant
84.14
8.95
11.90%
INFY
Infosys
18.04
-4.03
-18.26%
IBM
International Business Machines
302.05
87.65
40.88%
WIT
Wipro
2.86
-0.59
-17.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.