Accenture (ACN) AI Stock Analysis

• Market Cap: $166.40B
• Dividend Yield: 2.25%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.58
• Revenue Growth: 6.58%
• EPS Growth: 1.19%
• Country: US
• Employees: 801,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.94
• Shares Outstanding: 615,306,760
• 10 Day Avg. Volume: 4,080,714
• 30 Day Avg. Volume: 3,650,157
• 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: 0.97
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 7.18
• Enterprise Value/Ebitda: 13.14
• 1Y Price Target: $299.21
• Price Target Upside: 14.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $313.00 ▲(19.82% Upside)

ACN scores well primarily on strong financial performance (durable profitability and free cash flow) and a constructive earnings update (strong bookings, AI momentum, margin and EPS growth). Technicals are neutral-to-slightly positive, while valuation is reasonable but not cheap given the ~23x P/E despite a supportive ~2.26% dividend yield.

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 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 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 Financial Statement Overview

Summary

Strong overall fundamentals: healthy profitability (gross margin ~32%, net margin >10%), solid operating efficiency (EBIT/EBITDA margins), and consistently positive operating cash flow with strong free cash flow generation. Balance sheet leverage remains conservative, though rising total debt is a monitoring item.

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

• Technical Analysis Sentiment: Negative
• Last Price: 261.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACN, the sentiment is Negative. The current price of 261.22 is below the 20-day moving average (MA) of 276.00, below the 50-day MA of 266.88, and below the 200-day MA of 269.17, indicating a bearish trend. The MACD of 1.53 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACN.

Accenture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$75.32B	23.10	32.85%	2.58%	4.62%	1.06%
CTSH	79 Outperform	$40.20B	19.31	14.50%	1.46%	7.44%	-4.57%
ACN	77 Outperform	$166.40B	22.36	25.35%	2.25%	6.58%	1.19%
IBM	71 Outperform	$274.96B	26.33	35.26%	2.21%	4.51%	21.89%
WIT	67 Neutral	$27.06B	17.53	15.81%	2.78%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Accenture Corporate Events

Accenture Shareholders Approve Expanded Equity Plan and Governance

At its annual general meeting on January 28, 2026, Accenture plc obtained shareholder approval to amend and restate its 2010 Share Incentive Plan, adding authorization for an additional 7 million shares and extending the plan’s term to December 12, 2035, thereby reinforcing the company’s capacity to use equity-based compensation as a tool for talent retention and long-term incentive alignment. At the same meeting, shareholders also approved the full slate of director nominees, endorsed on a non-binding basis the compensation of named executive officers, ratified KPMG LLP as independent auditor and authorized the audit committee to set its remuneration, and granted the board various authorities under Irish law to issue shares, opt out of pre-emption rights, and determine the price range for re-allotment of treasury shares, collectively strengthening the board’s financial and capital management flexibility.

The most recent analyst rating on (ACN) stock is a Buy with a $313.00 price target. To see the full list of analyst forecasts on Accenture stock, see the ACN Stock Forecast page.