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Accenture
(NYSE:ACN)
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Rating:76Outperform
Price Target:
$187.00
â–²(27.22% Upside)
Action:Reiterated
Date:07/11/26
ACN scores well due to high-quality financial performance (strong margins and robust free cash flow) and attractive valuation (low P/E with a high dividend yield). Earnings call guidance supports steady growth and shareholder returns, but the overall score is held back by weak technical trends (price below key moving averages with negative MACD) and near-term demand/timing risks highlighted in bookings and pushed managed-services deals.
Positive Factors
Strong Free Cash Flow
Very strong and consistent free cash flow provides durable funding for M&A, buybacks, dividends and organic reinvestment. High cash conversion reduces funding risk through cycles, supporting capital returns and strategic outlays without relying on equity issuance.
Negative Factors
Revenue Growth Deceleration
Slowing top-line growth reduces operating leverage and increases pressure to sustain margin expansion through cost discipline or higher-margin work. Persistent low-single-digit growth constrains upside on returns and raises the bar for successful M&A to drive incremental growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Very strong and consistent free cash flow provides durable funding for M&A, buybacks, dividends and organic reinvestment. High cash conversion reduces funding risk through cycles, supporting capital returns and strategic outlays without relying on equity issuance.
Read all positive factors
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 (ACN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.53B
Dividend Yield3.93%
Average Volume (3M)11.03M
Price to Earnings (P/E)13.1
Beta (1Y)0.67
Revenue Growth6.74%
EPS Growth-0.66%
CountryUS
Employees799,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)12.62
Shares Outstanding611,942,140
10 Day Avg. Volume7,703,493
30 Day Avg. Volume11,030,913
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$181.86Price Target Upside23.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)13.86
Revenue Forecast (FY)$73.60B
Accenture Business Overview & Revenue Model
Company Description
Accenture plc (NYSE: ACN) is a global professional services company that provides strategy and consulting, technology services, and operations support to organizations across a wide range of industries. It helps clients design business and digital...
How the Company Makes Money
Accenture primarily makes money by selling professional services to enterprise and public-sector clients under client contracts. Its revenue model is largely fee-for-service and is driven by a mix of (1) consulting and advisory engagements (e.g., ...
Accenture Earnings Call Summary
Earnings Call Date:Jun 18, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 01, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial and operational positives — revenue and EPS growth, margin expansion, robust free cash flow, active capital returns, strategic acquisitions to expand TAM (notably in OT cybersecurity), and clear AI-driven demand signals — while acknowledging near-term headwinds from the Middle East conflict, a modest bookings decline, the push-out of some large managed services deals into FY2027, and guidance uncertainty for Q4. Overall, the company emphasized durable demand for AI and cybersecurity capabilities and reiterated growth strategy execution despite short-term macro and timing challenges.Positive Updates
Quarterly Revenue Growth
Q3 revenue of $18.7 billion, up 6% in U.S. dollars and 3% in local currency versus prior year; added approximately $1 billion in revenue in Q3 versus FY2025 and $3.4 billion year-to-date.
Negative Updates
Middle East Conflict Impact
Conflict in the Middle East reduced revenue by approximately $100 million vs. expectations (all in consulting), with sales impact of about $400 million and indirect global effects in products and discretionary spend; contributed to Q4 guidance uncertainty.
Read all updates
Q3-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q3 revenue of $18.7 billion, up 6% in U.S. dollars and 3% in local currency versus prior year; added approximately $1 billion in revenue in Q3 versus FY2025 and $3.4 billion year-to-date.
Read all positive updates
Company Guidance
Accenture guided Q4 FY2026 revenues of $17.75B–$18.40B (assumes ~-0.5% FX headwind and ~1%–5% growth in local currency) and said its federal business should anniversary its headwind and return to growth; for full FY2026 it now expects revenue growth of 3%–4% in local currency (4%–5% excluding an estimated 1% federal impact) with ~1.5% inorganic contribution, assumes a ~+2% FX tailwind versus FY2025, plans ~ $9B of acquisition spend this year, and targets an adjusted operating margin of 15.8% (≈20 bps expansion), an adjusted effective tax rate of 24%–25%, adjusted diluted EPS of $13.78–$13.90 (7%–8% growth), operating cash flow of $11.5B–$12.2B, property and equipment additions of ~$700M, free cash flow of $10.8B–$11.5B (FCF/net income ~1.3x), at least $9.5B returned to shareholders, and plans to access the long‑term debt market while maintaining an investment‑grade rating and low net leverage.Accenture Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
83
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.10B | 69.67B | 64.90B | 64.11B | 61.59B | 50.53B |
| Gross Profit | 23.37B | 22.24B | 21.16B | 20.73B | 19.70B | 16.36B |
| EBITDA | 12.67B | 12.94B | 10.84B | 10.25B | 10.27B | 9.71B |
| Net Income | 7.82B | 7.68B | 7.26B | 6.87B | 6.88B | 5.91B |
Balance Sheet | ||||||
| Total Assets | 68.81B | 65.39B | 55.93B | 51.25B | 47.26B | 43.18B |
| Cash, Cash Equivalents and Short-Term Investments | 10.17B | 11.48B | 5.01B | 9.05B | 7.89B | 8.17B |
| Total Debt | 8.39B | 8.18B | 4.12B | 3.15B | 3.33B | 3.51B |
| Total Liabilities | 35.79B | 33.15B | 26.76B | 24.79B | 24.52B | 23.08B |
| Stockholders Equity | 31.89B | 31.20B | 28.29B | 25.69B | 22.11B | 19.53B |
Cash Flow | ||||||
| Free Cash Flow | 12.58B | 10.87B | 8.61B | 9.00B | 8.82B | 8.40B |
| Operating Cash Flow | 13.18B | 11.47B | 9.13B | 9.52B | 9.54B | 8.98B |
| Investing Cash Flow | -4.22B | -2.02B | -7.06B | -2.62B | -4.26B | -4.31B |
| Financing Cash Flow | -8.37B | -2.95B | -6.06B | -5.65B | -5.31B | -4.93B |
Accenture Technical Analysis
Positive
146.99
Price Trends
152.80
Positive
168.50
Positive
206.32
Negative
Market Momentum
5.96
Negative
64.94
Neutral
77.67
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 146.99 is below the 20-day moving average (MA) of 148.84, below the 50-day MA of 152.80, and below the 200-day MA of 206.32, indicating a neutral trend. The MACD of 5.96 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 77.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $101.53B | 13.15 | 25.00% | 4.44% | 6.74% | -0.66% | |
76 Outperform | $24.93B | 11.88 | 14.94% | 2.82% | 5.64% | -5.39% | |
75 Outperform | $48.17B | 14.45 | 33.03% | 4.71% | -0.64% | 5.69% | |
65 Neutral | $210.71B | 19.53 | 33.52% | 3.14% | 7.90% | 82.11% | |
65 Neutral | $19.08B | 14.54 | 15.58% | 1.11% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACN
Accenture
170.43
-68.69
-28.73%
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12.60
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IBM
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235.15
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WIT
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2.05
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Accenture Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Accenture Completes $5 Billion Multi-Tranche Debt Offering
Positive
Jul 10, 2026
On July 10, 2026, Accenture Capital Inc., a wholly owned subsidiary of Accenture plc, completed a multi-tranche debt offering totaling $5 billion in principal amount, including floating rate notes and senior notes maturing between 2029 and 2036, a...
Business Operations and StrategyStock Buyback
Accenture Expands 2026 Share Repurchase Authorization Program
Positive
Jun 23, 2026
On June 23, 2026, Accenture plc announced that it had increased its fiscal year 2026 share repurchase program by $2 billion, raising the total planned buybacks to $7.5 billion. The move underscores Accenture’s capital return strategy and sig...
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.