Accenture (ACN) AI Stock Analysis

• Market Cap: $201.01B
• Dividend Yield: 2%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.70
• Revenue Growth: 6.21%
• EPS Growth: 14.87%
• Country: US
• Employees: 801,000
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 3.49
• Shares Outstanding: 680,343,300
• 10 Day Avg. Volume: 4,619,866
• 30 Day Avg. Volume: 3,349,616
• PEG Ratio: 6.57
• Price to Book (P/B): 6.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.28
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 8.40
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $342.00
• Price Target Upside: 14.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $341.00 ▲(14.09%Upside)

Accenture's strong financial performance and positive earnings call sentiment significantly boost its overall stock score. While technical analysis indicates potential short-term challenges, the company's solid fundamentals and strategic investments position it well for future growth. Valuation metrics support a fair market price, contributing to an optimistic outlook for investors.

Positive Factors

Business Model Innovation

Management unveiled its new business model, 'Reinvention Services,' expected to drive easier and faster adoption of data and AI solutions, accelerate time-to-value, and improve solution delivery across all clients.

Financial Performance

Accenture reported fiscal third-quarter results that were ahead on revenue, operating margin, and EPS.

Revenue Growth

Accenture raised the revenue guidance for the full year, which was better than expectations.

Negative Factors

Bookings Decline

Bookings declined 7% year over year, which was below expectations and indicated a difficult setup.

Federal Business Challenges

Accenture is facing a 2-point revenue growth headwind in Q4 from the federal business due to both cancellations and slower new business trends.

Margin Pressure

Accenture's 32.9% gross margin missed consensus by 30 basis points due to higher labor costs.

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 makes money primarily through its diverse service offerings across several key areas: Strategy & Consulting, Interactive, Technology, and Operations. The company generates revenue by providing consulting services, implementing technology solutions, and managing operations for its clients. Accenture charges its clients for the time and expertise of its consultants and for the execution of projects, which often involve designing and deploying technology systems. Additionally, they earn from strategic partnerships and alliances with major technology providers like Microsoft, Oracle, and SAP, which help them to enhance their service offerings and reach. The company's ability to integrate cutting-edge technologies into their service deliveries, such as artificial intelligence, cloud computing, and cybersecurity, also contributes significantly to its revenue streams.

Accenture Financial Statement Overview

Summary

Accenture demonstrates strong financial health with consistent revenue growth and robust profitability. The balance sheet is solid, featuring low leverage and high equity, while cash flow shows room for improvement. Overall, the company's financial position supports continued growth and stability.

Income Statement

Accenture demonstrates a strong financial performance with consistent revenue growth, evidenced by a 5.52% increase in revenue from the previous year (2024) to TTM 2025. The company maintains robust profitability, with a gross profit margin of 32.07% and a net profit margin of 11.61% in TTM 2025. EBIT and EBITDA margins are also healthy at 15.38% and 17.25%, respectively. These metrics indicate efficient cost management and strong operational performance.

Balance Sheet

Accenture's balance sheet is solid, with a debt-to-equity ratio of 0.19, indicating low financial leverage and a conservative capital structure. The equity ratio stands at 48.21%, reflecting a strong equity base relative to total assets. Return on equity (ROE) is strong at 26.01%, highlighting effective use of shareholder funds to generate profits. The company's financial stability is supported by a significant equity buffer and manageable debt levels.

Cash Flow

The cash flow performance of Accenture shows some areas of strength, with a positive free cash flow to net income ratio of 0.40, indicating that the company generates substantial cash relative to its net income. However, the operating cash flow to net income ratio is lower at 0.43, suggesting potential room for improvement in cash generation from operations. Free cash flow growth is negative compared to the previous year, indicating a decline in cash available for reinvestment or distribution.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	68.48B	64.90B	64.11B	61.59B	50.53B	44.33B
Gross Profit	21.96B	21.16B	20.73B	19.70B	16.36B	13.98B
EBITDA	11.81B	11.19B	10.59B	10.55B	7.62B	7.99B
Net Income	7.95B	7.26B	6.87B	6.88B	5.91B	5.11B
Balance Sheet
Total Assets	63.36B	55.93B	51.25B	47.26B	43.18B	37.08B
Cash, Cash Equivalents and Short-Term Investments	9.64B	5.01B	9.05B	7.89B	8.17B	8.51B
Total Debt	5.88B	4.12B	3.15B	3.33B	3.51B	3.49B
Total Liabilities	31.81B	26.76B	24.79B	24.52B	23.08B	19.58B
Stockholders Equity	30.55B	28.29B	25.69B	22.11B	19.53B	17.00B
Cash Flow
Free Cash Flow	3.18B	8.61B	9.00B	8.82B	8.40B	7.62B
Operating Cash Flow	3.39B	9.13B	9.52B	9.54B	8.98B	8.22B
Investing Cash Flow	-1.55B	-7.06B	-2.62B	-4.26B	-4.31B	-1.89B
Financing Cash Flow	-2.43B	-6.06B	-5.65B	-5.31B	-4.93B	-4.05B

Accenture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 298.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 298.89 is below the 20-day moving average (MA) of 308.11, below the 50-day MA of 307.34, and below the 200-day MA of 337.61, indicating a bearish trend. The MACD of -4.56 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 54.26 is Neutral, 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	81 Outperform	$78.03B	24.28	29.00%	2.78%	3.85%	-0.38%
ACN	77 Outperform	$201.01B	23.52	27.27%	2.00%	6.21%	14.87%
IBM	75 Outperform	$269.25B	49.83	21.91%	2.32%	1.23%	-33.87%
WIT	72 Outperform	$32.47B	20.46	16.62%	1.01%	-2.83%	106.18%
CTSH	71 Outperform	$38.32B	16.37	16.61%	1.59%	4.09%	14.05%
FIS	71 Outperform	$42.45B	50.54	5.25%	1.98%	-9.12%	―
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%

Accenture Corporate Events

Accenture Announces Major Leadership Restructuring

On June 20, 2025, Accenture announced a significant restructuring of its growth model and leadership, effective September 1, 2025. The company will consolidate its services into a single unit called Reinvention Services, led by Manish Sharma as the Chief Services Officer. Additionally, John Walsh will become the CEO of the Americas, and Kate Hogan will take over as the global Chief Operating Officer. These changes are part of Accenture’s strategic efforts to enhance its service delivery and strengthen its market position. Several other leadership appointments were made, including Kate Clifford as Chief Leadership and Human Resources Officer and Jason Dess as Group Chief Executive – Consulting, to support the company’s evolving operational framework.

The most recent analyst rating on (ACN) stock is a Hold with a $345.00 price target. To see the full list of analyst forecasts on Accenture stock, see the ACN Stock Forecast page.