Accenture (ACN) AI Stock Analysis

• Market Cap: $148.99B
• Dividend Yield: 2.48%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.71
• Revenue Growth: 6.21%
• EPS Growth: 14.87%
• Country: US
• Employees: 801,000
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): 3.49
• Shares Outstanding: 622,852,700
• 10 Day Avg. Volume: 5,388,558
• 30 Day Avg. Volume: 4,027,836
• PEG Ratio: 4.81
• Price to Book (P/B): 7.59
• Price to Sales (P/S): 3.31
• P/FCF Ratio: 24.92
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: 16.76
• 1Y Price Target: $330.32
• Price Target Upside: 38.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 70 Outperform
• Price Target: $281.00 ▲(17.77% Upside)

Accenture's overall stock score reflects strong financial performance and positive earnings call sentiment, tempered by bearish technical indicators. The valuation is reasonable, providing a balanced view of risks and opportunities.

Positive Factors

Financial Performance

Accenture has historically converted a significant percentage of their net income as free cash flow, allowing for value-add mergers and acquisitions which have contributed meaningfully to growth.

Market Leadership

Accenture's differentiated capabilities position the firm to be a market leader in Gen AI.

Revenue Growth

Managed services are expected to drive revenue growth as clients continue to prioritize customer experience.

Negative Factors

Bookings and Revenue Challenges

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

Federal Business Revenue

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

Government Spending

The ongoing US government crackdown on spending poses a notable risk to Accenture.

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 demonstrates a strong financial performance with consistent revenue growth and robust profitability. The company's solid balance sheet shows low leverage, while the cash flow performance indicates potential areas for improvement. Overall, Accenture's financial health 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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	11.89B	10.84B	10.25B	10.27B	9.71B	8.58B
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	10.24B	8.61B	9.00B	8.82B	8.40B	7.62B
Operating Cash Flow	10.95B	9.13B	9.52B	9.54B	8.98B	8.22B
Investing Cash Flow	-2.80B	-7.06B	-2.62B	-4.26B	-4.31B	-1.89B
Financing Cash Flow	-4.10B	-6.06B	-5.65B	-5.31B	-4.93B	-4.05B

Accenture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 238.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 238.61 is below the 20-day moving average (MA) of 268.33, below the 50-day MA of 289.29, and below the 200-day MA of 325.42, indicating a bearish trend. The MACD of -13.93 indicates Positive momentum. The RSI at 20.74 is Positive, neither overbought nor oversold. The STOCH value of 3.81 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	75 Outperform	$67.56B	20.68	30.46%	3.18%	4.52%	-0.22%
CTSH	74 Outperform	$33.98B	14.13	16.69%	1.76%	6.34%	12.16%
WIT	71 Outperform	$28.66B	20.03	16.50%	3.12%	-1.95%	62.75%
ACN	70 Outperform	$148.99B	19.04	27.27%	2.48%	6.21%	14.87%
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
IBM	67 Neutral	$225.68B	39.30	22.73%	2.84%	2.69%	-31.73%
FIS	58 Neutral	$36.50B	261.59	1.01%	2.18%	3.64%	102.21%

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.