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Accenture
(NYSE:ACN)
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Rating:72Outperform
Price Target:
$139.00
â–¼(-29.67% Downside)
Action:Reiterated
Date:06/23/26
Overall score reflects high-quality financial performance and cash flow plus very attractive valuation (low P/E and high dividend yield), partially offset by very weak technicals (price far below key moving averages with negative momentum) and some near-term execution/macro uncertainty highlighted on the earnings call (bookings softness, deal timing push-outs, and Middle East impacts).
Positive Factors
Free Cash Flow Strength
Accenture’s trailing twelve‑month free cash flow near $12.6B and FCF closely tracking net income indicate durable cash conversion. This level of predictable cash generation funds acquisitions, capex, dividends and buybacks, supporting long‑term strategic flexibility and capital returns.
Negative Factors
Growth Deceleration
Revenue growth slowing to low‑single digits versus prior post‑2021 step‑up reduces leverage on fixed cost base and limits organic upside. Over the medium term this makes margin expansion and EPS gains more dependent on buybacks, M&A and operational efficiency rather than pure top‑line traction.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Accenture’s trailing twelve‑month free cash flow near $12.6B and FCF closely tracking net income indicate durable cash conversion. This level of predictable cash generation funds acquisitions, capex, dividends and buybacks, supporting long‑term strategic flexibility and capital returns.
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
$78.93B
Dividend Yield2.25%
Average Volume (3M)6.79M
Price to Earnings (P/E)10.2
Beta (1Y)0.63
Revenue Growth6.74%
EPS Growth-0.66%
CountryUS
Employees801,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)12.62
Shares Outstanding611,942,140
10 Day Avg. Volume8,428,642
30 Day Avg. Volume6,785,469
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 Cap1.20
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit4.06
Enterprise Value/Ebitda7.72
Forecast
1Y Price Target
$187.30Price Target Upside-5.24% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)13.86
Revenue Forecast (FY)$73.64B
Accenture Business Overview & Revenue Model
Company Description
Accenture plc is a global professional services firm that delivers a wide array of strategy, consulting, interactive, technology, and operations services worldwide. Its comprehensive offerings include application services such as agile transformat...
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 | 12.30B | 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
Negative
197.65
Price Trends
171.68
Negative
188.53
Negative
220.67
Negative
Market Momentum
-13.96
Positive
27.11
Positive
18.06
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 197.65 is above the 20-day moving average (MA) of 160.56, above the 50-day MA of 171.68, and below the 200-day MA of 220.67, indicating a bearish trend. The MACD of -13.96 indicates Positive momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 18.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.97B | 8.68 | 14.79% | 1.46% | 6.55% | -3.10% | |
72 Outperform | $78.93B | 10.22 | 24.82% | 2.25% | 6.74% | -0.66% | |
71 Outperform | $44.77B | 13.48 | 31.77% | 2.58% | 4.85% | 6.19% | |
66 Neutral | $255.30B | 23.60 | 35.54% | 2.21% | 9.67% | 94.28% | |
66 Neutral | $19.46B | 13.89 | 15.03% | 2.78% | -0.55% | -3.97% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACN
Accenture
128.98
-162.31
-55.72%
CTSH
Cognizant
40.03
-36.39
-47.61%
INFY
Infosys
10.78
-7.19
-40.00%
IBM
International Business Machines
271.63
-15.80
-5.50%
WIT
Wipro
2.27
-0.63
-21.72%
Accenture Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Accenture Expands Credit Facilities to Bolster Liquidity Flexibility
Positive
Apr 24, 2026
On April 22, 2026, Accenture and certain subsidiaries entered into a new five-year $5.925 billion senior unsecured revolving credit facility and a separate $2.175 billion 364-day senior unsecured revolving credit facility with a syndicate of lende...
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.