Accenture (ACN)
NYSE:ACN
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Accenture
(NYSE:ACN)
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Rating:74Outperform
Price Target:
$200.00
â–²(1.19% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by strong underlying financial performance (durable margins, excellent free cash flow, and a solid balance sheet) and a constructive earnings outlook with record bookings and raised free-cash-flow guidance. These positives are tempered by weak technical signals (price below key moving averages and negative MACD), while valuation and the dividend yield provide additional support.
Positive Factors
Strong free cash flow generation
Consistent, sizable FCF (~$12.5B TTM) underpins durable financial flexibility: funds reinvestment, organic R&D, acquisitions and large shareholder returns. High FCF close to net income demonstrates earnings-to-cash conversion that supports strategy through cycles and funds AI/talent investments.
Negative Factors
Upward drift in leverage
Although current leverage is moderate (~0.27), the upward trend from prior years reduces cushion for additional stress. Continued debt-funded acquisitions or extended buybacks could constrain flexibility, increase interest exposure and limit optionality during macro or sector slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, sizable FCF (~$12.5B TTM) underpins durable financial flexibility: funds reinvestment, organic R&D, acquisitions and large shareholder returns. High FCF close to net income demonstrates earnings-to-cash conversion that supports strategy through cycles and funds AI/talent investments.
Read all positive factors
Accenture (ACN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.72B
Dividend Yield2.25%
Average Volume (3M)6.82M
Price to Earnings (P/E)17.3
Beta (1Y)0.66
Revenue Growth7.27%
EPS Growth0.49%
CountryUS
Employees801,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.93
Shares Outstanding613,939,300
10 Day Avg. Volume5,267,893
30 Day Avg. Volume6,822,428
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 Cap1.00
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$257.23Price Target Upside30.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)13.88
Revenue Forecast (FY)$74.13B
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 moderniza...
How the Company Makes Money
Accenture makes money primarily by selling professional services—consulting and technology delivery—under fee-based client contracts. Its revenue is largely generated from (1) consulting engagements (e.g., strategy, operating model and process red...
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 Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution: record bookings, broad-based revenue growth, margin expansion, robust free cash flow, active capital returns and accelerated M&A to capture AI and non-FTE opportunities. Management highlighted significant AI and talent momentum and raised free cash flow guidance while providing a constructive full-year outlook. Notable headwinds include a Federal business drag, higher effective tax rate and G&A, a lower cash balance due to buybacks and acquisitions, and some deals at higher multiples that temper immediate inorganic uplift. Geopolitical risk and FX sensitivity were acknowledged but not currently material. On balance, the positives — particularly bookings, cash generation, AI/talent positioning and strategic investments — outweigh the listed challenges.Positive Updates
Record Bookings and Revenue Growth
Record quarterly bookings of $22.1 billion (up 6% in USD, up 1% in local currency); H1 bookings totaled $43 billion. Revenue for the quarter was $18.0 billion, up 8% in USD and 4% in local currency, coming in at the top end of FX-adjusted guidance.
Negative Updates
Federal Business Headwind and Geopolitical Uncertainty
U.S. Federal business weighed on Americas results (roughly a 2% drag on Americas this quarter and an estimated ~1% impact on FY guidance). Management noted potential uncertainty from the Middle East conflict (region ~1% of FY'25 revenue, ~3,000 colleagues) — currently no significant financial impact but a risk to monitor.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Bookings and Revenue Growth
Record quarterly bookings of $22.1 billion (up 6% in USD, up 1% in local currency); H1 bookings totaled $43 billion. Revenue for the quarter was $18.0 billion, up 8% in USD and 4% in local currency, coming in at the top end of FX-adjusted guidance.
Read all positive updates
Company Guidance
Accenture guided Q3 revenue of $18.35B–$19.0B (assuming FX ≈ +2.5% vs. Q3 FY25) with expected local‑currency growth of 1%–5% (including ~1% drag from U.S. Federal; ex‑Federal 2%–6%), and for full FY26 expects revenue growth of 3%–5% in local currency (including ~1% Federal; ex‑Federal 4%–6%) with FX ~+2% vs. FY25 and ~1.5% inorganic contribution; the company now expects to deploy about $5.0B of acquisition capital this year. Full‑year targets include adjusted operating margin of 15.7%–15.9% (10–30 bps expansion), adjusted diluted EPS $13.65–$13.90 (≈6%–8% growth), an adjusted effective tax rate of 23.5%–25.5% (vs. 23.6% in FY25), operating cash flow $11.5B–$12.2B, capex ≈ $700M, and raised free cash flow to $10.8B–$11.5B (free‑cash‑flow/net‑income ≈ 1.3); the company reiterated returning at least $9.3B to shareholders (up $1B or ~12% YoY). Guidance excludes the potential for a significant escalation in the Middle East conflict.Accenture Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.11B | 69.67B | 64.90B | 64.11B | 61.59B | 50.53B |
| Gross Profit | 23.06B | 22.24B | 21.16B | 20.73B | 19.70B | 16.36B |
| EBITDA | 12.11B | 12.94B | 10.84B | 10.25B | 10.27B | 9.71B |
| Net Income | 7.68B | 7.68B | 7.26B | 6.87B | 6.88B | 5.91B |
Balance Sheet | ||||||
| Total Assets | 67.06B | 65.39B | 55.93B | 51.25B | 47.26B | 43.18B |
| Cash, Cash Equivalents and Short-Term Investments | 9.41B | 11.48B | 5.01B | 9.05B | 7.89B | 8.17B |
| Total Debt | 8.35B | 8.18B | 4.12B | 3.15B | 3.33B | 3.51B |
| Total Liabilities | 34.29B | 33.15B | 26.76B | 24.79B | 24.52B | 23.08B |
| Stockholders Equity | 31.21B | 31.20B | 28.29B | 25.69B | 22.11B | 19.53B |
Cash Flow | ||||||
| Free Cash Flow | 12.50B | 10.87B | 8.61B | 9.00B | 8.82B | 8.40B |
| Operating Cash Flow | 13.08B | 11.47B | 9.13B | 9.52B | 9.54B | 8.98B |
| Investing Cash Flow | -3.47B | -2.02B | -7.06B | -2.62B | -4.26B | -4.31B |
| Financing Cash Flow | -8.82B | -2.95B | -6.06B | -5.65B | -5.31B | -4.93B |
Accenture Technical Analysis
Neutral
197.65
Price Trends
203.64
Negative
234.69
Negative
242.28
Negative
Market Momentum
-3.56
Negative
50.47
Neutral
71.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACN, the sentiment is Neutral. The current price of 197.65 is above the 20-day moving average (MA) of 193.56, below the 50-day MA of 203.64, and below the 200-day MA of 242.28, indicating a neutral trend. The MACD of -3.56 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $109.72B | 17.31 | 24.82% | 2.25% | 7.27% | 0.49% | |
73 Outperform | $50.52B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
71 Outperform | $25.07B | 17.90 | 14.79% | 1.46% | 6.55% | -3.10% | |
66 Neutral | $22.17B | 15.72 | 15.03% | 2.78% | -0.55% | -3.97% | |
62 Neutral | $217.09B | 46.77 | 36.86% | 2.21% | 9.67% | 94.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACN
Accenture
178.71
-114.18
-38.98%
CTSH
Cognizant
52.90
-21.01
-28.43%
INFY
Infosys
12.46
-4.71
-27.43%
IBM
International Business Machines
230.98
-2.87
-1.23%
WIT
Wipro
2.04
-0.71
-25.71%
Accenture Corporate Events
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...
Business Operations and StrategyShareholder Meetings
Accenture Shareholders Approve Expanded Equity Plan and Governance
Positive
Jan 28, 2026
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 Decem...
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.