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Accenture (ACN)
NYSE:ACN
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Accenture (ACN) AI Stock Analysis

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ACN

Accenture

(NYSE:ACN)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$281.00
â–²(17.23% 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
Strategic Acquisitions
Strategic acquisitions like Highlands Consulting enhance Accenture's service offerings and market position, particularly in critical sectors, supporting long-term growth.
Leadership Restructuring
The leadership restructuring aims to enhance service delivery and strengthen market position, indicating a strategic focus on long-term operational efficiency and growth.
Revenue Growth
Consistent revenue growth demonstrates Accenture's expanding market reach and product adoption, supporting its long-term financial health and stability.
Negative Factors
Gross Margin Decline
A decline in gross margin indicates potential cost management challenges, which could impact profitability and financial performance over the long term.
Challenges in Federal Contracts
Challenges in federal contracts may lead to revenue volatility and impact Accenture's ability to secure stable government business, affecting long-term growth.
Cash Flow Performance
Lower cash generation from operations indicates potential liquidity challenges, which could constrain Accenture's ability to reinvest or distribute cash in the long term.

Accenture (ACN) vs. SPDR S&P 500 ETF (SPY)

Accenture Business Overview & Revenue Model

Company DescriptionAccenture 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 MoneyAccenture 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 Key Performance Indicators (KPIs)

Any
Any
New Bookings by Type
New Bookings by Type
Highlights the types of services or products that are generating new business, offering insight into future revenue streams and strategic focus areas.
Chart InsightsAccenture's Managed Services bookings have shown robust growth, significantly outpacing Consulting. This aligns with the company's strategic focus on technology managed services, which saw double-digit growth. Despite federal revenue uncertainties, Accenture's investments in Gen AI and strategic acquisitions are driving strong demand and bookings, as evidenced by a $1.4 billion milestone in Gen AI. The company's commitment to expanding its data and AI workforce and enhancing employee skills underscores its focus on sustainable growth, even amid economic and geopolitical challenges.
Data provided by:Main Street Data

Accenture Earnings Call Summary

Earnings Call Date:May 31, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
Accenture reported strong growth in revenue, GenAI bookings, and EPS, alongside significant strategic investments and brand recognitions. However, these positive outcomes are tempered by challenges in gross margin, federal business headwinds, and a slower acquisition pace.
Q3-2025 Updates
Positive Updates
Strong Quarterly Performance
Accenture reported $19.7 billion in bookings, with revenue of $17.7 billion, a 7% increase in local currency, exceeding their guidance range.
GenAI Milestone Achievements
Accenture achieved $1.5 billion in GenAI bookings and over $700 million in GenAI revenues for the quarter, contributing to a year-to-date GenAI total of $4.1 billion in bookings and $1.8 billion in revenue.
Operating Margin and EPS Growth
Operating margin expanded by 40 basis points compared to the previous year, and Accenture delivered a 12% growth in EPS over Q3 FY '24 adjusted EPS.
Recognition and Branding Success
Accenture was ranked #6 on the Great Place to Work list and increased its brand value by 27% to $103.8 billion, securing the #20 position on the top 100 most valuable global brands list.
Strategic Acquisitions and Investments
Accenture invested over $297 million across four strategic acquisitions, enhancing capabilities in various regions such as India, the United States, Japan, and Scotland.
Negative Updates
Gross Margin Decline
Gross margin for the quarter was 32.9%, a decrease from 33.4% in the same quarter last year.
Federal Business Headwinds
Accenture anticipates a 2% headwind in Q4 due to slower procurement and cancellations in its federal business sector.
Slower Pace of Acquisitions
The acquisition pace is slower this year due to tough market conditions, although the company still expects a 3% inorganic contribution for the year.
Company Guidance
During Accenture's third quarter fiscal 2025 earnings call, the company reported strong financial metrics, including $19.7 billion in bookings and a 7% growth in local currency with revenue reaching $17.7 billion, surpassing their guided range. The operating margin expanded by 40 basis points year-over-year, resulting in a 16.8% margin, while diluted earnings per share grew by 12% to $3.49. The company highlighted significant investments in strategic areas, such as $297 million in acquisitions, and reported 38 million training hours year-to-date. Accenture's GenAI initiatives showed substantial progress, with $1.5 billion in bookings and $700 million in revenue for the quarter. The company also maintained a strong cash position, ending the quarter with $9.6 billion, and announced a quarterly cash dividend of $1.48 per share, a 15% increase over the previous year. Looking ahead, Accenture expects Q4 revenues between $17 billion and $17.6 billion, with a full fiscal year revenue growth forecast of 6% to 7% in local currency.

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
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue68.48B64.90B64.11B61.59B50.53B44.33B
Gross Profit21.96B21.16B20.73B19.70B16.36B13.98B
EBITDA11.89B10.84B10.25B10.27B9.71B8.58B
Net Income7.95B7.26B6.87B6.88B5.91B5.11B
Balance Sheet
Total Assets63.36B55.93B51.25B47.26B43.18B37.08B
Cash, Cash Equivalents and Short-Term Investments9.64B5.01B9.05B7.89B8.17B8.51B
Total Debt5.88B4.12B3.15B3.33B3.51B3.49B
Total Liabilities31.81B26.76B24.79B24.52B23.08B19.58B
Stockholders Equity30.55B28.29B25.69B22.11B19.53B17.00B
Cash Flow
Free Cash Flow10.24B8.61B9.00B8.82B8.40B7.62B
Operating Cash Flow10.95B9.13B9.52B9.54B8.98B8.22B
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 Price239.70
Price Trends
50DMA
258.18
Negative
100DMA
282.88
Negative
200DMA
310.90
Negative
Market Momentum
MACD
-5.69
Positive
RSI
35.76
Neutral
STOCH
22.50
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 239.7 is below the 20-day moving average (MA) of 249.53, below the 50-day MA of 258.18, and below the 200-day MA of 310.90, indicating a bearish trend. The MACD of -5.69 indicates Positive momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 22.50 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
72.64B22.7228.18%2.99%4.52%-0.22%
74
Outperform
32.69B14.2715.93%1.84%6.34%12.16%
73
Outperform
30.45B21.5415.86%2.95%-1.95%35.65%
72
Outperform
248.16B42.9821.20%2.52%2.69%-31.73%
70
Outperform
$149.30B19.0727.27%2.47%6.21%14.87%
58
Neutral
34.01B248.000.79%2.40%3.64%102.21%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACN
Accenture
239.70
-93.38
-28.04%
CTSH
Cognizant
66.94
-8.00
-10.68%
FI
Fiserv
131.80
-47.51
-26.50%
INFY
Infosys
16.97
-5.23
-23.56%
IBM
International Business Machines
266.40
51.96
24.23%
WIT
Wipro
2.80
-0.30
-9.68%

Accenture Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Accenture Announces Major Leadership Restructuring
Neutral
Jun 20, 2025

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.

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.Date of analysis: Aug 02, 2025