Accenture (ACN) AI Stock Analysis

• Market Cap: $152.80B
• Dividend Yield: 2.41%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.71
• Revenue Growth: 7.36%
• EPS Growth: 6.18%
• Country: US
• Employees: 801,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.03
• Shares Outstanding: 622,852,700
• 10 Day Avg. Volume: 6,932,435
• 30 Day Avg. Volume: 5,348,562
• PEG Ratio: 3.35
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 14.72
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: $288.21
• Price Target Upside: 17.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 74 Outperform
• Price Target: $268.00 ▲(9.25% Upside)

Accenture's overall stock score is driven by strong financial performance and positive earnings call sentiment, offset by weak technical indicators. The company's strategic investments in AI and robust client engagement support its growth outlook, while valuation remains reasonable.

Positive Factors

AI Investment and Growth

Accenture's strategic investment in AI is yielding significant returns, enhancing its competitive edge and positioning it as a leader in AI-driven transformations.

Strong Financial Growth

Consistent revenue growth underscores Accenture's robust market position and ability to deliver value, supporting long-term business sustainability.

Cash Return to Shareholders

Increasing cash returns to shareholders reflects strong cash generation and financial health, reinforcing investor confidence and long-term value creation.

Negative Factors

Federal Business Impact

Challenges in the federal business segment could hinder overall growth, impacting Accenture's ability to fully capitalize on market opportunities.

Business Optimization Charges

Significant charges from business optimization indicate restructuring costs, which may pressure short-term profitability and require careful management.

Slower Enterprise AI Adoption

Slow adoption of enterprise AI could delay expected benefits from AI investments, affecting revenue growth and competitive positioning in the near term.

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 exhibits strong financial performance with consistent revenue growth and healthy profitability margins. The balance sheet is solid with prudent leverage, and cash flow generation is robust, though there is room for improvement in cash flow management.

Income Statement

Accenture demonstrates strong revenue growth with a consistent upward trajectory over the years, highlighted by a 1.74% growth in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 31.91% and a net profit margin of 11.02%. EBIT and EBITDA margins are robust at 15.07% and 18.57%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.26, indicating prudent leverage use. Return on equity stands at a strong 24.61%, showcasing effective utilization of shareholder funds. The equity ratio of 47.71% suggests a stable capital structure, though the increase in total debt over the years warrants monitoring.

Cash Flow

Accenture's cash flow performance is commendable, with a 6.15% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.49 and free cash flow to net income ratio of 0.95 highlight efficient cash conversion. However, the operating cash flow coverage ratio of 0.56 suggests room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.67B	69.67B	64.90B	64.11B	61.59B	50.53B
Gross Profit	22.24B	22.24B	21.16B	20.73B	19.70B	16.36B
EBITDA	12.13B	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	65.39B	65.39B	55.93B	51.25B	47.26B	43.18B
Cash, Cash Equivalents and Short-Term Investments	11.48B	11.48B	5.01B	9.05B	7.89B	8.17B
Total Debt	8.18B	8.18B	4.12B	3.15B	3.33B	3.51B
Total Liabilities	33.15B	33.15B	26.76B	24.79B	24.52B	23.08B
Stockholders Equity	31.20B	31.20B	28.29B	25.69B	22.11B	19.53B
Cash Flow
Free Cash Flow	10.87B	10.87B	8.61B	9.00B	8.82B	8.40B
Operating Cash Flow	11.47B	11.47B	9.13B	9.52B	9.54B	8.98B
Investing Cash Flow	-2.02B	-2.02B	-7.06B	-2.62B	-4.26B	-4.31B
Financing Cash Flow	-2.95B	-2.95B	-6.06B	-5.65B	-5.31B	-4.93B

Accenture Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 245.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 245.32 is above the 20-day moving average (MA) of 242.08, below the 50-day MA of 250.06, and below the 200-day MA of 305.22, indicating a neutral trend. The MACD of -2.48 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACN.

Accenture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	77 Outperform	$67.72B	20.99	30.46%	3.13%	4.52%	-0.22%
ACN	74 Outperform	$152.80B	20.19	25.82%	2.41%	7.36%	6.18%
CTSH	74 Outperform	$33.04B	13.74	16.69%	1.82%	6.34%	12.16%
WIT	73 Outperform	$28.45B	19.73	16.50%	3.16%	-1.95%	35.65%
IBM	72 Outperform	$268.62B	46.77	22.73%	2.32%	2.69%	-31.73%
FI	70 Outperform	$69.34B	21.32	12.66%	―	6.73%	3.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.