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Accenture
(NYSE:ACN)
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Rating:81Outperform
Price Target:
$245.00
â–²(31.07% Upside)
Action:Reiterated
Date:10/02/26
ACN scores well on durable financial strength (stable margins, strong ROE, solid cash conversion) and a constructive earnings outlook with strong bookings and shareholder returns. Valuation is supportive with a moderate P/E and ~3% yield. The main offsets are an overextended technical setup (RSI ~70), softer recent free-cash-flow momentum, and FY2027 risks highlighted on the call (Middle East headwind, pricing/competition, and slower implied organic growth).
Positive Factors
Stable profitability and cash conversion
Accenture’s stable margins, high return on equity and strong conversion of earnings into free cash flow demonstrate a resilient services model. This financial quality supports ongoing investment in talent, technology and acquisitions while preserving capacity for shareholder returns through the next several quarters.
Negative Factors
Persistent Middle East headwind
The continuing Middle East impact creates a meaningful regional drag on revenue growth and introduces uncertainty into fiscal 2027 performance. Because management expects the headwind to persist rather than reverse immediately, it may offset growth elsewhere and make near-term execution against guidance more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable profitability and cash conversion
Accenture’s stable margins, high return on equity and strong conversion of earnings into free cash flow demonstrate a resilient services model. This financial quality supports ongoing investment in talent, technology and acquisitions while preserving capacity for shareholder returns through the next several quarters.
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.
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The Fly
The FlyAccenture (ACN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$127.93B
Dividend Yield3.12%
Average Volume (3M)6.28M
Price to Earnings (P/E)15.3
Beta (1Y)0.68
Revenue Growth6.47%
EPS Growth11.19%
CountryUS
Employees799,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)13.66
Shares Outstanding611,942,140
10 Day Avg. Volume9,683,090
30 Day Avg. Volume6,281,759
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)3.68
Price to Sales (P/S)1.57
P/FCF Ratio10.00
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda8.82
Forecast
1Y Price Target
$224.47Price Target Upside20.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)14.68
Revenue Forecast (FY)$77.47B
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 clients under consulting and delivery engagements, recognized as revenue as services are performed. Key revenue streams include: (1) Consulting and transformation work (including ...
Accenture Earnings Call Summary
Earnings Call Date:Oct 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Positive
The call was strongly positive, supported by Q4 revenue and bookings above guidance, broad-based growth, margin and EPS expansion, record free cash flow and shareholder returns, continued AI demand, and a constructive fiscal 2027 outlook. The company also acknowledged meaningful challenges, including the approximately $1 billion annualized Middle East headwind, uncertain discretionary spending, intense competition, lower pricing in some areas, lumpy managed services bookings and AI-related productivity and renewal pressure. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Q4 Revenue Growth Above Guidance
Q4 revenue was $18.7 billion, increasing 6% in U.S. dollars and 7% in local currency, above the top end of the guided range. Growth was broad-based across markets, industries and both types of work.
Negative Updates
Middle East Headwind Worsened
The direct impact from the Middle East continued to be a headwind and worsened in Q4. Management said the impact is roughly $1 billion on an annualized basis and expects it to continue in fiscal 2027; the top end of guidance assumes no growth from it, while the bottom end allows for deterioration.
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Revenue Growth Above Guidance
Q4 revenue was $18.7 billion, increasing 6% in U.S. dollars and 7% in local currency, above the top end of the guided range. Growth was broad-based across markets, industries and both types of work.
Read all positive updates
Company Guidance
For the first quarter of fiscal '27, Accenture expects revenues to be in the range of $18.95 billion to $19.6 billion, assuming the impact of FX will be about negative 1% compared to the first quarter of fiscal '26 and reflecting an estimated 2% to 6% growth in local currency. For full fiscal '27, it assumes the impact of FX on results in U.S. dollars will be about flat compared to fiscal '26, revenue growth in the range of 3% to 6% in local currency, an inorganic contribution of 2% to 2.5%, operating margin of 15.9% to 16.1%, a 10 to 30 basis point expansion, an annual effective tax rate in the range of 24.5% to 26.5%, diluted earnings per share in the range of $14.39 to $14.81 or 3% to 6% growth, operating cash flow in the range of $11.9 billion to $12.7 billion, property and equipment additions of approximately $900 million, and free cash flow in the range of $11 billion to $11.8 billion with a free cash flow to net income ratio of 1.2 to 1.3. Accenture currently expects to deploy another approximately $5 billion in acquisitions, return at least $9.5 billion to shareholders through dividends growing 5% per share and $5.5 billion in share repurchases, reduce its weighted average share count by approximately 3%, and pay a quarterly cash dividend of $1.71 per share.Accenture Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 74.18B | 69.67B | 64.90B | 64.11B | 61.59B |
| Gross Profit | 23.78B | 22.24B | 21.16B | 20.73B | 19.70B |
| EBITDA | 14.03B | 12.20B | 10.84B | 10.25B | 10.27B |
| Net Income | 8.37B | 7.68B | 7.26B | 6.87B | 6.88B |
Balance Sheet | |||||
| Total Assets | 73.60B | 65.39B | 55.93B | 51.25B | 47.26B |
| Cash, Cash Equivalents and Short-Term Investments | 12.84B | 11.48B | 5.01B | 9.05B | 7.89B |
| Total Debt | 13.40B | 8.18B | 4.12B | 3.15B | 3.33B |
| Total Liabilities | 40.34B | 33.15B | 26.76B | 24.79B | 24.52B |
| Stockholders Equity | 31.57B | 31.20B | 28.29B | 25.69B | 22.11B |
Cash Flow | |||||
| Free Cash Flow | 11.62B | 10.87B | 8.61B | 9.00B | 8.82B |
| Operating Cash Flow | 12.36B | 11.47B | 9.13B | 9.52B | 9.54B |
| Investing Cash Flow | -5.64B | -2.02B | -7.06B | -2.62B | -4.26B |
| Financing Cash Flow | -5.31B | -2.95B | -6.06B | -5.65B | -5.31B |
Accenture Technical Analysis
Positive
186.93
Price Trends
184.10
Positive
168.70
Positive
191.71
Positive
Market Momentum
5.99
Negative
63.46
Neutral
58.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACN, the sentiment is Positive. The current price of 186.93 is below the 20-day moving average (MA) of 190.26, above the 50-day MA of 184.10, and below the 200-day MA of 191.71, indicating a bullish trend. The MACD of 5.99 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 58.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $127.93B | 15.30 | 26.77% | 3.12% | 6.47% | 11.19% | |
77 Outperform | $5.78B | 10.12 | 22.91% | 2.13% | 6.89% | 11.22% | |
75 Outperform | $43.48B | 13.80 | 32.90% | 4.88% | -0.64% | 5.69% | |
74 Outperform | $26.67B | 12.70 | 14.94% | 2.20% | 5.64% | -5.39% | |
65 Neutral | $213.99B | 19.84 | 33.52% | 2.97% | 7.90% | 82.11% | |
65 Neutral | $16.84B | 12.87 | 15.58% | 5.10% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACN
Accenture
209.06
-28.20
-11.88%
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G
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INFY
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10.73
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-34.05%
IBM
International Business Machines
227.13
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1.70
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-34.69%
Accenture Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Accenture Completes $5 Billion Multi-Tranche Debt Offering
Positive
Jul 10, 2026
On July 10, 2026, Accenture Capital Inc., a wholly owned subsidiary of Accenture plc, completed a multi-tranche debt offering totaling $5 billion in principal amount, including floating rate notes and senior notes maturing between 2029 and 2036, a...
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.