Accenture PLC (ACN) Earnings & Analysis

Latest quarter

Accenture reported Q4 FY2026 revenue of $18.7 billion, compared with the consensus of $18.0 billion; revenue as the consensus counts it was 3.68% above that benchmark. The company reported adjusted EPS, as the consensus counts it, of $3.29 against consensus adjusted EPS of $3.19, or 3.13% above the consensus.

The company said revenue rose 6.15% from Q4 FY2025, while diluted EPS was $3.36, compared with $2.25 a year earlier. Angie Park said consulting revenue was $9.3 billion and managed services revenue was $9.4 billion, with both businesses reporting 7% local-currency growth. Accenture reported gross margin of 32.0%, versus 31.9% a year earlier, and operating margin of 15.3%, versus 11.6%. The company reported Q4 free cash flow of $2.8 billion, compared with $3.8 billion in Q4 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Julie Sweet said Q4 revenue grew 7% in local currency, above the top end of Accenture’s guided range, with growth across markets, industries and both types of work. She said large-scale reinventions, including AI-related work, drove demand, while clients remained at different stages of readiness to use AI at scale. Sweet said nearly 100 additional clients began their first advanced AI work during the quarter, taking the fiscal-year total to more than 400.

Park said Q4 bookings were $22.2 billion, including $9.4 billion in consulting bookings and $12.8 billion in managed-services bookings. She said managed-services bookings can be uneven from quarter to quarter and pointed to a trailing four-quarter book-to-bill ratio of 1.2. Sweet told analysts that large-scale transformations remain the company’s strategy and that bookings are not the basis for its guidance, which focuses on revenue.

On pricing, Sweet said pricing was stable overall in fiscal 2026 but lower in many areas in Q4. She said the FY2027 margin outlook incorporates continued intense competition. Park said contract profitability expanded during fiscal 2026 while the company invested in acquisitions, talent, learning and research and development, with much of those investments reflected in gross margin.

When asked about fiscal 2027 demand, Park said the company sees backlog, a solid pipeline and demand for large deals. She said the outlook assumes a stable to slightly improving discretionary-spending environment at its high end and deterioration at its low end. Park said the company expects to deploy approximately $5 billion on additional acquisitions in FY2027, subject to opportunities and timing. Sweet said Accenture expects to hire in every market in FY2027, but at a lower rate than in fiscal 2026, partly due to AI.

Guidance

Accenture expects Q1 FY2027 revenue of $18.95 to $19.6 billion, reflecting estimated local-currency growth of 2% to 6%. For FY2027, the company expects local-currency revenue growth of 3% to 6%, including a 2% to 2.5% inorganic contribution. Accenture expects GAAP diluted EPS of $14.39 to $14.81, operating cash flow of $11.9 billion to $12.7 billion, and property and equipment additions of approximately $900.0 million. The company also expects to return at least $9.5 billion to shareholders in FY2027.