Accenture plc

What they do

Accenture operates across three geographic markets—Americas, EMEA, and Asia Pacific—and serves clients through five industry groups: Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. The company delivers two types of work: Consulting and Managed Services, leveraging its approximately 779,000 employees, proprietary assets, and ecosystem relationships. Revenue is primarily derived from Forbes Global 2000 companies, governments, and more than 9,000 clients across more than 120 countries.

Revenue drivers

• Products — The largest industry group, generating FY25 revenues of $21.2B, with 45% from Consumer Goods, Retail & Travel, 35% from Industrials, and 20% from Life Sciences.
• Managed Services — In Q3 FY26, Managed Services revenue was $9.39B, up 8% in USD and 5% in local currency, driving steady recurring revenue.
• Consulting — In Q3 FY26, Consulting revenue was $9.33B, up 4% in USD and 1% in local currency, reflecting project-based demand.
• Resources — A smaller group with FY25 revenues of $9.5B, split 47% Utilities, 28% Chemicals & Natural Resources, and 25% Energy, contributing to diversification.

Recent performance

For Q3 FY26 (ended May 31, 2026), Accenture reported revenues of $18.72B, up 6% in USD and 3% in local currency. Diluted EPS rose 9% to $3.80, and operating margin expanded 20 basis points to 17.0%. Free cash flow was $3.6B, and the company returned $2.2B to shareholders. Year-to-date, new bookings reached $19.3B in the quarter, with 104 quarterly client bookings of $100M or more, up 13% from the prior year. Full-year fiscal 2025 revenues were $69.67B with net income of $7.68B.

Strategy

Management aims to be the 'reinvention partner of choice,' focusing on AI-enabled transformations and expanding its AI and data workforce to 80,000 by fiscal 2026, up from about 77,000 at the end of fiscal 2025. The company is investing in upskilling, compressing exits for non-viable skills, and driving operating efficiencies through AI. It is pursuing platform-led growth, evidenced by the planned acquisition of majority stakes in Dragos, runZero, and NetRise to expand in OT security. Management also returned $8.2B to shareholders year-to-date through buybacks and dividends.

Risks

• Competitive pricing pressure — Competitors may underprice Accenture to gain market share, threatening its ability to win work at target pricing and margins.
• Cost-management execution — If Accenture fails to align workforce and costs with demand, profitability could suffer, especially as it invests in AI and optimization.
• Contract profitability risk — Estimates of effort and cost may be inaccurate, and performance-based clauses could reduce fees or increase costs, making contracts less profitable.
• Dependence on key personnel — Inability to hire or retain skilled people, particularly in new technologies, could impair delivery and increase costs.

Outlook

Management now expects full-year fiscal 2026 revenue growth of 3% to 4% in local currency, or 4% to 5% excluding an estimated 1% impact from the U.S. federal business. GAAP diluted EPS is expected to be $13.38 to $13.50, a 10% to 11% increase, while adjusted EPS is expected to be $13.78 to $13.90. The company continues to expect free cash flow of $10.8B to $11.5B.