Overview
Accenture
ACN · NYSEQ4 FY2026IT Services · Consulting and Managed Services
Since the Report + 11.0%
Revenue grew 6.2% year over year, EPS beat the estimate by 3.5%; the stock rose 15.8% in its first reaction.
- RevenueQ4
- $18.68B
- ▲ 6.2% YoY · Beat Estimate by 3.6%
- EPSAdjusted · Same as GAAP
- $3.29
- Estimate $3.18 · 3.5% Beat
Verdict
BUYAccenture beat revenue estimates by 3.6% and earnings estimates by 3.5%, while its 2027 outlook landed in line with expectations. Record bookings pushed back the AI fear, and the stock closed the day up 15.8%. The one thing to watch now is organic growth once acquisitions are stripped out.
Close on Report DayOct 1
$212.30▲ 15.8%Report-Day Move
- Market Cap(Today)
- ≈ $139 B
- 1Y Return(At Report)
- − 13%
- P/E(At Today's Price · $13.97 · Trailing 12M)
- 16.9
- PEG(Company Guidance 2027)
- 3.75
- Net Margin(Trailing 12M)
- 11.3%
Earnings Summary
In 30 Seconds- Revenue of $18.68B beat estimates by 3.6%, and EPS of $3.29 beat by 3.5%.
- The 2027 outlook is in line with estimates, but 2 to 2.5 points of growth will come from acquisitions.
- The stock closed up 15.8% as record bookings pushed back the fear that AI will shrink consulting.
The Numbers
New Bookings
$22.17B
▲ 4% YoY · Book-to-Bill 1.2
Stock Reaction
▲ 15.8%
Close to Close · Peak 24.1%
Operating Margin
15.3%
▲ 0.2 Pts YoY on Adjusted Basis
Free Cash Flow
$2.85B
▼ 25% YoY · Full Year $11.62B
Quarterly Revenue ($ Billion)
17.60
Q4 25 · $17.6 B
18.74
Q1 26 · $18.7 B · QoQ + 6.5%
18.04
Q2 26 · $18.0 B · QoQ − 3.7%
18.72
Q3 26 · $18.7 B · QoQ + 3.7%
18.68
Q4 26 · $18.7 B · QoQ − 0.2% · YoY + 6.2%
18.95–19.60
Q1 27E · 18.95–19.60 · QoQ + 3.2% · YoY + 2.8%
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26
- Q1 27E
Q1 FY27 Company Guidance
- Q1 FY27 Revenue18.95 – 19.60 billion18.95 billion19.60 billion18.95 – 19.60 billion
Midpoint 19.28 · Market Expectation 19.36In Line ✓
- FY27 Revenue Growth (Local Currency)3% – 6%3%6%
Acquisitions 2–2.5 Pts · FY26 5%0.5 Pt Slowdown ▼
- FY27 EPS14.39 – 14.81 $14.39 $14.81 $14.39 – 14.81 $
Midpoint 14.60 · Market Expectation 14.63In Line ✓
- FY27 Operating Margin15.9% – 16.1%15.9%16.1%15.9% – 16.1%
FY26 Adjusted 15.8% · GAAP 15.4%0.2 Pt Expansion ▲
- FY27 Free Cash Flow11.0 – 11.8 billion11.0 billion11.8 billion11.0 – 11.8 billion
Midpoint 11.4 · FY26 Actual 11.621.9% Decline ▼
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±38% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Americas$9.43 BShare 50.5%▲ 7.0% YoY
- Europe, Middle East and Africa$6.58 BShare 35.2%▲ 6.0% YoY
- Asia Pacific$2.67 BShare 14.3%▲ 3.0% YoY
Up 7% in local currency.
Key Metrics
Managed Services Bookings
$12.8 B
Press Release
Consulting Bookings
$9.40 B
Press Release
Operating Cash Flow
$3.10 B
▼ 21.0% YoYPress Release
Days Sales Outstanding
50 days
Press Release
Share Repurchases (Q4)
$2.33 B
Press Release
Cash and Equivalents
$12.8 B
Press Release
Employees
814 K people
Press Release
Shares are computed over the segment total: $18.7 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“We continue to believe the opportunities related to AI are greater than the impact of AI-related efficiencies on our business.”
- AI Opportunity Outweighs Efficiencies
- Record Large-scale Bookings
- Intense Pricing Competition
Summary and Review
Summary
Accenture posted fourth-quarter revenue of $18.68 billion. That is 3.6% above the market estimate. Revenue rose 6.2% year over year, or 7% in local currency. Earnings per share of $3.29 beat the estimate by 3.5%. The guidance gate is in line: the midpoint of the Q1 revenue range sits 0.4% below the estimate. The 2027 EPS midpoint is $14.60, against an estimate of $14.63. Two of three gates are open, one is in line.
The stock closed the day up 15.8% at $212.30. It rose as much as 24% intraday. The close was 6.7% below the intraday high of $227.58. Before the report, the stock had lost about 25% over a year. The reason was fear that AI would shrink the consulting business. A record count of large deals gave that fear a concrete answer. The market did not read this report as a growth story. It read it as a resilience story.
Our score is 72, and our view is buy. Two gates are open and the guidance gate is in line, so we stay below 80. Between 2 and 2.5 points of 2027 growth will come from acquisitions. That leaves organic growth at roughly 0.5% to 4%. Management also said pricing fell in many areas in Q4. Quarterly free cash flow dropped 25% year over year. These caveats pull the score into the lower half of the band. Record bookings offset them but do not erase them.
Full Review
Revenue topped the high end of guidance.
The company had guided to $17.75-18.40 billion for the quarter. The actual $18.68 billion came in 1.5% above the top of that range. Growth did not come from a single line. All three geographies and all five industry groups grew. The fastest was Communications, Media & Technology, up 11% in local currency. The slowest was Products, at 4%. Consulting and managed services revenue both grew 7% in local currency. Managed services now carries 50.3% of revenue. Currency was a 0.8% headwind against an assumed 0.5%. So even a strong dollar did not spoil the picture. Asia Pacific grew only 3% in dollars. In local currency it grew 7%; the gap is all currency. Year-over-year growth sped up from 5.6% in Q3 to 6.2%. We explain how to read earnings day in this guide.
Bookings hit a record, but the mix is uneven.
New bookings were $22.17 billion. That is up 4% year over year, or 5% in local currency. The book-to-bill ratio was 1.2. Managed services was the star: a record $12.77 billion, with a ratio of 1.4. Consulting bookings stopped at $9.40 billion. Its ratio was 1.0, so new work only replaces work already consumed. This is exactly where AI fear was concentrated. Deals above $100 million rose to a record 141. Full-year bookings were $84.54 billion. They grew 5% in dollars and 3% in local currency. Long-term outsourcing work is strong. Short-term transformation projects have not yet picked up. Consulting revenue grew 7% in local currency this quarter. But if its ratio stays at 1.0, that pace may slow within a few quarters.
The company's answer to AI fear.
Julie Sweet laid out a clear thesis on the call. In her view, the opportunity AI brings is larger than the efficiency hit it creates in the business. According to the call, more than 400 clients began their first advanced AI work with Accenture in 2026. The company has about 110,000 people in AI and data. The cost is visible too. Management said hiring in 2027 will run below this year's pace. Revenue per person is rising, but AI will slow that rise. CFO Angie Park admitted that pricing fell in many areas in Q4. The 2027 outlook assumes intense competition will continue. So AI is carrying demand, but it is also pushing prices down. The real question is not whether AI creates demand. It is whether that demand is paid at the old price.
Earnings are strong, cash is weak.
GAAP operating margin was 15.3%. A year ago GAAP margin was 11.6%, but that quarter carried $615 million of restructuring costs. On an adjusted basis it was 15.1% last year. The real improvement is 0.2 points. The cash side is weaker. Quarterly free cash flow was $2.85 billion, down 25% year over year. Days sales outstanding rose to 50. That compares with 48 last quarter and 47 a year ago. Full-year free cash flow rose 7% to $11.62 billion. The company borrowed $5 billion in the quarter, lifting long-term debt to $10 billion. It also bought back $2.3 billion of stock in the quarter. Buybacks got a fresh $6 billion authorization in September. For the year, $11.5 billion went back to shareholders. That is 38% more than the prior year.
One gauge for 2027: organic growth.
The company expects 3-6% revenue growth in local currency for 2027. On the call, acquisitions were put at 2-2.5 points of that. Management plans to spend about $5 billion on deals. The organic growth that remains is between 0.5% and 4%. The EPS target is $14.39-14.81. That is a 3-6% rise over 2026 adjusted earnings. The operating margin target is 15.9-16.1%. The average analyst target is $201, 5.3% below the close. So targets still lag the price. Next quarter, look at a single line: revenue growth in local currency. Above 4%, organic growth holds up even after acquisitions. That would vindicate today's jump. Below 2%, today's surge was a relief rally.
Looking Ahead
Strengths and Risks
5 Strengths · 5 RisksStrengths
5- Revenue beat the top of the company's own guidance range by 1.5%, with growth across every geography.
- Managed services bookings set a record at $12.77 billion, with a book-to-bill of 1.4.
- The count of deals above $100 million reached 141, the highest in company history.
- Full-year free cash flow rose 7% year over year to $11.62 billion.
- The dividend rose 5% to $1.71, and a new $6 billion buyback authorization was approved.
Risks
5- Between 2 and 2.5 points of 2027 growth come from acquisitions, leaving organic growth at 0.5-4%.
- Management said pricing fell in many areas in Q4 and expects competition to stay intense.
- Consulting book-to-bill stayed at 1.0, so new work only replaces what is consumed.
- Quarterly free cash flow fell 25% year over year, and DSO stretched from 47 to 50 days.
- Long-term debt doubled in a year, from $5.0 billion to $10.0 billion.
What to Watch
4- The $1.71 quarterly dividend is payable on November 13, 2026, to holders of record on October 13.
- Q1 FY27 results are expected in December 2026, against a revenue range of $18.95-19.60 billion.
- The company plans to spend about $5 billion on acquisitions in fiscal 2027.
- The company aims to return at least $9.5 billion in cash to shareholders in 2027.
Upcoming Earnings
To Understand This