# Accenture (ACN)

Sector: IT services & consulting

| Field | Value |
|---|---|
| Price | $254.37 |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2026-12-17 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Pricey

## In short

Investors pay a premium for Accenture's scale and its role in large AI programs, and only steady growth with AI work that adds to revenue and higher margins through fiscal 2029 can earn it.

## Themes and gap

- Themes: AI disruption risk (ai-disruption)
- Gap type: Slow (slow)
- Why: The Q1 fiscal 2027 report expected in mid-December 2026 is the next test, but the premium needs AI work that adds to revenue and a higher margin each year to fiscal 2029.

## About

Accenture is a global professional services company. It helps large companies and governments change how they work with technology, data and AI. It sells consulting and managed services, and each was about half of revenue in fiscal 2026. It serves about 9,000 clients in three geographic markets: the Americas, EMEA and Asia Pacific. Revenue was $74.2 billion in fiscal 2026, which ended on August 31, 2026, and Accenture had about 814,000 employees at that date. Accenture plc is incorporated in Ireland, and its shares trade on the New York Stock Exchange.

## Thesis

Accenture trades at a premium because investors pay for its scale, its long client relationships and its role in large AI programs. In fiscal 2026, revenue grew 5% in local currency to $74.2 billion, free cash flow was $11.6 billion and Accenture returned $11.5 billion to shareholders. But investors also fear that AI tools can reduce the work that clients buy from consultants and outsourcing teams. Consulting revenue grew only 3% in local currency in fiscal 2026, and new bookings also grew 3%. For the premium to be earned, three things must be true. Revenue must grow within the fiscal 2027 guidance of 3% to 6% in local currency, with AI work that adds to revenue and does not replace it. The operating margin must expand by 10 to 30 basis points each year from fiscal 2027 to fiscal 2029, as management plans. Free cash flow must stay at $11.0 billion or more in fiscal 2027 while acquisition spending rises to about $8 billion. The Q1 fiscal 2027 report, expected in mid-December 2026, gives the first test of bookings and growth. If revenue growth falls to the bottom of the range or bookings fall, the premium can shrink within one to two years.

## Checkpoints

- Dec 17, 2026 (estimate): Q1 fiscal 2027 results: bookings and growth. Status: Pending. Watch: Revenue within the guidance of $18.95 billion to $19.60 billion with a book-to-bill of 1.0 or more passes; revenue below the range or a lower full-year guidance fails.
- Mar 2027 (estimate): Q2 fiscal 2027 results: AI work and margin. Status: Pending. Watch: Growth in the middle of the 3% to 6% range with a higher operating margin passes; growth near 3% or a lower margin fails.

## Balance sheet

- Cash: $12.8B
- Debt: $10.2B
- Net cash: $2.7B
- Interest cover: 38×
- Undrawn credit line: $8.0B, to April 2031
- Debt due within 12 months: $113M
- Last debt due: 2036

Accenture has more cash than debt. At August 31, 2026, cash and cash equivalents were $12.83 billion. Debt was $10.0 billion of senior unsecured notes, $100 million of commercial paper and about $68 million of other debt, mainly finance leases. Accenture Capital Inc. issued $5 billion of notes in October 2024 and $5 billion more on July 10, 2026. The notes are due from 2027 to 2036, and the first is $1.1 billion of 3.90% notes due in 2027. On April 22, 2026, Accenture signed a $5.925 billion five-year credit facility to April 2031 and a $2.175 billion 364-day facility. Commercial paper reduces the amount available under them. Interest cover is operating income divided by interest expense for fiscal 2026. Free cash flow was $11.62 billion in fiscal 2026, and Accenture returned $11.5 billion to shareholders. In the first quarter of fiscal 2027, Accenture closed the Cyber OT purchases, including Dragos. Its Investor Day showed about $3 billion of acquisition capital for them, so its net cash is now smaller.

As of 2026-08-31.

Sources:

- https://www.sec.gov/Archives/edgar/data/1467373/000146737326000049/acn-20260831.htm
- https://www.sec.gov/Archives/edgar/data/1467373/000146737326000037/q4fy26earnings8-kexhibit.htm
- https://www.sec.gov/Archives/edgar/data/1467373/000146737326000042/fy27-investorxday.htm

## Dividends

- Dividend yield: 2.0% (last 12 months, at the current price)
- Paid per share, last 12 months: $4.97 (3 payments)
- Current annual rate: $6.84 ($1.71 x 4 a year)
- Payout ratio: 24% of the earnings of the last fiscal year (the year ended 2026-08-31)
- Latest ex-dividend date: 2026-10-13, $1.71 per share

Dividends per share by year: 2016: $2.31, 2017: $2.54, 2018: $2.79, 2019: $2.26, 2020: $3.28, 2021: $3.61, 2022: $4.03, 2023: $4.65, 2024: $5.35, 2025: $4.44.

Source: company filings and market data, read on 2026-11-09.

## Recent events

- 2026-10-14: At its Investor Day, Accenture set an ambition of mid-single-digit revenue growth in fiscal 2027 and fiscal 2028 and mid to high-single-digit growth in fiscal 2029, in local currency. It plans to expand the operating margin by 10 to 30 basis points in each of these years. It expects to spend about $8 billion on acquisitions in fiscal 2027, including about $3 billion for the Cyber OT purchases, such as Dragos, that closed in the first quarter of fiscal 2027.
- 2026-10-01: Accenture reported Q4 fiscal 2026 results. Revenue grew 7% in local currency to $18.68 billion, above its guided range. GAAP diluted EPS was $3.29, and new bookings were $22.17 billion. For fiscal 2026, revenue was $74.18 billion, adjusted EPS was $13.97 and free cash flow was $11.62 billion. For fiscal 2027, Accenture guides revenue growth of 3% to 6% in local currency, GAAP diluted EPS of $14.39 to $14.81 and free cash flow of $11.0 billion to $11.8 billion.
- 2026-10-01: Accenture raised its quarterly dividend by 5% to $1.71 per share. In September 2026, its Board approved $6.0 billion of additional share repurchase authority, for a total of about $6.9 billion. Accenture expects to return at least $9.5 billion to shareholders in fiscal 2027.
- 2026-07-10: Accenture Capital Inc., a finance subsidiary of Accenture, issued $5 billion of senior unsecured notes due from 2029 to 2036. Accenture uses the money for general corporate purposes, such as acquisitions and the repayment of commercial paper.
- 2026-06-18: Accenture reported Q3 fiscal 2026 results. Revenue grew 3% in local currency to $18.7 billion, and diluted EPS rose 9% to $3.80. It lowered its fiscal 2026 revenue growth guidance to 3% to 4% in local currency, with an estimated 1% impact from its U.S. federal business. It agreed to buy a majority stake in Dragos and all of runZero and NetRise, which are companies in operational technology security.
- 2026-04-22: Accenture replaced its $5.5 billion credit facility with a $5.925 billion five-year facility to April 2031 and a $2.175 billion 364-day facility.
- 2026-03-19: Accenture reported Q2 fiscal 2026 results. New bookings were a record $22.1 billion for a second quarter, and revenue grew 4% in local currency to $18.0 billion. Diluted EPS was $2.93.
- 2025-12-18: Accenture reported Q1 fiscal 2026 results. Revenue grew 5% in local currency to $18.7 billion. New bookings were $20.9 billion, of which $2.2 billion were Advanced AI bookings.

## Latest news and filings

- Last earnings: 2026-10-01 (8-K: https://www.sec.gov/Archives/edgar/data/1467373/000146737326000037/)
- Next earnings: 2026-12-17 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-10-16 | 10-K | Annual report for the period ended Aug 31, 2026 | 2026-08-31 | acn-20260831 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000049/acn-20260831.htm |
| 2026-10-14 | 8-K | Investor disclosure |  | acn-20261014 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000042/acn-20261014.htm |
| 2026-10-01 | 8-K | Earnings release |  | acn-20261001 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000037/acn-20261001.htm |
| 2026-07-10 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1467373/000119312526300813/d181172d8k.htm |
| 2026-06-23 | 8-K | Investor disclosure |  | acn-20260623 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000035/acn-20260623.htm |
| 2026-06-18 | 10-Q | Quarterly report for the period ended May 31, 2026 | 2026-05-31 | acn-20260531 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000032/acn-20260531.htm |
| 2026-06-18 | 8-K | Earnings release |  | acn-20260618 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000031/acn-20260618.htm |
| 2026-04-24 | 8-K | New material agreement and End of a material agreement |  | acn-20260422 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000019/acn-20260422.htm |
| 2026-03-19 | 10-Q | Quarterly report for the period ended Feb 28, 2026 | 2026-02-28 | acn-20260228 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000014/acn-20260228.htm |
| 2026-03-19 | 8-K | Earnings release |  | acn-20260319 | https://www.sec.gov/Archives/edgar/data/1467373/000146737326000013/acn-20260319.htm |

Every filing on SEC EDGAR (CIK 1467373): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001467373&type=&dateb=&owner=include&count=40

## Risks

- High: AI tools can reduce the amount of work that clients buy from consultants and outsourcing teams, or push prices down. Consulting revenue grew only 3% in local currency in fiscal 2026. If clients use AI to do more work themselves, Accenture's growth and margins can fall.
- Medium: U.S. federal work is at risk. Lower federal spending cut fiscal 2026 revenue growth by about 1%. The U.S. Department of Justice also investigates whether employees of Accenture Federal Services gave inaccurate information about a service for the government. This can bring fines or a ban from federal contracts.
- Medium: Accenture expects to spend about $8 billion on acquisitions in fiscal 2027, including the Cyber OT purchases such as Dragos. Large purchases can give lower returns than planned, and their integration can be difficult.
- Low: About half of revenue comes from outside the Americas. A stronger dollar lowers reported revenue and earnings.

## Links

- Page: https://picks.utilarium.app/company/ACN/
- History of changes: https://picks.utilarium.app/company/ACN/history/
- JSON with full history: https://picks.utilarium.app/data/company/ACN.json

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