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Accenture: Accenture's Q1 FY2026: Strong Revenue Growth and AI-Driven Momentum

Accenture reported revenue of $18.7 billion for Q1 FY2026, a 5% growth in local currency, driven by broad-based growth across markets and types of work. The company's adjusted operating margin expanded by 30 basis points year over year to 17%, and adjusted EPS grew 10% to $3.94, beating analyst estimates of $3.74. The strong financial performance was underpinned by a robust bookings growth, with $20.9 billion in bookings, including 33 clients with quarterly bookings greater than $100 million.

ACN

USD 272.25

0.85%

A-Score: 4.8/10

Publication date: December 18, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth: Q1 FY2026 revenue hit $18.7 billion, up 5% in local currency, driven by broad-based market growth.
  • Advanced AI Expansion: AI bookings surged to $2.2 billion (up from $1.1 billion in Q1 FY2025), with $11.5 billion in cumulative AI bookings across 11,000 projects.
  • Operational Efficiency: Adjusted operating margin expanded 30 bps to 17%, and adjusted EPS rose 10% to $3.94, with free cash flow at $1.5 billion.
  • Strategic Acquisitions: $374 million invested in six acquisitions, including a 65% stake in DLB Associates to bolster capabilities.
  • Market Leadership: Partnerships with Anthropic, OpenAI, and Snowflake underscore Accenture's AI ecosystem, supporting $4.8 billion in AI revenue to date.

Advanced AI Adoption and Growth

Accenture's Advanced AI bookings nearly doubled to $2.2 billion, and revenue reached approximately $1.1 billion. The company has now delivered $11.5 billion in Advanced AI bookings across 11,000 projects and $4.8 billion in revenue. This growth is expected to continue, driven by the company's partnerships with major AI players, including Anthropic, OpenAI, and Snowflake.

Valuation and Outlook

With a P/E Ratio of 22.15 and an EV/EBITDA of 13.64, Accenture's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 6.2%, which is slightly higher than the company's current guidance. Accenture's strong Q1 FY2026 results and AI-driven momentum position the company well to capitalize on the growing demand for AI-related services.

Segment Performance and Guidance

The company's revenue growth was led by The Americas, EMEA, and Asia Pacific, with growth in key sectors such as banking and capital markets, industrial, and software and platforms. Accenture expects revenue growth of 2-5% in local currency for FY2026, with adjusted operating margin expected to be 15.7-15.9%, a 10-30 basis point expansion over adjusted FY2025 results.

Dividend and Shareholder Returns

Accenture returned $3.3 billion to shareholders through accelerated repurchases and dividends, and its Board of Directors declared a quarterly cash dividend of $1.63 per share, a 10% increase over last year. The company's commitment to returning a substantial portion of its cash generated to shareholders is evident in its dividend yield of 2.23%.

Accenture's A-Score