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1. Company Snapshot

1.a. Company Description

Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide.The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management, intelligent automation comprises robotic process automation, natural language processing, and virtual agents, and liquid application management services, as well as program, project, and service management services; strategy consulting services; critical data elements, data management and governance, data platform and architecture, product-based organization and skills, business adoption, and value realization services; engineering, and research and development digitization; smart connected product design and development; product platform engineering and modernization; product as-a-service enablement; products related to production and operations; autonomous robotics systems; the digital transformation of capital projects; and digital industrial workforce solutions.It also provides data-enabled operating models; technology consulting and artificial intelligence services; services related to talent and organization/human potential; digital commerce; infrastructure services, such as hybrid cloud, network, digital workplace and collaboration, service and experience management, infrastructure as code, and managed edge and IoT devices; cyber defense, applied cybersecurity, managed security, OT security, security strategy and risk, and industry security products; services related to technology innovation; and intelligent automation services.


In addition, the company offers cloud, ecosystem, marketing, supply chain management, zero-based budgeting, customer experience, finance consulting, mergers and acquisitions, and sustainability services.Accenture plc was founded in 1951 and is based in Dublin, Ireland.

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1.b. Last Insights on ACN

Accenture's recent performance was negatively impacted by a slower growth outlook for FY 2026, citing softer demand. Despite solid FY 2025 results, management guides for 2-5% growth, a disappointment to investors. Additionally, federal contract headwinds and weakness in new bookings offset growth in AI bookings. However, the company has made significant investments in GenAI, deep tech alliances, and Reinvention Services, marking a pivotal shift in its strategy. With a 25% share price drop, valuation appears fair, but limited upside is expected unless AI-driven growth accelerates meaningfully.

1.c. Company Highlights

2. 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.

Publication Date: Dec -20

📋 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%.

3. NewsRoom

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Accenture PLC $ACN Stake Reduced by Transcend Capital Advisors LLC

Feb -02

Source: defenseworld.net

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Top 15 High-Growth Dividend Stocks For February 2026

Feb -02

Source: seekingalpha.com

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Accenture PLC $ACN Shares Sold by Donaldson Capital Management LLC

Feb -01

Source: defenseworld.net

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Northcape Wealth Management LLC Purchases 3,073 Shares of Accenture PLC $ACN

Feb -01

Source: defenseworld.net

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Accenture PLC $ACN Position Increased by Federated Hermes Inc.

Jan -30

Source: defenseworld.net

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Accenture (ACN) Declines More Than Market: Some Information for Investors

Jan -30

Source: zacks.com

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Accenture (NYSE:ACN) COO Catherine Kiernan Hogan Sells 660 Shares of Stock

Jan -28

Source: defenseworld.net

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Accenture (NYSE:ACN) CAO Melissa Burgum Sells 3,588 Shares of Stock

Jan -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Products

Expected Growth: 6.2%

The segment is expected to grow due to increasing demand for digital transformation and technology-driven product innovation, driven by trends like Industry 4.0 and the Internet of Things (IoT).

Health & Public Service

Expected Growth: 5.1%

The segment is expected to grow steadily due to increasing demand for healthcare and public sector digitalization, driven by the need for improved service delivery and operational efficiency.

Financial Services

Expected Growth: 5.5%

The segment is expected to grow due to increasing demand for digital banking, risk management, and regulatory compliance, driven by trends like fintech and open banking.

Resources

Expected Growth: 4.9%

The segment is expected to grow steadily due to increasing demand for digital transformation and operational efficiency, driven by trends like sustainability and energy transition.

Communications, Media & Technology

Expected Growth: 6.5%

The segment is expected to grow rapidly due to increasing demand for digital transformation, 5G adoption, and media streaming, driven by trends like cloud gaming and social media.

7. Detailed Products

Strategy

Accenture's strategy services help clients develop and implement business strategies to drive growth, improve operations, and reduce costs.

Consulting

Accenture's consulting services help clients improve their business performance by analyzing and optimizing their operations, technology, and strategy.

Digital

Accenture's digital services help clients develop and implement digital solutions to improve customer experience, increase revenue, and reduce costs.

Technology

Accenture's technology services help clients implement and integrate technology solutions to improve their operations and reduce costs.

Operations

Accenture's operations services help clients improve their business operations by providing business process outsourcing, infrastructure outsourcing, and cloud services.

Cloud

Accenture's cloud services help clients migrate their applications and infrastructure to the cloud to improve agility, reduce costs, and increase scalability.

Security

Accenture's security services help clients protect their business from cyber threats by providing threat detection, incident response, and security consulting services.

Industry X.0

Accenture's Industry X.0 services help clients in the industrial sector improve their operations and reduce costs by implementing digital solutions.

8. Accenture plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Accenture's services are specialized and customized, making it difficult for clients to find substitutes. However, the increasing trend of automation and AI may pose a threat in the future.

Bargaining Power Of Customers

Accenture's clients are mostly large corporations and governments, which have limited bargaining power due to their dependence on Accenture's specialized services.

Bargaining Power Of Suppliers

Accenture has a diverse supplier base, and its suppliers have limited bargaining power due to the company's large scale and global presence.

Threat Of New Entrants

The consulting industry has high barriers to entry, including the need for specialized skills and expertise, making it difficult for new entrants to compete with Accenture.

Intensity Of Rivalry

The consulting industry is highly competitive, with many established players competing for market share. Accenture faces intense rivalry from companies like Deloitte, KPMG, and PwC.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.92%
Debt Cost 3.95%
Equity Weight 89.08%
Equity Cost 10.18%
WACC 9.50%
Leverage 12.26%

11. Quality Control: Accenture plc passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nedap

A-Score: 6.2/10

Value: 2.4

Growth: 3.7

Quality: 7.0

Yield: 6.9

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Computacenter

A-Score: 6.0/10

Value: 4.7

Growth: 6.9

Quality: 5.9

Yield: 4.4

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Neurones

A-Score: 6.0/10

Value: 4.8

Growth: 6.3

Quality: 7.2

Yield: 6.2

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Accenture

A-Score: 4.8/10

Value: 3.1

Growth: 5.8

Quality: 7.7

Yield: 3.8

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Capgemini

A-Score: 4.5/10

Value: 4.3

Growth: 6.0

Quality: 5.8

Yield: 3.1

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

266.79$

Current Price

266.79$

Potential

-0.00%

Expected Cash-Flows