Accenture plc (ACN) AI Stock Analysis
ACN AI stock analysis summary
AI ResearchAccenture plc (ACN) generated $74.18B in FY2026 revenue with net income of $8.37B and diluted EPS of $13.96. The company produced $11.62B in free cash flow, supported by a 5-year revenue CAGR of 8.0%. With net debt at $559.2M and a forward dividend yield of 2.98%, capital returns included $7.52B in share buybacks and $3.99B in dividends.
- Market cap
- $140.55B
- Revenue (TTM)
- $74.18B
- P/E
- 16.9x fwd 12.4x
- 1Y return
- 1.6% S&P 500 16.8%
- Avg. target
- $225.32 -1.9% vs last close
Bull case
- Free cash flow reached $11.62B in FY2026 on operating cash flow of $12.36B, supporting $7.52B in share buybacks.
- Accenture trades at a forward P/E of 12.4x and an EV/EBITDA of 9.0x, lower than the median of its S&P 500 Technology peers of 20.9x and 19.9x.
- Profitability metrics remain robust with a return on equity of 26.0% and quarterly earnings growth of 46.4% in the quarter ended August 31, 2026.
Bear case
- Over the past 5 years, the stock returned -25.7%, substantially trailing the S&P 500 (SPY) gain of 83.0%.
- The stock is down 11.4% year-to-date and the consensus mean price target of $225.32 sits 1.9% below the last close of $229.68.
- In the latest quarter, quarterly revenue growth of 6.2% lagged the median of its S&P 500 Technology peers of 20.5%.
What Accenture does
Accenture plc is a global professional services firm providing offerings across strategy and consulting, interactive, industry X, and technology and operations. Its capabilities include application services such as agile transformation, DevOps, and application modernization, alongside software engineering and data and analytics using artificial intelligence and machine learning. Accenture delivers digital transformation through digital commerce solutions, infrastructure services, and cloud management. The company also provides engineering and R&D digitization for smart connected products, business process outsourcing, technology innovation, and sustainability consulting. Headquartered in Dublin, Ireland, the company operates across diverse IT environments with 814,000 employees.
Growth and profitability
Accenture grew revenue from $61.59B in FY2022 to $74.18B in FY2026, delivering a 5-year revenue CAGR of 8.0%. Annual revenue growth was 21.9% in FY2022, 4.1% in FY2023, 1.2% in FY2024, 7.4% in FY2025, and 6.5% in FY2026. Gross margin held steady between 31.9% in FY2025 and 32.6% in FY2024, reaching 32.0% in FY2026. Operating margin rose to 15.4% in FY2026 from 13.7% in FY2023, while net margin reached 11.3% with net income of $8.37B and EPS of $13.96. In the quarter ended August 31, 2026, quarterly revenue grew 6.2% year-over-year and quarterly earnings increased 46.4%.
Balance sheet and cash flow
As of August 31, 2026, Accenture held $12.84B in cash and short-term investments against total debt of $13.40B, resulting in net debt of $559.2M. Total assets stood at $73.60B and shareholders' equity was $31.57B, reflecting a current ratio of 1.43 and a debt-to-equity ratio of 0.42. During FY2026, operating cash flow reached $12.36B and free cash flow totaled $11.62B after capital expenditures of $742.7M. The firm returned cash through $7.52B in share buybacks and $3.99B in dividends paid, reducing its share count by 6.1% over 5 years.
Valuation and performance
At its last close of $229.68, Accenture trades at a trailing P/E of 16.9x and a forward P/E of 12.4x, below the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. Its price-to-sales of 1.9x and EV/EBITDA of 9.0x also sit below peer medians of 6.3x and 19.9x. The stock carries a PEG ratio of 1.33 and a price-to-book ratio of 3.5x. Over the past year, ACN gained 1.6% compared to 16.8% for the S&P 500 (SPY). Over five years, the stock fell 25.7% while the benchmark index rose 83.0%.
ACN dividend
Accenture pays an annual forward dividend of $6.84, resulting in a dividend yield of 2.98% and a payout ratio of 47.3%. The company has paid consecutive dividends for 22 years on a quarterly frequency. Its 5-year annualized dividend growth rate is 13.1%, with the last ex-dividend date on October 13, 2026.
What analysts expect
Analyst coverage consists of 9 Strong Buy, 2 Buy, and 16 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target of $225.32 is 1.9% below the last close of $229.68. For the fiscal year ending August 31, 2027, consensus estimates project revenue of $77.43B and EPS of $14.66, representing 5.0% EPS growth. For the following fiscal year, 26 analysts project revenue of $81.37B and EPS of $15.89. Accenture beat EPS estimates in all 4 of its last 4 quarters.
Key risks and what to watch
- Revenue expansion slowed from 21.9% in FY2022 to 6.5% in FY2026, including a low of 1.2% in FY2024.
- Accenture's operating margin of 15.3% remains below the median of its S&P 500 Technology peers of 23.7%.
- Total debt of $13.40B exceeds cash and short-term investments of $12.84B, leaving net debt at $559.2M.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ACN AI stock analysis
This page is an AI-written research summary of Accenture plc (ACN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ACN income statement, ACN balance sheet, ACN key metrics, ACN analyst forecast, ACN chart. See the ACN stock overview for the latest quote and news.
ACN AI stock analysis FAQ
What were Accenture's revenue and earnings in FY2026?
In FY2026, Accenture reported revenue of $74.18B, up 6.5% from the prior year, with net income of $8.37B and diluted EPS of $13.96.
Does Accenture pay a dividend?
Yes, Accenture pays a quarterly dividend with an annual forward amount of $6.84, offering a 2.98% dividend yield and a 47.3% payout ratio. It has paid dividends for 22 consecutive years.
How does Accenture's valuation compare to technology peers?
Accenture trades at a trailing P/E of 16.9x and EV/EBITDA of 9.0x, both below the median of its S&P 500 Technology peers of 31.5x and 19.9x.
What is the Wall Street analyst outlook for ACN?
Analysts hold 9 Strong Buy, 2 Buy, and 16 Hold ratings with a mean price target of $225.32, which is 1.9% below its last close of $229.68.