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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 Strong FY2025 Results Driven by AI Adoption

Accenture reported a 7% revenue growth, achieving $80.6 billion in bookings, driven by a robust ecosystem partnership strategy, deep client relationships, and significant investments in AI capabilities. The company saw over $5 billion in new revenue, with earnings per share (EPS) coming in at $3.03, beating estimates of $2.98. Free cash flow exceeded guidance, demonstrating the company's ability to generate strong cash flows.

Publication Date: Sep -26

📋 Highlights
  • 7% Revenue Growth: with $5B+ new revenue, driven by organic expansion across all markets.
  • $2.7B in Gen AI/Agentic AI Revenue: , tripling from previous investments in AI capabilities.
  • 550,000 Employees Upskilled: in AI, reinforcing talent strategy for future demand.
  • 93% Utilization Rate: achieved, reflecting strong client demand and operational efficiency.
  • $3B in Acquisitions: planned for FY2026 to strengthen capabilities and drive growth.

Revenue Growth and AI Investments

The revenue growth was driven by organic growth across all markets and industries, with significant investments in AI tripling revenue from Gen AI and Agentic AI to $2.7 billion. Accenture's reinvention services launch consolidated its capabilities for faster and simpler delivery, positioning the company for continued growth.

Valuation and Pricing

With a P/E Ratio of 19.38, P/B Ratio of 4.77, and P/S Ratio of 2.14, Accenture's valuation metrics indicate a premium pricing. The EV/EBITDA ratio of 12.0 and Free Cash Flow Yield of 7.31% suggest that the company's strong cash generation is not fully reflected in its current valuation. The ROIC of 16.99% and ROE of 25.56% demonstrate Accenture's ability to generate strong returns on capital and equity.

Growth Prospects and Guidance

Accenture expects continued growth in FY2026, with guidance anticipating 2% to 5% revenue growth, excluding AFS. The company plans to increase headcount across all markets, driven by strong demand, and expects to invest $3 billion in acquisitions to further strengthen its capabilities.

AI Adoption and Client Relationships

Accenture is experiencing a pattern of expanding relationships with existing clients as they scale their AI initiatives. The company's expertise in technology, industry, and organization is helping clients overcome the complexity and cost of enterprise-wide transformation. As AI adoption continues to grow, Accenture is well-positioned to benefit from its strong partnerships and capabilities.

Operational Efficiency and Utilization

Accenture's utilization rate reached a new record of 93% due to strong demand. The company expects utilization to remain in the low 90% range, indicating a continued strong demand for its services. The business optimization program is expected to yield $1 billion in savings, which will be reinvested in the business and talent development.

3. NewsRoom

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Snowflake's Q3 Success Overshadowed by Cautious Q4 Outlook and Valuation Concerns

Dec -04

Source: gurufocus.com

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Accenture Invests in WEVO to Accelerate Customer-Led Growth

Dec -04

Source: businesswire.com

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Breakfast News: SNOW's Growth Outlook Cools

Dec -04

Source: fool.com

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Accenture and Snowflake Drive Enterprise Reinvention with AI and Data

Dec -03

Source: businesswire.com

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Edgestream Partners L.P. Acquires 6,944 Shares of Accenture PLC $ACN

Dec -03

Source: defenseworld.net

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Accenture to Announce First-Quarter Fiscal 2026 Results

Dec -02

Source: businesswire.com

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Top 15 High-Growth Dividend Stocks For December 2025

Dec -02

Source: seekingalpha.com

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Accenture (ACN) Rises As Market Takes a Dip: Key Facts

Dec -01

Source:

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
Neurones

A-Score: 6.0/10

Value: 5.1

Growth: 6.6

Quality: 7.1

Yield: 6.9

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Nedap

A-Score: 6.0/10

Value: 2.0

Growth: 3.4

Quality: 7.0

Yield: 6.2

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Computacenter

A-Score: 5.7/10

Value: 4.9

Growth: 6.9

Quality: 5.7

Yield: 5.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
IBM

A-Score: 5.5/10

Value: 1.5

Growth: 3.0

Quality: 6.3

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Accenture

A-Score: 4.8/10

Value: 3.7

Growth: 5.8

Quality: 7.6

Yield: 4.4

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Capgemini

A-Score: 4.6/10

Value: 4.9

Growth: 6.1

Quality: 5.5

Yield: 3.8

Momentum: 1.0

Volatility: 6.0

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

269.34$

Current Price

269.34$

Potential

-0.00%

Expected Cash-Flows