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Accenture plc
S&P 500
$106.4B
Market Cap
21.4
P/E
2.54
PEG
17.3%
ROCE
25.5%
ROE
0.23
D/E
14.7%
OPM
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Ratio Health
Excellent
Good
Average
Poor
By Category
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About

Accenture plc provides strategy and consulting, industry X, song, and technology and operation services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$18.04B
+8% USD; +4% LC
Operating Income
$2.49B
+11% YoY
Operating Margin
13.8%
+30bps YoY
Net Income
$1.86B
+2% YoY
What Went Right
  • Record quarterly bookings of $22.1B, up 6% USD; 41 clients with >$100M quarterly bookings (12 more than last year).
  • Revenue of $18.04B at top end of guided range, with 4% local currency growth.
  • Exceeded 85,000 AI/data professionals target; free cash flow of $3.7B.
What to Watch
  • US federal business headwind reduced Americas growth by ~2%; full year impact ~1%.
  • Middle East conflict creates uncertainty; guidance does not assume major escalation.
  • Highly competitive pricing environment noted; pricing improvements were only in some areas.
Management Guidance
  • Q3 FY26 revenue $18.35B-$19.0B (1%-5% LC growth; 2%-6% ex federal).
  • Full-year FY26 revenue growth 3%-5% LC (4%-6% ex federal); operating margin 15.7%-15.9% (+10-30bps).
  • Adjusted EPS $13.65-$13.90 (+6%-8%); free cash flow raised to $10.8B-$11.5B; at least $9.3B returned to shareholders.
Investor Lens
The thesis is stronger after this call. Record bookings, consistent market share gains, and accelerating AI adoption (85,000 AI professionals, new partnerships) validate Accenture's reinvention strategy. The raised free cash flow guidance and increased acquisition spend ($5B) signal confidence and balance sheet strength. However, macro uncertainties (Middle East, US federal) and mix shift toward fixed-price/FTE-lighter models bear watching for margin sustainability.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter with record bookings and raised guidance.
Revenue
Revenue was $18.04B, up 8% USD and 4% in local currency, at the top end of the guided range. Consulting revenue grew 3% LC; Managed Services grew 5% LC. Growth was broad-based across geographies (Asia Pacific +10%, Americas +3%, EMEA +2%).
Profitability
Net income was $1.86B, up 2% YoY. Diluted EPS of $2.93 grew 4% YoY, helped by lower share count. Strong earnings reflect operational leverage and cost discipline.
Margins
Operating margin expanded 30bps to 13.8%. Gross margin improved to 30.3% (from 29.9%), while SG&A held flat at 16.4% of revenue. Sales & marketing spend declined to 9.7% (from 10.1%).
Balance Sheet
Cash balance at quarter-end was $9.4B, down from $11.5B at August due to acquisitions ($1.6B deployed) and shareholder returns. Free cash flow of $3.7B was robust; DSO improved to 46 days (from 48 days last year).
Key Risks
US federal business remains a drag (1% full-year impact). Middle East conflict could weigh on H2 if escalated. Pricing competition persists. Fixed-price contract mix (now >60%) increases delivery risk but also drives margin stability.
Outlook
For Q3 FY26, revenue expected $18.35B-$19.0B (1%-5% LC). Full-year revenue growth guided at 3%-5% LC (4%-6% ex federal). Operating margin seen at 15.7%-15.9%, EPS $13.65-$13.90, and free cash flow raised to $10.8B-$11.5B.
Generated by AI · Q2 2026 results · Not investment advice
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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