Accenture (NYSE: ACN) delivered a strong Q1 FY2026 beat, posting adjusted EPS of $3.94 (vs. $3.74 consensus estimate) and revenue of $18.74 billion (vs. $18.51 billion expected). Despite the beat, ACN shares fell approximately 2.1% in pre-market trading on December 18, 2025.
About Accenture
Accenture plc (NYSE: ACN) is a leading global professional services and technology consulting company headquartered in Dublin, Ireland. Founded in 1989, Accenture operates across more than 120 countries, providing solutions in strategy and consulting, technology, digital, operations, and managed services to the world’s most prominent enterprises. The company employs approximately 784,000 people as of Q1 FY2026 and reported full-year fiscal 2025 revenues of $69.67 billion.
As of March 2026, Accenture carries a market capitalization of approximately $122 billion, reflecting a significant decline from its 2024 highs. The stock trades at a trailing P/E ratio of approximately 16.3x and carries a quarterly dividend of $1.63 per share, representing an annualized dividend yield of roughly 3.3% following a 10% dividend increase. The company is a member of the S&P 100 and the Fortune Global 500, and its services span industries including financial services, health and public service, products, resources, and communications, media and technology.
Top Financial Highlights
Key data points from Accenture’s Q1 FY2026 earnings release, covering the three months ended November 30, 2025:
- Total Revenue reached $18.74 billion, up 6% in U.S. dollars and 5% in local currency year over year, finishing at the top of the company’s guided range
- Net Income (GAAP) was $2.24 billion, compared with $2.32 billion in Q1 FY2025
- Adjusted Net Income came in at $2.49 billion, excluding $308 million in business optimization costs (primarily employee severance)
- GAAP Diluted EPS was $3.54, a 1% decrease from $3.59 in Q1 FY2025; Adjusted EPS increased 10% to $3.94
- Gross Margin was 33.1%, a slight improvement from 32.9% in Q1 FY2025
- Adjusted Operating Margin expanded 30 basis points year over year to 17.0%; GAAP operating margin was 15.3%, down 140 bps due to business optimization charges
- Operating Cash Flow was $1.66 billion vs. $1.02 billion in the prior-year period; Free Cash Flow was $1.51 billion
- New Bookings totaled $20.94 billion, up 12% in U.S. dollars and 10% in local currency; book-to-bill ratio of 1.1x
- Advanced AI New Bookings reached $2.2 billion, nearly doubling from Q1 FY2025; Advanced AI Revenue was approximately $1.1 billion
- Cash on Hand stood at $9.6 billion as of November 30, 2025 (down from $11.5 billion at August 31, 2025)
- Consulting Revenue was $9.41 billion (up 4% in USD, 3% in local currency); Managed Services Revenue was $9.33 billion (up 8% in USD, 7% in local currency)
- Total cash returned to shareholders was $3.3 billion, consisting of $2.3 billion in share repurchases and $1.0 billion in dividends
- Full-year FY2026 Adjusted EPS guidance of $13.52 to $13.90 (5%-8% growth) confirmed; GAAP EPS guidance updated to $13.12 to $13.50
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Adjusted EPS | $3.94 | $3.74 | Beat by $0.20; +5.35% surprise |
| Revenue | $18.74B | $18.51B | Beat by $0.23B; +1.2% above consensus |
| GAAP EPS | $3.54 | N/A | Below adjusted figure due to $308M optimization charges |
| New Bookings | $20.94B | N/A | Exceeded prior year by 12%; included 33 clients with bookings above $100M |
| Adjusted Operating Margin | 17.00% | N/A | Expanded 30 bps YoY; Q1 FY2025 GAAP was 16.7% |
| Q2 FY2026 Revenue Guidance | $17.35B-$18.0B | N/A | Implies 1%-5% local-currency growth; approximately +3.5% FX tailwind assumed |
What Leadership Is Saying?
CEO Julie Sweet on strategy and AI: “I am very pleased with our $21 billion in new bookings, including 33 clients with quarterly bookings greater than $100 million. We delivered revenue growth of 5% in local currency, at the top of our guided range, while continuing to gain market share. We also strengthened our leadership in advanced AI and deepened our ecosystem partnerships to help clients realize value. These results reflect our strategy to be the reinvention partner of choice for our clients.”
CFO Angie Park on financials and margins: “We are very pleased with our first quarter results with revenue at the top of our guided range as well as strong adjusted margin expansion, adjusted EPS growth, and free cash flow. These results reflect the execution of our strategy to be the reinvention partner for our clients. We continue to invest for long-term market leadership while delivering significant value for our shareholders.”
Park further noted that approximately 60% of Accenture’s work in FY2025 was fixed-price, up around 10 percentage points over the past three years, reflecting the increasing role of proprietary platforms and client demand for greater cost certainty.
Historical Performance
Year-over-year comparison of Accenture’s Q1 FY2026 versus Q1 FY2025:
| Category | Q1 FY2026 | Q1 FY2025 | Change (%) |
| Total Revenue | $18.74B | $17.69B | +6.0% |
| Net Income (GAAP) | $2.24B | $2.32B | -3.4% |
| Adjusted EPS | $3.94 | $3.59 | +10.0% |
| GAAP EPS | $3.54 | $3.59 | -1.4% |
| Operating Cash Flow | $1.66B | $1.02B | +62.7% |
| Free Cash Flow | $1.51B | $0.87B | +73.6% |
| New Bookings | $20.94B | $18.67B (approx.) | +12.0% |
| Adjusted Operating Margin | 17.00% | 16.7% (GAAP base) | +30 bps |
| GAAP Operating Margin | 15.30% | 16.70% | -140 bps |
The decline in GAAP net income and GAAP operating margin is entirely attributable to $307.5 million in business optimization costs (employee severance) recorded in Q1 FY2026, which had no equivalent in Q1 FY2025. Excluding these charges, the business demonstrated broad-based margin expansion.
Competitor Performance
A comparison of Accenture and key IT services peers for their most recently reported comparable quarters:
| Category | Accenture Q1 FY2026 (Nov 2025) | IBM Q1 FY2025 (Mar 2025) | Cognizant Q4 2025 (Dec 2025) |
| Revenue | $18.74B (+6% YoY) | $14.54B (+1% YoY) | $5.33B (+4.9% YoY) |
| Net Income | $2.24B (GAAP) | $1.06B (GAAP) | N/A (Q4 adj. EPS $1.35) |
| Adjusted EPS | $3.94 (+10% YoY) | $1.60 (+N/A vs. prior year) | $1.35 (+12% YoY) |
| Adj. Operating Margin | 17.0% (+30 bps) | 56.6% gross margin (+190 bps) | 16.0% (+30 bps) |
| New Bookings | $20.94B (+12% YoY) | AI book of business $6B+ (inception) | TTM bookings $28.4B (+5% YoY) |
| Stock Reaction | Down ~2.1% pre-market | Down ~6.87% pre-market | Down ~1.34% pre-market |
Accenture posted the strongest revenue growth rate among the peer group, while Cognizant achieved comparable margin expansion. IBM’s gross margin profile is structurally higher due to its software-heavy revenue mix. All three companies cited AI as a key demand driver, though Accenture remains unique in having disclosed cumulative Advanced AI bookings of approximately $11.5 billion across 11,000 projects since Q3 FY2023.
How the Market Reacted?
Despite reporting a clear earnings beat on both EPS and revenue, Accenture’s stock fell approximately 2.1% in pre-market trading on December 18, 2025, trading around $268. The muted reaction likely reflected a broader pattern for Accenture and peers, where even strong results are met with caution if forward guidance does not materially exceed expectations.
The company’s confirmed full-year revenue growth guidance of 2% to 5% in local currency was unchanged from prior guidance, offering little positive surprise for investors looking for an uplift. Additionally, concerns about persistent weakness in discretionary IT spending and a roughly 1% revenue headwind from the U.S. federal business may have weighed on sentiment. Historically, ACN shares have recovered within one to two weeks following earnings, with the stock gaining ground in approximately 63% to 82% of cases in the two-week window after results.
