The Accenture story

What drives the business

• Accenture's global delivery network and industry expertise underpin its shift toward AI services, supported by approximately 77,000 AI and data practitioners at the end of fiscal 2025 and proprietary platforms such as GenWizard.
• In the quarter to May 2026, consulting revenue was $9.33 billion and managed services revenue was $9.39 billion, growing 1% and 5%, respectively, in local currency.
• The Americas was the largest geographic market, with revenue of $9.14 billion in the quarter to May 2026, while Communications, Media & Technology led industry group growth at 9% in local currency.
• New bookings reached $19.3 billion in the quarter to May 2026, with 104 client bookings of $100 million or more in fiscal 2026 through May, up 13% from the prior year.
• Agreements to acquire a majority stake in Dragos and all of runZero and NetRise extend Accenture into operational technology security and support its strategy of expanding through technology platforms.

What the price assumes

At $174.47, the reverse DCF implies annual growth of -2.8% in free cash flow after stock pay for ten years, using a discount rate of 10.2%.

Accenture delivered annual growth of 11.0% on that measure over the last 10 years, while the TenQ check sets a 7.5% bar by slowing that record halfway to 4%.

The implied contraction contrasts with that cash growth record, although revenue growth over the last twelve months was 6.7% and profit growth was -2.0%.

Value ACN on your own assumptions

What could change the story

• Total new bookings declined 2% in U.S. dollars in the quarter to May 2026 despite the increase in large client bookings, and Accenture expects an estimated 1% impact from its U.S. federal business on fiscal 2026 revenue growth.
• Revenue growth of 6.7% over the last twelve months fell short of the TenQ sector comparison of 17.0%, while profit growth of -2.0% failed the positive growth check.
• The AI transition requires Accenture to match employee skills with changing client demand, while its typically nonexclusive client relationships leave it exposed to competing service providers and clients' internal technology teams.
• The near-term liquidity ratio of 1.34 fell short of the TenQ bar of 1.50, and days services outstanding reached 48 days at May 31, 2026, compared with 47 days at May 31, 2025.
• Planned fiscal 2026 shareholder returns of $11.5 billion equal the upper end of free cash flow guidance, making acquisition spending and the effect of the July 2026 note issuance important to the balance sheet.

What to watch next

• Accenture's fiscal 2026 guidance calls for revenue growth of 3% to 4% in local currency, or 4% to 5% excluding the estimated U.S. federal impact.
• The earnings benchmarks are GAAP diluted earnings per share of $13.38 to $13.50 and adjusted earnings per share of $13.78 to $13.90, alongside free cash flow of $10.8 billion to $11.5 billion.
• Subsequent releases can show whether large client bookings translate into faster consulting growth and whether managed services maintains its stronger pace.
• Progress on the Dragos, runZero and NetRise acquisitions, together with execution of the announced $7.5 billion fiscal 2026 share repurchase plan, will show how Accenture balances expansion with capital returns.

Sources

• Accenture's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The ACN stock report, for every figure and check