10-Q · June 18, 2026
Accenture's Q3 FY26 results showed revenues of $18.72 billion, exceeding expectations, with an EPS of $3.80. The company saw significant growth in its core business, allowing it to raise full-year revenue guidance…
Earnings analysis · 10-K
ACN earnings analysis
Filed October 16, 2026 · Our reading of the company's report
The latest report
Accenture delivered a stronger fiscal 2026, with revenue up 6% to $74.2 billion, operating margin expanding to 15.4%, diluted EPS rising 12% to $13.56 and implied free cash flow of approximately $11.6 billion. Growth…
Read full summary
Accenture delivered a stronger fiscal 2026, with revenue up 6% to $74.2 billion, operating margin expanding to 15.4%, diluted EPS rising 12% to $13.56 and implied free cash flow of approximately $11.6 billion. Growth was broad-based but led by managed services, Asia Pacific and Communications, Media & Technology, while bookings increased 5% to $84.5 billion and remaining performance obligations reached approximately $37 billion. Capital returns remained substantial, although acquisitions, higher debt and significant new legal, cyber and tax exposures temper the outlook.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $13.56
What stood out
-
Positioned for AI-led business reinvention
Accenture describes itself as a business reinvention and technology company spanning strategy, managed services, proprietary assets, platforms, software and AI. Remaining performance obligations increased to approximately $37 billion from $34 billion, with 62% expected to convert to revenue in fiscal 2027.
-
Growth accelerated, led by managed services
Fiscal 2026 revenue increased 6% to $74.183 billion from $69.673 billion in fiscal 2025 and $64.896 billion in fiscal 2024. Managed Services grew 8% in U.S. dollars to $37.300 billion, outpacing Consulting growth of 5% to $36.883 billion.
-
Margins and EPS improved
GAAP operating margin expanded to 15.4% from 14.7%, while adjusted operating margin increased to 15.8% from 15.6%; business optimization costs declined to $308 million from $615 million. Diluted EPS rose to $13.56 from $12.15, and adjusted EPS increased to $13.97 from $12.93.
-
Strong cash generation
Operating cash flow rose to $12.363 billion from $11.474 billion; after $742.7 million of property and equipment purchases, implied free cash flow was approximately $11.621 billion. Cash and equivalents increased to $12.831 billion from $11.479 billion.
-
Asia Pacific and technology vertical lead
Asia Pacific was the fastest-growing geographic market, with local-currency revenue growth of 8%, while EMEA and the Americas grew 4% each. Communications, Media & Technology grew 10% in local currency and Financial Services grew 7%, compared with 2% growth in Health & Public Service.
-
Aggressive shareholder returns
Accenture returned $11.5 billion to shareholders in fiscal 2026, including $7.5 billion of share purchases and $4.0 billion of dividends. It repurchased 37.462 million shares for $6.905 billion in open-market purchases and received an additional $6.000 billion of repurchase authorization on September 30, 2026.
What to watch
-
DOJ investigation creates federal-contract risk
Accenture disclosed that Accenture Federal Services is responding to a DOJ civil and criminal investigation regarding potentially inaccurate submissions about federal security controls. Potential consequences include False Claims Act penalties, contract termination, forfeiture of profits, suspension of payments, fines, suspension or debarment; the company cannot estimate the reasonably likely cost beyond amounts accrued.
-
Increasing cyber and data-security exposure
The 10-K states that cybersecurity threats are becoming increasingly sophisticated and complex, increasing the difficulty of detection and defense. Although incidents have not had a material impact to date, Accenture says future impacts could be material; its cybersecurity organization includes more than 1,000 people.
-
Tax uncertainty could pressure cash taxes
Unrecognized tax benefits increased to $2.530 billion from $2.410 billion, of which $1.647 billion would favorably affect the effective tax rate if recognized. Accenture believes these benefits could increase by approximately $1.300 billion over the next 12 months because of tax audit activity and agreements with tax authorities.
Management's outlook
The 10-K does not provide numeric fiscal 2027 revenue or EPS guidance. It states that, assuming exchange rates remain within recent ranges, fiscal 2027 revenue growth in U.S. dollars is expected to be approximately equal to local-currency revenue growth.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.