Accenture plc (ACN)

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AI: Undervalued

Price checkThe shares look undervalued if cash generation merely holds near current guidance.

At the latest verifiable close, $176.89 on August 14, the shares cost about 13.1 times management’s fiscal 2026 earnings guidance of $13.38–$13.50 a share. Forecast free cash flow—cash left after running and investing in the business—of $10.8–$11.5 billion equals roughly $17.65–$18.79 per May-quarter share, a 10.0%–10.6% cash yield. Even subtracting annualized stock compensation, meaning employee pay issued in shares, the yield is about 8%. This supports Undervalued: the price assumes little durable growth, though disruption and acquisition risks justify a discount.

Big pictureRevenue keeps growing, but weaker bookings show that client spending has become less dependable.

Fiscal 2025 revenue reached $69.7 billion, up 57% from $44.3 billion in 2020, while net income rose from $5.1 billion to $7.7 billion. Free cash flow increased from about $7.6 billion to $10.9 billion and exceeded net income throughout that period, supporting its durability. However, third-quarter 2026 revenue grew only 3% after currency movements, signed future work fell 3% on the same basis, and full-year growth guidance narrowed to 3%–4%. Consulting demand remains cyclical because clients can postpone large projects when budgets tighten.

Business strengthA cash-rich balance sheet and aggressive buybacks provide meaningful downside support.

At May 31, 2026, Accenture held $10.2 billion of cash against $5.1 billion of debt, with $28.9 billion of current assets versus $21.6 billion of near-term liabilities. The planned $4.175 billion cybersecurity transaction equals 83% of net cash and could consume much of that cushion, depending on financing. Fiscal 2025 buybacks were $4.62 billion versus $2.09 billion of stock compensation, while fiscal 2026 repurchases are planned at $7.5 billion. The lower share count added $0.09 to third-quarter earnings per share. The annualized $6.52 dividend yields about 3.7%.

What could change the storyArtificial intelligence could either renew growth or shrink the work clients still outsource.

The bull case strengthens if signed future work again exceeds revenue, artificial-intelligence and cybersecurity projects lift growth beyond 4%, and profitability holds. The bear case is structural rather than merely cyclical: automated tools could reduce billable work before new projects replace it. Nearer-term warnings include the estimated one-point federal-business drag, the reported $400 million Middle East hit, and weak managed-services bookings. The current price can tolerate slow growth, but not a lasting revenue decline or poor returns from the $4.175 billion cybersecurity purchase, priced near 20 times its acquired businesses’ recurring revenue.

$176.89 price considered

AI: News

Growth outlook cutThird-quarter earnings grew, but softer bookings and reduced forecasts triggered a sharp reassessment.

On June 18, Accenture reported third-quarter revenue of $18.72 billion, up 6% in dollars and 3% after currency movements, while earnings per share rose 9% to $3.80. New bookings—signed future work—fell 2%, and the full-year growth forecast narrowed to 3%–4% from 3%–5%. Shares closed 17.97% lower that day. Reuters connected the selloff with the weaker outlook, a reported $400 million Middle East hit, and broader spending concerns; concurrent announcements prevent attributing the move to one factor alone.

Cybersecurity platform purchaseA large cybersecurity purchase adds faster growth, but consumes most of Accenture’s net cash.

On June 18, Accenture agreed to acquire a majority of Dragos and all of runZero and NetRise for a combined enterprise value of about $4.175 billion. The businesses reportedly had $208 million of annual recurring revenue—repeat yearly sales—growing 53%, implying a purchase price near 20 times that revenue. The platform could expand Accenture’s $10 billion cybersecurity business into software and create cross-selling opportunities. However, the price and integration risk are substantial. No separate stock reaction can be isolated because the transaction accompanied the earnings release.

Buyback program expandedManagement expanded buybacks after the selloff, increasing per-share support while shrinking financial flexibility.

On June 23, Accenture added $2 billion to its fiscal 2026 repurchase plan, raising expected buybacks to $7.5 billion, 62% above fiscal 2025. It planned $2.3 billion of fourth-quarter purchases by August 31 and total fiscal-year shareholder returns of $11.5 billion. The shares rose 1.7% in premarket trading after the announcement, although timing alone does not prove causation. Repurchases reduce the share count when completed, but they also commit cash shortly before the large cybersecurity transaction is expected to close.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$69.67B	$64.90B	$64.11B	$61.59B	$50.53B	$44.33B	$43.22B	$40.99B	$36.18B	$34.80B	$32.91B	$31.87B	$30.39B	$29.78B	$27.35B	$23.09B	$23.17B	$25.31B
Research & development	$817.3M	$1.15B	$1.30B	$1.12B	$1.12B	$870.6M	$799.7M	$790.8M	$704.3M	$643.4M	$625.5M	$639.5M	$715.1M	$559.6M	$482.0M	$377.0M	$434.9M	$390.2M
Operating income	$10.23B	$9.60B	$8.81B	$9.37B	$7.62B	$6.51B	$6.31B	$5.90B	$5.19B	$4.81B	$4.44B	$4.30B	$4.34B	$3.87B	$3.47B	$2.91B	$2.64B	$3.01B
EBITDAderived	$11.59B	$11.04B	$10.22B	$10.69B	$8.75B	$7.54B	$7.20B	$6.83B	$5.99B	$5.54B	$5.08B	$4.92B	$4.93B	$4.47B	$3.98B	$3.39B	$3.14B	$3.50B
Net income	$7.68B	$7.26B	$6.87B	$6.88B	$5.91B	$5.11B	$4.78B	$4.06B	$3.45B	$4.11B	$3.05B	$2.94B	$3.28B	$2.55B	$2.28B	$1.78B	$1.59B	$1.69B
Basic EPSper diluted share	$12.29	$11.57	$10.90	$10.87	$9.31	$8.03	$7.49	$6.46	$5.56	$6.58	$4.87	$4.64	$5.08	$3.97	$3.53	$2.79	$2.55	$2.77
Diluted EPSper diluted share	$12.15	$11.44	$10.77	$10.71	$9.16	$7.89	$7.36	$6.34	$5.44	$6.45	$4.76	$4.52	$4.93	$3.84	$3.39	$2.66	$2.44	$2.64

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)264$57.50M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 30, 2026Form 4 · 10b5-1	Egawa AtsushiCo-CEO Asia Pacific	SellClass A ordinary shares	261	$178.58	$46.6K	12.8K
Apr 30, 2026Form 4 · 10b5-1	Egawa AtsushiCo-CEO Asia Pacific	SellClass A ordinary shares	2.8K	$177.62	$490.4K	13.1K
Apr 30, 2026Form 4 · 10b5-1	Egawa AtsushiCo-CEO Asia Pacific	SellClass A ordinary shares	1.3K	$176.93	$231.1K	15.8K
Apr 30, 2026Form 4 · 10b5-1	Egawa AtsushiCo-CEO Asia Pacific	SellClass A ordinary shares	544	$174.53	$94.9K	17.1K
Feb 10, 2026Form 4 · 10b5-1	Sweet Julie SpellmanChair and CEO	SellClass A ordinary shares	1.0K	$243.15	$248.7K	15.3K

Review ownership filings at SEC.gov ↗

Accenture plc (ACN)

Financial charts

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Insider buys & sells