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Accenture Earnings Beat Estimates in Q1, Revenues Increase Y/Y
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Key Takeaways
ACN delivered 1Q26 EPS of $3.94 and revenues of $18.7B, beating estimates and growing y/y.
Accenture saw managed services revenues rise 8% and total bookings climb 12%, led by strong demand.
ACN reported margin expansion, solid free cash flow and returned cash via buybacks and dividends.
Accenture plc (ACN - Free Report) has reported impressive first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $3.94 per share, beating the Zacks Consensus Estimate by 5.6%. The metric increased 9.8% from the year-ago quarter. Total revenues of $18.7 billion beat the consensus estimate by 1% and rose 6% on a year-over-year basis.
The company’s shares have jumped 15% over the past three months compared with the industry’s 2.8% fall and the Zacks S&P 500 composite’s 1.8% rise.
Based on the type of work, managed services’ revenues of $9.3 billion increased 8% from the year-ago quarter on a reported basis and 7% in local currency, surpassing our estimate of $8.8 billion. Consulting revenues gained 4% year over year on a reported basis and 3% in local currency to $9.4 billion, missing our projection of $9.6 billion.
Segment-wise, health and public service revenues of $3.8 billion were flat with the year-ago quarter on a reported basis and declined 1% in local currency. The figure missed our estimation of $3.9 billion. Revenues from the resources segment amounted to $2.5 billion, rising 3% from the year-ago quarter on a reported basis and 2% on a local currency basis. The figure met our estimated figure. Revenues from the product segment amounted to $5.7 billion, increasing 6% year over year on a reported basis and 4% on a local currency basis. The figure beat our estimate of $5.6 billion.
Communications, media and technology revenues of $3.1 billion increased 9% year over year on a reported basis and 8% in terms of local currency, surpassing our projection of $3 billion. Financial services revenues of $3.6 billion grew 14% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.4 billion.
Geographically, revenues of $9.1 billion from the Americas rose 4% from the year-ago quarter on a reported basis and on a local currency basis. The figure met our projected figure.
Revenues of $6.9 billion from the EMEA gained 8% on a reported basis and 4% in local currency, beating our estimate of $6.7 billion. Revenues of $2.7 billion from the Asia Pacific increased 7% year over year on a reported basis and gained 9% in local currency, outpacing our estimate of $2.6 billion.
Booking Trends of Accenture
The company reported bookings worth $20.9 billion in the first quarter of fiscal 2025, increasing 12% from the year-ago quarter on a reported basis and 10% in local currency. Consulting bookings were $9.9 billion and managed services bookings were $11.1 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 33.1%, up 20 basis points (bps) from the year-ago quarter. The adjusted operating margin of 17% moved up 30 bps from the first quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited the first-quarter fiscal 2026 with cash and cash equivalents of $9.6 billion compared with $11.5 billion at the end of the fourth-quarter fiscal 2025. The company generated $1.7 billion in cash from operating activities. Capital expenditure in the reported quarter was $156.6 million.
The free cash flow was $1.5 billion. Accenture repurchased 9.5 million shares for $2.3 billion. The company paid out a dividend of $1 billion in the first quarter of fiscal 2026.
ACN’s Q2 & FY26 Guidance
For the second quarter of fiscal 2026, the company expects revenues of $17.35-$18 billion. The guided range exceeds the Zacks Consensus Estimate of $18.56 billion.
For fiscal 2026, ACN expects year-over-year revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow forecast is $9.8-$10.5 billion.
EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.
Corpay, Inc.’s (CPAY - Free Report) third-quarter 2025 earnings per share met the consensus mark, while revenues beat the same.
CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.
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Accenture Earnings Beat Estimates in Q1, Revenues Increase Y/Y
Key Takeaways
Accenture plc (ACN - Free Report) has reported impressive first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $3.94 per share, beating the Zacks Consensus Estimate by 5.6%. The metric increased 9.8% from the year-ago quarter. Total revenues of $18.7 billion beat the consensus estimate by 1% and rose 6% on a year-over-year basis.
The company’s shares have jumped 15% over the past three months compared with the industry’s 2.8% fall and the Zacks S&P 500 composite’s 1.8% rise.
Accenture PLC Price and EPS Surprise
Accenture PLC price-eps-surprise | Accenture PLC Quote
ACN’s Revenues in Detail
Based on the type of work, managed services’ revenues of $9.3 billion increased 8% from the year-ago quarter on a reported basis and 7% in local currency, surpassing our estimate of $8.8 billion. Consulting revenues gained 4% year over year on a reported basis and 3% in local currency to $9.4 billion, missing our projection of $9.6 billion.
Segment-wise, health and public service revenues of $3.8 billion were flat with the year-ago quarter on a reported basis and declined 1% in local currency. The figure missed our estimation of $3.9 billion. Revenues from the resources segment amounted to $2.5 billion, rising 3% from the year-ago quarter on a reported basis and 2% on a local currency basis. The figure met our estimated figure. Revenues from the product segment amounted to $5.7 billion, increasing 6% year over year on a reported basis and 4% on a local currency basis. The figure beat our estimate of $5.6 billion.
Communications, media and technology revenues of $3.1 billion increased 9% year over year on a reported basis and 8% in terms of local currency, surpassing our projection of $3 billion. Financial services revenues of $3.6 billion grew 14% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.4 billion.
Geographically, revenues of $9.1 billion from the Americas rose 4% from the year-ago quarter on a reported basis and on a local currency basis. The figure met our projected figure.
Revenues of $6.9 billion from the EMEA gained 8% on a reported basis and 4% in local currency, beating our estimate of $6.7 billion. Revenues of $2.7 billion from the Asia Pacific increased 7% year over year on a reported basis and gained 9% in local currency, outpacing our estimate of $2.6 billion.
Booking Trends of Accenture
The company reported bookings worth $20.9 billion in the first quarter of fiscal 2025, increasing 12% from the year-ago quarter on a reported basis and 10% in local currency. Consulting bookings were $9.9 billion and managed services bookings were $11.1 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 33.1%, up 20 basis points (bps) from the year-ago quarter. The adjusted operating margin of 17% moved up 30 bps from the first quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited the first-quarter fiscal 2026 with cash and cash equivalents of $9.6 billion compared with $11.5 billion at the end of the fourth-quarter fiscal 2025. The company generated $1.7 billion in cash from operating activities. Capital expenditure in the reported quarter was $156.6 million.
The free cash flow was $1.5 billion. Accenture repurchased 9.5 million shares for $2.3 billion. The company paid out a dividend of $1 billion in the first quarter of fiscal 2026.
ACN’s Q2 & FY26 Guidance
For the second quarter of fiscal 2026, the company expects revenues of $17.35-$18 billion. The guided range exceeds the Zacks Consensus Estimate of $18.56 billion.
For fiscal 2026, ACN expects year-over-year revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow forecast is $9.8-$10.5 billion.
Accenture carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax Inc. (EFX - Free Report) reported impressive third-quarter 2025 results.
EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.
Corpay, Inc.’s (CPAY - Free Report) third-quarter 2025 earnings per share met the consensus mark, while revenues beat the same.
CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.