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Accenture Earnings Beat Estimates in Q2, Revenues Increase Y/Y
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Key Takeaways
Accenture reported Q2'26 EPS of $2.93 and revenues of $18B, both beating estimates.
ACN saw growth in managed services and consulting, with most segments topping estimates.
Accenture raised its FY26 revenue growth view, and boosted the operating and free cash flow forecasts.
Accenture plc (ACN - Free Report) has reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $2.93 per share, beating the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
The company’s shares have lost 38.4% in a year compared with the industry’s 21.7% fall and the Zacks S&P 500 composite’s 21.8% rally.
Based on the type of work, managed services’ revenues of $9.2 billion increased 10% from the year-ago quarter on a reported basis and 5% in local currency. It surpassed the Zacks Consensus Estimate of $9 billion.
Consulting revenues gained 7% year over year on a reported basis and 3% in local currency to $9 billion. The metric outpaced the consensus mark of $8.7 billion.
Segment-wise, health and public service revenues of $3.7 billion increased 2% year over year on a reported basis but declined 1% in local currency. This segment failed to beat the consensus estimate of $3.8 billion. Revenues from the resources segment amounted to $2.4 billion, rising 7% from the year-ago quarter on a reported basis and 2% on a local currency basis. The metric met the Zacks Consensus Estimate.
Revenues from the product segment amounted to $5.5 billion, up 8% year over year on a reported basis and 3% on a local currency basis. This segment surpassed the consensus mark of $5.4 billion. Communications, media and technology revenues of $3.1 billion increased 13% year over year on a reported basis and 10% in terms of local currency. The metric beat the consensus estimate of $2.9 billion.
Financial services revenues of $3.4 billion rose 13% from the year-ago quarter on a reported basis and 7% in local currency. The segment outpaced the Zacks Consensus Estimate of $3.3 billion.
Geographically, revenues of $8.9 billion from the Americas rose 4% from the year-ago quarter on a reported basis and 3% on a local currency basis, surpassing the consensus mark of $9.2 billion.
Revenues of $6.6 billion from the EMEA grew 13% on a reported basis and 2% in local currency. The metric surpassed the Zacks Consensus Estimate of $6.4 billion. Revenues of $2.6 billion from the Asia Pacific increased 12% year over year on a reported basis and gained 10% in local currency. Revenues generated from this region beat the consensus mark of $2.4 billion.
Booking Trends of Accenture
The company reported bookings worth $22.1 billion in the second quarter of fiscal 2026, increasing 6% from the year-ago quarter on a reported basis and 1% in local currency. Consulting bookings were $11.3 billion and managed services bookings were $10.8 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the second quarter of fiscal 2026 was 30.3%, up 40 basis points (bps) from the year-ago quarter. The operating margin of 13.8% moved up 30 bps from the second quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited the second-quarter fiscal 2026 with cash and cash equivalents of $9.4 billion compared with $9.6 billion at the end of the first-quarter fiscal 2026. The company generated $3.8 billion in cash from operating activities. Capital expenditure in the reported quarter was $149.7 million.
The free cash flow was $3.7 billion. Accenture repurchased 6.8 million shares for $1.7 billion. The company paid out a dividend of $1 billion in the second quarter of fiscal 2026.
ACN’s Q3 & FY26 Guidance
For the third quarter of fiscal 2026, the company expects revenues of $18.35-$19 billion. The guided range exceeds the Zacks Consensus Estimate of $17.83 billion.
For fiscal 2026, ACN updated year-over-year revenue growth from 2-5% to 3-5%. The company's expectation for the operating cash flow is raised to $11.5-$12.2 billion from the preceding fiscal quarter’s view of $10.8-$11.5 billion. The free cash flow forecast is hiked to $10.8-$11.5 billion from the preceding quarter’s $9.8-$10.5 billion.
ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.
TRU’s quarterly adjusted EPS (adjusting 55 cents from non-recurring items) of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.
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Accenture Earnings Beat Estimates in Q2, Revenues Increase Y/Y
Key Takeaways
Accenture plc (ACN - Free Report) has reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
ACN’s earnings were $2.93 per share, beating the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
The company’s shares have lost 38.4% in a year compared with the industry’s 21.7% fall and the Zacks S&P 500 composite’s 21.8% rally.
Accenture PLC Price, Consensus and EPS Surprise
Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote
ACN’s Revenues in Detail
Based on the type of work, managed services’ revenues of $9.2 billion increased 10% from the year-ago quarter on a reported basis and 5% in local currency. It surpassed the Zacks Consensus Estimate of $9 billion.
Consulting revenues gained 7% year over year on a reported basis and 3% in local currency to $9 billion. The metric outpaced the consensus mark of $8.7 billion.
Segment-wise, health and public service revenues of $3.7 billion increased 2% year over year on a reported basis but declined 1% in local currency. This segment failed to beat the consensus estimate of $3.8 billion. Revenues from the resources segment amounted to $2.4 billion, rising 7% from the year-ago quarter on a reported basis and 2% on a local currency basis. The metric met the Zacks Consensus Estimate.
Revenues from the product segment amounted to $5.5 billion, up 8% year over year on a reported basis and 3% on a local currency basis. This segment surpassed the consensus mark of $5.4 billion. Communications, media and technology revenues of $3.1 billion increased 13% year over year on a reported basis and 10% in terms of local currency. The metric beat the consensus estimate of $2.9 billion.
Financial services revenues of $3.4 billion rose 13% from the year-ago quarter on a reported basis and 7% in local currency. The segment outpaced the Zacks Consensus Estimate of $3.3 billion.
Geographically, revenues of $8.9 billion from the Americas rose 4% from the year-ago quarter on a reported basis and 3% on a local currency basis, surpassing the consensus mark of $9.2 billion.
Revenues of $6.6 billion from the EMEA grew 13% on a reported basis and 2% in local currency. The metric surpassed the Zacks Consensus Estimate of $6.4 billion. Revenues of $2.6 billion from the Asia Pacific increased 12% year over year on a reported basis and gained 10% in local currency. Revenues generated from this region beat the consensus mark of $2.4 billion.
Booking Trends of Accenture
The company reported bookings worth $22.1 billion in the second quarter of fiscal 2026, increasing 6% from the year-ago quarter on a reported basis and 1% in local currency. Consulting bookings were $11.3 billion and managed services bookings were $10.8 billion.
ACN’s Operating Results
The gross margin (gross profit as a percentage of net revenues) for the second quarter of fiscal 2026 was 30.3%, up 40 basis points (bps) from the year-ago quarter. The operating margin of 13.8% moved up 30 bps from the second quarter of fiscal 2025.
Balance Sheet & Cash Flow of Accenture
ACN exited the second-quarter fiscal 2026 with cash and cash equivalents of $9.4 billion compared with $9.6 billion at the end of the first-quarter fiscal 2026. The company generated $3.8 billion in cash from operating activities. Capital expenditure in the reported quarter was $149.7 million.
The free cash flow was $3.7 billion. Accenture repurchased 6.8 million shares for $1.7 billion. The company paid out a dividend of $1 billion in the second quarter of fiscal 2026.
ACN’s Q3 & FY26 Guidance
For the third quarter of fiscal 2026, the company expects revenues of $18.35-$19 billion. The guided range exceeds the Zacks Consensus Estimate of $17.83 billion.
For fiscal 2026, ACN updated year-over-year revenue growth from 2-5% to 3-5%. The company's expectation for the operating cash flow is raised to $11.5-$12.2 billion from the preceding fiscal quarter’s view of $10.8-$11.5 billion. The free cash flow forecast is hiked to $10.8-$11.5 billion from the preceding quarter’s $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
ABM (ABM - Free Report) reported mixed first-quarter fiscal 2026 results.
ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.
TransUnion (TRU - Free Report) posted impressive fourth-quarter 2025 results.
TRU’s quarterly adjusted EPS (adjusting 55 cents from non-recurring items) of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.