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ACN Q3 Earnings Beat Estimates on Growth in Managed Services
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Key Takeaways
Accenture's Q3 earnings beat estimates, while revenues rose 6% y/y to $18.72 billion.
Managed services revenues grew 8% in U.S. dollars, slightly ahead of consulting as ACN's top contributor.
Accenture lifted its FY26 EPS outlook, with adjusted earnings guided at $13.78-$13.90.
Accenture plc (ACN - Free Report) has reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter. Revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency.
Managed services, EMEA and communications, media, and technology aided top-line growth. New bookings totaled $19.32 billion, down 2% year over year in U.S. dollars and 3% in local currency.
Based on the type of work, managed services revenues were $9.39 billion, up 8% year over year in U.S. dollars and 5% in local currency. The business remained the larger revenue contributor in the quarter, slightly ahead of consulting.
Consulting revenues came in at $9.33 billion, rising 4% from the prior-year quarter in U.S. dollars and 1% in local currency. Total revenues of $18.72 billion were slightly above the midpoint of Accenture’s guidance of $18.35-$19 billion.
Accenture’s Industry Results
Communications, media and technology revenues were $3.22 billion, up 10% year over year in U.S. dollars and 9% in local currency. This was the strongest local-currency growth rate among Accenture’s industry groups in the reported quarter.
Financial services’ revenues increased 6% in U.S. dollars and 3% in local currency to $3.49 billion. Products revenues of $5.67 billion rose 6% in U.S. dollars and 3% in local currency, remaining the largest industry group by revenues.
ACN’s Segment Trends Show Mixed Growth
Health and public service revenues were $3.85 billion, up 2% on a reported basis and flat in local currency. Resources revenues totaled $2.50 billion, increasing 3% in U.S. dollars and 1% in local currency.
Bookings were lower year over year but still sizable. Consulting new bookings were $10.26 billion, while managed services’ new bookings were $9.06 billion.
Accenture’s Geographic Performance
Revenues from the Americas were $9.14 billion, up 2% year over year in U.S. dollars and 1% in local currency. The region remained Accenture’s largest geographic market by revenues.
EMEA revenues grew 10% in U.S. dollars and 4% in local currency to $6.87 billion. Asia Pacific revenues were $2.71 billion, up 7% on a reported basis and 8% in local currency, marking the strongest local-currency growth among geographic markets.
ACN’s Margins & Earnings Improve
Operating income increased 6% year over year to $3.18 billion. The operating margin expanded 20 basis points to 17% from 16.8% in the year-ago quarter.
The gross margin was 32.8%, compared with 32.9% in the third quarter of fiscal 2025. SG&A expenses were $2.96 billion, or 15.8% of revenues, compared with $2.84 billion, or 16% of revenues, in the prior-year quarter.
Accenture’s Cash Flow Stays Strong
Net income was $2.39 billion compared with $2.24 billion a year ago. The effective tax rate was 24.2%, up slightly from 24% in the third quarter of fiscal 2025.
The operating cash flow was $3.79 billion compared with $3.68 billion in the year-ago quarter. The free cash flow was $3.60 billion, up from $3.52 billion a year ago.
ACN’s Capital Returns & Outlook
Accenture repurchased or redeemed 6 million shares for $1.2 billion in the fiscal third quarter. It also paid out $1 billion in dividends, or $1.63 per share, reflecting a 10% increase.
The company had $10.2 billion in cash at the quarter-end compared with $11.5 billion at the end of fiscal 2025. The remaining share repurchase authority was $3.2 billion.
Accenture expects fiscal 2026 revenue growth of 3-4% in local currency. Excluding an estimated 1% impact of its U.S. federal business, the company expects revenue growth of 4-5% in local currency.
For fiscal 2026, GAAP diluted earnings are expected to be $13.38-$13.50 per share, implying 10-11% growth. Adjusted earnings are projected between $13.78 and $13.90 per share, indicating 7-8% growth. The midpoint ($13.84) of the guided range is higher than the consensus mark for earnings of $13.83 per share. The operating cash flow is expected to be $11.5-$12.2 billion, while the free cash flow is forecast to be $10.8-$11.5 billion.
Verisk Analytics, Inc. (VRSK - Free Report) reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenues came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year.
Corpay, Inc. (CPAY - Free Report) delivered a strong first-quarter 2026, with adjusted earnings of $5.80 per share rising 28.6% year over year and surpassing the Zacks Consensus Estimate by 5.5%. Revenues of $1.26 billion increased 25.4% year over year and beat estimates by 4.4%.
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ACN Q3 Earnings Beat Estimates on Growth in Managed Services
Key Takeaways
Accenture plc (ACN - Free Report) has reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter. Revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency.
Managed services, EMEA and communications, media, and technology aided top-line growth. New bookings totaled $19.32 billion, down 2% year over year in U.S. dollars and 3% in local currency.
Accenture PLC Price, Consensus and EPS Surprise
Accenture PLC price-consensus-eps-surprise-chart | Accenture PLC Quote
ACN’s Revenues by Work Type
Based on the type of work, managed services revenues were $9.39 billion, up 8% year over year in U.S. dollars and 5% in local currency. The business remained the larger revenue contributor in the quarter, slightly ahead of consulting.
Consulting revenues came in at $9.33 billion, rising 4% from the prior-year quarter in U.S. dollars and 1% in local currency. Total revenues of $18.72 billion were slightly above the midpoint of Accenture’s guidance of $18.35-$19 billion.
Accenture’s Industry Results
Communications, media and technology revenues were $3.22 billion, up 10% year over year in U.S. dollars and 9% in local currency. This was the strongest local-currency growth rate among Accenture’s industry groups in the reported quarter.
Financial services’ revenues increased 6% in U.S. dollars and 3% in local currency to $3.49 billion. Products revenues of $5.67 billion rose 6% in U.S. dollars and 3% in local currency, remaining the largest industry group by revenues.
ACN’s Segment Trends Show Mixed Growth
Health and public service revenues were $3.85 billion, up 2% on a reported basis and flat in local currency. Resources revenues totaled $2.50 billion, increasing 3% in U.S. dollars and 1% in local currency.
Bookings were lower year over year but still sizable. Consulting new bookings were $10.26 billion, while managed services’ new bookings were $9.06 billion.
Accenture’s Geographic Performance
Revenues from the Americas were $9.14 billion, up 2% year over year in U.S. dollars and 1% in local currency. The region remained Accenture’s largest geographic market by revenues.
EMEA revenues grew 10% in U.S. dollars and 4% in local currency to $6.87 billion. Asia Pacific revenues were $2.71 billion, up 7% on a reported basis and 8% in local currency, marking the strongest local-currency growth among geographic markets.
ACN’s Margins & Earnings Improve
Operating income increased 6% year over year to $3.18 billion. The operating margin expanded 20 basis points to 17% from 16.8% in the year-ago quarter.
The gross margin was 32.8%, compared with 32.9% in the third quarter of fiscal 2025. SG&A expenses were $2.96 billion, or 15.8% of revenues, compared with $2.84 billion, or 16% of revenues, in the prior-year quarter.
Accenture’s Cash Flow Stays Strong
Net income was $2.39 billion compared with $2.24 billion a year ago. The effective tax rate was 24.2%, up slightly from 24% in the third quarter of fiscal 2025.
The operating cash flow was $3.79 billion compared with $3.68 billion in the year-ago quarter. The free cash flow was $3.60 billion, up from $3.52 billion a year ago.
ACN’s Capital Returns & Outlook
Accenture repurchased or redeemed 6 million shares for $1.2 billion in the fiscal third quarter. It also paid out $1 billion in dividends, or $1.63 per share, reflecting a 10% increase.
The company had $10.2 billion in cash at the quarter-end compared with $11.5 billion at the end of fiscal 2025. The remaining share repurchase authority was $3.2 billion.
Accenture expects fiscal 2026 revenue growth of 3-4% in local currency. Excluding an estimated 1% impact of its U.S. federal business, the company expects revenue growth of 4-5% in local currency.
For fiscal 2026, GAAP diluted earnings are expected to be $13.38-$13.50 per share, implying 10-11% growth. Adjusted earnings are projected between $13.78 and $13.90 per share, indicating 7-8% growth. The midpoint ($13.84) of the guided range is higher than the consensus mark for earnings of $13.83 per share. The operating cash flow is expected to be $11.5-$12.2 billion, while the free cash flow is forecast to be $10.8-$11.5 billion.
ACN 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
Verisk Analytics, Inc. (VRSK - Free Report) reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenues came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year.
Corpay, Inc. (CPAY - Free Report) delivered a strong first-quarter 2026, with adjusted earnings of $5.80 per share rising 28.6% year over year and surpassing the Zacks Consensus Estimate by 5.5%. Revenues of $1.26 billion increased 25.4% year over year and beat estimates by 4.4%.