Accenture's AI Push Sparks Growth And Boosts Dividend Payouts

Core Viewpoint - Accenture's stock declined following the release of its fourth-quarter 2025 results, despite exceeding earnings and sales expectations [1][5]. Financial Performance - Quarterly earnings were reported at $3.03 per share, surpassing the analyst consensus estimate of $2.96 [1]. - Sales reached $17.60 billion, slightly above the analyst consensus estimate of $17.36 billion [1]. - Sales increased by 7% in U.S. dollars and 4.5% in local currency [2]. - Consulting revenues were $8.77 billion, a 6% increase in U.S. dollars and 3% in local currency [2]. - Managed Services revenues were $8.82 billion, an 8% increase in U.S. dollars and 6% in local currency [2]. - Products revenues reached $5.38 billion, up 9% in U.S. dollars and 5% in local currency [3]. - Health & Public Service revenues decreased by 1% in U.S. dollars and 3% in local currency to $3.56 billion [3]. - Financial Services revenue was $3.32 billion, up 15% in U.S. dollars and 12% in local currency [3]. - Resources revenue was $2.39 billion, up 8% in U.S. dollars and 5% in local currency [3]. - Communications, Media & Technology revenue was $2.95 billion, up 7% in U.S. dollars and 5% in local currency [3]. New Bookings and Margins - New bookings for the quarter totaled $21.31 billion, a 6% increase in U.S. dollars and 3% in local currency [4]. - Generative AI new bookings reached $1.8 billion in the quarter [4]. - Operating margin was reported at 11.6%, a decrease of 270 basis points, while adjusted operating margin increased by 10 basis points to 15.1% [4]. Cash Flow and Dividends - The company held $11.5 billion in cash and equivalents as of August 31 and generated $3.81 in free cash flow during the quarter [5]. - Accenture increased its quarterly dividend by 10% to $1.63 per share, payable on November 14, 2025 [6]. Outlook - For fiscal 2026, Accenture projected sales between $71.07 billion and $73.16 billion, exceeding the $69.43 billion consensus estimate [7]. - Expected GAAP EPS for fiscal 2026 is between $13.19 and $13.57, compared to the $12.88 analyst consensus [7]. - The company anticipates fiscal adjusted EPS of $13.52 to $13.90 [7]. - First-quarter sales are projected to be between $18.10 billion and $18.75 billion, against an $18.451 billion analyst estimate [7].