Accenture (ACN) Stock in Focus as Evercore Trims Price Target After Earnings Beat

Core Insights - Accenture plc (NYSE:ACN) is currently highlighted as a significant AI stock, with analysts expressing optimism about its upcoming quarterly report, expecting steady performance and potential upside due to a stable foreign exchange environment and a de-risked setup [1]. Price Target Adjustments - Evercore ISI analyst Amit Daryanani has adjusted the price target for Accenture to $300.00 from $330.00 while maintaining an Outperform rating [1]. - Following earnings, the price target was further lowered to $280.00 from $300.00, still with an Outperform rating [2]. Earnings Performance - Accenture reported revenue of $17.6 billion and EPS of $3.03, surpassing street expectations of $17.4 billion and $2.98 respectively, indicating modest upside [3]. - New bookings totaled $21.3 billion, reflecting a 6% increase, while generative AI bookings saw significant growth at $1.8 billion, an 80% year-over-year increase [3]. Geographic Growth - The company experienced approximately 4.5% constant currency growth, driven by around 5% growth in the Americas (8% excluding public AFS headwinds), 6% in APAC, and 3% in EMEA [3]. FY26 Guidance - For FY26, Accenture's revenue guidance indicates a growth of 4-7%, aligning with buy-side expectations but slightly below the street's expectation of 5.8% [3]. - EPS guidance is set between $13.52 and $13.90, bracketed around the street expectation of $13.78 [3]. - Growth is anticipated to be balanced across consulting and managed services in the low to mid-single-digit range [3]. - Discretionary spending is expected to decline modestly at the low end of the guidance and remain flat at the high end [3]. - EBIT margins are projected to expand, with AI project pricing expected to be accretive rather than dilutive [3]. - Headcount is expected to grow across all regions, with capital expenditures increasing year-over-year by $400 million to support hiring and a return to office initiatives [3].