Accenture Earnings Beat Estimates in Q1, Revenues Increase Y/Y

Core Insights - Accenture plc (ACN) reported strong first-quarter fiscal 2026 results, with earnings and revenues exceeding Zacks Consensus Estimates [1][10] - Earnings per share were $3.94, surpassing estimates by 5.6% and increasing 9.8% year-over-year [1][10] - Total revenues reached $18.7 billion, beating consensus estimates by 1% and rising 6% year-over-year [1][10] Revenue Breakdown - Managed services revenues were $9.3 billion, up 8% year-over-year, exceeding the estimate of $8.8 billion [3] - Consulting revenues totaled $9.4 billion, a 4% increase year-over-year, but fell short of the $9.6 billion projection [3] - Health and public service revenues were flat at $3.8 billion, missing the estimate of $3.9 billion [4] - Resources segment revenues were $2.5 billion, up 3% year-over-year, meeting estimates [4] - Product segment revenues reached $5.7 billion, increasing 6% year-over-year, surpassing the estimate of $5.6 billion [4] - Communications, media, and technology revenues were $3.1 billion, up 9% year-over-year, exceeding the $3 billion projection [5] - Financial services revenues grew 14% year-over-year to $3.6 billion, surpassing the estimate of $3.4 billion [5] Geographic Performance - Revenues from the Americas were $9.1 billion, a 4% increase year-over-year, meeting projections [6] - EMEA revenues reached $6.9 billion, up 8% year-over-year, beating the estimate of $6.7 billion [6] - Asia Pacific revenues were $2.7 billion, increasing 7% year-over-year, surpassing the estimate of $2.6 billion [6] Booking Trends - Total bookings for the first quarter of fiscal 2025 were $20.9 billion, a 12% increase year-over-year [7] - Consulting bookings were $9.9 billion, while managed services bookings were $11.1 billion [7] Operating Results - Gross margin for the first quarter was 33.1%, up 20 basis points from the previous year [8] - Adjusted operating margin increased to 17%, up 30 basis points year-over-year [8] Financial Position - Cash and cash equivalents at the end of the first quarter were $9.6 billion, down from $11.5 billion at the end of the previous quarter [11] - Generated $1.7 billion in cash from operating activities, with capital expenditure of $156.6 million [11] - Free cash flow was $1.5 billion, with $2.3 billion spent on share repurchases and $1 billion paid in dividends [11] Guidance - For Q2 fiscal 2026, revenues are expected to be between $17.35 billion and $18 billion, below the Zacks Consensus Estimate of $18.56 billion [12] - For fiscal 2026, the company anticipates revenue growth of 2-5% year-over-year [12] - Operating cash flow is projected at $10.8 billion to $11.5 billion, with free cash flow expected to be between $9.8 billion and $10.5 billion [12]