Accenture (ACN) Rated Outperform at Mizuho as AI Demand Fuels Growth

Core Viewpoint - Accenture plc (NYSE:ACN) is gaining attention as an AI stock, with Mizuho maintaining an "Outperform" rating and a price target of $309.00 following strong fiscal Q1 2026 results that exceeded Wall Street revenue expectations due to high demand for AI-driven IT services [1] Group 1: Financial Performance - The company reported robust quarterly revenue and maintained its fiscal year 2026 revenue guidance of 2% to 5% growth in constant currency, which includes an estimated 150 basis points contribution from mergers and acquisitions and a 100 basis point headwind from Accenture Federal Services [2] - The maintained outlook is seen as a reflection of management conservatism rather than a sign of weakening business conditions, despite investor anticipation for an upward revision to guidance [3] Group 2: Market Position and Strategy - Accenture experienced its second consecutive quarter of strong bookings acceleration, addressing investor concerns for fiscal 2026, and is investing in the growing generative AI services market, which is expected to enhance its market share [4]