Core Insights - Accenture Plc has seen a steady increase in client demand over the past nine quarters, with approximately 100 new clients starting AI projects during this time [1] - Despite the growth in AI initiatives, management indicated that most deployments are still in early stages and require significant work before scaling across enterprises [1] Financial Performance - For the first quarter of fiscal 2026, Accenture reported earnings of $3.94 per share, exceeding the analyst consensus estimate of $3.75, and sales of $18.7 billion, slightly above the consensus estimate of $18.523 billion [4] - New bookings for the quarter reached $20.94 billion, reflecting a 12% increase in U.S. dollars and a 10% increase in local currency [4] - Advanced AI new bookings amounted to $2.2 billion for the quarter [4] Analyst Outlook - RBC Capital Markets analyst Daniel R. Perlin raised the price forecast for Accenture from $285 to $295 while maintaining an Outperform rating [2] - Perlin adjusted revenue and EPS estimates for fiscal 2026 to $73.8 billion and $13.87, respectively, and for fiscal 2027 to $77.6 billion and $14.95 [3] - The company now expects fiscal 2026 GAAP EPS in the range of $13.12 to $13.50, compared to the previous forecast of $13.19 to $13.57 [5]

Accenture has announced first quarter (Q1) revenues of $18.74bn for fiscal year 2026 (FY26), up from $17.6bn in the same period a year earlier. The reported increase represents a 6% rise in US dollars and a 5% rise in local currency. This puts revenue at the upper end of the company’s guidance range of $18.1bn–18.75bn. Net income on a Generally Accepted Accounting Practice (GAAP) basis reached $2.24bn for the quarter, compared with $2.32bn in Q1 FY25. Adjusted net income for the period came to $2.49bn. ...

Accenture (NYSE:ACN) Q1 2026 Earnings Call December 18, 2025 08:00 AM ET Company ParticipantsJulie Sweet - Chair and CEOAlexia Quadrani - Executive Director and Head of Investor RelationsAngie Park - CFOConference Call ParticipantsDavid Koning - Senior Equity Research AnalystDarrin Peller - Senior Equity Research AnalystJason Kupferberg - Equity Research AnalystJames Faucette - Equity Research AnalystBryan Keane - Managing Director and Senior Equity Research AnalystTien-tsin Huang - Senior Equity Research A ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $18.7 billion, reflecting a 5% growth in local currency and a 6% increase in U.S. dollars, at the top of the guided range [17][19] - Adjusted operating margin expanded by 30 basis points year over year to 17% [18][22] - Adjusted EPS grew by 10% year over year to $3.94 [18][22] - Free cash flow for the quarter was $1.5 billion, with a cash balance of $9.6 billion [23] Business Line Data and Key Metrics Changes - New bookings totaled $20.9 billion, representing a 12% growth in U.S. dollars and a 10% growth in local currency [18][19] - Consulting revenues were $9.4 billion, growing 4% in U.S. dollars and 3% in local currency [19] - Managed services revenues reached $9.3 billion, with an 8% increase in U.S. dollars and 7% in local currency [19] Market Data and Key Metrics Changes - In the Americas, revenue grew 4% in local currency, with a 6% growth excluding federal business impacts [20] - EMEA saw a 4% growth in local currency, driven by banking and capital markets [20] - Asia-Pacific revenue grew 9% in local currency, led by banking and capital markets [21] Company Strategy and Development Direction - The company focuses on being a reinvention partner for clients, emphasizing large-scale transformational programs [25] - Advanced AI is increasingly embedded in solutions, with a significant focus on data management and modernization [26][36] - The partnership strategy is crucial, with 60% of revenue coming from top ecosystem partners, which is expected to continue driving growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are prioritizing strategic transformational programs despite a lack of change in discretionary spending [72] - The demand for advanced AI is growing, with expectations for significant market expansion in the coming years [34] - The company anticipates revenue growth of 2-5% in local currency for fiscal 2026, with a focus on maintaining strong cash returns to shareholders [39][40] Other Important Information - The company recorded $308 million in business optimization costs, impacting operating margin and EPS [21] - The company plans to invest approximately $3 billion in acquisitions for fiscal 2026 [39] Q&A Session Questions and Answers Question: Shift in consulting industry's role in AI - Management acknowledged a shift in perception, emphasizing that enterprise AI adoption requires foundational work around data and processes [43][44] Question: Timing for AI partnerships to impact revenue - Management indicated that the impact of AI partnerships on revenue is tied to enterprise adoption, which is expected to evolve over time [51][52] Question: Sustainability of revenue growth outpacing headcount growth - Management confirmed that revenue per person grew 7%, driven by talent rotation, and expects this trend to moderate [56][57] Question: Discretionary spending outlook - Management stated that they are not waiting for discretionary spending to return, focusing instead on delivering results through large transformational deals [72] Question: Fixed-price work growth potential - Management expressed confidence in the competitive advantage of fixed-price deals, noting that they provide clients with certainty in outcomes [74][75]