Accenture (ACN) Q1 2026 Financial Results Summary
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Accenture (ACN) Q1 2026 Financial Results Summary
Accenture (NYSE: ACN) reported its financial results for the first quarter of fiscal 2026, ended November 30, 2025, on December 18, 2025. The company demonstrated strong new bookings and revenue growth, falling at the top of its guided range, with notable profitability and free cash flow.
Key Highlights
- New Bookings:
- Total of $20.9 billion, up 12% in U.S. dollars and 10% in local currency compared to Q1 FY25.
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Advanced AI bookings accounted for $2.2 billion.
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Revenue:
- Total revenue of $18.7 billion, reflecting a 6% increase in U.S. dollars and 5% in local currency.
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Revenue comparison with the guided range was $18.1 billion to $18.75 billion.
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Operating Margin:
- GAAP operating margin at 15.3%, down 140 basis points from 16.7% in Q1 FY25.
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Adjusted operating margin improved by 30 basis points to 17.0%.
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Earnings Per Share (EPS):
- GAAP diluted EPS decreased by 1% to $3.54, down from $3.59 in Q1 FY25.
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Adjusted EPS increased 10% to $3.94.
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Free Cash Flow:
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Free cash flow reached $1.5 billion, compared to $0.87 billion in Q1 FY25.
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Cash Returned to Shareholders:
- Total cash returned to shareholders was $3.3 billion, which includes:
- Share repurchase activity of $2.3 billion for 9.5 million shares.
- Cash dividend payments of $1.0 billion, representing a 10% increase to $1.63 per share.
Business Outlook for Fiscal 2026
- Full-year revenue growth is expected to be between 2% to 5% in local currency. Excluding an estimated 1% impact from its U.S. federal business, the company anticipates growth of 3% to 6% in local currency.
- The GAAP operating margin is projected to expand by 50 to 70 basis points to be 15.2% to 15.4%.
- Adjusted operating margin remains forecasted between 15.7% and 15.9%, with an initial expansion of 10 to 30 basis points.
- GAAP diluted EPS is estimated to be $13.12 to $13.50, indicating an 8% to 11% increase.
- Adjusted EPS is expected between $13.52 and $13.90, suggesting a 5% to 8% increase.
Detailed Q1 FY26 Financial Review
New Bookings
- Consulting new bookings were $9.88 billion.
- Managed Services new bookings were $11.06 billion.
Revenue Breakdown
- Revenue by Type of Work:
- Consulting: $9.41 billion (4% increase in U.S. dollars, 3% in local currency).
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Managed Services: $9.33 billion (8% increase in U.S. dollars, 7% in local currency).
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Revenue by Geographic Market:
- Americas: $9.08 billion (4% growth in both U.S. dollars and local currency).
- EMEA: $6.94 billion (8% increase in U.S. dollars, 4% in local currency).
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Asia Pacific: $2.73 billion (7% increase in U.S. dollars, 9% in local currency).
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Revenue by Industry Group:
- Communications, Media & Technology: $3.10 billion (9% increase in U.S. dollars, 8% in local currency).
- Financial Services: $3.60 billion (14% increase in U.S. dollars, 12% in local currency).
- Health & Public Service: $3.80 billion (no growth in U.S. dollars, down 1% in local currency).
- Products: $5.74 billion (6% increase in U.S. dollars, 4% in local currency).
- Resources: $2.50 billion (3% increase in U.S. dollars, 2% in local currency).
Operating Metrics
- GAAP operating income decreased by 3% to $2.87 billion.
- Gross margin was 33.1%, an increase from 32.9% in Q1 FY25.
- Selling, General and Administrative (SG&A) expenses were $3.02 billion, or 16.1% of revenues.
Earnings and Tax Rates
- GAAP net income was $2.24 billion, compared to $2.32 billion a year ago.
- The GAAP effective tax rate rose to 24.5%, up from 21.6% in the same quarter last year.
Cash Flow Analysis
- Operating cash flow was $1.66 billion, compared to $1.02 billion in Q1 FY25.
- Cash and cash equivalents were recorded at $9.6 billion.
Dividend and Repurchase Activities
- Accenture paid a quarterly cash dividend of $1.63 per share on November 14, 2025.
- Another quarterly cash dividend of $1.63 per share was declared for shareholders of record as of January 13, 2026, payable on February 13, 2026. This dividend reflects a 10% increase compared to the quarterly dividend rate in fiscal 2025.
Accenture continues to demonstrate strong performance amid market challenges, reinforcing its growth outlook and commitment to returning value to shareholders.
| Three Months Ended | November 30, 2025 | % of Revenues | November 30, 2024 | % of Revenues |
|---|---|---|---|---|
| REVENUES: | $18,742,125 | 100.0% | $17,689,545 | 100.0% |
| OPERATING EXPENSES: | ||||
| Cost of services | $12,545,007 | 66.9% | $11,866,716 | 67.1% |
| Sales and marketing | $1,874,932 | 10.0% | $1,811,109 | 10.2% |
| General and administrative costs | $1,140,947 | 6.1% | $1,063,243 | 6.0% |
| Business optimization costs | $307,541 | 1.7% | $— | —% |
| Total operating expenses | $15,868,427 | $14,741,068 | ||
| OPERATING INCOME | $2,873,698 | 15.3% | $2,948,477 | 16.7% |
| Interest income | $106,223 | $76,027 | ||
| Interest expense | -$65,365 | -$30,042 | ||
| Other income (expense), net | $53,114 | -$39,217 | ||
| INCOME BEFORE INCOME TAXES | $2,967,670 | 15.8% | $2,955,245 | 16.7% |
| Income tax expense | $725,774 | $639,055 | ||
| NET INCOME | $2,241,896 | 12.0% | $2,316,190 | 13.1% |
| Net income attributable to noncontrolling interest in Accenture | -$2,083 | -$2,170 | ||
| Canada Holdings Inc. | ||||
| Net income attributable to noncontrolling interests – other (1) | -$28,252 | -$35,126 | ||
| NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $2,211,561 | 11.8% | $2,278,894 | 12.9% |
| CALCULATION OF EARNINGS PER SHARE: | ||||
| Net income attributable to Accenture plc | $2,211,561 | $2,278,894 | ||
| Net income attributable to noncontrolling interest in Accenture | $2,083 | $2,170 | ||
| Canada Holdings Inc. (2) | ||||
| Net income for diluted earnings per share calculation | $2,213,644 | $2,281,064 | ||
| WEIGHTED AVERAGE SHARES: | ||||
| Basic | 619,307,086 | 625,676,922 | ||
| Diluted | 626,043,040 | 634,656,410 | ||
| EARNINGS PER SHARE: | ||||
| Basic | $3.57 | $3.64 | ||
| Diluted | $3.54 | $3.59 | ||
| Cash dividends per share | $1.63 | $1.48 | ||
| November 30, 2025 | August 31, 2025 | |
|---|---|---|
| ASSETS -Unaudited | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $9,649,405 | $11,478,729 |
| Short-term investments | $5,906 | $5,945 |
| Receivables and contract assets | $16,006,709 | $14,985,073 |
| Other current assets | $2,404,674 | $2,430,942 |
| Total current assets | $28,066,694 | $28,900,689 |
| NON-CURRENT ASSETS: | ||
| Contract assets | $188,147 | $180,362 |
| Investments | $803,000 | $721,260 |
| Property and equipment, net | $1,558,316 | $1,566,374 |
| Lease assets | $2,758,958 | $2,740,321 |
| Goodwill | $22,621,663 | $22,536,416 |
| Other non-current assets | $8,701,685 | $8,749,475 |
| Total non-current assets | $36,631,769 | $36,494,208 |
| TOTAL ASSETS | $64,698,463 | $65,394,897 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Current portion of long-term debt and bank borrowings | $113,676 | $114,484 |
| Accounts payable | $2,971,647 | $2,695,589 |
| Deferred revenues | $5,494,732 | $6,073,170 |
| Accrued payroll and related benefits | $7,937,214 | $8,084,214 |
| Lease liabilities | $729,244 | $729,003 |
| Other accrued liabilities | $2,650,008 | $2,655,637 |
| Total current liabilities | $19,896,521 | $20,352,097 |
| NON-CURRENT LIABILITIES: | ||
| Long-term debt | $5,031,646 | $5,034,169 |
| Lease liabilities | $2,327,433 | $2,305,210 |
| Other non-current liabilities | $5,520,581 | $5,462,454 |
| Total non-current liabilities | $12,879,660 | $12,801,833 |
| Total Accenture plc shareholders’ equity | $30,867,503 | $31,195,446 |
| Noncontrolling interest | $1,054,779 | $1,045,521 |
| Total Shareholders’ Equity | $31,922,282 | $32,240,967 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $64,698,463 | $65,394,897 |