Tech firm Accenture (ACN) saw its stock surge 15.8% intraday on Oct. 1 after the company reported solid fourth-quarter results for fiscal 2026. The company provided an upbeat FY2027 outlook, expecting revenue growth of 3% to 6% (in local currency), with the midpoint above the 3.9% average analyst estimate, according to LSEG data.
Accenture CEO Julie Sweet believes that artificial intelligence (AI) has been a growth driver for the company. AI is also considered a way to improve business outcomes. In this effort, Accenture partnered with Anthropic in September to independently assess its frontier AI models. The two companies also committed at least $1 billion each over five years to expand AI safety and testing capabilities.
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At this point, Accenture may be worth looking into.
About Accenture Stock
Accenture is a global professional services company headquartered in Dublin, Ireland. It helps businesses use technology to improve how they work. The company provides consulting, digital services, cloud computing, AI, cybersecurity, and business-process support. The company has a market capitalization of $121.72 billion.
Accenture works with clients across industries such as banking, healthcare, retail, technology, energy, and government. Its teams help companies build software, manage data, automate tasks, and modernize operations. With operations across the Americas, Europe, Asia-Pacific, the Middle East, and Africa, Accenture combines consulting advice with technology services to help clients grow and improve efficiency.
Accenture’s stock fell 22% over the past 52 weeks, mainly because investors worried its growth was slowing and that AI could reduce demand for its traditional, labor-intensive consulting work. However, as investors realized that the worst fears over AI disruption were likely overstated, the stock rose 41% over the past three months. Over the past five days, Accenture’s shares have climbed 9% as strong earnings fueled a rally. It had reached a 52-week low of $118.15 on June 22 but is up 64% from that level.
Moreover, Accenture is now trading cheaper than its peers. Its forward-adjusted price-to-earnings (non-GAAP) ratio of 13.56x is lower than the industry average of 23.53x.
www.barchart.com Beats Q4 Estimates on Strong AI Demand
For the fourth quarter of fiscal 2026 (quarter ended Aug. 31), Accenture reported $22.17 billion in new bookings, indicating 4% year-over-year (YoY) growth (in USD). Of that, consulting new bookings were $9.40 billion, while managed services new bookings were $12.77 billion. Revenues for the fourth quarter were $18.68 billion, up 6% YoY and above the company’s guided range of $17.75 billion to $18.40 billion. This was also higher than the LSEG consensus analyst estimate of $18.03 billion.
This was also reflected in Accenture’s profitability. Gross margin for the quarter was 32%, compared with 31.9% in the prior-year period. Accenture’s EPS was $3.29, indicating a 46% increase and higher than the $3.18 LSEG estimate.
Wall Street analysts are also moderately optimistic about Accenture’s bottom-line trajectory. For fiscal 2027, its profit is expected to jump 5.1% YoY to $14.68, followed by a 6.5% growth to $15.63 in fiscal 2028. However, for the current quarter, analysts expect its EPS to drop 1.3% YoY to $3.89.
What Do Analysts Think About ACN Stock?
This month, Wells Fargo analysts raised the price target from $194 to $210 while maintaining an “Equal Weight” rating on ACN stock. Wells Fargo said the direct impact from the Middle East worsened in the fourth quarter, while the indirect effects began to ease. The firm raised its fiscal 2027 and 2028 revenue estimates to $77.33 billion and $81.20 billion from $76.66 billion and $80.50 billion, respectively. However, it lowered its adjusted EPS estimates for those years to $14.60 and $16.03 from $14.77 and $16.32.
Last month, analysts at Guggenheim downgraded Accenture from “Buy” to “Neutral” and removed the $185 price target. The firm said the company’s stock price surge has not been supported by a corresponding improvement in customer demand. Guggenheim said the decline in job postings suggests Accenture’s hiring needs and consulting demand may be weakening.
ACN stock has become popular on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating. Of the 25 analysts rating ACN, 10 analysts have rated it a “Strong Buy,” one analyst suggests a “Moderate Buy,” while 14 analysts are playing it safe with a “Hold” rating. The consensus price target of $225.96 represents a 16% upside from current levels. The Street-high price target of $275 indicates a 41% upside.
www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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