ACN Information Technology Services
Accenture plc
Accenture is a Dublin, Ireland-incorporated professional services company with approximately 779,000 people, serving about 9,000 clients, mostly Forbes Global 2000 companies and governments. It sells two kinds of work — consulting (projects with a defined outcome) and managed services (running technology and business operations for clients over time) — each about half of FY2025 revenue of $69.7 billion. It reports three geographic segments: the Americas (50% of revenue), EMEA (35%), and Asia Pacific (14%). Its FY2025 fiscal year ended August 31, 2025; the FY2026 10-K had not yet been filed when this page was written.
Last updated
Analysis last edited: October 3, 2026 · Financial data fetched: October 3, 2026 11:14 (SEC EDGAR) · Source 10-K filed: October 10, 2025
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Accenture plc
- Headquarters
- DUBLIN, Ireland
- Incorporated in
- Ireland
- Fiscal year end
- 08/31
- Exchange & ticker
- NYSE: ACN
- Industry
- Information Technology Services
- CIK
- 1467373
- Website
- https://www.accenture.com/ ↗
Workforce (as of FY2025 year-end)
Employees
779,000
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: August 2026. In past years, Q4 results were released 25–28 days after quarter end (Sep 25, 2025; Sep 26, 2024; Sep 28, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around August 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 18–28 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | May 31, 2026 | Jun 18, 2026 (+18 days) | Jun 18, 2026 10-Q (+18 days) |
| Q2 FY2026 | Feb 28, 2026 | Mar 19, 2026 (+19 days) | Mar 19, 2026 10-Q (+19 days) |
| Q1 FY2026 | Nov 30, 2025 | Dec 18, 2025 (+18 days) | Dec 18, 2025 10-Q (+18 days) |
| Q4 FY2025 | Aug 31, 2025 | Sep 25, 2025 (+25 days) | Oct 10, 2025 10-K (+40 days) |
| Q3 FY2025 | May 31, 2025 | Jun 20, 2025 (+20 days) | Jun 20, 2025 10-Q (+20 days) |
| Q2 FY2025 | Feb 28, 2025 | Mar 20, 2025 (+20 days) | Mar 20, 2025 10-Q (+20 days) |
| Q1 FY2025 | Nov 30, 2024 | Dec 19, 2024 (+19 days) | Dec 19, 2024 10-Q (+19 days) |
| Q4 FY2024 | Aug 31, 2024 | Sep 26, 2024 (+26 days) | Oct 10, 2024 10-K (+40 days) |
| Q3 FY2024 | May 31, 2024 | Jun 20, 2024 (+20 days) | Jun 20, 2024 10-Q (+20 days) |
| Q2 FY2024 | Feb 29, 2024 | Mar 21, 2024 (+21 days) | Mar 21, 2024 10-Q (+21 days) |
| Q1 FY2024 | Nov 30, 2023 | Dec 19, 2023 (+19 days) | Dec 19, 2023 10-Q (+19 days) |
| Q4 FY2023 | Aug 31, 2023 | Sep 28, 2023 (+28 days) | Oct 12, 2023 10-K (+42 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Industry group
Products
Examples: Industry group (constituent industries not itemized in the 10-K)
$21.2B, the largest industry group (30% of FY2025 revenue).
Industry group
Health & Public Service
Examples: Health and public service clients
$14.8B (21%).
Industry group
Financial Services
Examples: Banking, capital markets, insurance
$12.8B (18%), the fastest-growing group in FY2025 (+10%).
Industry group
Communications, Media & Technology
Examples: Industry group (constituent industries not itemized in the 10-K)
$11.5B (16%).
Industry group
Resources
Examples: Including utilities and chemicals & natural resources
$9.5B (14%).
Accenture sells services, not products; these are its five industry groups, from the FY2025 Form 10-K's MD&A.
04
Recent strategic focus
FY2025 strategy and restructuring, from the 10-K.
One integrated "Reinvention Services" unit
Effective September 1, 2025, Accenture combined strategy, consulting, technology, operations, Song, and Industry X into a single business unit called Reinvention Services.
Source: Form 10-K (FY2025) Item 1
Business optimization in Q4 FY2025
$615M of costs: $344M for headcount reductions on a compressed timeline and $271M of asset impairments, primarily for divesting two acquisitions in the Americas that no longer fit its priorities.
Source: Form 10-K (FY2025) MD&A
Capex ÷ D&A (FY2025)
0.39x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$600M ÷ $1,525M = 0.39x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
1.2%
formularesearch & development expense ÷ revenue × 100
e.g.$817M ÷ $69,673M × 100 = 1.2%
M&A spend (5-year total)
$18.2B
Latest year: $1.47B
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $580M in FY2021 to $600M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$69.67B
As reported in the 10-K
Revenue CAGR (4 years)
+8.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($69,673M ÷ $50,533M) ^ (1÷4) − 1 = 8.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
14.7%
-0.4pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$10,226M ÷ $69,673M × 100 = 14.7%
ROE (FY2025)
25.8%▲favorable
5-year average: 29.0%
As reported in the 10-K
P/B (FY2025 end)
—
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
13.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($164,318M + $5,149M − $11,479M) ÷ ($10,226M + $1,525M) = 13.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +8.4% a year over 4 years (strong growth)
From $50.53B in FY2021 to $69.67B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ―
Operating margin held roughly flat: 15.1% → 14.7%
How much operating profit is left per $100 of revenue. It moved -0.4 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 47.7% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 29.0% over 5 years (latest: 25.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Consulting
Strategy, management, and technology consulting and technology integration — distinct projects or sets of projects with a defined outcome, such as building a client's digital core on cloud, data, and AI.
01 what it draws on
Inputs & resources
- Consultants and technologists among about 779,000 people
- Proprietary assets and platforms
- Relationships with large technology providers ("ecosystem partners")
02 what it does
Activities
- Advising on strategy and transformation
- Designing and integrating technology, including AI, cloud, and enterprise platforms
03 who it serves
Customers
- Large companies (Forbes Global 2000)
- Governments and government agencies
04 how money comes in
How it earns
- Project fees, including estimated fees recognized as costs are incurred on technology integration work
Consulting: how it makes money
- Consulting revenue was $35.1B in FY2025, up 6% in U.S. dollars.
- Consulting new bookings were $37.6B, up 2%.
Managed Services
"Ongoing, repeatable services or capabilities provided to transition, run and/or manage operations of client systems or business functions" (10-K) — such as application management, infrastructure, cloud and security operations, and business process services like finance, procurement, and supply chain, supported by its SynOps platform.
01 what it draws on
Inputs & resources
- Global delivery centers
- SynOps, its AI-powered operations platform
02 what it does
Activities
- Operating applications, infrastructure, and business processes on clients' behalf
03 who it serves
Customers
- Large companies and governments outsourcing ongoing operations
04 how money comes in
How it earns
- Ongoing service fees over the life of the engagement
Managed Services: how it makes money
- Managed services revenue was $34.6B in FY2025, up 9% — faster than consulting.
- Managed services new bookings were $43.0B, down 3%; bookings can swing with the timing of a few large contracts.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Americas
35,057 (50%)profit 5,324 · margin 15.2%
EMEA
24,644 (35%)profit 3,091 · margin 12.5%
Asia Pacific
9,972 (14%)profit 1,810 · margin 18.2%
Source: Form 10-K (FY2025) — MD&A, revenues and operating income by geographic market From FY2025, Latin America moved into the Americas (formerly North America), and Growth Markets became Asia Pacific. FY2025 operating income includes $615M of business optimization costs.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
Americas — 50% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Americas
35,057 (50%)EMEA
24,644 (35%)Asia Pacific
9,972 (14%)
Source: Form 10-K (FY2025) — MD&A, revenues by geographic market Within the regions, the 10-K says growth was driven by the United States in the Americas; the U.K. and Germany (offset by France) in EMEA; and Japan and Australia (offset by Singapore) in Asia Pacific. The majority of revenue is in currencies other than the U.S. dollar.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
About half of revenue is consulting projects and half managed services. The 10-K stresses that "the majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice," so only the non-cancelable portion of contracts counts in remaining performance obligations ($34B at FY2025 year-end, up from $30B). New bookings ($80.6B in FY2025) include renewals and extensions but aren't a backlog.
- Short-term contract
Consulting projects
50% of FY2025 revenue ($35.1B)
Typical term: A finite, distinct project or set of projects with a defined outcome
Often terminable by the client on short notice.
- Multi-year / recurring
Managed services
50% of FY2025 revenue ($34.6B)
Typical term: "Ongoing, repeatable services or capabilities" to transition, run, and/or manage operations of client systems or business functions
Growing faster than consulting (+9% vs. +6%), though also generally terminable on short notice.
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Revenue comes primarily from Forbes Global 2000 companies and governments; Accenture serves about 9,000 clients, including three-quarters of the Fortune Global 100 and 500.
Named by the company
None named in the 10-K.
What the filings disclose
- 195 of the top 200 clients have worked with Accenture for 10 or more years, and it has 305 "Diamond" clients, its largest relationships. (Form 10-K (FY2025), Item 1)
- Government clients include national, provincial, state, and local entities, and the U.S. federal business has been affected by federal spending cuts. (Form 10-K (FY2025), Item 1A and MD&A)
Suppliers
Accenture's main input is its people; it also works with technology "ecosystem partners" and uses subcontractors. The 10-K doesn't name partners or suppliers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Accenture says it is the number-one partner for all of its top 10 ecosystem partners, which are among the world's largest technology companies. (Form 10-K (FY2025), Item 1)
- Some ecosystem partners are also large clients or suppliers of technology to Accenture. (Form 10-K (FY2025), Item 1A)
- Cost of services includes non-payroll costs such as subcontractors, facilities, technology, and travel. (Form 10-K (FY2025), MD&A)
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Accenture's 10-K lists types of competitors — large multinational IT service providers (including the services arms of technology companies), offshore IT providers particularly in India, accounting firms and consultancies, specialists such as advertising agency holding companies and engineering services providers, start-ups, and clients' own in-house IT departments and global capability centers — but names none.
Competitors named in the 10-K
Accenture's 10-K describes competitor types but doesn't name them.
Peer group the company chose
Fiscal 2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Selection criteria include similar business or industry, comparable revenue, global scale, and being a direct line-of-business competitor. The proxy adds that Accenture doesn't believe many companies compete with it directly in all lines of its business.
- Chubbsite ↗
- Cisco Systemssite ↗
- Cognizantsite ↗
- General Dynamicssite ↗
- Honeywellsite ↗
- Intelsite ↗
- IBMsite ↗
- Marsh & McLennan Companiessite ↗
- Microsoftsite ↗
- Morgan Stanleysite ↗
- Oraclesite ↗
- Qualcommsite ↗
- Salesforcesite ↗
- Visasite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Accenture acquires many small companies each year rather than a few large ones; the 10-K describes them as individually immaterial and doesn't name them, saying they were completed primarily to expand its solutions and services. It calls its acquisition strategy "an engine to fuel organic growth."
Cash spent on acquisitions, FY2021–FY2025: $18.2B
FY2025
Multiple acquisitions (not named)
$1.17B total consideration
Individually immaterial acquisitions.
- Stated purpose (company)
- Primarily to expand solutions and services offerings.
Since then: In Q4 FY2025 Accenture recorded about $271M of impairments, primarily for divesting two acquisitions in the Americas no longer aligned with its priorities.
Source: Form 10-K (FY2025) — Business Combinations note and MD&A
FY2024
Multiple acquisitions (not named)
$6.46B total consideration
Individually immaterial acquisitions; $5.3B was recorded as goodwill.
- Stated purpose (company)
- Primarily to expand solutions and services offerings.
Since then: Accenture's largest acquisition spend of the five years.
FY2023
Multiple acquisitions (not named)
$2.48B total consideration
Individually immaterial acquisitions.
- Stated purpose (company)
- Primarily to expand solutions and services offerings.
Accenture's fiscal year ends August 31.
12
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
| Line item | FY2021In next year’s 10-K | FY2022In next year’s 10-K | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 50,533 | 61,594 | 64,112 | 64,896 | 69,673 |
| Operating income | 7,622 | 9,367 | 8,810 | 9,596 | 10,226 |
| Pretax income | 7,761 | 9,196 | 9,139 | 9,699 | 10,270 |
| Net income (attributable) | 5,907 | 6,877 | 6,872 | 7,265 | 7,678 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 21.9% | 4.1% | 1.2% | 7.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 15.1% | 15.2% | 13.7% | 14.8% | 14.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 11.7% | 11.2% | 10.7% | 11.2% | 11.0% |
| Balance sheet ($M) | |||||
| Total assets | 43,176 | 47,263 | 51,245 | 55,932 | 65,395 |
| Total equity | 20,097 | 22,747 | 26,459 | 29,168 | 32,241 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 66 | 55 | 148 | 1,025 | 5,149 |
| Equity ratio | 45.2% | 46.8% | 50.1% | 50.6% | 47.7% |
| ROE | 30.2% | 33.0% | 28.8% | 26.9% | 25.8% |
| Cash flow ($M) | |||||
| Operating CF | 8,975 | 9,541 | 9,524 | 9,131 | 11,474 |
| Investing CF | -4,310 | -4,261 | -2,622 | -7,062 | -2,020 |
| Financing CF | -4,926 | -5,311 | -5,645 | -6,064 | -2,948 |
| Free cash flowcalccash flow from operations − capital expenditures | 8,395 | 8,823 | 8,996 | 8,615 | 10,874 |
| Cash and equivalents | 8,168 | 7,890 | 9,045 | 5,004 | 11,479 |
| Per share & other | |||||
| EPS ($) | 9.16 | 10.71 | 10.77 | 11.44 | 12.15 |
| Dividend per share ($) | 3.52 | 3.88 | 4.48 | 5.16 | 5.92 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 38.4% | 36.2% | 41.6% | 45.1% | 48.7% |
| P/E (x) | 36.7 | 26.9 | 30.1 | 29.9 | 21.4 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 23.9 | 16.6 | 19.3 | 19.3 | 13.4 |
Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
13
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
23.9%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$10,226M × (1 − 21%) ÷ $33,791M × 100 = 23.9%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.98%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $164.32B ÷ ($164.32B + $5.15B) = 97.0%
e.g.Debt weight: $5.15B ÷ ($164.32B + $5.15B) = 3.0%
e.g.WACC: 8.1% × 97.0% + 4.4% × (1 − 21%) × 3.0% = 7.98%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 7.98% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.75 (price-derived adjusted beta, but correlation with the market is low (R² 0.07), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.13%
- Cost of debt
- 4.44%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 97% : 3%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.98%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.74 (price-derived adjusted beta. Raw β 0.62, R² 0.07, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.619 + 0.33 = 0.745
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.75 × 5.5% = 8.1%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
14
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
1.1%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.0% − 6.9%
Past FCF growth (FY2021–FY2025)
+6.7%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+8.4%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $10.87B (operating CF − capex); enterprise value $157.98B = market cap $164.32B + debt $5.15B − cash and short-term investments $11.48B; r = WACC of 8.0% using this page’s default assumptions (β 0.75, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$157.6B
FCF $10.87B ÷ (8.0% − 1.1%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.0% | 7.0% | 8.0% | 9.0% | 10.0% |
|---|---|---|---|---|---|
| 0% | 1.15x | 0.98x | 0.86x | 0.76x | 0.69x |
| 2% | 1.72x | 1.38x | 1.15x | 0.98x | 0.86x |
| 4% | 3.44x | 2.29x | 1.72x | 1.38x | 1.15x |
| 6% | — | 6.88x | 3.44x | 2.29x | 1.72x |
| 8% | — | — | — | 6.88x | 3.44x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
15
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.41x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -6.3%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 100%
Most profit comes from core operations.
- ✓
Days sales outstanding: 64 → 68 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-10
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$11,474M ÷ $7,678M = 1.49x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$10,226M ÷ $10,270M × 100 = 100%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$13,065M ÷ $69,673M × 365 = 68 days
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Strengths & weaknesses
Strengths
1. Long, deep client relationships
Accenture has worked with 195 of its top 200 clients for 10 or more years and has 305 "Diamond" clients, its largest relationships, among about 9,000 clients.
Evidence: Form 10-K (FY2025) Item 1
2. Growing managed services base
Managed services grew 9% in FY2025 to $34.6B and is now half of revenue, adding ongoing operations work alongside project consulting.
Evidence: Form 10-K (FY2025) MD&A
3. Cash generation returned to shareholders
Operating cash flow was $11.5B in FY2025 against capital expenditures of $0.6B; Accenture returned $8.3B to shareholders ($3.7B of dividends and $4.6B of share purchases).
Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL
Weaknesses
1. Bookings slipped
New bookings fell 1% to $80.6B in FY2025, with managed services bookings down 3%.
Evidence: Form 10-K (FY2025) MD&A
2. Gross margin pressure from payroll
Gross margin fell from 32.6% to 31.9% of revenue in FY2025, which the 10-K attributes primarily to higher payroll costs.
Evidence: Form 10-K (FY2025) MD&A
3. Repeated restructuring
Business optimization costs were $615M in FY2025 — including $344M of severance and $271M of impairments tied to divesting two acquisitions — after $438M in FY2024.
Evidence: Form 10-K (FY2025) MD&A
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
21.4x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
2.28%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
49%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
6.6%
(Operating CF − capex) ÷ market cap
1. Steady growth with large cash returns
Revenue grew 7% in FY2025 and diluted EPS 6%, and Accenture returned $8.3B — more than its $7.7B net income — through dividends and buybacks. The dividend per share rose from $3.52 (FY2021) to $5.92 (FY2025).
- What has to hold
- Clients keep spending on large-scale transformations, including becoming AI-ready.
- The other side
- New bookings fell 1% in FY2025, and most contracts can be terminated by clients on short notice.
Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL
2. A lower valuation than in prior years
P/E at the FY2025 year-end price was about 21x, down from 30x a year earlier and 37x at FY2021 year-end.
- What has to hold
- Earnings keep growing at recent rates.
- The other side
- A lower multiple can mean the market expects slower growth; the 10-K doesn't address valuation, but new bookings fell 1% in FY2025.
Evidence: SEC EDGAR XBRL and fiscal year-end prices
3. Positioned as a partner for technology providers
Accenture says it is the number-one partner for all of its top 10 ecosystem partners — among the world's largest technology companies — which seek its help turning their technology into business outcomes.
- What has to hold
- Large technology providers keep relying on services partners to deploy AI and cloud.
- The other side
- The 10-K lists the services arms of large technology providers among its competitors, and says some ecosystem partners are also large clients or suppliers.
Evidence: Form 10-K (FY2025) Item 1 and Item 1A
Dividend yield, payout ratio, P/E, and FCF yield above use the fiscal year-end share price, not today's price, so they shift as the stock moves.
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Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
100x+
$11.48B vs. $114M
Interest coverage (operating income ÷ interest expense)
44.7x
$10.23B vs. $229M
Free cash flow ÷ dividends paid
2.9x
$10.87B vs. $3.7B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -5.9% in FY2023 ($9.37B → $8.81B) | Yes, by FY2024 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity
Cash was $11.5B at FY2025 year-end. Borrowing facilities totaled $7.8B, including a $5.5B syndicated facility maturing May 14, 2029. Of $5.1B of debt principal, only $100M is due in fiscal 2026.
Source: Form 10-K (FY2025), MD&A and debt note
Contracts can be cancelled quickly
Most contracts are terminable by clients on short notice with little or no penalty, so revenue can fall quickly if clients cut spending; only the non-cancelable portion appears in the $34B of remaining performance obligations.
Source: Form 10-K (FY2025), Note 2 · See Contract structure
Flexible cost base
Compensation is the largest cost, and the 10-K says Accenture adjusts hiring and uses involuntary terminations to balance skills with demand; it took $344M of severance actions in FY2025.
Source: Form 10-K (FY2025), MD&A
Client and geographic spread
About 9,000 clients across five industry groups and three regions; the largest industry group, Products, was 30% of FY2025 revenue.
Source: Form 10-K (FY2025), Item 1 and MD&A · See Where it earns
Insurance limits
The 10-K says its insurance doesn't cover all types and amounts of potential liabilities and is subject to exclusions and caps.
Source: Form 10-K (FY2025), Item 1A
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Competition & technology shift
AI changing how services are bought and delivered
- Company disclosure (summarized from the 10-K)
- The 10-K lists risks and uncertainties related to the development and use of AI, including advanced AI, as a risk factor, while Accenture is also investing to lead in it (a $3B multi-year generative AI investment announced in fiscal 2023).
- Company’s stated mitigation
- Investment in AI capabilities and ecosystem partnerships.
- This site’s assessment
- Impact High / Likelihood Med
- 2Demand & macro
Economic and geopolitical uncertainty
- Company disclosure (summarized from the 10-K)
- The 10-K says its results have been and may be adversely affected by volatile or uncertain economic and geopolitical conditions that affect clients' spending.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Law & regulation
U.S. federal spending cuts
- Company disclosure (summarized from the 10-K)
- The 10-K says reductions in U.S. federal spending and workforce have led to delays in new procurements, reductions in price and contract scope, and contract terminations at Accenture Federal Services, with an adverse effect on its results.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood High
- 4Competition & technology shift
Competition and pricing pressure
- Company disclosure (summarized from the 10-K)
- Competitors include large IT service providers (including the services arms of large technology companies), offshore providers particularly in India, accounting and consulting firms, and niche providers; the 10-K says pricing pressures have had and may continue to have a negative impact on profitability.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood High
- 5Governance & quality
People costs and attrition
- Company disclosure (summarized from the 10-K)
- Compensation is the largest operating cost. Voluntary attrition was 14% in FY2025, utilization 92%, and payroll costs drove the gross margin decline.
- Company’s stated mitigation
- Pricing, delivery efficiencies, and changes in staff mix, according to the 10-K.
- This site’s assessment
- Impact Med / Likelihood Med
- 6FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- The majority of revenue is in currencies other than the U.S. dollar, including the euro, Japanese yen, and U.K. pound.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood Med
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What to watch going forward
- Whether new bookings return to growth, particularly in managed services.
- The impact of U.S. federal spending cuts on Accenture Federal Services.
- How AI changes client demand and pricing for consulting and managed services.
- Margins after the FY2025 business optimization actions.
- The FY2026 10-K (fiscal year ended August 31, 2026), expected in October 2026.
21
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 3, 2026 · Financial data fetched: October 3, 2026 11:14 (SEC EDGAR) · Source 10-K filed: October 10, 2025
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Accenture plc’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.