Accenture (NYSE:ACN) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Accenture shares surged 23% after the company reported quarterly EPS of $3.29 and revenue of $18.68 billion, beating analyst estimates; revenue rose 6.2% year over year.
• Management authorized a $2 billion share repurchase, allowing buybacks of up to 2.4% of outstanding shares, while highlighting continued demand for AI-related services and technology alliances.
• Fiscal 2027 guidance calls for EPS of $14.39–$14.81 and revenue of $76.4–$78.7 billion, broadly near expectations, but the stock’s consensus rating remains “Hold” with a $200.52 price target.

Accenture PLC (NYSE:ACN - Get Free Report)'s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $183.37, but opened at $215.98. Accenture shares last traded at $225.2070, with a volume of 8,021,969 shares traded.

The information technology services provider reported $3.29 EPS for the quarter, topping analysts' consensus estimates of $3.18 by $0.11. The company had revenue of $18.68 billion for the quarter, compared to the consensus estimate of $18.02 billion. Accenture had a return on equity of 26.47% and a net margin of 10.66%.The company's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the business posted $3.03 EPS. Accenture has set its FY 2027 guidance at 14.390-14.810 EPS.

Accenture declared that its Board of Directors has authorized a share repurchase plan on Tuesday, June 23rd that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology services provider to purchase up to 2.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Accenture News Roundup

Here are the key news stories impacting Accenture this week:

• Positive Sentiment: Accenture reported fourth-quarter earnings of $3.29 per share, above the $3.18-$3.19 analyst consensus and up from $3.03 a year earlier. Revenue increased 6.2% year over year to $18.68 billion, exceeding estimates of approximately $18.02 billion. Accenture Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Profit rose to $1.99 billion from $1.41 billion in the prior-year quarter, while full-year revenue reached roughly $74.2 billion. Accenture also returned a record $11.5 billion to shareholders during fiscal 2026, supporting the investment case. Accenture Revenue Rises on Growth Across Geographies and Industries
• Positive Sentiment: Management’s results indicate growth across regions and industries, while demand for AI-related services and emerging technology alliances—including Nvidia—provided optimism that Accenture can benefit from AI adoption rather than be displaced by it. Accenture Brushes Off AI Disruption Fears
• Neutral Sentiment: Fiscal 2027 guidance calls for EPS of $14.39-$14.81 and revenue of $76.4-$78.7 billion, broadly surrounding analyst expectations. First-quarter revenue guidance of $19.0-$19.6 billion also brackets the $19.4 billion consensus.
• Negative Sentiment: The guidance midpoint is slightly below consensus for both fiscal 2027 EPS and first-quarter revenue, suggesting investors may need additional evidence that growth will accelerate beyond the strong quarterly beat.

Analyst Ratings Changes

ACN has been the topic of a number of research reports. BMO Capital Markets raised their target price on shares of Accenture from $150.00 to $200.00 and gave the company a "market perform" rating in a research note on Wednesday, September 23rd. Guggenheim downgraded Accenture from a "buy" rating to a "neutral" rating in a report on Friday, September 18th. Mizuho reduced their price objective on Accenture from $280.00 to $226.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 23rd. Jefferies Financial Group upped their target price on Accenture from $130.00 to $190.00 and gave the stock a "hold" rating in a research report on Tuesday, September 22nd. Finally, Oppenheimer set a $201.00 target price on Accenture in a research note on Monday, June 8th. Ten investment analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Accenture currently has a consensus rating of "Hold" and a consensus price target of $200.52.

Insider Transactions at Accenture

In related news, General Counsel Joel Unruch sold 10,498 shares of Accenture stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $162.98, for a total transaction of $1,710,964.04. Following the sale, the general counsel owned 17,735 shares of the company's stock, valued at $2,890,450.30. The trade was a 37.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.02% of the stock is owned by company insiders.

Institutional Trading of Accenture

Large investors have recently modified their holdings of the business. Flossbach Von Storch SE acquired a new position in Accenture in the second quarter valued at approximately $309,873,000. First Trust Advisors LP increased its position in Accenture by 120.0% in the 1st quarter. First Trust Advisors LP now owns 3,482,150 shares of the information technology services provider's stock valued at $690,475,000 after acquiring an additional 1,899,305 shares during the period. Franklin Resources Inc. boosted its position in Accenture by 15.9% during the 4th quarter. Franklin Resources Inc. now owns 8,173,338 shares of the information technology services provider's stock worth $2,192,907,000 after acquiring an additional 1,122,855 shares during the period. Pzena Investment Management LLC grew its stake in shares of Accenture by 84.0% in the first quarter. Pzena Investment Management LLC now owns 2,405,683 shares of the information technology services provider's stock worth $477,023,000 after purchasing an additional 1,097,961 shares in the last quarter. Finally, Ruane Cunniff & Goldfarb L.P. acquired a new position in shares of Accenture during the fourth quarter valued at $253,120,000. 75.14% of the stock is currently owned by institutional investors and hedge funds.

Accenture Trading Up 23.0%

The firm has a market capitalization of $150.57 billion, a P/E ratio of 18.16, a PEG ratio of 1.46 and a beta of 1.10. The business's 50 day moving average is $178.40 and its two-hundred day moving average is $173.35. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.15.

About Accenture

Accenture plc NYSE: ACN is a global professional services company that helps organizations improve performance, modernize operations and respond to technological and market changes. Its services span strategy and consulting, technology, operations, and managed services, with expertise across industries including communications, financial services, health care, public service, retail, manufacturing and resources.

The company provides digital transformation, cloud migration, data and artificial intelligence, cybersecurity, systems integration and technology implementation services.

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