Accenture released its fourth-quarter and full-year fiscal 2026 results, reporting revenue and earnings above analyst estimates and issuing a fiscal 2027 revenue growth forecast that exceeded analysts' consensus expectations. The company's shares closed 15.78% higher at $212.30, Yahoo Finance reported.
Fourth-quarter total revenue reached $18.68 billion, up 6% year on year, against analyst estimates of $18.03 billion. Consulting revenue rose to $9.28 billion while managed services brought in $9.4 billion, a 7% increase.
Adjusted earnings per share came in at $3.29, up 9%, ahead of the $3.18 analyst estimate. New bookings totalled $22.17 billion, up 4%, and free cash flow was $2.9 billion.
Regional performance showed the Americas delivered $9.4 billion in revenue (up 7%), EMEA contributed $6.6 billion (up 6%) and Asia Pacific accounted for $2.7 billion (up 3%). Operating margin came in at 15.3%, a gain of 20 basis points against the adjusted prior-year figure. Attributable net income for the fourth quarter climbed 40.8% to $1.99 billion, up from $1.413 billion a year earlier.
Fiscal 2026 full-year revenue was $74.2 billion, a 6% rise, and adjusted earnings per share reached $13.97, an 8% increase. Total full-year bookings came to $84.5 billion.
Over the full year Accenture returned $11.5 billion to shareholders, a figure that included $2 billion in additional buybacks executed in the fourth quarter. A quarterly dividend of $1.71 per share was declared, representing a 5% increase.
Fiscal 2027 earnings per share guidance was set at $14.39 to $14.81, compared with an analyst estimate of $14.62, and operating margin guidance of 15.9% to 16.1%, above the 15.87% analyst estimate. Revenue guidance for the first quarter of fiscal 2027 was set at $18.95 billion to $19.60 billion, implying local-currency growth of 2% to 6%. Chairman and CEO Julie Sweet said the company expected to deploy approximately $5 billion in acquisitions in fiscal 2027, based on opportunities to accelerate its growth strategy, Channelnewsasia reported.
Shares in peer companies also rose, with Cognizant up about 8%, IBM up about 3%, and US-listed shares of Wipro and Infosys each rising between 6% and 7%. Software stocks had largely clawed back losses from an earlier selloff that was triggered when Anthropic released new tools, raising fears that AI could displace those companies' products and services, but IT services firms had not kept pace with that recovery. Accenture's guidance pointed to consulting firms benefiting from companies turning to outside technology partners for automation of complex tasks and for support with AI adoption.
Accenture acknowledged that prices fell in many areas during the quarter, reflecting client pressure to share AI-driven savings, which may affect commercial terms for IT consulting and managed services engagements. The company plans to return at least $9.5 billion to shareholders in fiscal 2027, alongside the quarterly dividend of $1.71 per share.
Reporting: Channelnewsasia, Yahoo Finance
Background: Yahoo Finance
Written by Pick & Scroll News from the reporting and documents linked above.
