The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 11.2x | 20.8x | Top tier | |
Growth | 50 | 6.7% | 6.1% | Around median | |
Quality | 85 | 29.8% | 6.6% | Top tier | |
Safety | 86 | — | 0.7x | Top tier | |
Capital Return | 74 | — | 2.02% | Top tier | |
Momentum | 3 | -42.2% | 4.1% | Bottom tier | |
Sentiment | 43 | 17 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Accenture (ACN) is a global leader in professional services and technology consulting, focusing on helping organizations build their digital core, transform their operations, and accelerate revenue growth by adopting modern technologies like cloud and artificial intelligence. The company generates its revenue through two main segments: the consulting segment, which provides integrated strategic solutions to reinvent businesses, and the managed services segment, which offers continuous operational support and advanced outsourcing services to companies across various industries.
During the third quarter of fiscal year 2026, the company reported strong results despite macroeconomic challenges, with total revenues reaching $18.7 billion, representing an increase of 6% in US dollars and 3% in local currency. The revenue mix was balanced, with the consulting segment contributing $9.3 billion, while the managed services segment generated $9.4 billion with strong growth in technology and operations.
In terms of profitability, the company managed to expand its operating income margin by 20 basis points to reach 17%, achieving earnings per share of $3.80, an increase of 9% compared to the same period last year. The company also demonstrated notable financial strength by generating $3.6 billion in free cash flow during the quarter, enabling it to continue returning capital to shareholders and fund massive strategic acquisitions.
Accenture's stock is currently trading below the average analyst consensus price target of $198.89, following the sharp declines the stock recently experienced due to the lowered revenue guidance. The analyst consensus reflects a general Buy recommendation, despite a wide variance in valuations ranging from a low of $130 to a high of $282. This valuation balances the company's strong cash flows and massive investments in artificial intelligence on one hand, against geopolitical risks and weak discretionary client spending on the other.
Figures in the text are as of 2026-07-14; the live price is shown at the top of the page.
The conflict in the Middle East directly and indirectly impacted the company's financial results during the third quarter of 2026. The company recorded a decline in consulting revenues of about $100 million compared to expectations, and this impact was distributed evenly between direct business in the region and indirect impacts globally. These tensions also lengthened client decision-making cycles, causing a drop in regional sales of approximately $400 million.
The company announced the launch of a new business unit named Accenture Edge to target companies with revenues between $300 million and $3 billion. The company estimates that this segment represents an addressable market worth $240 billion and is growing at strong rates. This unit will work in close collaboration with Avanade, the joint venture with Microsoft, to provide rapidly deployable technology solutions suitable for the size of these companies.
The company decided to significantly increase the capital allocated for acquisitions to accelerate its transition towards non-FTE revenue models and expand its capabilities in high-growth areas. This update came after announcing major deals in operational technology cybersecurity, including acquiring a majority stake in Dragos and companies runZero and NetRise. These investments aim to build an integrated security platform to protect the critical infrastructure that artificial intelligence relies on.
Automated analysis for informational purposes only — not investment advice.
The company's stock suffered a historic decline of 18% in late June 2026 due to a combination of negative factors. The primary reason was management lowering the annual revenue growth guidance for fiscal year 2026 to be between 3% and 4% in local currency. Concerns regarding the impact of artificial intelligence on traditional business models and the postponement of some large managed services contracts to 2027 also contributed to fueling investor anxiety.
The company is transitioning its clients from the AI experimentation phase to running core operations using it, as happened in its recent contracts with companies like BT Group and Stellantis. During the third quarter alone, 100 new clients began advanced AI projects with the company to enhance their operational efficiency. To accelerate this growth, the company is working to double its bookings with emerging data and AI partners like Anthropic, OpenAI, and Nvidia compared to fiscal year 2025.