Accenture plc reported first‑quarter fiscal 2026 revenue of $18.7 billion, up 6 % from $17.60 billion in the same period a year earlier, and ahead of the consensus estimate of $18.53 billion. The 6 % growth was driven by a 4 % rise in Consulting revenue to $9.41 billion and an 8 % increase in Managed Services to $9.33 billion, reflecting robust demand for both core consulting and high‑margin managed services. Advanced AI bookings surged 76 % year‑over‑year to $2.2 billion, while AI‑driven revenue jumped 120 % to $1.1 billion, underscoring the company’s successful monetization of its AI platform.
Accenture’s adjusted earnings per share rose to $3.94, beating the analyst consensus of $3.75 by $0.19 and a 5 % margin. The beat was largely a result of disciplined cost management and a favorable mix of high‑margin AI and consulting work, which offset the impact of business‑optimization costs that reduced GAAP operating margin to 15.3 % from 16.7 % in the prior year. Adjusted operating margin expanded to 17.0 % from 16.7 %, driven by higher pricing power in the AI segment and improved operational leverage as revenue scales.
New bookings for the quarter reached $21 billion, including 33 clients with quarterly bookings over $100 million. The bookings strength, combined with the AI momentum, positions Accenture to sustain growth through the remainder of fiscal 2026. Management reiterated its full‑year guidance, maintaining a 2 % to 5 % local‑currency revenue growth range and an adjusted EPS range of $13.52 to $13.90. The guidance reflects confidence in continued demand for AI‑enabled services while acknowledging a modest drag from the contracting U.S. federal business segment.
Chief Executive Officer Julie Sweet highlighted the company’s “reinvention partner” role, noting that the $21 billion in new bookings and the top‑of‑range revenue growth demonstrate market share gains and pricing strength. Sweet added that “the real opportunity is not proving AI works. It is making it work everywhere,” emphasizing Accenture’s focus on embedding AI across its portfolio. The company also reaffirmed its investment in generative AI and the Reinvention Services model as key growth drivers.
Market reaction to the results was muted, with analysts citing broader macro concerns and a slightly softer outlook for the second quarter as the main drivers of a modest pre‑market dip. Despite the earnings beat, investors remained cautious, focusing on the company’s continued exposure to federal contracting headwinds and the need to sustain AI‑related growth momentum in a competitive landscape.
Accenture returned $3.3 billion to shareholders in the quarter through $2.3 billion in share repurchases and $1 billion in dividends, marking a 10 % increase in the dividend per share. The dividend hike signals confidence in cash‑flow generation while the share buyback program supports shareholder value.
Accenture’s Q1 fiscal 2026 results demonstrate strong execution in AI and consulting, a resilient revenue mix, and disciplined cost management, positioning the company for continued growth amid macro uncertainty.
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