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Ireland-based Accenture plc (ACN) is a leading global professional services company that helps clients build their digital core, transform their operations, and accelerate revenue growth. Valued at a market cap of $226.1 billion, the company specializes in information technology services and management consulting and serves a wide range of industries. It is expected to announce its fiscal Q1 earnings results on Tuesday, Dec. 17.
Ahead of this event, analysts project the consulting services provider to report a profit of $3.39 per share, up 3.7% from $3.27 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on one other occasion.
The company’s adjusted earnings of $2.79 per share in the last quarter marginally outpaced the consensus estimates and increased 3% from a year ago. The outperformance can be primarily attributed to robust growth in its generative AI business and a 230 bps improvement in its GAAP operating margin.
For fiscal 2025, analysts expect ACN to report an EPS of $12.77, up 6.9% from $11.95 in fiscal 2024. Moreover, EPS is expected to increase 7.8% year-over-year to $13.77 in fiscal 2026.
Shares of ACN have gained 2.8% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 21.8% rise and the Technology Select Sector SPDR Fund’s (XLK) 19.6% return over the same period.
On Oct. 2, Accenture and Nvidia (NVDA) announced an expanded partnership. The companies launched the new Accenture Nvidia Business Group, which will be staffed by 30,000 professionals, who will receive training to help "clients reinvent processes and scale enterprise AI adoption with AI agents." Shares of ACN gained 1.2% after this news.
Moreover, on Sep. 26, ACN jumped 5.6% after its Q4 and full-year earnings release as along with its adjusted earnings, its Q4 revenue of $16.4 billion surpassed the Wall Street estimates of $16.3 billion and climbed 3% year-over-year in U.S. dollars and 5% in local currency. The company’s record $81.2 billion in new bookings for the full year, coupled with a 15% increase in the quarterly dividend to $1.48 per share and a $4 billion of additional share repurchase authority, might have further enhanced investor confidence.
Analysts' consensus view on Accenture’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, 17 recommend a "Strong Buy," one suggests a "Moderate Buy," and nine indicate a “Hold” rating. This configuration is more bullish than three months ago, with 15 analysts suggesting a "Strong Buy." The average analyst price target for ACN is $381.24, indicating a 5.7% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
