Accenture — Fourth Quarter and Full Year Fiscal 2026 Earnings Summary

Financial Performance

• Q4 FY26 revenue was $18.68 billion, a 6% increase in U.S. dollars and 7% in local currency compared to Q4 FY25; full-year FY26 revenue was $74.18 billion, a 6% increase in U.S. dollars and 5% in local currency.
• Q4 FY26 GAAP diluted EPS was $3.29, a 46% increase year-over-year; full-year FY26 GAAP diluted EPS was $13.56, a 12% increase.
• Q4 FY26 adjusted diluted EPS was $3.03; full-year FY26 adjusted diluted EPS was $13.97, an 8% increase.
• Q4 FY26 GAAP operating margin was 15.3% (up 370 basis points from 11.6% in Q4 FY25); full-year FY26 GAAP operating margin was 15.4% (up 70 basis points from 14.7% in FY25).
• Q4 FY26 adjusted operating margin was 15.1%; full-year FY26 adjusted operating margin was 15.8% (up 20 basis points from 15.6% in FY25).
• Q4 FY26 free cash flow was $2.85 billion; full-year FY26 free cash flow was $11.62 billion.
• Total cash returned to shareholders in FY26 was $11.5 billion, including $7.5 billion in share repurchases and $4.0 billion in cash dividends.
• Q4 FY26 GAAP net income was $2.03 billion; full-year FY26 GAAP net income was $8.52 billion.
• Q4 FY26 GAAP effective tax rate was 27.3%; full-year FY26 GAAP effective tax rate was 25.1%.
• Total cash balance was $12.8 billion at August 31, 2026, compared to $11.5 billion at August 31, 2025.
• Days services outstanding (DSOs) were 50 days at August 31, 2026, compared to 47 days at August 31, 2025.

Guidance and Future Outlook

• Full-year FY27 revenue growth is expected to be 3% to 6% in local currency.
• Full-year FY27 GAAP diluted EPS is expected to be $14.39 to $14.81, representing a 6% to 9% increase over FY26 GAAP EPS.
• Full-year FY27 adjusted operating margin is expected to be 15.9% to 16.1%, reflecting a 10 to 30 basis point expansion over FY26 adjusted operating margin.
• Full-year FY27 annual effective tax rate is expected to be 24.5% to 26.5%.
• Full-year FY27 operating cash flow is expected to be $11.9 billion to $12.7 billion.
• Full-year FY27 free cash flow is expected to be $11.0 billion to $11.8 billion.
• The company expects to return at least $9.5 billion in cash to shareholders in FY27.
• Q1 FY27 revenue is expected to be $18.95 billion to $19.60 billion, with local currency growth of 2% to 6%.

Business Segments and Product Lines

• Q4 FY26 new bookings were $22.17 billion, a 4% increase in U.S. dollars and 5% in local currency, with a book-to-bill ratio of 1.2.
• Full-year FY26 new bookings were $84.54 billion, a 5% increase in U.S. dollars and 3% in local currency, with a book-to-bill ratio of 1.1.
• Q4 FY26 Consulting new bookings were $9.40 billion (book-to-bill 1.0); Managed Services new bookings were $12.77 billion (book-to-bill 1.4).
• Full-year FY26 Consulting new bookings were $40.86 billion (book-to-bill 1.1); Managed Services new bookings were $43.67 billion (book-to-bill 1.2).
• Q4 FY26 revenue by type of work: Consulting $9.28 billion (6% USD growth); Managed Services $9.40 billion (7% USD growth).
• Full-year FY26 revenue by type of work: Consulting $36.88 billion (5% USD growth); Managed Services $37.30 billion (8% USD growth).
• Q4 FY26 revenue by geographic market: Americas $9.43 billion (7% USD growth); EMEA $6.58 billion (6% USD growth); Asia Pacific $2.67 billion (3% USD growth).
• Full-year FY26 revenue by geographic market: Americas $36.55 billion (4% USD growth); EMEA $26.96 billion (9% USD growth); Asia Pacific $10.68 billion (7% USD growth).
• Q4 FY26 revenue by industry group: Communications, Media & Technology $3.26 billion (10% USD growth); Financial Services $3.47 billion (5% USD growth); Health & Public Service $3.86 billion (8% USD growth); Products $5.56 billion (3% USD growth); Resources $2.52 billion (6% USD growth).
• Full-year FY26 revenue by industry group: Communications, Media & Technology $12.67 billion (11% USD growth); Financial Services $13.96 billion (9% USD growth); Health & Public Service $15.17 billion (3% USD growth); Products $22.45 billion (6% USD growth); Resources $9.93 billion (5% USD growth).
• The company reached a record 141 quarterly client bookings of $100 million or more in Q4 FY26.

Market and Competitive Landscape

• The press release notes broad-based growth across all geographic markets, industry groups, and types of work.
• The company serves approximately 9,000 clients.
• The company states it is the reinvention partner of choice for clients and leads in the safe, widespread adoption of AI.

Risks and Challenges

• Risks include volatile economic and geopolitical conditions, including conflict in the Middle East.
• Risks related to AI development and use, including potential reduction in demand for services or reputational damage.
• Risks related to the ability to attract and retain professionals with strong leadership skills and match skills to client demand.
• Risks regarding data security, cyberattacks, and client data protection.
• Risks related to competition, pricing pressure, and cost-management strategies.
• Risks related to foreign currency exchange rate fluctuations.
• Risks related to debt obligations and tax law changes.
• Risks related to legal liability, government contracting, and intellectual property rights.

Management Commentary and Tone

• CEO Julie Sweet stated the company exceeded Q4 revenue guidance and capped off another year of broad-based growth.
• Management highlighted the continued trust clients place in the company to reinvent and create value, the high level of innovation, and the commitment of "Reinventors."
• The tone is confident, citing record client bookings and strong financial performance across all segments.

Analyst Questions and Answers

• No specific analyst questions and answers are included in the provided press release text.

Other Key Points

• In Q4 FY26, the company repurchased or redeemed 17.6 million shares for $2.3 billion.
• Total share repurchases and redemptions for FY26 were 39.9 million shares for $7.5 billion.
• Total outstanding authority for share repurchases is approximately $6.9 billion, including $6.0 billion in additional authority approved in September 2026.
• A quarterly cash dividend of $1.71 per share was declared for shareholders of record on October 13, 2026, payable November 13, 2026, representing a 5% increase over the FY26 quarterly rate.
• Business optimization costs of $615.3 million were recorded in Q4 FY25 and $307.5 million in FY26, primarily for employee severance.
• The company has approximately 814,000 people.
• Total assets were $73.6 billion at August 31, 2026, compared to $65.4 billion at August 31, 2025.
• Long-term debt increased to $9.99 billion at August 31, 2026, from $5.03 billion at August 31, 2025.