Accenture (ACN) Stock: First Quarter Earnings Top Forecasts on Strong AI Demand

TLDR

• Accenture posted Q1 adjusted earnings of $3.94 per share, surpassing the $3.74 analyst forecast
• First-quarter revenue climbed to $18.7 billion, beating Wall Street’s $18.51 billion estimate
• New bookings grew 10% to $20.9 billion with $2.2 billion coming from AI-related contracts
• Operating margin expanded to 17.0% while free cash flow reached $1.5 billion
• Full-year revenue growth guidance held steady at 2% to 5% in local currency

Accenture delivered first-quarter results that exceeded Wall Street expectations on Thursday. The professional services firm reported earnings and revenue that beat analyst predictions.

The stock rose 3.8% in premarket trading. Results showed the company’s AI business continues gaining momentum with clients.

Accenture plc, ACN

Adjusted earnings came in at $3.94 per share for the quarter ending November 30, 2025. This topped the consensus estimate of $3.74 per share. Revenue reached $18.7 billion, beating forecasts of $18.51 billion.

The revenue figure represented 6% growth in U.S. dollars and 5% in local currency year-over-year. Growth landed at the high end of the company’s guidance range.

Bookings Surge on AI Investments

New bookings jumped 10% in local currency to $20.9 billion. The company secured $2.2 billion in advanced AI bookings during the quarter. This reflects growing enterprise demand for AI implementation services.

Accenture reported 33 clients with bookings over $100 million each. The client concentration shows sustained demand across its largest accounts.

Companies are moving quickly to integrate AI technology into operations. The push aims to reduce costs and improve efficiency. Accenture’s bookings suggest it’s capturing a large share of this spending.

Operating margin expanded 30 basis points to 17.0%. Free cash flow hit $1.5 billion for the period. The company returned $3.3 billion to shareholders through buybacks and dividends.

Mixed Demand Across Segments

The public sector presents challenges. Government clients show uneven demand patterns. Federal cost-cutting initiatives are pressuring this business segment.

Despite sector headwinds, overall performance remained strong. The AI services pipeline continues building.

Outlook Unchanged

Accenture maintained its fiscal 2026 revenue growth forecast of 2% to 5% in local currency. Excluding the U.S. federal business impact, expected growth remains 3% to 6%.

The company reaffirmed adjusted earnings guidance of $13.52 to $13.90 per share. This matches the analyst consensus of $13.77 per share.

Shares initially gained 2% in premarket trading before climbing to 3.8%. The positive market reaction reflected investor confidence in the quarterly performance.

The quarter ended November 30, 2025 with bookings of $20.94 billion. Revenue of $18.74 billion compared favorably to the $18.52 billion analyst estimate.

AI bookings of $2.2 billion marked a key growth driver for the quarter. This represents a growing portion of total new business.

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