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Summary is AI Generated. Newsroom Reviewed
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Accenture reported 6% revenue growth to $18.7 billion in Q1 FY2026, beating estimates
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Adjusted EPS was $3.94, surpassing the $3.72 consensus estimate
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Total bookings rose 12% to $20.9 billion, with strong consulting and managed services growth
Accenture Plc. reported a nearly 6% year-on-year growth in revenue in the first quarter of the financial year 2026,driven by robust demand for its artificial intelligence-driven IT services, and retained its sale forecast for the year. The topline rose to $18.7 billion, compared to Bloomberg consensus estimate of $18.52.
The Dublin-based company company's adjusted earnings per share, a measure of profitability, of $3.94 beat estimate of $3.72.
GAAP net income for the quarter was $2.24 billion, compared with $2.32 billion for the first quarter of fiscal 2025. For the first quarter of fiscal 2026, adjusted net income was $2.49 billion.
Total bookings reached $20.9 billion, up 12% year-over-year and above the $19.33 billion estimate. Consulting new bookings surged 7.4% and managed services new bookings grew 16%, both exceeding expectations.
Gross margin improved to 33.1% from 32.9% a year ago, matching estimates.
Free cash flow surged 72% to $1.5 billion, while operating cash flow climbed 63% to $1.66 billion, beating the $1.28 billion estimate.
Accenture Chair and CEO Julie Sweet said the company strengthened its leadership in advanced AI and deepened our ecosystem partnerships to help clients realize value. These results reflect our strategy to be the reinvention partner of choice for our clients.
Business Internals
By segment, Communications, Media & Technology revenue was $3.10 billion, up 8.6% and ahead of the $3.06 billion estimate and Financial Services revenue rose 14% to $3.60 billion versus an estimate of $3.45 billion.
Product revenue increased 5.8% to $5.74 billion, slightly above the $5.67 billion estimate; Health & Public Service revenue declined 0.4% to $3.80 billion, in line with the $3.75 billion estimate; and Resources revenue grew 3.1% to $2.50 billion, just below the $2.53 billion estimate.
Guidance
Accenture expects second-quarter revenue to range between $17.35 billion and $18.0 billion, compared to the market estimate of $17.76 billion, representing growth of 1% to 5%.
For the full year 2026, the company maintains its forecast of 2% to 5% revenue growth and continues to project adjusted EPS between $13.52 and $13.90, in line with the estimate of $13.79.
The effective tax rate is expected to remain between 23.5% and 25.5%, while operating cash flow is forecast at $10.8 billion to $11.5 billion, compared to an estimate of $11.03 billion.
Free cash flow is anticipated to be in the range of $9.8 billion to $10.5 billion.
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