Accenture Plc. is gearing up to release its third quarter earnings report for fiscal 2026 on Thursday. The software giant's financial performance remains key, not the wall street but also for the IT sector back in India. The highly-anticipated quarterly earnings are going to shape investors' expectations from the software and IT services space.
Analysts on Bloomberg expect Accenture to register a 5.8% year-on-year growth in its adjusted revenue to $18.7 billion from 17.7 billion in the third quarter of FY25. Notably, revenue growth in constant currency is seen declining sharply to 3.54% from 7% in the year-ago period.
The consultancy and outsourcing company had projected a 1% to 1.5% revenue impact from a slowdown in its US federal business during the year through August 2026. Accenture said excluding that hit, it expects revenue growth of 3% to 6%.
Besides this, Earnings per share are estimated to rise to $3.71 from $3.49, up 6.38% year-on-year. New bookings are estimated to rise nearly 5% to $20.6 billion from $19.7 billion in the comparable quarter of the previous fiscal. Managed services segment will make up for the bulk of this growth, with its share expected around $11.1 billion.
On the profitability front, the operating income is expected to rise nearly 6% to $3.1 billion from $2.9 billion in the corresponding quarter of the last fiscal.
ALSO READ: Accenture Q2 Results: Revenue Up 8%, New Bookings At $22 Billion
Should You Buy Accenture's Stock?
Out of the 29 analysts tracking the company on Bloomberg, 17 have a 'buy' call on its stock, while 12 recommend holding the shares. No analysts advise selling the scrip
However, it is important to note that the recent AI bulls-led shift in sentiment, has weighed on the stock significantly. Accenture's scrip has slumped 46% in the last 12 months and over 38% year-to-date. The shares have declined 3% in the last five days.
In the start of the month, global brokerages such as Truist, downgraded Accenture to 'Hold' and slashed the target price to $210 from $269. Similarly, Citi cut the company's target price to $195 from $215 while maintaining a neutral rating.
Brokerages cited AI-led pressure on outsourcing budgets and deal sizes for their downgrades. Truist has flagged that AI-native firms are increasing competition for IT services. Concerns have also risen over artificial intelligence headcount-based pricing models.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.