- Accenture narrowed its full-year revenue growth forecast to 3% to 4% in local currency
- Excluding US federal business impact, revenue growth is expected between 4% and 5%
- Q1 revenue forecast of $17.75 billion to $18.4 billion missed analyst consensus of $18.47 billion
Accenture Plc. has narrowed its full year revenue forecast to a range of 3% to 4% in local currency; excluding the 1% impact from its from US federal business, the revenue growth is seen in the 4% to 5% range.
Further, the company's forecast revenue of between $17.75 billion and $18.4 billion for the three months through August, fell short of the $18.47 billion Bloomberg-compiled analyst consensus.
The company's shares fell 14% in pre-market trade, indicating a gap down open later today. Futures tied to the stock traded 13.75% lower at $134.5 as of 8:15 a.m. EST. The Stock has slumped 49.8% in the last one year and 41.85% year-to-date.
The software giant's new bookings fell to $19.3 billion from $19.7 billion in the year-ago quarter. Revenue rose by $1 billion to $18.7 billion, marking a 6% increase in US dollar terms and 3% growth in local currency.
Profitability grew as accenture expanded its operating margin by 20 basis points to 17%, while diluted earnings per share climbed 9% to $3.80.
Accenture generated free cash flow of $3.6 billion during the quarter and returned $2.2 billion to shareholders, including $1.2 billion through share repurchases or redemptions of 6 million shares.
Along with redemptions, returned cashflow also included $1 billion in dividend payments, with the quarterly dividend rising 10% to $1.63 per share.
For fiscal 2026, the company has raised its earnings outlook and now expects GAAP diluted earnings per share to be in the range of $13.38 to $13.50, representing a 10% to 11% increase.
The company also expects adjusted diluted earnings per share to come in between $13.78 and $13.90, reflecting a year-on-year growth of 7% to 8%. Accenture maintained its free cash flow guidance for the full year, expecting it to remain in the range of $10.8 billion to $11.5 billion.
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