Accenture Targets Mid-Single-Digit Revenue Growth Through FY28, Sees Faster Growth In FY29

Accenture will target a mid-single-digit revenue growth for the fiscal 2027 and 2028, with an expectation to reach mid-high single-digit revenue growth in the financial year (FY) 2029, as per the firm's 'Investor Day FY27' presentation released on Wednesday.

It is anticipating an operating margin expansion of 10-30 basis points from FY27-29. For FY 2027, the firm is aiming for a free cash flow to net income of 1.2 to 1.3; for FY 2028 and 2029, the software company is looking to reach a free cash flow to net income of greater than or equal to 1.1x.

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Accenture expects to return at least $9.5 billion of cash back to its shareholders for FY27. It also anticipates a dividend per share growth of 5%, and a payout ratio at high 40s of the previous year's net income for the aforementioed time period. It also expects to have $5.5 billion of share repurchases in fiscal 2027.

For FY28 and FY29, the company is targeting a dividend at high 40s payout ratio of prior year net income. Repurchases are also expected to be greater than issuances for the same time period.

Accenture FY26 Numbers And Guidance Comparison

In fiscal 2026, the firm's revenue growth (local currency) was up 5% compared to its guidance of 2-5%. The company's adjusted operating margin was at 15.8% (which was 20 basis points more than the adjusted FY25 number) compared to the original guidance of 15.7%-15.9%.

The adjusted EPS (earnings per share) was at 13.97% (which was an 8% increase over the adjusted FY25 figure) compared to its guidance of $13.52 - $13.90. The software company's free cash flow was at $11.6 billion in contrast to its guidance of $9.8- 10.5 billion. The firm returned $11.5 billion in cash to its shareholders, 38% increase compared to fiscal 2025, in comparison to its guidance of a minimum of $9.3 billion.

Accenture Q4 Revenue 

Accenture Plc delivered a stronger-than-expected fourth quarter, with revenue growth coming in above the top end of its guidance and new bookings showing continued demand for technology and transformation services.

According to a research note by Nuvama Research, Accenture's Q4FY26 revenue rose 6.2% year-on-year, or 7% in constant currency, to $18.7 billion. The performance exceeded both Street expectations and the company's own guidance.

ALSO READ: Accenture Q4 Results: Revenue Beats Estimates, FY27 Growth Guidance At 3-6%

Revenue growth was broad-based across its two main businesses. Consulting and managed services both grew 7% year-on-year in constant currency, with technology managed services and operations recording high-single-digit growth.

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