10-QPeriod: Q1 FY2026

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2025

Filed December 18, 2025For Securities:ACN

Summary

Accenture plc reported solid revenue growth for the first quarter of fiscal year 2026, with revenues increasing by 6% in U.S. dollars and 5% in local currency to $18.7 billion. This growth was driven by strong performance in the Asia Pacific region and robust demand in the Financial Services and Communications, Media & Technology sectors. The company also saw a significant increase in new bookings, up 12% in U.S. dollars to $20.9 billion, indicating strong future demand for its services. While revenue growth was positive, operating income saw a slight decrease of 3% to $2.9 billion, resulting in a lower operating margin of 15.3% compared to 16.7% in the prior year. This was impacted by $308 million in business optimization costs. Excluding these costs, the adjusted operating margin was 17.0%. Diluted earnings per share (EPS) for the quarter were $3.54, a 1% decrease from the prior year's $3.59, but adjusted diluted EPS increased by 10% to $3.94, demonstrating the company's underlying operational strength. Accenture returned $3.3 billion to shareholders in the quarter through dividends and share repurchases, highlighting its commitment to capital return. The company's liquidity remains strong with $9.6 billion in cash and cash equivalents. The financial results reflect a company navigating a dynamic economic landscape while continuing to invest in digital transformation and AI capabilities for its clients.

Financial Statements
Beta
Revenue$18.74B
Cost of Revenue$12.55B
Gross Profit$6.20B
Operating Expenses$15.87B
Operating Income$2.87B
Interest Expense$65.36M
Net Income$2.21B
EPS (Basic)$3.57
EPS (Diluted)$3.54
Shares Outstanding (Basic)619.31M
Shares Outstanding (Diluted)626.04M

Key Highlights

  • 1Revenue growth of 6% in U.S. dollars ($18.7 billion) and 5% in local currency for Q1 FY2026.
  • 2New bookings increased by 12% in U.S. dollars to $20.9 billion, signaling strong future demand.
  • 3Operating income decreased by 3% to $2.9 billion, with operating margin at 15.3%, impacted by $308 million in business optimization costs.
  • 4Adjusted operating margin (excluding business optimization costs) was 17.0%.
  • 5Diluted EPS was $3.54, down 1% year-over-year, while adjusted diluted EPS increased 10% to $3.94.
  • 6Significant capital return to shareholders totaling $3.3 billion in Q1 FY2026, comprising $1.0 billion in dividends and $2.3 billion in share repurchases.
  • 7Strong liquidity position with $9.6 billion in cash and cash equivalents as of November 30, 2025.

Frequently Asked Questions

Accenture reported revenues of $18.7 billion for the first quarter of fiscal year 2026, representing a 6% increase in U.S. dollars and a 5% increase in local currency compared to the same period in the prior fiscal year. This growth was driven by solid performance across its geographic markets and strong demand in key industry groups like Financial Services and Communications, Media & Technology.

Accenture recorded $308 million in business optimization costs during the first quarter of fiscal year 2026, primarily related to employee severance. These costs impacted the reported operating income and diluted earnings per share. Excluding these costs, the adjusted operating margin was 17.0%, and adjusted diluted EPS increased by 10% to $3.94, highlighting the underlying profitability of the business.

The company's new bookings for the quarter increased by 12% in U.S. dollars to $20.9 billion, indicating strong future demand for its services. Management noted that while clients continue to prioritize large-scale transformations and becoming AI-ready, there is a seeing a slower pace and level of client spending, particularly for smaller, shorter-duration contracts in the consulting segment.

Accenture demonstrated a strong commitment to returning capital to shareholders, with a total of $3.3 billion returned in the first quarter of fiscal year 2026. This included $1.0 billion in dividends and $2.3 billion used for share repurchases. The company intends to continue using a significant portion of its cash generated from operations for share repurchases.