01—Abstract
Summary
Summary of the 10-Q filed December 18, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 billionb, 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 millionc 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 billiond 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.
02—Key points
Key Highlights
- Revenue growth of 6% in U.S. dollars ($18.7 billion) and 5% in local currency for Q1 FY2026.
- New bookings increased by 12% in U.S. dollars to $20.9 billion, signaling strong future demand.
- Operating income decreased by 3% to $2.9 billion, with operating margin at 15.3%, impacted by $308 million in business optimization costs.
- Adjusted operating margin (excluding business optimization costs) was 17.0%.
- Diluted EPS was $3.54, down 1% year-over-year, while adjusted diluted EPS increased 10% to $3.94.
- Significant capital return to shareholders totaling $3.3 billion in Q1 FY2026, comprising $1.0 billion in dividends and $2.3 billion in share repurchases.
- Strong liquidity position with $9.6 billion in cash and cash equivalents as of November 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Accenture plc kept $0.12.
- Revenue$18.74B100.0%
- Cost of revenue−$12.55B66.9%
- Gross profit$6.20B33.1%
- Operating costs−$3.32B17.7%
- Operating income$2.87B15.3%
- Interest, other & tax−$662.1M3.5%
- Net income$2.21B11.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed December 18, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $18.74B$17.69B | +6.0% |
| Cost of Revenue | $12.55B$11.87B | +5.7% |
| Gross Profit | $6.20B$5.82B | +6.4% |
| Operating Expenses | $15.87B$14.74B | +7.6% |
| Operating Income | $2.87B$2.95B | −2.5% |
| Interest Expense | $65.36M$30.04M | +117.6% |
| Net Income | $2.21B$2.28B | −3.0% |
| EPS (Basic) | $3.57$3.64 | −1.9% |
| EPS (Diluted) | $3.54$3.59 | −1.4% |
| Shares Outstanding (Basic) | 619.31M625.68M | −1.0% |
| Shares Outstanding (Diluted) | 626.04M634.66M | −1.4% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the first quarter of fiscal year 2026?
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.
How did the business optimization costs impact Accenture's financial results?
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.
What is Accenture's outlook on client demand and future 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.
How is Accenture returning capital to shareholders?
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.
06—Continue