One-glance verdict
Undervalued
$393.96 our estimate vs market $186.72
Wall Street consensus: $184.19 (-53.2% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
Accenture plc
ACN · NYQ · Technology · Information Technology Services
Current price
$186.72
52-week range
$118.15 - $291.09
Market cap
$114.26B
Balance sheet
Healthy
47.43x Strong cushion
Net cash $1.78B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.9% last year.
- Reward Returns 24.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Accenture plc
Accenture is a global consulting firm that acts like an expert for hire, helping other companies improve their business using technology and strategic advice. They make money by charging for these services, such as helping a bank build a new app or a retailer streamline its supply chain (the entire journey of a product from factory to customer). Because they serve clients in almost every industry, from healthcare to energy, their success isn't tied to the fortunes of just one part of the economy.
How the company got here
Accenture started in the early 1950s as a small technology consulting division within the accounting firm Arthur Andersen. A key early project was helping General Electric use one of the first commercial computers in the U.S. This set the stage for its focus on technology. In 1989, it became a separate unit called Andersen Consulting and grew rapidly. After a major disagreement with its parent company, it split off completely and renamed itself Accenture in 2001, a name created from the phrase "Accent on the Future."
What it actually does
Accenture is a global professional services company that helps other large companies and governments solve business problems using technology. Think of them as expert advisors and helpers that a big company hires to improve its performance. For example, they might help a bank build a new mobile app, advise a retail company on how to improve its supply chain (the system of getting products from the factory to the store), or manage a company's entire cybersecurity (protecting computer systems from theft or damage). They provide a wide range of services, from developing a company's overall strategy to running parts of their business operations for them.
Strategy & Consulting
This is the advisory part of Accenture's business, where they help company leaders make big decisions. Experts in this group might help a company figure out how to enter a new market, how to become more sustainable, or how to restructure their business to be more efficient. Clients pay for access to Accenture's deep industry knowledge and expert analysis to guide their major strategic moves. This is one of the foundational parts of Accenture's business.
Song
Previously known as Accenture Interactive, this segment is like a giant creative and digital marketing agency. They help companies create better customer experiences, from designing websites and mobile apps to managing advertising campaigns and using data to understand what customers want. A company would hire Accenture Song to make their brand more appealing and to connect with customers in the digital world. This part of the business has grown through the purchase of many smaller creative agencies.
Technology
This is the core of Accenture's business, where they help clients use technology to improve how they operate. This includes massive projects like moving a company's entire computer systems to the cloud (storing and accessing data over the internet instead of on-site servers), implementing new software, and building custom applications. They also provide ongoing management of a company's IT systems. This is a huge part of what Accenture does, and they partner with major tech companies like Microsoft, Amazon Web Services, and Google to deliver these services.
Operations
In this segment, Accenture takes over and runs specific business processes for its clients, a practice often called outsourcing. For example, instead of a company handling its own finance and accounting or customer service, they can hire Accenture to do it for them. The goal is to make these functions more efficient and cost-effective for the client. This provides a steady, long-term stream of revenue (money the company earns from its business activities) for Accenture.
Industry X
This part of Accenture focuses on helping industrial companies digitize their factories, operations, and products. Think of it as bringing the latest technology, like robotics, sensors, and artificial intelligence, to the manufacturing floor and supply chains. For example, they might help a car company design a "smart factory" or an energy company use data to make its operations safer and more efficient. This is a newer but growing area for the company.
What management is betting on now
Accenture's leadership is heavily focused on becoming the go-to partner for what they call "reinvention," helping clients transform their businesses using technology, especially Artificial Intelligence (AI). They are investing billions of dollars in AI to build it into all of their services, from consulting to operations. The strategy is to not just advise companies on using AI, but to help them build the digital foundation and implement AI-powered systems to accelerate their growth and efficiency. This involves bringing all their different services together to offer clients a complete transformation package.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$3.18B
FY2025 Q1
$870.28M
FY2025 Q2
$2.68B
FY2025 Q3
$3.52B
FY2025 Q4
$3.81B
FY2026 Q1
$1.51B
FY2026 Q2
$3.67B
FY2026 Q3
$3.60B
Revenue
$18.72B
Net income
$2.34B
Diluted EPS
3.80
Operating cash flow
$3.79B
Free cash flow
$3.60B
Fetching…
Sources
Revenue
$18.04B
Net income
$1.83B
Diluted EPS
2.93
Operating cash flow
$3.82B
Free cash flow
$3.67B
Fetching…
Sources
Revenue
$18.74B
Net income
$2.21B
Diluted EPS
3.54
Operating cash flow
$1.66B
Free cash flow
$1.51B
Fetching…
Sources
Revenue
$17.60B
Net income
$1.41B
Diluted EPS
2.25
Operating cash flow
$3.91B
Free cash flow
$3.81B
Fetching…
Sources
Revenue
$17.73B
Net income
$2.20B
Diluted EPS
3.49
Operating cash flow
$3.68B
Free cash flow
$3.52B
Fetching…
Sources
Revenue
$16.66B
Net income
$1.79B
Diluted EPS
2.82
Operating cash flow
$2.85B
Free cash flow
$2.68B
Fetching…
Sources
Revenue
$17.69B
Net income
$2.28B
Diluted EPS
3.59
Operating cash flow
$1.02B
Free cash flow
$870.28M
Fetching…
Sources
Revenue
$16.41B
Net income
$1.68B
Diluted EPS
2.66
Operating cash flow
$3.39B
Free cash flow
$3.18B
Fetching…
Sources
Is it cheap or expensive?
Fair value $393.96 vs current price $186.72
Wall Street consensus is the average analyst price target: $184.19 (-53.2% lower than our fair-value estimate).
Our most-likely fair value is $393.96 a share — about 111.0% above today's price of $186.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.8B - more cash than debt. Interest coverage 47.4x.
Net debt
$-1.78B
Interest coverage
47.43x
Accenture plc's profit covers its interest bill about 47.4 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ACN
BASELINE
Accenture plc
Total debt $8.39B Interest coverage 47.43x This is the baseline the peer rows are being compared against.
Total debt $65.27B Interest coverage 6.46x -86% vs ACN Carries about 7.3x less debt cushion than ACN.
Total debt $923.00M Interest coverage 87.00x +83% vs ACN Carries about 1.8x more debt cushion than ACN.
Total debt $2.09B Interest coverage 89.92x +90% vs ACN Carries about 1.9x more debt cushion than ACN.
Total debt $2.25B Interest coverage 18.86x -60% vs ACN Carries about 2.5x less debt cushion than ACN.
Total debt $1.41B Interest coverage 10.34x -78% vs ACN Carries about 4.6x less debt cushion than ACN.
What you should know
The case for and against ACN
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.9% last year.
-
Returns 24.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.90x
Forward P/E
12.74x
P/B
3.58x
P/S
1.56x
EV/EBITDA
8.81x
PEG ratio
1.36x
Profitability
How much profit each dollar creates
Gross margin
32.0%
Operating margin
17.0%
Net margin
10.7%
ROE
24.4%
ROA
10.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.25x
Current ratio
1.34x
Quick ratio
1.21x
Total debt
$8.39B
Total cash
$10.17B
Growth
How the business has been compounding
Revenue TTM
$73.10B
Revenue 5Y CAGR
46.9%
EPS TTM
12.53
EPS 5Y CAGR
4.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$13.18B
Free CF TTM
$10.87B
FCF margin
14.9%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
50.9%
Last ex-div date
2026-07-09