Accenture Earnings Beat Estimates in Q1, Revenues Increase Y/Y

Accenture plc ACN has reported impressive first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.ACN’s earnings were $3.94 per share, beating the Zacks Consensus Estimate by 5.6%. The metric increased 9.8% from the year-ago quarter. Total revenues of $18.7 billion beat the consensus estimate by 1% and rose 6% on a year-over-year basis.The company’s shares have jumped 15% over the past three months compared with the industry’s 2.8% fall and the Zacks S&P 500 composite’s 1.8% rise.Accenture PLC Price and EPS Surprise  Accenture PLC price-eps-surprise | Accenture PLC QuoteACN’s Revenues in DetailBased on the type of work, managed services’ revenues of $9.3 billion increased 8% from the year-ago quarter on a reported basis and 7% in local currency, surpassing our estimate of $8.8 billion. Consulting revenues gained 4% year over year on a reported basis and 3% in local currency to $9.4 billion, missing our projection of $9.6 billion.Segment-wise, health and public service revenues of $3.8 billion were flat with the year-ago quarter on a reported basis and declined 1% in local currency. The figure missed our estimation of $3.9 billion. Revenues from the resources segment amounted to $2.5 billion, rising 3% from the year-ago quarter on a reported basis and 2% on a local currency basis. The figure met our estimated figure. Revenues from the product segment amounted to $5.7 billion, increasing 6% year over year on a reported basis and 4% on a local currency basis. The figure beat our estimate of $5.6 billion.Communications, media and technology revenues of $3.1 billion increased 9% year over year on a reported basis and 8% in terms of local currency, surpassing our projection of $3 billion. Financial services revenues of $3.6 billion grew 14% from the year-ago quarter on a reported basis and 12% in local currency. The figure outpaced our estimate of $3.4 billion.Geographically, revenues of $9.1 billion from the Americas rose 4% from the year-ago quarter on a reported basis and on a local currency basis. The figure met our projected figure.Revenues of $6.9 billion from the EMEA gained 8% on a reported basis and 4% in local currency, beating our estimate of $6.7 billion. Revenues of $2.7 billion from the Asia Pacific increased 7% year over year on a reported basis and gained 9% in local currency, outpacing our estimate of $2.6 billion.Booking Trends of AccentureThe company reported bookings worth $20.9 billion in the first quarter of fiscal 2025, increasing 12% from the year-ago quarter on a reported basis and 10% in local currency. Consulting bookings were $9.9 billion and managed services bookings were $11.1 billion.ACN’s Operating ResultsThe gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2025 was 33.1%, up 20 basis points (bps) from the year-ago quarter. The adjusted operating margin of 17% moved up 30 bps from the first quarter of fiscal 2025.Balance Sheet & Cash Flow of AccentureACN exited the first-quarter fiscal 2026 with cash and cash equivalents of $9.6 billion compared with $11.5 billion at the end of the fourth-quarter fiscal 2025. The company generated $1.7 billion in cash from operating activities. Capital expenditure in the reported quarter was $156.6 million.The free cash flow was $1.5 billion. Accenture repurchased 9.5 million shares for $2.3 billion. The company paid out a dividend of $1 billion in the first quarter of fiscal 2026.ACN’s Q2 & FY26 GuidanceFor the second quarter of fiscal 2026, the company expects revenues of $17.35-$18 billion. The guided range exceeds the Zacks Consensus Estimate of $18.56 billion.For fiscal 2026, ACN expects year-over-year revenue growth of 2-5%. The company's expectation for the operating cash flow is kept at $10.8-$11.5 billion. The free cash flow forecast is $9.8-$10.5 billion.Accenture carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotEquifax Inc. EFX reported impressive third-quarter 2025 results.EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.Corpay, Inc.’s CPAY third-quarter 2025 earnings per share met the consensus mark, while revenues beat the same.CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Equifax, Inc. (EFX): Free Stock Analysis Report Corpay, Inc. (CPAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks