Accenture plc (NYSE: ACN) reported stronger Q3 earnings as revenue, EPS and free cash flow topped expectations while AI and cybersecurity demand shaped investor focus.

Key Highlights

  • Revenue rose 6% in US dollars to $18.7 billion, ahead of the $18.5 billion market estimate.
  • Adjusted EPS increased 9% to $3.80, above the $3.70 market estimate.
  • New bookings reached $19.3 billion, with consulting bookings at $10.3 billion.
  • Free cash flow was $3.6 billion, while shareholder returns reached $2.2 billion in the quarter.

Accenture plc (NYSE: ACN) reported third-quarter fiscal 2026 results that came in above market estimates, supported by revenue growth across services, geographic markets and industry groups. The professional services company posted revenue of $18.7 billion for the quarter ended May 31, up 6% in US dollars and 3% in local currency.

Adjusted earnings per share were $3.80, rising 9% from the prior year and beating the market estimate of $3.70. Operating income increased to $3.2 billion, while operating margin expanded by 20 basis points to 17.0%.

The company’s earnings beat was supported by managed services growth, steady consulting activity and continued demand for large enterprise transformation work. Consulting revenue rose 4% in US dollars to $9.3 billion, while managed services revenue increased 8% to $9.4 billion.

Bookings were slightly lower than a year earlier, but remained sizeable at $19.3 billion. Consulting bookings reached $10.3 billion, while managed services bookings stood at $9.1 billion. The company also reported 104 client bookings of $100 million or more for the fiscal year to date, up 13% from the comparable period.

Accenture said Middle East conflict reduced quarterly revenue by about $100 million versus expectations, largely in consulting work. Sales in the Middle East were also affected, while some managed services opportunities moved into fiscal 2027.

The company highlighted artificial intelligence and operational technology cybersecurity as important areas of investment. Accenture announced agreements to acquire a majority stake in Dragos and all of runZero and NetRise, expanding its position in OT security. It now expects acquisition spending of about $9 billion this fiscal year.

Cash generation remained strong. Free cash flow reached $3.6 billion in the quarter, while total cash returned to shareholders was $2.2 billion, including $1.2 billion of share repurchases and $1.0 billion in dividends.

For fiscal 2026, Accenture now expects local-currency revenue growth of 3% to 4%. Excluding an estimated one percentage point impact from its US federal business, revenue growth is expected at 4% to 5%. Adjusted EPS is expected between $13.78 and $13.90, implying growth of 7% to 8%.