Accenture plc: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 19 March 2026: press release. Guidance figures: 6 raised, 1 lowered, 3 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue landed at top of range: Revenues were $18.04 billion, up 8% in U.S. dollars and 4% in local currency. The foreign-exchange impact was positive 4.4%, against 3.5% previously assumed. The adjusted guided range was about $17.5 billion to $18.15 billion. Source
• Operating income rose 11%: Operating income increased 11% to $2.49 billion, from $2.24 billion. Operating margin was 13.8%, up 30 basis points. Source
• Gross margin edged up: Gross margin was 30.3%, up from 29.9% a year earlier. Cost of services was 69.7% of revenues, against 70.1%. Source
• Bookings rose 6% in dollars: New bookings were $22.11 billion, up 6% in U.S. dollars and 1% in local currency. The company reported 41 clients with quarterly bookings above $100 million. Source
• Free cash flow reached $3.67 billion: Operating cash flow was $3.82 billion, less $0.15 billion of property and equipment additions, giving free cash flow of $3.67 billion, against $2.68 billion a year earlier. Source
• Acquisitions to add capability and scale: Management said the new strategic acquisitions will strengthen capabilities and expand scale for AI-based transformation work with clients. Source
• Middle East conflict built into guidance: Third-quarter and full-year guidance reflects the company’s best view of the possible effect of the Middle East conflict in the second half of fiscal 2026. Source

“We delivered record second quarter bookings of $22.1 billion, including a record 41 clients with quarterly bookings greater than $100 million, with revenues at the top of our guided range, while continuing to take significant share in a competitive market.”

Julie Sweet, Accenture Chair and CEO

Guidance

What changed from last quarter

• Guidance raised: Full-year local-currency revenue growth range raised at the low end, to 3% to 5% from 2% to 5%. Source
• Guidance raised: Full-year GAAP diluted EPS range raised at the low end, to $13.25 to $13.50 from $13.12 to $13.50. Source
• Guidance raised: Full-year adjusted EPS range raised at the low end, to $13.65 to $13.90 from $13.52 to $13.90. Source
• Guidance raised: Full-year free cash flow expectation raised to $10.8 billion to $11.5 billion from $9.8 billion to $10.5 billion. Source
• Guidance raised: Full-year operating cash flow range raised to $11.5 billion to $12.2 billion from $10.8 billion to $11.5 billion. Source
• Guidance lowered: Full-year property and equipment additions lowered to $0.7 billion from $1.0 billion. Source
• New guidance: Third-quarter fiscal 2026 guidance given for the first time, covering revenue, local-currency growth and foreign-exchange impact. Source
• Guidance kept: GAAP operating margin, adjusted operating margin, tax rate, foreign-exchange impact and capital return ranges kept from the prior quarter. Source
• New: Company described new strategic acquisitions intended to strengthen capabilities and expand scale. Source

Results and growth drivers

• Revenue landed at top of range: Revenues were $18.04 billion, up 8% in U.S. dollars and 4% in local currency. The foreign-exchange impact was positive 4.4%, against 3.5% previously assumed. The adjusted guided range was about $17.5 billion to $18.15 billion. Source
• Diluted EPS rose 4%: Diluted EPS was $2.93, against $2.82. Higher revenue and operating results added $0.31, a lower share count added $0.05, and a higher effective tax rate reduced EPS by $0.15. Source
• Operating income rose 11%: Operating income increased 11% to $2.49 billion, from $2.24 billion. Operating margin was 13.8%, up 30 basis points. Source
• Net income edged higher: Net income was $1.86 billion, compared with $1.82 billion a year earlier. Source

Segments and regions

• Americas operating income up: Americas operating income rose to $1.39 billion, with a 16% margin against 15%. Americas revenue was $8.90 billion, up 4% in U.S. dollars and 3% in local currency. Source
• EMEA margin fell to 10%: EMEA revenue was $6.57 billion, up 13% in U.S. dollars and 2% in local currency. EMEA operating margin was 10%, against 11%, with operating income up $37.5 million. Source
• Asia Pacific grew 10% in local currency: Asia Pacific revenue was $2.58 billion, up 12% in U.S. dollars and 10% in local currency. Its operating margin was 16%, the same as a year earlier. Source

“We’re accelerating our critical work with clients to scale advanced AI across their enterprise, and we're seeing strong AI-driven growth.”

Julie Sweet, Accenture Chair and CEO

Industry groups and work types

• Communications and financial services led growth: Communications, Media & Technology revenue was $3.09 billion, up 13% in U.S. dollars and 10% in local currency. Financial Services revenue was $3.40 billion, up 13% and 7%. Source
• Health & Public Service declined in local currency: Health & Public Service revenue was $3.67 billion, up 2% in U.S. dollars and down 1% in local currency. Products revenue was $5.48 billion, up 8% and 3%. Source
• Resources grew 2% in local currency: Resources revenue was $2.41 billion, up 7% in U.S. dollars and 2% in local currency. Source
• Managed Services grew faster than Consulting: Managed Services revenue was $9.18 billion, up 10% in U.S. dollars and 5% in local currency. Consulting revenue was $8.86 billion, up 7% and 3%. Source

Costs, margins and tax

• Gross margin edged up: Gross margin was 30.3%, up from 29.9% a year earlier. Cost of services was 69.7% of revenues, against 70.1%. Source
• SG&A held at 16.4%: SG&A expenses were $2.97 billion, or 16.4% of revenues, against $2.73 billion, also 16.4% of revenues. Source
• Tax rate rose to 24.3%: The effective tax rate was 24.3%, against 20.4% a year earlier. Source
• Q1 optimization costs completed: Business optimization costs of $307.5 million were recorded in the first quarter, mainly severance. No such costs were recorded in the second quarter. Source

“With our deep client relationships, industry and process expertise, leading and emerging ecosystem partnerships, and unmatched execution strength, we are uniquely positioned to help clients reinvent and capture the significant opportunities ahead.”

Julie Sweet, Accenture Chair and CEO

Demand and bookings

• Bookings rose 6% in dollars: New bookings were $22.11 billion, up 6% in U.S. dollars and 1% in local currency. The company reported 41 clients with quarterly bookings above $100 million. Source
• Consulting and Managed Services bookings split: Consulting new bookings were $11.33 billion, and Managed Services new bookings were $10.78 billion. Source
• Revenue grew faster than bookings: Revenues rose 8% in U.S. dollars over the same period, ahead of the 6% growth in bookings. Source

Cash, capital and shareholder returns

• Free cash flow reached $3.67 billion: Operating cash flow was $3.82 billion, less $0.15 billion of property and equipment additions, giving free cash flow of $3.67 billion, against $2.68 billion a year earlier. Source
• Cash balance fell to $9.4 billion: Total cash was $9.4 billion at February 28, 2026, down from $11.5 billion at August 31, 2025. Source
• Repurchases of $1.7 billion: The company repurchased or redeemed 6.8 million shares for $1.7 billion. Remaining repurchase authority was about $4.4 billion at quarter end. Source
• Dividend up 10% to $1.63: The quarterly dividend is $1.63 per share, a 10% increase over the $1.48 paid in fiscal 2025. Source
• DSOs improved to 46 days: Days services outstanding were 46 at February 28, 2026, down from 47 at August 31, 2025 and 48 a year earlier. Source

Acquisitions, strategy and Middle East conflict

• Acquisitions to add capability and scale: Management said the new strategic acquisitions will strengthen capabilities and expand scale for AI-based transformation work with clients. Source
• Acquisition spending lifted cash outflow: Purchases of businesses and investments, net of cash acquired, were $1.59 billion in the quarter, against $0.25 billion a year earlier. Source
• Middle East conflict built into guidance: Third-quarter and full-year guidance reflects the company’s best view of the possible effect of the Middle East conflict in the second half of fiscal 2026. Source

Coming up, as management said on 19 March 2026

• Dividend record date April 9: A quarterly dividend of $1.63 per share has been declared for shareholders of record on April 9, 2026. Source
• Strategic acquisitions to strengthen capabilities: Management said the new strategic acquisitions will further strengthen capabilities and expand scale. No closing date is given. Source

Figures management reported

Risks management discussed

• External: Guidance does not reflect a significant escalation of the Middle East conflict or major economic disruption. Source
• Demand: Full-year revenue guidance excludes an estimated 1% impact from the U.S. federal business, which is shown separately. Source
• External: The foreign-exchange impact on revenue was positive 4.4%, against 3.5% previously assumed, so results depend on currency movements. Source

Earlier plans management reported on

• Met: Management said second-quarter revenue was at the top of the adjusted guided range. Source
• Met: The reconciliation describes the business optimization actions as completed during the first quarter of fiscal 2026. Source
• Not stated: The foreign-exchange impact came in above the 3.5% assumed in the prior quarter; management did not state a status against the assumption. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.