Accenture plc: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 18 June 2026: press release. Guidance figures: 3 raised, 2 lowered, 3 new, 7 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up 3% in local currency: Revenue was $18.72 billion, up 6% in U.S. dollars and 3% in local currency. Foreign-exchange impact was about positive 2.5%, in line with the prior release assumption. Source
• Diluted EPS up 9% to $3.80: Diluted EPS was $3.80, up from $3.49. The company attributed $0.23 to higher revenue and operating results and $0.09 to a lower share count, less $0.01 from a higher effective tax rate. Source
• Operating margin up 20 basis points: Operating margin was 17.0% against 16.8% a year earlier. The quarter recorded no business optimization costs. Source
• New bookings down 2% in dollars: New bookings were $19.32 billion, down 2% in U.S. dollars and 3% in local currency, against $19.7 billion a year earlier. Source
• Free cash flow of $3.6 billion: Operating cash flow was $3.79 billion, less $0.19 billion of property and equipment additions, for free cash flow of $3.60 billion against $3.52 billion. Source
• $2.2 billion returned in quarter: Total cash returned was $2.2 billion. Repurchases or redemptions were $1.2 billion, covering 6.0 million shares, and cash dividends were $1.0 billion. Source
• Acquisitions to add capabilities and scale: The prior release said new strategic acquisitions would strengthen capabilities and expand scale. This release reports the OT Security agreement.

“Accenture delivered a strong third-quarter, with broad-based revenue growth, a 9% increase in EPS, and $8.2 billion returned to shareholders year-to-date.”

Accenture Chair and CEO Julie Sweet

Guidance

What changed from last quarter

• Guidance lowered: Full-year local-currency revenue growth range cut at the top, to 3% to 4% from 3% to 5%. Source
• Guidance raised: GAAP diluted EPS range low end raised to $13.38 from $13.25; top end kept at $13.50. Source
• Guidance raised: Adjusted EPS range low end raised to $13.78 from $13.65; top end kept at $13.90. Source
• Guidance raised: Capital return expectation raised to at least $9.5 billion from at least $9.3 billion. Source
• Guidance kept: Free cash flow expectation continued at $10.8 billion to $11.5 billion. Source
• New guidance: Fourth-quarter fiscal 2026 revenue and growth ranges given for the first time. Source
• New: Agreement to acquire a majority stake in Dragos and all of runZero and NetRise, described as OT Security leaders. Source
• New: Company strategy statement now includes leading the safe, widespread adoption of AI. Source

Results and growth drivers

• Revenue up 3% in local currency: Revenue was $18.72 billion, up 6% in U.S. dollars and 3% in local currency. Foreign-exchange impact was about positive 2.5%, in line with the prior release assumption. Source
• Diluted EPS up 9% to $3.80: Diluted EPS was $3.80, up from $3.49. The company attributed $0.23 to higher revenue and operating results and $0.09 to a lower share count, less $0.01 from a higher effective tax rate. Source
• Operating and net income both rose: Operating income rose 6% to $3.18 billion from $2.98 billion. Net income was $2.39 billion against $2.24 billion, and net income attributable to Accenture plc was $2.34 billion. Source
• Nine-month revenue up 4% locally: Nine-month revenue was $55.50 billion, up 7% in U.S. dollars and 4% in local currency, against $52.08 billion a year earlier. Source

Segments and regions

• Americas revenue up 1% locally: Americas revenue was $9.14 billion, up 2% in U.S. dollars and 1% in local currency. Americas operating margin was 19%, unchanged, with operating income down $11.5 million. Source
• EMEA margin rose to 14%: EMEA revenue was $6.87 billion, up 10% in U.S. dollars and 4% in local currency. EMEA operating margin rose to 14% from 12%, and operating income rose $240.9 million. Source
• Asia Pacific margin fell to 17%: Asia Pacific revenue was $2.71 billion, up 7% in U.S. dollars and 8% in local currency. Operating margin fell to 17% from 20%, and operating income fell $36.9 million. Source

“Demand for large-scale reinvention remains strong - 104 quarterly client bookings of $100 million or more year-to-date, up 13%”

Accenture Chair and CEO Julie Sweet

Industries and type of work

• Communications, Media and Technology up 9%: Communications, Media & Technology revenue was $3.22 billion, up 10% in U.S. dollars and 9% in local currency, the highest local-currency growth of the five industry groups. Source
• Health and Public Service flat locally: Health & Public Service revenue was $3.85 billion, up 2% in U.S. dollars and flat in local currency. Source
• Managed Services grew faster than consulting: Managed Services revenue was $9.39 billion, up 8% in U.S. dollars and 5% in local currency. Consulting revenue was $9.33 billion, up 4% in dollars and 1% locally. Source
• Products and Resources grew modestly: Products revenue was $5.67 billion, up 6% in dollars and 3% locally. Resources revenue was $2.50 billion, up 3% in dollars and 1% locally. Source

Margins and costs

• Operating margin up 20 basis points: Operating margin was 17.0% against 16.8% a year earlier. The quarter recorded no business optimization costs. Source
• Gross margin edged lower: Gross margin was 32.8% against 32.9%. SG&A was $2.96 billion, or 15.8% of revenues, against $2.84 billion, or 16.0%, a year earlier. Source
• Effective tax rate slightly higher: The effective tax rate was 24.2% against 24.0% a year earlier. The EPS bridge shows a $0.01 reduction from the higher rate. Source
• Nine-month costs included severance: Business optimization costs of $308 million were recorded in the first quarter. Nine-month GAAP operating margin was 15.4%; excluding these costs, it was 15.9%. Source

“it is expanding our addressable market, creating a new platform-led growth opportunity, and is positioning Accenture at the center of one of the most critical cybersecurity challenges our clients face”

Accenture Chair and CEO Julie Sweet

Demand and bookings

• New bookings down 2% in dollars: New bookings were $19.32 billion, down 2% in U.S. dollars and 3% in local currency, against $19.7 billion a year earlier. Source
• Consulting bookings above managed services: Consulting new bookings were $10.26 billion, and Managed Services new bookings were $9.06 billion. Source
• Bookings below second-quarter level: The second quarter reported $22.11 billion of new bookings, so third-quarter bookings were lower on a sequential basis.

Cash flow and balance sheet

• Free cash flow of $3.6 billion: Operating cash flow was $3.79 billion, less $0.19 billion of property and equipment additions, for free cash flow of $3.60 billion against $3.52 billion. Source
• Days services outstanding rose one day: DSOs were 48 days at May 31, 2026, against 47 days at both August 31, 2025 and May 31, 2025. Source
• Cash balance below August 2025 level: Total cash was $10.2 billion at May 31, 2026, compared with $11.5 billion at August 31, 2025. Source
• Acquisition spending of $3.0 billion: Purchases of businesses and investments, net of cash acquired, were $1.04 billion in the quarter and $3.00 billion for nine months. Source

Capital returns to shareholders

• $2.2 billion returned in quarter: Total cash returned was $2.2 billion. Repurchases or redemptions were $1.2 billion, covering 6.0 million shares, and cash dividends were $1.0 billion. Source
• Repurchase authority about $3.2 billion: Remaining repurchase authority was about $3.2 billion at May 31, 2026. The company had about 612 million shares outstanding at that date. Source
• Quarterly dividend raised 10%: Dividends paid on May 15, 2026 were $1.63 per share, up 10% from $1.48, totaling $1.0 billion. Source

Strategy, acquisitions, people and clients

• Acquisitions to add capabilities and scale: The prior release said new strategic acquisitions would strengthen capabilities and expand scale. This release reports the OT Security agreement.
• Reinvention Services areas listed: Reinvention Services now lists Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent. Source
• Workforce of about 799,000 people: The company brings together about 799,000 people, up from about 786,000 in the March release. Source
• About 9,000 clients served: The company serves about 9,000 clients and generated about $70 billion of FY25 revenue. Source

Coming up, as management said on 18 June 2026

• Dividend payable August 14, 2026: Quarterly dividend of $1.63 per share declared, for record holders on July 9, 2026, payable August 14, 2026, a 10% increase over $1.48. Source

Figures management reported

Risks management discussed

• Demand: The U.S. federal business is estimated to reduce full-year local-currency growth by about 1%. Source
• External: Foreign-exchange impact is expected to reduce fourth-quarter results by about 0.5%. Source

Earlier plans management reported on

• Met: Revenue was slightly above the midpoint of the guided range of about $18.35 billion to $19.0 billion. Source
• Met: Third-quarter foreign-exchange impact was about positive 2.5%, consistent with the second-quarter release assumption. Source

Other quarters

• Q4 FY2026 earnings call
• Q2 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.