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Accenture plc: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 1 October 2026: press release. Guidance figures: 13 new. The quarter’s numbers.

Key takeaways

  • Fourth-quarter revenue above guided range: Fourth-quarter revenue was $18.68 billion, up 6% in U.S. dollars and 7% in local currency, above the guided range of $17.75 billion to $18.40 billion. Source
  • Full-year revenue above guided growth: Full-year revenue was $74.18 billion, up 6% in U.S. dollars and 5% in local currency. Foreign exchange added about 2%, consistent with the third-quarter assumption. Source
  • Adjusted EPS up 8% for the year: GAAP diluted EPS was $13.56, up 12%. Adjusted EPS was $13.97, up 8%, excluding $0.41 of business optimization costs in fiscal 2026. Source
  • Fourth-quarter GAAP margin 15.3%: GAAP operating margin was 15.3%, up 370 basis points from 11.6%, and 20 basis points above the 15.1% adjusted margin of the prior-year quarter. Source
  • 141 large client bookings, a new high: Quarterly client bookings of $100 million or more reached 141, a new high, as management put it. Source
  • Full-year free cash flow $11.6 billion: Full-year free cash flow was $11.6 billion, against $10.9 billion. Operating cash flow was $12.36 billion, less $0.74 billion of property and equipment additions. Source
  • $11.5 billion returned, up 38%: Fiscal 2026 cash returns were $11.5 billion, up 38%: $7.5 billion of repurchases and redemptions and $4.0 billion of dividends. Source

“We exceeded our fourth-quarter revenue guidance range and capped off another year of broad-based growth across our business, grew adjusted EPS 8%, returned a record $11.5 billion to shareholders”

Accenture Chair and CEO Julie Sweet

Guidance

AreaPeriodFigureAgainst last quarter
Revenues Sourcefirst quarter of fiscal 2027$18.95B - $19.60BNew
Revenue growth (local currency) Sourcefirst quarter of fiscal 20272% - 6%New
Foreign-exchange impact Sourcefirst quarter of fiscal 2027approx. negative 1%New
Revenue growth (local currency) Sourcefiscal 2027 full year3% - 6%New
Foreign-exchange impact Sourcefiscal 2027 full yearflatNew
GAAP operating margin Sourcefiscal 2027 full year15.9% - 16.1%New
Adjusted operating margin Sourcefiscal 2027 full year10 bps - 30 bps expansionNew
Annual effective tax rate Sourcefiscal 2027 full year24.5% - 26.5%New
Diluted EPS Sourcefiscal 2027 full year$14.39 - $14.81New
Operating cash flow Sourcefiscal 2027 full year$11.9B - $12.7BNew
Property and equipment additions Sourcefiscal 2027 full year$900MNew
Free cash flow Sourcefiscal 2027 full year$11.0B - $11.8BNew
Cash returned to shareholders Sourcefiscal 2027 full yearat least $9.5BNew

What changed from last quarter

  • New guidance: First fiscal 2027 guidance given: full-year revenue growth of 3% to 6% in local currency, plus first-quarter revenue of $18.95 billion to $19.60 billion. Source
  • New: Quarterly dividend of $1.71 per share declared, up from $1.63 paid in fiscal 2026. Source
  • New: Board approved $6.0 billion of additional share repurchase authority in September 2026. Source
  • Ended: Business optimization actions were completed in the first quarter of fiscal 2026; no business optimization costs were recorded in the fourth quarter of fiscal 2026. Source

Results and growth drivers

  • Fourth-quarter revenue above guided range: Fourth-quarter revenue was $18.68 billion, up 6% in U.S. dollars and 7% in local currency, above the guided range of $17.75 billion to $18.40 billion. Source
  • Full-year revenue above guided growth: Full-year revenue was $74.18 billion, up 6% in U.S. dollars and 5% in local currency. Foreign exchange added about 2%, consistent with the third-quarter assumption. Source
  • Adjusted EPS up 8% for the year: GAAP diluted EPS was $13.56, up 12%. Adjusted EPS was $13.97, up 8%, excluding $0.41 of business optimization costs in fiscal 2026. Source
  • Revenue and share count lifted EPS: In the adjusted EPS bridge, higher revenue and operating results added $1.05 and a lower share count added $0.33. A higher tax rate took $0.24 off. Source
  • Fourth-quarter GAAP EPS rose 46%: Fourth-quarter GAAP diluted EPS was $3.29, up from $2.25. Against adjusted EPS of $3.03 in the prior-year quarter, the increase was 9%. Source

Segments and regions

  • Americas margin rose to 17%: Americas revenue rose 7% in the quarter to $9.43 billion. Americas operating income was $1.62 billion, a 17% margin, against $987 million and 11% a year earlier. Source
  • EMEA full-year dollar growth of 9%: EMEA revenue for the year was $26.96 billion, up 9% in U.S. dollars and 4% in local currency. Asia Pacific revenue for the year was $10.68 billion. Source
  • Asia Pacific fourth-quarter margin fell: Asia Pacific revenue rose 3% in dollars and 7% in local currency in the quarter. Its operating margin was 14%, against 15% a year earlier, on $382 million of operating income. Source
  • Asia Pacific full-year margin of 16%: For the full year Asia Pacific operating income was $1.73 billion, a 16% margin, against 18% in fiscal 2025. Source

“These results reflect the continued trust our clients place in us to help them reinvent and create value, the high level of innovation we bring every day and the extraordinary commitment of our Reinventors to our clients’ success.”

Accenture Chair and CEO Julie Sweet

Products, customers and industry groups

  • Managed Services grew faster than Consulting: Full-year Managed Services revenue was $37.30 billion, up 8% in U.S. dollars and 6% in local currency. Consulting was $36.88 billion, up 5% and 3%. Source
  • Communications, media and technology led growth: Communications, Media & Technology revenue was $12.67 billion for the year, up 11% in dollars and 10% in local currency. Financial Services was $13.96 billion, up 9% and 7%. Source
  • Health and Public Service grew slowest: Health & Public Service revenue was $15.17 billion for the year, up 3% in dollars and 2% in local currency. Products was $22.45 billion, up 6% and 4%. Source
  • Fourth-quarter Consulting revenue rose 7%: Fourth-quarter Consulting revenue was $9.28 billion, up 6% in U.S. dollars and 7% in local currency. Managed Services was $9.40 billion, up 7% in both measures. Source

Costs, margins and tax

  • Fourth-quarter GAAP margin 15.3%: GAAP operating margin was 15.3%, up 370 basis points from 11.6%, and 20 basis points above the 15.1% adjusted margin of the prior-year quarter. Source
  • Full-year GAAP margin up 70 basis points: Full-year GAAP operating margin was 15.4%, up 70 basis points. Adjusted operating margin was 15.8%, up 20 basis points. Source
  • Gross margin edged up, SG&A flat: Gross margin was 32.0% against 31.9%. SG&A was $3.12 billion, or 16.7% of revenues, the same share as a year earlier. Source
  • Tax rate lower in quarter, higher for year: Fourth-quarter GAAP effective tax rate was 27.3%, against 30.1%. The full-year GAAP rate was 25.1%, against 23.7%. Source
  • Business optimization costs per share: Business optimization costs were $0.41 per share in fiscal 2026 and $0.78 per share in fiscal 2025, shown net of related taxes. Source

Demand and order book

  • Fiscal 2026 bookings rose 5% in dollars: Full-year new bookings were $84.54 billion, up 5% in U.S. dollars and 3% in local currency, with a book-to-bill of 1.1. Consulting bookings were $40.86 billion and Managed Services $43.67 billion. Source
  • Managed Services book-to-bill of 1.4: Fourth-quarter Managed Services bookings were $12.77 billion, a book-to-bill of 1.4. Consulting bookings were $9.40 billion, a book-to-bill of 1.0. Source
  • 141 large client bookings, a new high: Quarterly client bookings of $100 million or more reached 141, a new high, as management put it. Source

Cash flow and balance sheet

  • Full-year free cash flow $11.6 billion: Full-year free cash flow was $11.6 billion, against $10.9 billion. Operating cash flow was $12.36 billion, less $0.74 billion of property and equipment additions. Source
  • Fourth-quarter operating cash flow lower: Fourth-quarter operating cash flow was $3.10 billion against $3.91 billion. Property and equipment additions were $0.25 billion against $0.11 billion, leaving $2.85 billion of free cash flow. Source
  • Total cash rose to $12.8 billion: The cash balance was $12.8 billion at August 31, 2026, against $11.5 billion a year earlier. Source
  • Net debt proceeds of $4.98 billion: Net debt proceeds were $4.98 billion in the fourth quarter. The same quarter of fiscal 2025 showed none. Source
  • Acquisition spending for the year rose: Purchases of businesses and investments were $1.94 billion in the fourth quarter and $4.94 billion for the year, against $1.47 billion a year earlier. Source

Shareholder returns

  • $11.5 billion returned, up 38%: Fiscal 2026 cash returns were $11.5 billion, up 38%: $7.5 billion of repurchases and redemptions and $4.0 billion of dividends. Source
  • Fourth-quarter repurchases of $2.3 billion: Repurchases and redemptions in the quarter totaled 17.6 million shares. The full year totaled 39.9 million shares, of which 37.5 million were repurchased in the open market. Source
  • Repurchase authority rises to $6.9 billion: Remaining authority was about $6.9 billion, including $6.0 billion that the Board approved in September 2026. Source
  • Quarterly dividend rises to $1.71: The declared quarterly dividend of $1.71 is a 5% increase over the fiscal 2026 quarterly rate of $1.63. Source
  • Shares outstanding fell to 596 million: About 596 million shares were outstanding at August 31, 2026, down from about 612 million at May 31, 2026, as reported in the third-quarter release. Source

Strategy and people

  • Strategy centers on reinvention and AI: Management restated the strategy: to be the reinvention partner of choice, lead the safe and widespread adoption of AI, and be the most client-focused, AI-enabled place to work. Source
  • Reinvention Services span several areas: Reinvention Services cover cybersecurity, digital core, finance, industry and enterprise, supply chain and engineering, and talent, with AI and data capabilities. Source
  • Headcount about 814,000 people: The company describes about 814,000 people, up from about 799,000 in the third-quarter release. Source

Coming up, as management said on 1 October 2026

  • Dividend payable November 13: The $1.71 quarterly dividend is payable November 13, 2026, to shareholders of record at the close of business on October 13, 2026. Source
  • Fiscal 2027 cash return of at least $9.5B: Management said it expects to return at least $9.5 billion in cash to shareholders during fiscal 2027. Source

Figures management reported

FigureReported
New bookings, fourth quarter Source$22.17 billion; book-to-bill 1.2
Clients served Sourceapproximately 9,000
Days services outstanding Source50 days

Risks management discussed

  • Financial: Foreign exchange reduced fourth-quarter revenue by about 0.8%, against an assumed 0.5% reduction. The first-quarter fiscal 2027 range assumes about negative 1%. Source

Earlier plans management reported on

  • Ahead: Management said fourth-quarter revenue was above the high end of the guided range; local-currency growth was 7%. Source
  • Ahead: Management said full-year fiscal 2026 revenue was above the guided local-currency range; growth was 5%. Source
  • Met: Management said the full-year foreign-exchange impact was consistent with the assumption given in the third-quarter release. Source

Other quarters

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.