Accenture Earnings Show AI Bookings Lift
Accenture earnings show AI-driven bookings pushed revenue to the top of guidance and confirmed fiscal 2026 targets, shaping near-term trader positioning.
KEY TAKEAWAYS
- Revenue was $18.7B, at the top of the quarter's guided range.
- New bookings totaled $20.9B, including $2.2B of advanced AI bookings.
- Company confirmed fiscal 2026 guidance and narrowed GAAP EPS to $13.12-$13.50.
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Accenture earnings showed revenue at the top of the company’s guided range as AI demand drove robust bookings, and management narrowed the GAAP EPS outlook while confirming fiscal 2026 revenue and margin targets.
Quarter Results and Bookings
Accenture reported revenue of $18.74 billion for the quarter ended November 30, 2025, a 6% increase in U.S. dollars and 5% in local currency from the prior year, reaching the top of its guided range. New bookings rose 12% in U.S. dollars to $20.9 billion, including $2.2 billion from advanced AI projects. Thirty-three clients recorded quarterly bookings exceeding $100 million. The company disclosed these results in a press release on December 18 at 6:39 a.m. ET.
Revenue growth varied across industries. Products led with $5.74 billion, up 6%. Communications, Media & Technology generated $3.10 billion, up 9%. Financial Services rose 14% to $3.60 billion. Health and Public Service held steady at $3.80 billion, while Resources increased 3% to $2.50 billion.
Margins, Profitability, and Outlook
GAAP operating income declined 3% to $2.87 billion, with the GAAP operating margin narrowing 140 basis points to 15.3%. Adjusted operating income rose to $3.18 billion, lifting the adjusted margin by 30 basis points to 17.0%. GAAP diluted earnings per share fell 1% to $3.54, while adjusted diluted EPS increased 10% to $3.94, excluding $0.40 in business-optimization costs. Free cash flow totaled $1.5 billion.
For the second quarter, Accenture set revenue guidance between $17.35 billion and $18.0 billion, implying 1% to 5% local-currency growth and a roughly 3.5% foreign-exchange tailwind. The company confirmed fiscal 2026 guidance with revenue growth of 2% to 5% in local currency, or about 3% to 6% excluding a 1% impact from U.S. federal business. Adjusted operating margin is targeted at 15.7% to 15.9%, reflecting a 10 to 30 basis-point expansion over fiscal 2025, excluding business-optimization costs. The annual effective tax rate is expected between 23.5% and 25.5%. GAAP diluted EPS guidance narrowed to $13.12 to $13.50, with adjusted EPS set at $13.52 to $13.90. The company returned $3.3 billion to shareholders in the quarter, including $2.3 billion in share repurchases.
