Accenture plc

Third-quarter revenue was $18.7 billion, up 6% in US dollars and 3% in local currency. Consulting revenue was $9.3 billion, up 4% in US dollars and 1% in local currency, while managed services revenue was $9.4 billion, up 8% in US dollars and 5% in local currency. Gross margin was 32.8% versus 32.9% last year, operating income was $3.2 billion, operating margin was 17% (up 20 bps), and diluted EPS increased 9% to $3.80 from $3.49. Free cash flow was $3.6 billion, and the company returned $2.2 billion to shareholders in the quarter. For Q4 FY2026, Accenture expects revenue of $17.75 billion to $18.4 billion, implying 1%-5% local-currency growth and about a negative 0.5% FX impact versus the prior-year quarter. For FY2026, it now expects 3%-4% local-currency revenue growth, a 15.8% adjusted operating margin, an adjusted tax rate of 24%-25%, and diluted adjusted EPS of $13.78-$13.90. Full-year operating cash flow is guided to $11.5 billion-$12.2 billion, capex to about $700 million, free cash flow to $10.8 billion-$11.5 billion, and capital returns to at least $9.5 billion.

Julie Sweet framed the quarter as broad-based and share-gaining, saying Accenture saw strong demand across geographies, industries, and work types while continuing to invest in the business. Her tone was confident about AI as a tailwind, stressing that clients are moving from pilots to production and that Accenture is building a stronger position through ecosystem partnerships, OT security, and a new mid-market business. She also emphasized that the company is shifting toward more platform-led and non-FTE commercial models over time.

Angie Park emphasized that Q3 came in above the midpoint of guidance with strong profitability and robust free cash flow. She pointed to 17% operating margin, 20 bps of margin expansion, $3.6 billion of free cash flow, and $2.2 billion returned to shareholders, while noting $3 billion invested year to date, primarily across 13 acquisitions. For FY2026 she raised the M&A spend outlook to about $9 billion, kept free cash flow guidance at $10.8 billion-$11.5 billion, and said Accenture expects to access the long-term debt market to support liquidity for M&A and general corporate purposes while maintaining investment-grade ratings and low net leverage.

Analysts focused on the Middle East disruption, the managed services pushouts, the logic and risk of the OT security acquisitions, and whether AI spending is creating budget pressure or opportunity. Management said the Middle East impact was mainly indirect and hit consulting in the last few weeks of the quarter, so some pressure could continue into Q4; it also said the larger managed services deals moved to FY2027 for company-specific reasons rather than boosting Q4. On OT security, Julie Sweet argued the platform is strategically important because AI depends on securing critical infrastructure, and said the combination of Dragos, runZero, and NetRise simplifies buying for clients and creates a larger, fast-growing market.