Accenture PLC (NYSE:ACN) Tops Q4 Estimates but Cautions on 2026 Revenue Outlook

Accenture PLC - Class A (NYSE:ACN) reported financial results for its fourth quarter and full 2025 fiscal year, delivering a performance that narrowly surpassed analyst expectations on the top and bottom lines. However, investor attention appears to be fixed on the company's tempered growth outlook for the coming year, leading to a muted market reaction.

Earnings and Revenue Versus Estimates

For the quarter ended August 31, 2025, Accenture posted revenues of $17.6 billion, which slightly exceeded the consensus analyst estimate of approximately $17.52 billion. This represents a 7% increase in U.S. dollars compared to the same period last year.

On the profitability front, the company's non-GAAP earnings per share (EPS) came in at $3.03. This figure beat the average analyst forecast of $2.99, marking a 9% year-over-year increase.

The key metrics from the report include:

• Q4 Revenue: $17.6 billion (Actual) vs. $17.52 billion (Estimate) - A slight beat.
• Q4 Non-GAAP EPS: $3.03 (Actual) vs. $2.99 (Estimate) - A beat of approximately 1.3%.
• Full-Year Revenue: $69.7 billion, a 7% increase.
• Full-Year Non-GAAP EPS: $12.93, an 8% increase.

Market Reaction and Forward Outlook

Despite the quarterly beat, the market's response has been cautious. In pre-market trading, the stock showed modest gains of around 1%. This tepid reaction is likely attributable to the company's guidance for fiscal year 2026. Accenture projected revenue growth in a range of 2% to 5% in local currency. When excluding an expected headwind from its U.S. federal business, the growth outlook improves to 3% to 6%.

This guidance appears light when compared to existing analyst expectations. Prior to the report, analysts were modeling sales of approximately $73.91 billion for FY2026, which implied a growth rate closer to 6%. Accenture's official outlook, particularly at the midpoint, suggests a potential deceleration in growth.

The company's EPS guidance for the coming year was more robust. Accenture expects adjusted EPS to be between $13.52 and $13.90, representing growth of 5% to 8%. This aligns more closely with, though is at the lower end of, typical analyst growth expectations.

Summary of Key Press Release Highlights

Beyond the headline numbers, the earnings release underscored several significant achievements for the full fiscal year 2025. The company highlighted its strategic positioning in the artificial intelligence space, with generative AI new bookings reaching $5.9 billion for the year. Total new bookings were a strong $80.6 billion, indicating a healthy pipeline of future work. Furthermore, the company demonstrated solid cash generation, with free cash flow for the year totaling $10.9 billion. Accenture also reaffirmed its commitment to shareholder returns, planning to return at least $9.3 billion through dividends and share repurchases in fiscal 2026.

While Accenture closed a solid fiscal 2025 by exceeding quarterly estimates, the primary focus for investors is the path ahead. The provided revenue guidance for the next fiscal year has introduced caution, as it points to a potentially slower growth trajectory than the market had anticipated. This outlook appears to be outweighing the positive news from the quarterly beat, leading to a neutral to slightly positive near-term market reaction as investors digest the implications for future growth.

For a detailed look at historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security.