Accenture plc transforms the way businesses operate, leveraging cutting-edge technology to redefine industries and enhance daily life. Renowned for its innovative approach in the Information Technology Services sector, Accenture delivers comprehensive solutions—from strategy consulting to advanced technology services—that empower organizations globally. With a commitment to excellence and a diverse portfolio of services, I invite you to explore whether the company’s robust fundamentals align with its current market valuation and growth trajectory.
Table of contents
Company Description
Accenture plc (NYSE: ACN), founded in 1951 and headquartered in Dublin, Ireland, is a leading professional services company in the Information Technology Services sector. With a workforce of approximately 801K employees, Accenture operates across key global markets, offering a comprehensive suite of services that includes strategy and consulting, interactive, technology, and operations solutions. The company excels in areas such as application services, cybersecurity, and digital transformation, positioning itself as a crucial advisor and partner for organizations navigating complex challenges. Known for its innovative approach and commitment to sustainability, Accenture plays a pivotal role in shaping the future of business through technology and strategic insights.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Accenture plc, examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Accenture plc’s income statement for the fiscal years 2021 to 2025, showcasing key financial metrics and trends over the period.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 50.53B | 61.59B | 64.11B | 64.90B | 69.67B |
| Cost of Revenue | 34.17B | 41.89B | 43.38B | 43.73B | 47.44B |
| Operating Expenses | 8.74B | 10.33B | 11.92B | 11.57B | 12.01B |
| Gross Profit | 16.36B | 19.70B | 20.73B | 21.16B | 22.24B |
| EBITDA | 9.71B | 10.27B | 10.25B | 10.84B | 12.94B |
| EBIT | 7.82B | 9.24B | 9.19B | 9.76B | 10.50B |
| Interest Expense | 0.06B | 0.05B | 0.05B | 0.06B | 0.23B |
| Net Income | 5.91B | 6.88B | 6.87B | 7.26B | 7.68B |
| EPS | 9.31 | 10.87 | 10.90 | 11.57 | 12.29 |
| Filing Date | 2021-10-15 | 2022-10-12 | 2023-10-12 | 2024-10-10 | 2025-10-10 |
Interpretation of Income Statement
Over the analyzed period, Accenture’s revenue has shown a consistent upward trend, increasing from 50.53B in 2021 to 69.67B in 2025, reflecting a robust demand for its services. Net income has also risen significantly, from 5.91B to 7.68B, indicating improved profitability. Importantly, gross and operating margins have remained stable, suggesting effective cost management. In 2025, the company experienced a notable increase in EBITDA, indicating enhanced operational efficiency, although the growth rate has slightly moderated compared to prior years. This stability in margins alongside revenue growth is a positive indicator for potential investors.
Financial Ratios
The table below summarizes the key financial ratios for Accenture plc (ticker: ACN) over the last few fiscal years.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 11.69% | 11.17% | 10.72% | 11.19% | 11.02% |
| ROE | 30.25% | 31.11% | 26.75% | 25.68% | 24.61% |
| ROIC | 20.84% | 23.37% | 19.84% | 19.00% | 16.99% |
| P/E | 36.17 | 26.54 | 29.71 | 29.55 | 21.16 |
| P/B | 10.94 | 8.26 | 7.95 | 7.59 | 5.21 |
| Current Ratio | 1.25 | 1.23 | 1.30 | 1.10 | 1.42 |
| Quick Ratio | 1.25 | 1.23 | 1.30 | 1.10 | 1.42 |
| D/E | 0.18 | 0.15 | 0.12 | 0.15 | 0.26 |
| Debt-to-Assets | 8.12% | 7.04% | 6.15% | 7.37% | 12.51% |
| Interest Coverage | 128.11 | 197.95 | 185.37 | 162.73 | 44.74 |
| Asset Turnover | 1.17 | 1.30 | 1.25 | 1.16 | 1.07 |
| Fixed Asset Turnover | 10.48 | 13.17 | 15.38 | 15.17 | 16.18 |
| Dividend Yield | 1.05% | 1.34% | 1.38% | 1.51% | 2.28% |
Interpretation of Financial Ratios
Accenture plc (ACN) exhibits a solid financial health in 2025, with a current ratio of 1.42, indicating good short-term liquidity. The net profit margin stands at 11.02%, reflecting effective cost management, though the declining trend in profit margins may raise concerns about operational efficiency. The solvency ratio at 30.52% suggests sufficient long-term financial stability, supported by a low debt-to-equity ratio of 0.26. However, the price-to-earnings ratio of 21.16 indicates a potentially overvalued stock relative to earnings, which warrants caution for investors. The high interest coverage ratio (44.74) signals strong ability to meet interest obligations, although the capital expenditure coverage ratio of 19.12 shows robust cash flow management.
Evolution of Financial Ratios
Over the past five years, Accenture’s financial ratios demonstrate a generally stable performance, with slight fluctuations in profitability and liquidity metrics. Notably, the current ratio increased from 1.25 in 2021 to 1.42 in 2025, indicating improved short-term financial health. However, the decline in net profit margins suggests a need for strategic adjustments to maintain profitability.
Distribution Policy
Accenture plc (ACN) maintains a robust dividend policy, paying an annual dividend of approximately $5.92 per share, which translates to a yield of 2.28%. The company’s dividend payout ratio stands at 48%, indicating a sustainable approach to shareholder returns. Additionally, ACN engages in share buyback programs, further enhancing shareholder value. However, potential risks such as market volatility and economic downturns may impact these distributions. Overall, Accenture’s dividend and buyback strategy supports long-term value creation for shareholders.
Sector Analysis
Accenture plc (ACN), a leader in the Information Technology Services sector, excels in consulting, digital transformation, and technology operations, facing competition from firms like IBM and Deloitte. Its competitive advantages include a broad service portfolio and strong global presence.
Strategic Positioning
Accenture plc (ACN) holds a strong position in the Information Technology Services sector, with a market cap of approximately $166.59B. The company has established a significant market share in consulting and technology services, addressing various industries through a comprehensive service portfolio. Competitive pressure is robust, with both established firms and emerging players vying for market share. However, Accenture’s commitment to innovation and its focus on digital transformation helps mitigate risks associated with technological disruption. With a diverse range of offerings, Accenture continues to adapt and maintain its competitive edge in a rapidly evolving landscape.
Revenue by Segment
The following chart illustrates Accenture’s revenue distribution across its key segments for the fiscal year 2025, showcasing the performance of Consulting and Outsourcing.
In FY 2025, Accenture generated $35.1B from Consulting and $34.6B from Outsourcing. Both segments showed solid performance, with Consulting slightly increasing from $33.6B in the previous year, while Outsourcing grew from $30.5B. However, the growth rates indicate a potential slowdown, raising concerns about market saturation and margin pressures. The company may face concentration risks if it continues to rely heavily on these two segments without diversifying its offerings or exploring new markets.
Key Products
Accenture plc offers a diverse range of products and services designed to meet the needs of clients in various sectors. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Application Services | Includes agile transformation, DevOps, application modernization, and enterprise architecture to enhance business efficiency. |
| Intelligent Automation | Encompasses robotic process automation, natural language processing, and virtual agents to streamline operations. |
| Strategy Consulting | Provides insights on critical data management, governance, and digital transformation strategies for businesses. |
| Cybersecurity Solutions | Offers managed security services, cyber defense, and risk assessment to protect organizations from cyber threats. |
| Cloud Services | Encompasses hybrid cloud solutions, digital workplace integration, and infrastructure management for scalable operations. |
| Digital Commerce | Facilitates e-commerce solutions and customer experience enhancements to drive sales and engagement. |
| Engineering Services | Focused on product design, modernization, and the development of smart connected products for innovative solutions. |
| Talent and Organization Services | Aims to unlock human potential through tailored talent management and organizational strategies. |
These products reflect Accenture’s commitment to leveraging technology and innovation to deliver effective solutions for their clients.
Main Competitors
The competitive landscape in the Information Technology Services sector is dynamic, with several key players vying for market share. Below is a table of the main competitors, including Accenture plc, sorted by descending market capitalization:
| Company | Market Cap |
|---|---|
| Applied Materials, Inc. | 213.5B |
| QUALCOMM Incorporated | 187.2B |
| Amphenol Corporation | 170.6B |
| Sony Group Corporation | 167.5B |
| Accenture plc | 166.6B |
| Texas Instruments Incorporated | 165.9B |
| KLA Corporation | 159.6B |
| Adobe Inc. | 144.9B |
| Palo Alto Networks, Inc. | 133.0B |
| Infosys Limited | 74.9B |
These companies operate primarily in the global market, providing a range of technology and consulting services that cater to various industries. Each competitor has unique strengths and focuses, which contributes to the overall competitiveness of the sector.
Competitive Advantages
Accenture plc (ACN) boasts several competitive advantages that position it well for future growth. With a market capitalization of $166.59B, the company excels in providing a wide range of professional services across strategy, consulting, and technology. Its strong focus on digital transformation and intelligent automation places it at the forefront of innovation. Looking ahead, Accenture is poised to expand into emerging markets and develop new AI-driven products, further enhancing its service offerings. This proactive approach allows Accenture to capitalize on new industry opportunities while maintaining a robust client base across diverse sectors.
SWOT Analysis
The purpose of this SWOT analysis is to evaluate Accenture plc’s current market position and strategic opportunities.
Strengths
- Strong global presence
- Diverse service offerings
- High client retention
Weaknesses
- Dependence on key clients
- High competition
- Vulnerability to economic downturns
Opportunities
- Growth in digital transformation
- Expansion in emerging markets
- Increased demand for cybersecurity
Threats
- Rapid technological changes
- Regulatory challenges
- Economic instability
Overall, Accenture plc’s strengths position it well to capitalize on emerging opportunities, although it must remain vigilant regarding its weaknesses and potential threats. A focus on innovation and client diversification will be crucial for sustaining growth.
Stock Analysis
Over the past year, Accenture plc (ACN) has experienced significant fluctuations in its stock price, reflecting a bearish sentiment driven by broader market dynamics and company-specific factors.
Trend Analysis
Analyzing the stock’s performance over the past year reveals a percentage change of -25.18%. This indicates a bearish trend, marked by notable highs at 388.0 and lows at 238.39. Furthermore, the trend shows acceleration, suggesting that the downward momentum is increasing. The standard deviation of 43.62 indicates a high level of volatility, which is critical for risk management and strategic planning.
Volume Analysis
In the last three months, total trading volume has reached approximately 1.76B shares, with seller volume at 916M and buyer volume at 833M. The volume trend is increasing, indicating heightened market activity. However, with buyer dominance at only 47.42%, the activity appears seller-driven, suggesting a cautious investor sentiment as market participants react to the prevailing bearish trend.
Analyst Opinions
Recent analyst recommendations for Accenture plc (ACN) indicate a consensus rating of “Buy.” Analysts have highlighted the company’s strong return on equity and assets, with scores of 5, showcasing its efficient use of capital. Analyst opinions from various firms emphasize the potential for growth driven by strategic investments in technology and consulting services. The overall score of 4 suggests solid performance, although some caution is warranted regarding the company’s debt-to-equity ratio, which received a lower score of 2. Investors should consider these insights when evaluating their positions.
Stock Grades
Accenture plc (ACN) continues to receive stable ratings from several reputable grading companies, reflecting confidence in its performance.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Maintain | Outperform | 2025-09-29 |
| JP Morgan | Maintain | Overweight | 2025-09-26 |
| BMO Capital | Maintain | Market Perform | 2025-09-26 |
| TD Cowen | Maintain | Buy | 2025-09-26 |
| Goldman Sachs | Maintain | Buy | 2025-09-26 |
| Baird | Maintain | Outperform | 2025-09-26 |
| Guggenheim | Maintain | Buy | 2025-09-26 |
| Evercore ISI Group | Maintain | Outperform | 2025-09-26 |
| RBC Capital | Maintain | Outperform | 2025-09-26 |
| UBS | Maintain | Buy | 2025-09-24 |
Overall, the trend in grades is consistently positive, with multiple firms maintaining their ratings of “Outperform” and “Buy.” This indicates a strong market sentiment towards Accenture, suggesting it may be a good candidate for investors looking to add to their portfolios.
Target Prices
The consensus target prices for Accenture plc (ACN) indicate a promising outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 370 | 251 | 294.18 |
Overall, analysts expect Accenture’s stock to trend towards the consensus target of 294.18, reflecting a balanced outlook between the high and low estimates.
Consumer Opinions
Consumer sentiment regarding Accenture plc (ACN) reflects a mix of satisfaction and areas needing improvement, showcasing both strengths in service delivery and concerns about pricing.
| Positive Reviews | Negative Reviews |
|---|---|
| “Accenture consistently delivers innovative solutions.” | “Their services are often overpriced for small firms.” |
| “Exceptional customer service and support.” | “Project timelines can be longer than expected.” |
| “Highly skilled professionals who understand our needs.” | “Communication issues during project execution.” |
Overall, consumer feedback indicates that while Accenture excels in innovation and support, clients frequently express concerns regarding pricing and project management efficiency.
Risk Analysis
In analyzing Accenture plc (ACN), I’ve identified key risks that could affect its investment potential. Here’s a summary of those risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in market could affect client spending. | High | High |
| Cybersecurity Threats | Increasing cyber threats may compromise operations. | Medium | High |
| Regulatory Changes | New regulations could impact service delivery. | Medium | Medium |
| Talent Retention | Difficulty in retaining skilled workforce may hinder growth. | High | Medium |
| Economic Slowdown | Global economic conditions may reduce demand for consulting services. | High | High |
Recent trends indicate that market volatility and cybersecurity threats are the most likely and impactful risks for Accenture, as they directly affect client relationships and operational integrity.
Should You Buy Accenture plc?
Accenture plc (ACN) demonstrates strong profitability with a net profit margin of 11.02% and a return on invested capital (ROIC) of 16.99%, exceeding its weighted average cost of capital (WACC) of 9.35%, indicating effective value creation. The company’s total debt stands at 8.18B, resulting in a manageable debt-to-equity ratio of 0.262, reflecting solid fundamentals. The company holds an overall rating of A-, which suggests strong performance metrics relative to its peers. However, while these indicators may appear favorable, it could be prudent to carefully assess market conditions before making any investment decisions.
Favorable signals
Accenture plc shows several favorable elements, including a positive gross margin of 31.91%, a net margin of 11.02%, and a healthy ROE of 24.61%. Additionally, the company has demonstrated consistent earnings growth, with an EBIT growth of 7.59% and an EPS growth of 6.21%. It also benefits from a favorable interest coverage ratio of 45.94 and a manageable debt-to-equity ratio of 0.26, indicating solid financial health.
Unfavorable signals
Despite the positive indicators, there are unfavorable signals present. The net margin growth is negative at -1.55%, suggesting potential profitability issues. Additionally, the price-to-book ratio stands at 5.21, which could indicate that the stock is overvalued compared to its book value. Furthermore, the overall stock trend is bearish, with a significant price change of -25.18%, reflecting a challenging market environment.
Conclusion
Given the overall favorable income statement opinion and the favorable ratios evaluation, Accenture plc may appear favorable for long-term investors. However, the negative long-term trend suggests it might be prudent to wait for a bullish reversal.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Accenture plc (ACN): A Bull Case Theory – Yahoo Finance (Dec 04, 2025)
- Royal Fund Management LLC Makes New Investment in Accenture PLC $ACN – MarketBeat (Dec 05, 2025)
- Accenture’s Coming AI Inflection At Steep Discount (NYSE:ACN) – Seeking Alpha (Dec 05, 2025)
- Accenture PLC (ACN) Is a Trending Stock: Facts to Know Before Betting on It – Yahoo Finance (Dec 03, 2025)
- Cresset Asset Management LLC Trims Position in Accenture PLC $ACN – MarketBeat (Dec 05, 2025)
For more information about Accenture plc, please visit the official website: accenture.com
