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    ACN
    Earnings call· Feb 2026(Q2 FY26)

    Accenture Q2 FY26 earnings call ACN

    Mar 19, 2026 Source

    Executive summary

    Accenture plc Q2 FY26 — Record Bookings and Strong AI-Driven Growth

    Accenture delivered a strong Q2 FY26, marked by record bookings and robust revenue growth, driven by broad-based demand across geographies and service types. The company continues to strategically invest in AI-powered transformations and enablers through acquisitions, expanding into higher-growth areas and new commercial models. Management remains confident in its ability to capture market share and leverage AI as a significant tailwind for long-term growth, despite ongoing geopolitical uncertainties.

    Highlights

    5

    • Record bookings of $22.1 billion, representing 6% growth in USD and 1% in local currency, with a book-to-bill of 1.2.

    • Revenue reached $18 billion, growing 4% in local currency, at the top end of the guided range.

    • Operating margin expanded by 30 basis points year-over-year to 13.8%.

    • Diluted EPS grew 4% year-over-year to $2.93.

    • Strong free cash flow of $3.7 billion, with $2.7 billion returned to shareholders through repurchases and dividends.

    Concerns

    3

    • Effective tax rate increased to 24.3% from 20.4% in the prior year quarter.

    • General and administrative expense increased to 6.7% from 6.3% for the same quarter last year.

    • Americas revenue growth was partially offset by a decline in the U.S. Federal business, impacting growth by 2%.

    Guidance & targets

    12
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $18.35 billion to $19 billion
    high materiality
    High
    Q3 FY26 Revenue Growth (Local Currency)
    1% to 5%
    high materiality
    High
    Full Fiscal Year 2026 Revenue Growth (Local Currency)
    3% to 5%
    high materiality
    High
    Full Fiscal Year 2026 Inorganic Contribution
    about 1.5%
    medium materiality
    High
    Full Fiscal Year 2026 Acquisition Investment
    $5 billion
    high materiality
    High
    Full Fiscal Year 2026 Adjusted Operating Margin
    15.7% to 15.9%
    high materiality
    High
    Full Fiscal Year 2026 Annual Adjusted Effective Tax Rate
    23.5% to 25.5%
    medium materiality
    High
    Full Fiscal Year 2026 Adjusted Diluted EPS
    $13.65 to $13.90
    high materiality
    High
    Full Fiscal Year 2026 Operating Cash Flow
    $11.5 billion to $12.2 billion
    high materiality
    High
    Full Fiscal Year 2026 Property and Equipment Additions
    approximately $700 million
    medium materiality
    High
    Full Fiscal Year 2026 Free Cash Flow
    $10.8 billion to $11.5 billion
    high materiality
    High
    Full Fiscal Year 2026 Capital Return
    at least $9.3 billion
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Consulting Revenue
    Grew 3% in local currency.
    		$8.9 billion7% (USD)——
    Managed Services Revenue
    Grew 5% in local currency, driven by mid-single-digit growth in technology-managed services and high single-digit growth in operations.
    		$9.2 billion10% (USD)——
    Americas Revenue
    Led by growth in banking and capital markets, software and platforms, and industrials. Partially offset by a decline in public service due to the U.S. Federal business. Excluding the 2% impact from Federal, Americas grew approximately 6% in local currency.
    		—3% (local currency)——
    EMEA Revenue
    Driven by growth in insurance, life sciences, and public service. Revenue growth was led by the United Kingdom and Italy.
    		—2% (local currency)——
    Asia Pacific Revenue
    Driven by growth in banking and capital markets, communications and media, and public service. Revenue growth was led by Japan and Australia.
    		—10% (local currency)——

    Operational metrics

    17
    Revenue
    $18 billion8% (USD) / 4% (LC)
    Q2 FY26

    At the top end of the FX-adjusted guided range.

    Gross Margin
    30.3%vs 29.9% Q2 FY25
    Q2 FY26

    Compared with the same period last year.

    Sales and Marketing Expense
    9.7%vs 10.1% Q2 FY25
    Q2 FY26

    Compared with the second quarter last year.

    General and Administrative Expense
    6.7%vs 6.3% Q2 FY25
    Q2 FY26

    Compared to the same quarter last year.

    Operating Income
    $2.5 billion
    Q2 FY26

    Reflecting a 13.8% operating margin.

    Operating Margin
    13.8%up 30 bps YoY
    Q2 FY26

    Compared with results in Q2 of last year.

    Effective Tax Rate
    24.3%vs 20.4% Q2 FY25
    Q2 FY26

    Compared with the second quarter last year.

    Diluted Earnings Per Share
    $2.934% growth YoY
    Q2 FY26

    Compared with $2.82 in the second quarter last year.

    Days Services Outstanding (DSO)
    46 daysvs 51 days last quarter / 48 days Q2 FY25
    Q2 FY26

    Reflects focus on cash and operating efficiency.

    Cash Balance
    $9.4 billionvs $11.5 billion at Aug 31
    Feb 28, 2026

    Compared with the cash balance at the end of the prior fiscal year.

    Shares Repurchased
    6.8 million
    Q2 FY26

    Accelerated share buybacks in the quarter.

    Year-to-Date Shares Repurchased
    $4 billionsignificant step up from same time last year
    H1 FY26

    Total amount of shares repurchased or redeemed year-to-date.

    Quarterly Cash Dividend
    $1.6310% increase YoY
    Q2 FY26

    Paid in February, representing a 10% increase over last year.

    Property and Equipment Additions
    $150 million
    Q2 FY26

    Net of cash generated by operating activities.

    AI and Data Professionals
    over 85,000exceeding goal of 80,000 by end of FY26
    Q2 FY26

    Reflects the company's intentional talent strategy for the age of AI.

    Training Hours Completed
    13 million
    Q2 FY26

    Completed by reinventors this quarter alone.

    Agentic AI Fundamentals Program Completions
    192,000
    Q2 FY26

    Program co-created with Stanford Institute for Human-Centered AI.

    Industry KPIs

    7
    MetricValueDetails
    Headcount dso786,000+people
    Rule of 40 margins13.8%%
    Large customer cohorts41clients
    Bookings tcv book to bill$22.1 billionUSD
    Genai ai book of businessover 85,000professionals
    Ai agentic channel product adoption192,000completions
    Consulting vs managed services splitConsulting: $8.9 billion; Managed Services: $9.2 billionUSD

    Orderbook & backlog

    4
    New Bookings$22.1 billionQ2 FY26

    6% (USD) / 1% (LC)

    Record bookings for the quarter, with an overall book-to-bill of 1.2.

    H1 Bookings$43 billionH1 FY26

    Total bookings for the first half of the fiscal year.

    Consulting Bookings$11.3 billionQ2 FY26

    Book-to-bill of 1.3 for consulting services.

    Managed Services Bookings$10.8 billionQ2 FY26

    Book-to-bill of 1.2 for managed services.

    Deals & partnerships

    12
    Facultyacquisition

    Leading U.K.-based AI native services company with a decision intelligence product business, expanding into new areas of unmet AI demand with non-FTE revenue.

    Dechoacquisition

    Acquired to accelerate growth with Palantir, focusing on defense and public sector markets in the U.K.

    RANGR Dataacquisition

    Acquired to accelerate growth with Palantir, working across industries in the U.S.

    DLB Associatesacquisition

    Acquired a 65% stake in this data center engineering and consulting firm, which has high double-digit growth, as part of AI enablers investment.

    CyberCXacquisition

    A leader in cybersecurity in Australia, acquired as part of AI enablers investment.

    Ooklaacquisition

    A global leader in network intelligence, competitive benchmarking, and customer experience analytics, with 430 employees.

    Orlade Groupacquisition

    A French capital projects firm, expanding Accenture's presence in energy, utilities, rail, and aerospace sectors, including nuclear power plants and power grids. Part of focus on AI enablers due to energy infrastructure needs.

    Aidemyacquisition

    Acquired in Japan to expand LearnVantage, Accenture's business capturing education opportunities. A portion of LearnVantage operates with a non-FTE commercial model, growing double digits.

    NeuraFlashacquisition

    Mid-market acquisition to expand presence in this segment, which experiences higher revenue growth and smaller deal sizes that convert to revenue faster.

    Total eBiz Solutionsacquisition

    Mid-market acquisition to expand presence in this segment.

    Cabelacquisition

    Mid-market acquisition to expand presence in this segment.

    Piraeus Bank S.A.partnership

    Partnered to set up a central AI hub to be their primary execution arm, with an option to transfer in the future, leveraging Accenture's capabilities to capture value from AI.

    Risks & headwinds

    4
    Middle East Conflict EscalationH2 FY26

    Region represented about 1% or $1 billion of revenue in FY25.

    Mitigation: Guidance reflects current information and does not account for a significant escalation or major economic disruption. Accenture is providing support to its 3,000 colleagues in the region.

    U.S. Federal Business DeclineQ2 FY26

    2% impact on Americas local currency growth in Q2 FY26.

    Mitigation: Expected to anniversary in Q4 FY26 and return to growth. Full year FY26 guidance includes an estimated 1% impact from Federal.

    Increased Effective Tax RateQ2 FY26

    24.3% in Q2 FY26, up from 20.4% in Q2 FY25.

    Mitigation: Full year adjusted effective tax rate expected to be 23.5% to 25.5%.

    Increased General and Administrative ExpenseQ2 FY26

    6.7% of revenue in Q2 FY26, up from 6.3% in Q2 FY25.

    Mitigation: Operating margin still expanded by 30 bps YoY, indicating overall cost management and investment in the business.

    Q&A highlights

    7

    What quantitative evidence should investors look for to substantiate Accenture's claim as a net beneficiary of AI?

    Julie Sweet explained that AI permeates all aspects of their business, making it difficult to isolate. Key metrics include market share gains, overall growth, and the performance of partnerships with large ecosystem players and emerging AI partners. The number of clients initiating AI projects is also a key indicator, with metrics evolving over time.

    “at this point in our business, AI is permeating everything we do because it either is driving why clients are actually doing things like moving to the cloud, but when we're doing something that isn't specific AI, they are looking at our AI credentials because everything is aimed to get to AI.”

    asked by Jason Kupferberg · answered by Julie T. Sweet

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Acquisitions Fueling Growth and New Commercial Models

    Accenture deployed $1.6 billion in 3 strategic acquisitions this quarter, with plans to invest $5 billion in acquisitions for FY26, potentially more. These investments target higher-growth areas and new commercial models, including AI-powered transformation (Faculty, Decho, RANGR Data), AI enablers (DLB Associates, CyberCX, Ookla), high-growth secular trends (Orlade Group, Aidemy), and mid-market expansion (NeuraFlash, Total eBiz Solutions, Cabel). The acquisition of Ookla, for example, brings a non-FTE subscription and licensing revenue model with $231 million in CY25 revenue and 8% YoY growth.

    02

    Talent Strategy for the Age of AI

    The company has exceeded its FY26 goal for AI and data professionals, now boasting over 85,000 experts. Accenture's talent strategy includes hiring more entry-level reinventors in FY26 than FY25, which is crucial for its financial model. Employees completed 13 million training hours this quarter, with 192,000 completing the Agentic AI fundamentals program co-created with Stanford. The use of AI tools and contributions to becoming an AI-enabled company are now formal parts of performance evaluations.

    03

    Demand Environment and AI as a Tailwind

    Clients continue to prioritize strategic, large-scale transformational programs, with spending similar to 2025. Demand is driven by implementing foundational programs with ecosystem partners (cloud, security, data modernization), reinventing faster through proprietary platforms and managed services, and clients with advanced digital cores undertaking larger AI programs. AI is seen as a significant tailwind, helping Accenture win market share and creating new growth opportunities, with 100 new clients initiating advanced AI projects this quarter.

    04

    AI in Core Operations and New Offerings

    AI is enabling the modernization of previously complex areas like mainframe systems, opening new services markets. It's also making today's impossible possible in core operations, where custom systems integration is seeing a renaissance. Examples include finance and risk (Know Your Customer), claims in insurance, and prior authorization in healthcare. New offerings include setting up dedicated AI services, sometimes in a build-operate-transfer model, as demonstrated by the partnership with Piraeus Bank S.A. to establish a central AI hub.

    05

    AI-Driven Reinvention Across Industries

    Accenture is partnering with clients like Estée Lauder Companies to advance their operating ecosystem, leveraging AI and automation across the value chain to accelerate execution and innovation. In retail, the company is reimagining service with Agentic AI to create coordinated digital and human agent teams. For Radisson Hotel Group, AI agents optimize content and dynamically allocate budgets for marketing, connecting live inventory into conversational platforms, which has tripled direct bookings since the collaboration began.

    06

    Middle East Conflict and Guidance Considerations

    The company has approximately 3,000 colleagues in the Middle East, a region representing about 1% or $1 billion of revenue in FY25. Currently, no significant financial impact is observed, and colleagues are safe. While the environment is uncertain, the updated guidance reflects the best view today and does not account for a significant escalation or major economic disruption in the region.

    AI-generated summary of the company’s earnings call. Not investment advice.