One-glance verdict
Undervalued
$408.92 our estimate vs market $198.90
Wall Street consensus: $221.36 (-45.9% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Accenture plc
ACN · NYQ · Technology · Information Technology Services
Current price
$198.90
52-week range
$118.15 - $291.09
Market cap
$121.72B
Balance sheet
Healthy
47.43x Strong cushion
Net debt $559.22M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.9% last year.
- Reward Returns 26.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Accenture plc
Accenture is a massive consulting company that other businesses hire as expert problem-solvers for their technology and operations. They help corporations with everything from moving their data to the cloud to managing their supply chain (the entire process of making and delivering a product). Accenture makes money by charging for these services, and because it serves clients in nearly every industry, its business can remain stable even when one part of the economy is struggling.
How the company got here
Accenture started in the early 1950s as a part of an accounting firm, Arthur Andersen, focused on technology consulting. A key early project involved helping General Electric use one of the first commercial computers, which set the stage for its tech focus. In 1989, it became a separate unit called Andersen Consulting and, after a major split, was renamed Accenture in 2001, a name derived from "Accent on the Future." The company went public in 2001 and has since grown by expanding into digital, cloud, and security services, acquiring over 200 companies since 2013.
What it actually does
Accenture is a global professional services company that helps other businesses improve their performance. Think of them as expert advisors and implementers that large companies and governments hire to solve complex problems. They provide a wide range of services, from developing business strategies and implementing new technologies to running specific parts of a client's operations for them, like managing their supply chain (the network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer).
Strategy & Consulting
This is the advisory part of Accenture's business, where they help company leaders make big decisions. Experts in this group work with clients to create long-term growth strategies, plan for major digital changes, and manage complex situations like mergers and acquisitions (when one company buys another). For example, they might help a retail company figure out how to compete with online stores or advise a bank on how to use new financial technology. This part of the business focuses on high-level planning and problem-solving for clients across many industries.
Technology
This is a core part of Accenture, focused on designing, building, and running technology systems for clients. This includes everything from moving a company's data and applications to the cloud (using remote servers hosted on the internet to store, manage, and process data, rather than a local server) to implementing large software systems that manage a company's finances or customer relationships. They also provide services in cybersecurity (protecting computer systems and networks from theft or damage) and data analytics (examining data sets to draw conclusions about the information they contain). This segment helps companies modernize their technology to become more efficient and competitive.
Operations
In this segment, Accenture takes over and runs specific business processes for its clients, a practice often called outsourcing. This could involve managing a company's finance and accounting departments, handling their procurement (the process of buying goods and services), or running their customer service operations. The goal is to help clients run these functions more efficiently and at a lower cost by using Accenture's scale, expertise, and technology. This provides a steady, ongoing source of revenue for Accenture.
Accenture Song
Formerly known as Accenture Interactive, this part of the company functions like a creative and digital marketing agency. Accenture Song helps clients grow by improving how they interact with their customers. This includes creating marketing campaigns, designing user-friendly websites and mobile apps, and using data to create personalized customer experiences. By acquiring creative firms, Accenture Song competes with traditional advertising agencies to help companies build their brand and increase sales.
Industry X
This segment focuses on helping industrial companies embed technology into their physical products and manufacturing processes. Think of it as the engineering and manufacturing arm of Accenture's services. They work on projects like creating "smart" factories that use robotics and data to improve production, designing products that are connected to the internet, and making supply chains more efficient. This group helps companies in sectors like automotive, energy, and life sciences reinvent how they design, make, and service their products.
What management is betting on now
Accenture's leadership is heavily focused on becoming the go-to partner for companies looking to reinvent themselves using artificial intelligence (AI). The company is investing $3 billion in its Data and AI practice and aims to double its AI-focused workforce to 80,000 people. CEO Julie Sweet emphasizes that helping clients move beyond small AI experiments to large-scale transformation is a top priority. This strategy involves integrating AI across all its services to help clients drive growth and efficiency, and a major focus is on upskilling (teaching employees new skills) its own workforce to deliver these advanced solutions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$3.18B
FY2025 Q1
$870.28M
FY2025 Q2
$2.68B
FY2025 Q3
$3.52B
FY2025 Q4
$3.81B
FY2026 Q1
$1.51B
FY2026 Q2
$3.67B
FY2026 Q3
$3.60B
Revenue
$18.72B
Net income
$2.34B
Diluted EPS
3.80
Operating cash flow
$3.79B
Free cash flow
$3.60B
Fetching…
Sources
Revenue
$18.04B
Net income
$1.83B
Diluted EPS
2.93
Operating cash flow
$3.82B
Free cash flow
$3.67B
Fetching…
Sources
Revenue
$18.74B
Net income
$2.21B
Diluted EPS
3.54
Operating cash flow
$1.66B
Free cash flow
$1.51B
Fetching…
Sources
Revenue
$17.60B
Net income
$1.41B
Diluted EPS
2.25
Operating cash flow
$3.91B
Free cash flow
$3.81B
Fetching…
Sources
Revenue
$17.73B
Net income
$2.20B
Diluted EPS
3.49
Operating cash flow
$3.68B
Free cash flow
$3.52B
Fetching…
Sources
Revenue
$16.66B
Net income
$1.79B
Diluted EPS
2.82
Operating cash flow
$2.85B
Free cash flow
$2.68B
Fetching…
Sources
Revenue
$17.69B
Net income
$2.28B
Diluted EPS
3.59
Operating cash flow
$1.02B
Free cash flow
$870.28M
Fetching…
Sources
Revenue
$16.41B
Net income
$1.68B
Diluted EPS
2.66
Operating cash flow
$3.39B
Free cash flow
$3.18B
Fetching…
Sources
Is it cheap or expensive?
Fair value $408.92 vs current price $198.90
Wall Street consensus is the average analyst price target: $221.36 (-45.9% lower than our fair-value estimate).
Our most-likely fair value is $408.92 a share — about 105.6% above today's price of $198.90, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $559.2M. Interest coverage 47.4x.
Net debt
$559.22M
Interest coverage
47.43x
Accenture plc's profit covers its interest bill about 47.4 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ACN
BASELINE
Accenture plc
Total debt $13.40B Interest coverage 47.43x This is the baseline the peer rows are being compared against.
Total debt $65.27B Interest coverage 6.46x -86% vs ACN Carries about 7.3x less debt cushion than ACN.
Total debt $923.00M Interest coverage 87.00x +83% vs ACN Carries about 1.8x more debt cushion than ACN.
Total debt $2.09B Interest coverage 89.92x +90% vs ACN Carries about 1.9x more debt cushion than ACN.
Total debt $2.21B Interest coverage 18.86x -60% vs ACN Carries about 2.5x less debt cushion than ACN.
Total debt $1.41B Interest coverage 10.34x -78% vs ACN Carries about 4.6x less debt cushion than ACN.
What you should know
The case for and against ACN
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.9% last year.
-
Returns 26.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.87x
Forward P/E
13.56x
P/B
3.82x
P/S
1.64x
EV/EBITDA
9.24x
PEG ratio
1.54x
Profitability
How much profit each dollar creates
Gross margin
32.0%
Operating margin
15.3%
Net margin
11.3%
ROE
26.0%
ROA
10.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.40x
Current ratio
1.43x
Quick ratio
1.31x
Total debt
$13.40B
Total cash
$12.84B
Growth
How the business has been compounding
Revenue TTM
$73.10B
Revenue 5Y CAGR
46.9%
EPS TTM
12.53
EPS 5Y CAGR
4.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$13.18B
Free CF TTM
$10.87B
FCF margin
14.9%
Dividend
Shareholder payout
Yield
3.1%
Payout ratio
50.9%
Last ex-div date
2026-07-09