Accenture plc (ACN): A Bull Case Theory

We came across a bullish thesis on Accenture plc on Disruptive analytics’s Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on ACN. Accenture plc’s share was trading at $238.97 as of September 26th. ACN’s trailing and forward P/E were 19.67 and 17.18 respectively according to Yahoo Finance.

Accenture (ACN) is aggressively embracing generative AI, transforming it from a perceived industry risk into a central growth driver. In fiscal 2025, the company tripled its AI-related revenue to $2.7 billion and secured $5.9 billion in gen AI bookings, compared to only a handful of projects less than two years ago. Today, ACN manages roughly 6,000 AI projects with 70,000 reskilled data professionals, and it plans to reskill more than 500,000 employees over time.

The firm has also built deep partnerships with leading AI platform providers and is rolling out proprietary AI-driven solutions, positioning itself as a leader in enterprise-scale AI integration. This pivot has already delivered tangible results, with fiscal 2025 revenues accelerating and free cash flow rising 26% year-over-year, underscoring AI’s role in driving operating leverage.

Despite these successes, near-term headwinds weigh on sentiment. Consulting demand remains muted, particularly in the U.S. public sector, contributing to a nearly 30% year-to-date decline in ACN’s share price. However, the market appears to be overlooking the strength of ACN’s outsourcing engine, which is increasingly benefiting from AI-driven scalability.

Managed services grew 10% YoY in 2025, highlighting robust client demand, and the company has guided to higher operating margins in fiscal 2026 as outsourcing tenders contribute more meaningfully. With AI now integrated into its delivery model, ACN is well-positioned to capture recurring revenue growth and improve profitability. Given its depressed valuation, resilient fundamentals, and multiple catalysts from AI monetization, ACN’s stock looks undervalued and presents a compelling long-term investment opportunity.

Previously we covered a bullish thesis on Accenture plc (ACN) by Sanjiv in December 2024, which highlighted the company’s balanced mix of consulting and managed services, steady revenue growth, strong margins, and rising exposure to cloud and GenAI. The company’s stock price has depreciated approximately by 32.9% since our coverage. This is because consulting demand softened. The thesis still stands as ACN’s AI-driven strategy strengthens. Magnus Ofstad shares a similar view but emphasizes its accelerated pivot to generative AI.

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Disclosure: None.