Accenture PLC (NYSE:ACN) extended its winning streak to a 3rd straight day on Thursday, climbing 15.78 percent to close at $212.30 apiece, as investors cheered its strong earnings performance in the fourth quarter of fiscal year 2026, alongside the jump in new bookings that allayed fears about AI disruptions on consulting firms.
In an updated report on the same day, the IT services giant said that its attributable net income surged by 40.8 percent to $1.99 billion from $1.413 billion in the same period last year.
Revenues finished stronger than expected, growing 6.25 percent to $18.68 billion from $17.6 billion year-on-year.
New bookings increased by 4 percent to $22.2 billion, thanks to $9.4 billion worth of bookings from consultations and $12.77 billion from managed services.
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“We exceeded our fourth-quarter revenue guidance range and capped off another year of broad-based growth across our business, grew adjusted EPS 8 percent, returned a record $11.5 billion to shareholders and reached a new high of 141 quarterly client bookings of $100 million or more,” Accenture PLC Chairman and CEO Julie Sweet said.
“These results reflect the continued trust our clients place in us to help them reinvent and create value, the high level of innovation we bring every day and the extraordinary commitment of our Reinventors to our clients’ success,” she added.
2027 Seen Growing 3-6%
Encouraged by the results, Accenture PLC has issued a 3 to 6 percent revenue growth guidance for full year 2027, albeit slightly slower than the 6.5 percent jump in revenues for fiscal year 2025.
Diluted earnings per share are projected at $14.39 to $14.81 on a GAAP basis, or an implied growth of 6 to 9 percent year-on-year.
It is also planning to return at least $9.5 billion in cash to shareholders for the said year, which could be by way of dividends or share repurchase activities.
Price Target Hike
Three investment firms raised their price targets for the stock following the results, namely Evercore, Stifel, and Susquehanna.
Evercore, for its part, raised its price target for the stock to $250 from $180, while maintaining its outperform rating, amid improved estimates and opportunities from artificial intelligence.
Stifel, for its part, hiked its price target to $242 from $225, while reiterating its buy recommendation, thanks to broad-based outperformance due to smaller discretionary deals, activity in the federal government sector, and accelerating demand from AI-related partners, showcasing stability in the company’s business model.
“In our view, ACN is the only professional services provider at scale that has demonstrated an ability to consistently re-skill around different technology and business cycles,” Stifel said.
Meanwhile, Baird raised its price target to $245 from $190, while keeping its outperform rating.
Among all coverages during the day, TD Cowen was the most conservative, having maintained its hold recommendation and price target of $173.
TD Cowen said that Accenture PLC’s earnings results marked a reversal from a difficult third quarter, exceeding its estimates and more cautious Wall Street expectations.
It said that the performance was a surprise bounce back that is likely to fuel a positive market reaction.
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