Accenture plc (NYSE:ACN) earns its reputation through steady relationships with clients, practical consulting, and a knack for rolling out technology that businesses actually use. The company’s track record of regular dividends is an extra plus for shareholders. Areas like cloud computing, cybersecurity, and artificial intelligence (AI) give Accenture plenty of room to grow over the long run. Because of this, ACN has also reserved a spot on our blue-chip dividend stocks list. Check its ranking.
Still, when the economy gets shaky, clients sometimes pause new projects. AI is a mixed bag: it might mean more work for Accenture helping clients adopt new tech, but it can also automate some of the tasks Accenture used to bill for.
Looking at the numbers for fiscal 2026, it’s clear Accenture can handle change. The company brought in $74.18 billion in revenue, a 5% bump from last year once you adjust for currency. Margins ticked up a little, and adjusted earnings per share landed at $13.97, which is 8% higher. Even GAAP EPS was strong at $13.56. Free cash flow grew to $11.62 billion, up from $10.87 billion, putting Accenture in a good spot to keep investing in itself and rewarding shareholders. For investors, the big question is whether Accenture can keep growing fast enough to justify today’s stock price.
Also read: Is Accenture (ACN) the Market’s Most Overlooked AI Play?
Forward P/E: A discount with conditions
Accenture plc (NYSE:ACN) has a forward P/E of 12.41, down a lot from the 23.04 it had in May 2025. The trailing P/E was 14.66. This gap means analysts think earnings will pick up, but the lower P/E also says investors aren’t betting on rapid growth.
With a forward P/E of 12.41, ACN’s earnings yield is about 8.1%. That’s noticeably better than the 10-year US Treasury yield, which was around 5.2% this week. So, investors get a little extra for choosing stocks over government bonds. Of course, unlike Treasury interest, earnings from stocks aren’t guaranteed, so that yield can change depending on how the business does.
It helps to see where Accenture stacks up against its peers. In early October, IBM’s forward P/E was about 18.5, and Cognizant’s was 11.1. Accenture sits somewhere in the middle. Still, every company is a little different, so these comparisons only tell part of the story.
Accenture is trading a bit cheaper than it has in the past, but that doesn’t mean the stock will bounce back to old highs. For 2027, management is calling for revenue to grow between 3% and 6%. The company might be able to boost earnings with better margins or share buybacks, but no one is expecting demand to surge.
AI could help Accenture’s bottom line, but it might also mean less billable work or lower fees. The stock’s price looks reasonable if Accenture can hold onto its profit margins and actually turn all this AI excitement into higher earnings. Read more about the company’s moat here.
Dividend: Covered, but not risk-free
Accenture plc (NYSE:ACN) pays an annual dividend of $6.84 per share, for a yield of about 3.2%. The most recent quarterly dividend is $1.71, up 5% from before. With 2026 GAAP earnings per share at $13.56, about half of profits are going out as dividends.
That payout ratio looks pretty reasonable. In 2026, the company brought in $11.62 billion in free cash flow, which easily covered the $3.99 billion it paid out in dividends. The company returned $11.5 billion to shareholders through dividends and buybacks, but it still has to decide how to split its cash between buybacks, investing in the business, and possible acquisitions.
Conclusion
Accenture is a solid pick for investors who want a steady dividend and some growth potential, backed up by strong cash flow. The stock is cheaper than it used to be, and the earnings yield is better than what you’d get from Treasuries, but that doesn’t mean a comeback is guaranteed. For income investors, the big thing to watch is whether Accenture can keep growing earnings and stay relevant as AI keeps changing how consulting works.
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This article is originally published at Insider Monkey.
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