Accenture (NYSE: ACN) stock dropped after it released its first-quarter 2026 results on Thursday.
The company reported quarterly earnings of $3.94 per share, topping the analyst consensus estimate of $3.75.
The company reported sales of $18.700 billion, slightly exceeding the analyst consensus estimate of $18.523 billion.
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Sales increased 6% in U.S. dollars and 5% in local currency.
Segment Performance
Consulting revenues were $9.41 billion, representing a 4% increase in U.S. dollars and a 3% increase in local currency. Managed Services revenues reached $9.33 billion, an increase of 8% in U.S. dollars and 7% in local currency.
Within industry groups, Products revenues reached $5.74 billion, up 6% in U.S. dollars and 4% local currency.
Health & Public Service revenues remained flat in U.S. dollars and declined 1% local currency to $3.80 billion.
Financial Services revenue reached $3.60 billion, up 14% in U.S. dollars and 12% local currency.
Resources revenue was $2.50 billion, up 3% in U.S. dollars and 2% in local currency.
Communications, Media & Technology revenue was $3.10 billion, up 9% in U.S. dollars and 8% in local currency.
Bookings And AI Demand
New bookings for the quarter were $20.94 billion, an increase of 12% in U.S. dollars and 10% in local currency.
This total comprised $9.88 billion in Consulting new bookings and $11.06 billion in Managed Services new bookings.
Advanced AI new bookings reached $2.2 billion in the quarter.
The operating margin declined 140 basis points to 15.3%.
The adjusted operating margin of 17.0% represented a 30-basis-point increase from the previous quarter.
Accenture held $9.65 billion in cash and equivalents as of November 30.
It generated $1.51 in free cash flow during the quarter.
Earnings Call Highlights
On the earnings call, Accenture executives said client demand has increased steadily over the past nine quarters, with roughly 100 incremental clients initiating AI projects during that period.
Management cautioned, however, that AI deployments remain in early stages for most customers, noting significant work is still required before these initiatives can scale across entire enterprises, and that AI projects currently represent only a small portion of the overall client base.
Executives also highlighted continued momentum in Accenture's commercial model, with fixed-price work now accounting for about 60% of engagements, up roughly 10 percentage points over the past three years.
Management attributed the shift to the growing use of proprietary platforms and said commercial models are expected to continue evolving through fiscal 2026.
On strategy, Accenture said its partnership approach remains driven by strong client demand for large-scale reinvention, with an increasing focus on larger, transformational programs aimed at building digital cores and improving operational efficiency.
Dividends And Buybacks
Accenture declared another quarterly cash dividend of $1.63 per share for shareholders of record on January 13, 2026.
During the first quarter of fiscal 2026, Accenture repurchased or redeemed 9.5 million shares for a total
of $2.3 billion, including 9.1 million shares repurchased in the open market.
As of November 30, 2025, Accenture had approximately 616 million total shares outstanding.
Accenture Chair and CEO Julie Sweet said the company generated $21 billion in new bookings, including 33 clients with quarterly bookings exceeding $100 million, achieved 5% revenue growth in local currency at the top of its guidance range, continued to gain market share, strengthened its leadership in advanced AI, and deepened ecosystem partnerships.
Outlook
Accenture reiterated its fiscal 2026 sales guidance of $71.066 billion to $ 73.157 billion, versus a consensus estimate of $73.602 billion.
It now expects fiscal 2026 GAAP EPS of $13.12-$13.50 (compared to its prior forecast of $13.19-$13.57) against an analyst consensus of $13.56.
The company projects fiscal adjusted EPS of $13.52-$13.90 (unchanged from previous guidance) versus the $13.76 analyst consensus.
It continues to expect to return at least $9.3 billion in cash to shareholders in fiscal year 2026.
Accenture expects second-quarter sales of $17.35 billion-$18.00 billion against $17.792 billion analyst estimate.
ACN Price Action: Accenture shares were down 2.83% at $266.00 during premarket trading on Thursday, according to Benzinga Pro data.
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