Accenture Q4 Revenue Tops Guidance as Company Sets 3%-6% FY2027 Growth Outlook

Accenture reported fourth-quarter fiscal 2026 revenue above the high end of its guidance range on Thursday and told investors to expect another year of growth, though at a pace that points to continued expansion rather than a step-change higher. Revenue for the quarter ended Aug. 31 came in at $18.68 billion, ahead of management’s prior range of $17.75 billion to $18.40 billion, while the company set a fiscal 2027 outlook for 3% to 6% revenue growth in local currency.

The results closed out a year in which the consulting and outsourcing group expanded revenue across every geographic market and both of its main service lines. Management also paired the top-line beat with higher profitability, solid cash generation and continued heavy cash returns to shareholders. For the current quarter, Accenture said it expects revenue of $18.95 billion to $19.60 billion, equivalent to 2% to 6% growth in local currency.

Quarterly revenue came in above the top of the range

In its quarterly earnings release, Accenture said fourth-quarter revenue rose 6% in U.S. dollars and 7% in local currency. That was above the company’s own guidance, which had called for revenue of $17.75 billion to $18.40 billion and local-currency growth of 1% to 5%. Foreign exchange reduced reported growth by about 0.8%, slightly worse than the negative 0.5% impact assumed in the prior quarter’s outlook.

Growth was broad across the business. Consulting revenue reached $9.28 billion, up 6% in dollars and 7% in local currency. Managed Services brought in $9.40 billion, up 7% on both measures. The Americas remained the largest market at $9.43 billion of quarterly revenue, while EMEA contributed $6.58 billion and Asia Pacific $2.67 billion. Every industry group posted growth, led by Communications, Media & Technology at 10% in dollar terms and Health & Public Service at 8%.

Bookings also improved from a year earlier. New bookings for the quarter totaled $22.17 billion, up 4% in dollars and 5% in local currency, giving Accenture a quarterly book-to-bill ratio of 1.2. Consulting accounted for $9.40 billion of those bookings and Managed Services $12.77 billion. On a full-year basis, the company reported new bookings of $84.54 billion, up 5% in dollars and 3% in local currency, with a book-to-bill ratio of 1.1.

Profitability moved higher as well. Fourth-quarter GAAP operating margin was 15.3%, up from 11.6% a year earlier, while GAAP diluted earnings per share rose 46% to $3.29. Part of that sharp EPS gain reflects comparison against a prior-year quarter that included business optimization costs. Relative to adjusted EPS in the year-earlier period, fourth-quarter diluted earnings per share still increased 9%, which gives a cleaner comparison of the underlying earnings trend.

Fiscal 2027 outlook points to continued, but measured, expansion

The full-year outlook that Accenture furnished to the Securities and Exchange Commission calls for 3% to 6% revenue growth in local currency in fiscal 2027, with foreign exchange assumed to be flat. The company expects GAAP diluted earnings per share of $14.39 to $14.81, annual operating margin of 15.9% to 16.1%, an effective tax rate of 24.5% to 26.5%, operating cash flow of $11.9 billion to $12.7 billion and free cash flow of $11.0 billion to $11.8 billion. It also said it expects to return at least $9.5 billion in cash to shareholders during the year.

Those targets follow a stronger finish to fiscal 2026 than management had projected in June. At that point, Accenture had guided to full-year local-currency revenue growth of 3% to 4%. The final result was better: full-year revenue reached $74.18 billion, up 6% in dollars and 5% in local currency. Full-year GAAP diluted earnings per share came to $13.56, while adjusted earnings per share were $13.97 and adjusted operating margin was 15.8%.

The first-quarter outlook is somewhat softer than the growth Accenture just posted in the fourth quarter, but it still indicates continued expansion at the start of the new fiscal year. Management expects revenue of $18.95 billion to $19.60 billion, with local-currency growth of 2% to 6% and an expected foreign-exchange headwind of about 1%. That range will be the first test of whether large client spending on consulting, outsourcing and technology work continues at the pace seen late in fiscal 2026.

Cash returns, margins and bookings remain central watch items

Beyond the headline revenue beat, investors will likely keep focusing on the quality of growth and how much of that growth converts to cash. Management said the company reached a record 141 quarterly client bookings of $100 million or more, highlighting the scale of the largest programs in its pipeline. That milestone sits alongside the broader bookings figures and helps explain why Accenture continues to describe demand for major reinvention work as solid.

Cash generation stayed substantial, although fourth-quarter free cash flow was lower than the unusually strong prior-year quarter. Operating cash flow for the quarter was $3.10 billion and free cash flow was $2.85 billion, after $250 million of property and equipment additions. For the full year, free cash flow totaled $11.6 billion. Accenture ended August with $12.8 billion in cash, up from $11.5 billion a year earlier, while days services outstanding rose to 50 from 47.

Shareholder returns remained a major part of the story. Accenture returned $11.5 billion to shareholders in fiscal 2026, up 38% from a year earlier. That total included $7.5 billion in repurchases or redemptions and $3.99 billion in dividends. During the fourth quarter alone, the company repurchased or redeemed 17.6 million shares for $2.3 billion. Its board also declared a quarterly cash dividend of $1.71 a share, payable on Nov. 13, 2026, to shareholders of record at the close of business on Oct. 13.