ACN · Accenture plc

Period Performance

Period Performance

In Q1 FY2026, Accenture’s revenue reached $18.7 billion, a 6% increase in USD (5% in local currency) compared to the prior year. The revenue growth was broad-based, with all geographic markets and most industry groups contributing. Managed services outpaced consulting, growing 8% USD (7% local currency) versus consulting’s 4% USD (3% local currency). Gross margin improved slightly to 33.1% from 32.9%, driven by lower non-payroll costs.

However, GAAP operating income declined 3% to $2,874 million, and operating margin contracted 140 basis points to 15.3%. The decline was primarily due to $308 million in business optimization costs (severance) recorded in the quarter. Excluding these costs, adjusted operating margin expanded to 17.0% from 16.7%, reflecting operational leverage. Diluted EPS fell 1% to $3.54, while adjusted EPS grew 10% to $3.94.

Segment Dynamics

• Americas: Revenue grew 4% in local currency to $9.1B, driven by Banking & Capital Markets, Industrials, and Software & Platforms, partially offset by a decline in U.S. federal business. Operating margin was 17% (18% adjusted).
• EMEA: Revenue increased 4% in local currency to $6.9B, led by Banking & Capital Markets, Insurance, and Life Sciences in the UK and Italy. Operating margin was 13% (15% adjusted), impacted by business optimization costs and higher non-payroll costs.
• Asia Pacific: Strongest growth at 9% local currency to $2.7B, led by Banking & Capital Markets, Communications & Media, and Public Service in Japan and Australia. Operating margin was 16% (19% adjusted), also affected by optimization costs.

New bookings surged 12% to $20.9B, with managed services bookings up 17% (15% local currency), signaling strong demand for long-term transformation deals. Consulting bookings grew 7% (5% local currency).

Forward View

Management noted that while the discretionary spending environment remains unchanged, clients continue to prioritize large-scale transformations, particularly AI readiness. The U.S. dollar weakened during the quarter, providing a 1.4% tailwind to USD revenue growth. For the remainder of fiscal 2026, the company expects that if exchange rates remain within recent ranges, full-year USD revenue growth will be approximately 2% higher than local currency growth. No specific revenue or EPS guidance was provided, but the strong bookings pipeline and adjusted margin expansion suggest confidence in the underlying business trajectory.