0001467373-26-000032
SEC filingRevenue grew 6% with operating margin expansion to 17.0%; consulting lagged managed services as clients focused on large-scale AI transformations.
For the third quarter of fiscal 2026, Accenture reported revenues of $18.7 billion, a 6% increase in U.S. dollars (3% in local currency) compared to the prior year. Managed Services led growth, with revenues up 8% (5% local currency), while Consulting grew only 4% (1% local currency), reflecting client prioritization of larger-scale transformations over shorter consulting engagements. Operating income rose 6% to $3.18 billion, with operating margin expanding 20 basis points to 17.0%, driven by improved operating leverage despite higher non-payroll costs (particularly subcontractors). Gross margin remained roughly flat at 32.8% (from 32.9%), as cost of services increased 6%. Diluted earnings per share of $3.80 increased 9% from $3.49, benefiting from higher operating results ($0.23) and a lower share count ($0.09).
Geographically, EMEA posted the strongest USD revenue growth at 10% (4% local currency), driven by Public Service and Software & Platforms, with notable strength in the United Kingdom and Italy. Asia Pacific grew 7% USD (8% local currency), led by Japan, Australia, and Singapore. The Americas grew a modest 2% USD (1% local currency), with growth in Software & Platforms, High Tech, and Industrials partially offset by a decline in Public Service. Operating margins varied: Americas at 19% (flat YoY), EMEA at 14% (up from 12%), and Asia Pacific at 17% (down from 20%). The decline in Asia Pacific margin was due to higher non-payroll costs, including facility and technology investments.
Management highlighted continued economic and geopolitical uncertainty, with clients focusing on large-scale AI-ready transformations. The discretionary spending environment remains unchanged. New bookings of $19.3 billion fell 2% (3% local currency), driven by a 15% drop in managed services bookings, which are typically large and lumpy. Consulting bookings grew 13% (11% local currency). For fiscal 2026, Accenture estimates that reported USD revenue growth will be approximately 2 percentage points higher than local currency growth, assuming current exchange rates persist. No explicit margin or EPS guidance was provided beyond the commentary on currency impacts. The company completed a business optimization program in Q1, incurring $308 million in severance costs, which reduced operating margin by 60 basis points year-to-date.