Accenture Earnings Update: Q1 FY26 Revenue Rises 6%, Maintains FY26 Guidance

Accenture Plc. reported a 6% year-on-year rise in revenue for Q1 of fiscal year 2026, supported by strong demand for artificial intelligence-driven services.  

The company also maintained its financial forecast for the full year, signalling continued focus on consistency in operations amid changing market dynamics. 

Strong Q1 Performance, Revenue at $18.7 Billion 

For the quarter ended in Q1 FY26, Accenture’s revenue stood at $18.7 billion, up 6% from the previous year and beating the consensus estimate of $18.52 billion. Adjusted earnings per share came in at $3.94, exceeding the estimate of $3.72. GAAP net income was $2.24 billion, compared to $2.32 billion in Q1 FY25, while adjusted net income reached $2.49 billion. 

Total bookings surged 12% to $20.9 billion, ahead of the $19.33 billion projection. Consulting new bookings rose by 7.4%, and managed services bookings increased 16% during the quarter. Gross margin improved slightly to 33.1% from 32.9% a year earlier, matching expectations. 

Segment-Wise Revenue Performance Shows Broad Growth 

Revenue from Communications, Media and Technology reached $3.10 billion, a growth of 8.6% and above estimates.  

Financial Services contributed $3.60 billion, marking a 14% increase. The Products segment generated $5.74 billion, up 5.8%. Health and Public Services declined by 0.4% to $3.80 billion, staying close to projections. Resources brought in $2.50 billion, up 3.1%. 

Read More: Accenture and Anthropic Partner to Accelerate Responsible AI Scaling for Businesses! 

Cash Flow, Margin and Guidance Figures Align with Targets 

Free cash flow for the quarter surged 72% to $1.5 billion, and operating cash flow rose 63% to $1.66 billion against an estimate of $1.28 billion. Accenture expects Q2 revenue between $17.35 billion and $18.0 billion. 

Full-year FY26 guidance was reaffirmed at 2% to 5% growth in revenue, with adjusted EPS projected in the $13.52 to $13.90 range. The expected effective tax rate remains at 23.5% to 25.5%, and free cash flow is anticipated between $9.8 billion and $10.5 billion. 

Conclusion 

Accenture posted a steady start to FY26 with 6% revenue growth, solidified its AI and consulting services demand, and kept its annual guidance unchanged. Strong bookings and increased cash flow also supported the performance. 

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