Accenture reported a nearly 6% year-on-year growth in revenue in the first quarter of the financial year 2026 and retained its sale forecast for the year. The bottomline rose to $18.7 billion, compared to Bloomberg consensus estimate of $18.52.
The company’s adjusted earnings per share, a measure of profitability, of $3.94 beat estimate of $3.72.
Total bookings reached $20.9 billion, up 12% year-over-year and above the $19.33 billion estimate. Consulting new bookings surged 7.4% and managed services new bookings grew 16%, both exceeding expectations.
Gross margin improved to 33.1% from 32.9% a year ago, matching estimates.
Free cash flow surged 72% to $1.5 billion, while operating cash flow climbed 63% to $1.66 billion, beating the $1.28 billion estimate.
Business Internals
By segment, Communications, Media & Technology revenue was $3.10 billion, up 8.6% and ahead of the $3.06 billion estimate; Financial Services revenue rose 14% to $3.60 billion versus an estimate of $3.45 billion; Product revenue increased 5.8% to $5.74 billion, slightly above the $5.67 billion estimate; Health & Public Service revenue declined 0.4% to $3.80 billion, in line with the $3.75 billion estimate; and Resources revenue grew 3.1% to $2.50 billion, just below the $2.53 billion estimate.
Guidance
Accenture expects second-quarter revenue to range between $17.35 billion and $18.0 billion, compared to the market estimate of $17.76 billion, representing growth of 1% to 5%.
For the full year 2026, the company maintains its forecast of 2% to 5% revenue growth and continues to project adjusted EPS between $13.52 and $13.90, in line with the estimate of $13.79.
The effective tax rate is expected to remain between 23.5% and 25.5%, while operating cash flow is forecast at $10.8 billion to $11.5 billion, compared to an estimate of $11.03 billion.
Free cash flow is anticipated to be in the range of $9.8 billion to $10.5 billion.
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