Accenture Q3 FY26: 9% EPS Growth, Raises Full-Year Outlook
The consulting giant reported $18.7 billion in quarterly revenue with strong profit growth and raised its fiscal 2026 guidance despite headwinds in federal business.
By the FiledFeed automated desk
This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.
The short version
Accenture reported third-quarter revenue of $18.7 billion, up 6% in dollars (3% in local currency), with diluted earnings per share rising 9% to $3.80. The company raised its full-year fiscal 2026 revenue growth guidance to 3–4% in local currency (4–5% excluding a 1% federal business impact) and boosted full-year EPS guidance to $13.38–$13.50, a 10–11% increase.
Filing impact
Filing sentiment
Accenture plc (ACN) reported strong third-quarter fiscal 2026 results on June 18, 2026, beating revenue expectations and raising its full-year outlook despite challenges in its U.S. federal business.
The Quarter at a Glance
For the three months ended May 31, 2026, Accenture reported revenue of $18.7 billion, up 6% in U.S. dollars and 3% in local currency compared to the same quarter last year. The result exceeded the company's guided range of $18.35 billion to $19 billion.
Profits grew faster than revenue. Diluted earnings per share (EPS) climbed 9% to $3.80, from $3.49 a year earlier. Net income rose to $2.39 billion from $2.24 billion. Operating margin (a measure of profitability) expanded by 20 basis points to 17.0%, even as the company's gross margin (the profit it makes on its core work before overhead) ticked down slightly to 32.8% from 32.9%.
The company also generated $3.6 billion in free cash flow (the cash left over after paying for equipment and other fixed costs), up from $3.52 billion last year.
Where the Growth Came From
Managed services—the recurring, longer-term work Accenture manages for clients—was a bright spot, growing 8% in dollars and 5% in local currency. Consulting revenue grew more modestly, up 4% in dollars and 1% in local currency.
By geography, EMEA (Europe, Middle East and Africa) led growth at 10% in dollars and 4% in local currency. Asia Pacific grew 7% in dollars and 8% in local currency. The Americas, Accenture's largest market, grew just 2% in dollars and 1% in local currency.
Communications, Media & Technology was the fastest-growing industry group, up 10% in dollars and 9% in local currency. Financial Services grew 6% in dollars and 3% in local currency. Health & Public Service was the slowest, rising 2% in dollars with flat growth in local currency.
Confidence Expressed in Large Deals
CEO Julie Sweet noted that "104 quarterly client bookings of $100 million or more year-to-date" were up 13% versus the prior year, suggesting strong underlying demand for big transformation projects. New bookings for the quarter, however, declined 2% in dollars and 3% in local currency to $19.3 billion, from $19.7 billion a year earlier.
Sweet also highlighted the company's agreement to acquire a majority stake in Dragos and all of runZero and NetRise, describing these cybersecurity (specifically operational technology, or OT, security) moves as strategic for expanding Accenture's addressable market and capturing new growth.
Capital Returned and Balance Sheet
Accenture returned $2.2 billion to shareholders in the third quarter—$1.2 billion in share repurchases (6 million shares at an average cost representing about $200 per share) and $1 billion in cash dividends ($1.63 per share). Year-to-date, the company has returned $8.2 billion to shareholders.
The quarterly dividend was increased 10% to $1.63 per share, from $1.48 in the prior fiscal year.
Cash on hand fell to $10.2 billion at May 31, 2026, from $11.5 billion at the start of the fiscal year (August 31, 2025), due in part to $1 billion spent on acquisitions so far in fiscal 2026.
Revised Full-Year Outlook
Accenture lowered its full-year revenue growth outlook to 3–4% in local currency (from the prior 3–5% range) but now expects growth of 4–5% excluding an estimated 1% headwind from its U.S. federal business, which is under pressure.
The company raised its full-year diluted EPS guidance to $13.38–$13.50, representing 10–11% growth (versus the prior 9–11% guidance), and raised adjusted EPS (a non-GAAP measure excluding certain costs) to $13.78–$13.90, a 7–8% increase.
Accenture maintained its free cash flow outlook at $10.8 billion to $11.5 billion for the full year and guided for capital returns of at least $9.5 billion (up from at least $9.3 billion).
For the fourth quarter, Accenture guided revenue of $17.75 billion to $18.4 billion, representing 1–5% growth in local currency, with a slight foreign-exchange headwind of about 0.5%.
CEO Sweet said the company is "executing our strategy to capture new areas of growth," with "more large-scale AI transformation programs" driving demand. The operational technology security acquisitions were characterized as exemplifying this strategy.
Key facts
- Accenture (ACN) reported Q3 FY2026 (ended May 31, 2026) revenue of $18.7 billion, up 6% YoY in USD and 3% in local currency
- Diluted EPS increased 9% to $3.80 vs. $3.49 in Q3 FY2025
- Operating margin expanded 20 basis points to 17.0%
- Free cash flow was $3.6 billion; operating cash flow was $3.79 billion
- New bookings declined 2% in USD to $19.3 billion; large deals ($100M+) up 13% YoY
- Managed Services revenue grew 8% in USD, 5% in local currency; Consulting grew 4% in USD, 1% in local currency
- EMEA revenue grew 10% in USD, 4% in local currency; Americas grew 2% in USD, 1% in local currency
- Net income was $2.39 billion vs. $2.24 billion in Q3 FY2025
- Cash balance at May 31, 2026: $10.2 billion; at Aug. 31, 2025: $11.5 billion
- Q3 dividends paid: $1 billion at $1.63/share (10% increase from prior fiscal year rate of $1.48/share)
- Share repurchases: 6 million shares for $1.2 billion in Q3
- Year-to-date capital returned to shareholders: $8.2 billion
- FY2026 full-year revenue growth guidance: 3–4% in local currency (4–5% ex. ~1% federal impact)
- FY2026 full-year diluted EPS guidance: $13.38–$13.50 (10–11% increase)
- FY2026 adjusted EPS guidance: $13.78–$13.90 (7–8% increase)
- FY2026 free cash flow guidance: $10.8–$11.5 billion
- FY2026 capital return guidance: at least $9.5 billion
- Q4 FY2026 revenue guidance: $17.75–$18.4 billion (1–5% growth in local currency)
- Company pursuing acquisitions of majority stake in Dragos and all of runZero and NetRise (OT/cybersecurity)
Why it matters
Accenture is signaling both strength and caution: strong quarter-over-quarter operating leverage, large deal momentum (up 13%), and dividend growth justify the raised EPS guidance. However, the company narrowed full-year revenue growth and explicitly flagged a 1% drag from federal business, suggesting one of its major end-markets is softening. Investors should note that the company is deliberately investing in acquisitions (Dragos, runZero, NetRise) to pivot toward the faster-growing cybersecurity and OT security markets, potentially sacrificing near-term revenue growth in mature consulting segments to position for longer-term platform leverage. The $3.2 billion remaining share buyback authorization and maintained free cash flow guidance support capital returns, but tightening federal demand and slightly lower new bookings quarter-over-quarter warrant close monitoring.
Frequently asked
- Did Accenture beat expectations in Q3?
- Yes. Accenture reported Q3 revenue of $18.7 billion, slightly above the midpoint of its guided range of $18.35–$19 billion. Diluted EPS rose 9% to $3.80, and operating margin expanded to 17.0% from 16.8% a year earlier.
- Why did Accenture lower its full-year revenue growth outlook?
- Accenture narrowed full-year revenue growth guidance to 3–4% in local currency (from 3–5%) and cited an estimated 1% headwind from its U.S. federal business. Excluding that impact, the company now expects 4–5% growth.
- Did Accenture raise its earnings guidance?
- Yes. Accenture raised full-year diluted EPS guidance to $13.38–$13.50, a 10–11% increase (up from prior 9–11% guidance), and adjusted EPS to $13.78–$13.90, a 7–8% increase.
- How much cash did Accenture return to shareholders, and what is the dividend increase?
- In Q3, Accenture returned $2.2 billion to shareholders ($1.2 billion in buybacks, $1 billion in dividends). Year-to-date, it returned $8.2 billion. The company raised its quarterly dividend 10% to $1.63/share, from $1.48/share in the prior fiscal year.
What the filing reported
- 2.02 Results of Operations & Financial Condition
- 9.01 Financial Statements & Exhibits
Source
Based on Accenture plc's 8-K filed with the SEC on Jun 18, 2026. Read the original filing on SEC.gov ↗