Accenture's Local-Currency Growth Accelerates to 7% in Fourth Quarter
Fourth-quarter revenue of $18.68 billion cleared the high end of the guided range as bookings reached $22.17 billion and GAAP diluted EPS rose 46%.
Accenture (ACN) reported fourth-quarter fiscal 2026 revenue of $18.68 billion, 6% higher in U.S. dollars and 7% higher in local currency, above the guided range of $17.75 billion to $18.40 billion, or 1% to 5% local-currency growth.
That local-currency pace marked a return to growth. Growth had been 3% in the third quarter after 4% in the second. The quarter closed with broad-based growth across geographic markets, industry groups and types of work.
New bookings were $22.17 billion, up 4% in U.S. dollars and 5% in local currency, with a book-to-bill of 1.2. Consulting bookings were $9.40 billion, with a book-to-bill of 1.0, and Managed Services bookings were $12.77 billion, with a book-to-bill of 1.4. Chair and CEO Julie Sweet said the firm reached a new high of 141 quarterly client bookings of $100 million or more.
GAAP operating margin was 15.3%, up 370 basis points from 11.6% a year earlier, when the prior period included $615 million of business optimization costs. Adjusted operating margin was 15.1%, up 20 basis points. GAAP operating income rose 40% to $2.86 billion.
GAAP diluted EPS was $3.29, a 46% increase from $2.25 a year earlier, or 9% versus adjusted EPS of $3.03. The year-over-year EPS lift reflected higher revenue and operating results, a lower share count and a lower effective tax rate, partly offset by lower non-operating income.
Consulting revenue was $9.28 billion and Managed Services revenue was $9.40 billion. Americas revenue was $9.43 billion, EMEA $6.58 billion and Asia Pacific $2.67 billion. Communications, Media & Technology revenue was $3.26 billion, Health & Public Service $3.86 billion, Financial Services $3.47 billion, Products $5.56 billion and Resources $2.52 billion. Foreign exchange reduced fourth-quarter revenue by about 0.8%, versus an approximately negative 0.5% assumption in the third-quarter release.
Free cash flow was $2.85 billion, down from $3.81 billion a year earlier, as operating cash flow fell to $3.10 billion from $3.91 billion and property and equipment additions rose to $0.25 billion from $0.11 billion. Days sales outstanding were 50 days at August 31, 2026. Total cash was $12.8 billion.
For the full fiscal year ended August 31, 2026, revenue was $74.18 billion, up 6% in U.S. dollars and 5% in local currency, above the guided range of 3% to 4% local-currency growth. Full-year GAAP operating margin was 15.4% and adjusted operating margin 15.8%. GAAP diluted EPS was $13.56 and adjusted EPS $13.97. Free cash flow for the year was $11.6 billion.
The company returned a record $11.5 billion to shareholders in fiscal 2026, up 38%, including $7.5 billion in repurchases or redemptions, with $2 billion of additional share repurchases in the fourth quarter. It declared a quarterly cash dividend of $1.71 a share, payable November 13, 2026, a 5% increase over the fiscal 2026 quarterly rate. Outstanding repurchase authority is approximately $6.9 billion, including $6.0 billion approved in September 2026.
For fiscal 2027, Accenture expects full-year revenue growth of 3% to 6% in local currency, GAAP diluted EPS of $14.39 to $14.81, a 6% to 9% increase, and operating margin of 15.9% to 16.1%. It expects to return at least $9.5 billion in cash to shareholders. First-quarter fiscal 2027 revenue is guided at $18.95 billion to $19.60 billion, or 2% to 6% growth in local currency, with an approximate negative 1% foreign-exchange impact.