NEW YORK, March 19, 2026, 10:17 EDT
Accenture topped expectations for its fiscal second quarter and bumped up the lower end of its annual revenue guidance on Thursday. Still, the company’s more subdued third-quarter forecast put the spotlight back on tepid tech spending from its corporate clients. Shares dropped over 3% in premarket trading but bounced back, last up about 2% in morning action.
AI is contributing, but it’s not making up for holdups in broader transformation efforts. Accenture flagged ongoing client hesitancy around major IT initiatives and noted that reduced U.S. federal activity is expected to shave roughly 1% off fiscal 2026 revenue.
Revenue climbed 8.3% to $18.04 billion for the quarter ended Feb. 28, beating the $17.84 billion analysts had penciled in. Diluted earnings per share landed at $2.93. New bookings reached $22.1 billion, marking a 6% increase. Operating margin expanded by 30 basis points to 13.8%.
Accenture’s CEO Julie Sweet pointed to “strong AI-driven growth” this quarter. The firm landed a record 41 clients with bookings above $100 million in the period. Managed services revenue climbed 10% in U.S. dollars, and consulting revenue added 7%. investor.accenture.com
Accenture projected revenue this quarter between $18.35 billion and $19.0 billion, landing just shy of the $18.72 billion consensus from analysts tracked by LSEG, Reuters reported. The company bumped up its full-year revenue growth outlook to 3%-5% in local currency, tightening the range from its earlier 2%-5% target and keeping exchange-rate impacts out of the figures. Adjusted EPS guidance rose to $13.65-$13.90, compared with the earlier $13.52-$13.90. Free cash flow expectations also got a lift, now forecast at $10.8-$11.5 billion versus the previous $9.8-$10.5 billion range.
Accenture handed $2.7 billion back to shareholders for the quarter, with $1.7 billion going to buybacks and $1.0 billion paid out as dividends. The company stuck with its commitment to return at least $9.3 billion to investors over the full year. Over at Cognizant, the company projected annual revenue above Wall Street’s expectations last month, pointing to strong demand for AI, but the IT services industry continues to see mixed spending trends.
There’s a chance companies stick with bite-sized projects that pay off quickly, sidelining major transformation efforts for now. Accenture pointed out its guidance factors in what it sees as the likely impact from the Middle East conflict in the back half of its fiscal year—but not a sharp escalation or any major hit to the broader economy.
The stock traded at $199.88 as of 10:02 a.m. EDT, tacking on roughly 2.4% from its last close. Thursday’s report had investors weighing a strong quarter against lingering questions about whether the wider slowdown in spending is really over.
