Mizuho has revised its price target for Accenture (ACN, Financial), reducing it from $365 to $348 while maintaining an Outperform rating on the stock. The decision follows what the firm describes as Accenture's continued strong quarterly performance and an increase in its fiscal 2025 growth guidance, albeit at the low-end. Despite these positive aspects, Accenture shares experienced a decline on Friday due to a second consecutive quarter of sluggish booking growth and apprehensions regarding fiscal 2026 Department of Government Efficiency challenges. Mizuho perceives these issues as temporary and continues to regard Accenture as a leading operator poised to gain more market share once conditions improve.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Accenture PLC (ACN, Financial) is $349.21 with a high estimate of $395.00 and a low estimate of $295.00. The average target implies an upside of 18.38% from the current price of $295.00. More detailed estimate data can be found on the Accenture PLC (ACN) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Accenture PLC's (ACN, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Accenture PLC (ACN, Financial) in one year is $360.41, suggesting a upside of 22.17% from the current price of $295. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Accenture PLC (ACN) Summary page.
ACN Key Business Developments
Release Date: June 20, 2025
- Revenue: $17.7 billion, 7% growth in local currency.
- Bookings: $19.7 billion, including 30 clients with bookings over $100 million.
- GenAI Revenue: Over $700 million in Q3, with year-to-date bookings of $4.1 billion.
- Operating Margin: 16.8%, a 40 basis points increase from last year.
- Earnings Per Share (EPS): $3.49, reflecting 12% growth over last year.
- Free Cash Flow: $3.5 billion.
- Cash Balance: $9.6 billion as of May 31.
- Share Repurchases and Dividends: $2.7 billion returned to shareholders.
- Consulting Revenue: $9 billion, up 7% in US dollars.
- Managed Services Revenue: $8.7 billion, up 9% in US dollars.
- Gross Margin: 32.9% compared to 33.4% last year.
- Sales and Marketing Expense: 9.9% of revenue.
- General and Administrative Expense: 6.1% of revenue.
- Days Services Outstanding: 47 days.
- Acquisitions: $789 million invested in 15 acquisitions year-to-date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Accenture PLC (ACN, Financial) reported strong quarterly bookings of $19.7 billion, with 30 clients having bookings greater than $100 million.
- The company achieved a 7% revenue growth in local currency, surpassing their guided range, and continued to gain market share.
- Accenture PLC (ACN) expanded its operating margin by 40 basis points and delivered a 12% EPS growth over the previous year's adjusted EPS.
- Significant investments were made in strategic areas, including $297 million in acquisitions and increasing their data and AI workforce to approximately 75,000.
- The company was recognized as a top workplace, earning the number six spot on the Great Place to Work list and increasing its brand value by 27% to $103.8 billion.
Negative Points
- New bookings decreased by 6% in US dollars and 7% in local currency compared to the previous quarter.
- Gross margin slightly declined to 32.9% from 33.4% in the same quarter last year.
- The federal business had an immaterial impact on overall growth, with a projected 2% headwind in Q4.
- Attrition ticked up slightly, although it remains within normal levels.
- The pace of acquisitions was slower this year due to tough market conditions, impacting inorganic growth contributions.
