Accenture Plc (ACN) Stock Forecast & Price Target

Accenture has demonstrated strong financial performance with advanced AI bookings reaching $2.2 billion, reflecting a 22% sequential increase, highlighting robust demand and significant growth potential in this segment. The company’s operating margins increased to 15.1%, with a notable 7% year-over-year rise in revenue per full-time employee, indicating effective resource utilization and productivity improvements. Furthermore, Accenture's reliance on its top 10 ecosystem partners, which now account for 60% of revenues and exhibit 9% growth year-over-year, underlines a solid foundation for sustained revenue growth and resilience in its business model.

Accenture's Health & Public Service segment experienced stagnation, posting flat results year-over-year on a reported basis and a 1% decline in local currency, indicating potential challenges in revenue growth. Furthermore, the company's operating margin decreased by 270 basis points year-over-year, exacerbated by business optimization actions and concerns about risks to earnings estimates due to cyclical or structural factors. Lastly, a decline in gross margins and expectations for increasing capital expenditures, coupled with a projected 7% decrease in free cash flow for FY26, suggest ongoing financial headwinds that may negatively impact the stock's performance.