Accenture plc (ACN) — Fundamental Analysis

Snapshot & Big Picture

Accenture is one of the world's largest professional services and IT consulting firms, operating across strategy, consulting, technology, and outsourcing. With a fiscal year ending August 31, the company reported full-year revenue of approximately $69.7 billion for FY2025, up from $64.9 billion in FY2024 and $64.1 billion in FY2023. The business model is highly services-oriented — meaning revenue is driven primarily by skilled labor rather than heavy physical infrastructure — which tends to produce consistent margins with relatively modest capital expenditure requirements. Accenture sits in a structurally attractive space: demand for digital transformation, cloud migration, and AI-enabled services continues to grow across virtually every industry vertical it serves.

Latest Quarter Snapshot

The most recent data comes from the 10-Q filed on June 18, 2026, covering the quarter ended May 31, 2026. This is more current than the annual figures and offers the freshest read on Accenture's operating momentum.

The latest quarter shows Accenture running at its highest operating margin in the data set at nearly 17%, alongside a net margin of 12.5%. Revenue of $18.72 billion represents a meaningful step-up from recent quarterly run rates, suggesting continued top-line momentum heading into the back half of FY2026. The balance sheet remains virtually debt-free and the current ratio is comfortably above 1.0x.

Profitability

Accenture has demonstrated stable and gradually improving profitability over the three fiscal years covered by the annual data. Operating and net margins have held within a relatively tight band, reflecting the firm's pricing discipline and scale advantages.

EBITDA grew from $10.2 billion in FY2023 to $11.6 billion in FY2025, a roughly 13.4% cumulative increase over two years. Operating margin expanded from 13.7% to approximately 14.7–14.8% between FY2023 and FY2024, then held roughly flat into FY2025. Net margin has similarly stabilized in the 11% range. The quarterly data shows margins trending higher still into FY2026, with the most recent quarter printing a 17.0% operating margin — the strongest reading in this data set — suggesting some positive operating leverage as revenue scales. Gross margin data was not available in any of the filings provided.

Financial Health

Accenture's balance sheet is notably conservative for a company of its size. Debt-to-equity has been negligible across all periods where data is available: 0.0041x in FY2023, 0.0335x in FY2024 (a modest uptick), and back down to 0.0037x in FY2025. The most recent quarterly reading stands at 0.0035x — effectively zero financial leverage. This gives Accenture extraordinary flexibility to pursue acquisitions, return capital to shareholders, or weather economic downturns without balance sheet stress.

The current ratio has been comfortably above 1.0x in all three annual periods: 1.30x in FY2023, 1.10x in FY2024, and 1.42x in FY2025. The latest quarterly reading of 1.34x is consistent with this trend, indicating no short-term liquidity concerns.

Capital Expenditures

Capital expenditure data was not available in the quarterly 10-Q filings for individual quarters within FY2023, FY2024, or FY2025 — only the full-year 10-K filings reported these figures. The CapEx-to-revenue ratio has been remarkably stable at roughly 0.80–0.86% across all periods, confirming that Accenture is a very low capital-intensity business. The dollar amount of CapEx rose modestly to $600 million in FY2025, but as a share of revenue this is essentially unchanged. The most recent quarter's 0.84% ratio is consistent with the multi-year trend. For a company generating nearly $70 billion in annual revenue, reinvestment needs are minimal — the vast majority of cash generation flows back to shareholders or toward acquisitions rather than physical plant and equipment.

Growth

The CAGR figures here are computed from available SEC filing data. It is important to note that the 3-year and 5-year windows use quarterly revenue figures as starting points (since those are the earliest comparable periods available in the data set), which means they are comparing a single quarter's revenue to a full fiscal year's revenue — this creates an apples-to-oranges scaling effect that inflates those CAGR readings significantly and should not be interpreted as Accenture literally tripling or doubling in size over three or five years. The 10-year CAGR of approximately 16.0% — which compares a quarterly starting revenue to a full-year endpoint under the same methodology — is the most informative directional signal here, pointing to sustained long-term top-line expansion well above GDP growth rates. In practice, Accenture's full-year revenues have grown from $64.1 billion in FY2023 to $69.7 billion in FY2025, reflecting a more moderate but still healthy mid-to-high single-digit annual growth rate on a like-for-like full-year basis.

Plain English Summary

Accenture is a large, mature, and well-run professional services business that generates consistent profits with very little debt and minimal capital reinvestment needs. Over the past three fiscal years, revenues have grown steadily, operating margins have held in the 14–15% range on an annual basis, and the most recent quarter suggests margins are pushing higher toward 17%. The balance sheet is essentially debt-free, liquidity is solid, and the company's low CapEx requirements mean it converts a high proportion of earnings into free cash flow. The CAGR figures in the data set should be read carefully — because they mix quarterly and annual revenue figures as start and endpoints, the 3-year and 5-year numbers are arithmetically inflated and not directly comparable; the 10-year figure of ~16% annually is a more grounded reference point, though it too carries the same methodological caveat. On fundamentals, Accenture presents the profile of a business with durable competitive advantages in a growing market (AI, cloud, digital transformation), strong execution, and a fortress-like financial position — though its valuation and near-term growth rate relative to the broader IT services sector would require further analysis beyond what the filing data alone can tell.

Source Filings

• 10-Q filed June 18, 2026 — Quarter ended May 31, 2026
• 10-Q filed March 19, 2026 — Quarter ended February 28, 2026