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Investing.com - Evercore ISI has lowered its price target on Accenture plc (NYSE:ACN) to $280 from $300 while maintaining an Outperform rating following the company’s August quarter results. The stock, currently trading near its 52-week low, appears undervalued according to InvestingPro analysis, which also highlights the company’s strong financial health score.
Accenture reported revenue of $17.6 billion and earnings per share of $3.03, slightly exceeding analyst expectations of $17.4 billion and $2.98, respectively. New bookings reached $21.3 billion, up 6% year-over-year, with generative AI bookings showing strong acceleration at $1.8 billion, an 80% increase from the previous year. The $144 billion market cap company maintains a healthy 2.48% dividend yield and has shown consistent revenue growth of 6.21% over the last twelve months. (InvestingPro subscribers can access 8 more key tips about Accenture’s financial performance and outlook.)
The company’s approximately 4.5% constant currency growth was driven by 5% growth in the Americas (8% excluding public AFS headwinds), 6% growth in Asia-Pacific, and 3% growth in Europe, the Middle East, and Africa. For fiscal year 2026, Accenture guided for 4-7% reported revenue growth, compared to Street expectations of 5.8%. Trading at a P/E ratio of 18.44x, the stock offers an attractive entry point for value investors, according to detailed analysis available in the comprehensive Pro Research Report on InvestingPro.
Accenture expects balanced growth across consulting and managed services in the low to mid-single digit range for FY26, with earnings per share projected between $13.52 and $13.90. The company noted that AI project pricing is proving accretive to its overall profile, countering fears that it would be dilutive.
Generative AI remains a key focus for Accenture, which now has more than 77,000 AI and data professionals, up from 40,000 last year. The company reported $2.7 billion in revenues from generative AI projects in FY25 and expects robust growth in this segment to continue in FY26.
In other recent news, Accenture plc reported its fourth-quarter 2025 earnings, which exceeded analysts’ expectations. The company posted an earnings per share (EPS) of $3.03, surpassing the forecasted $2.97, and reported revenue of $17.6 billion, higher than the anticipated $17.35 billion. Despite these solid results, the company’s stock experienced a slight decline in premarket trading. Goldman Sachs has maintained its Buy rating on Accenture, setting a price target of $330, citing strong bookings growth and in-line fiscal year 2026 guidance. Meanwhile, BMO Capital lowered its price target for Accenture from $325 to $270 but retained a Market Perform rating, noting the company’s solid bookings growth met low investor expectations. Both firms acknowledged Accenture’s performance in the face of challenging year-over-year comparisons. These developments reflect the company’s ongoing efforts to meet market expectations and navigate the current economic landscape.
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