Loading blog posts...
June 23, 2026 • 4 min read
Accenture’s latest quarter gives a useful read on demand for large-scale technology consulting, outsourcing, and AI-driven transformation work. The goal here is to dig into the income statement from the company’s latest 10-Q filing and see how the business is performing beneath the headline revenue growth: where sales are coming from, how costs are moving, and what that means for margins and earnings.
Accenture is one of the world’s largest IT services and consulting firms, competing with players such as Deloitte, IBM Consulting, Capgemini, Cognizant, Tata Consultancy Services, and Infosys. Its results matter because they offer a window into corporate technology spending across industries.
For the third quarter of fiscal 2026, Accenture reported $18.7 billion of revenue, up 6% in U.S. dollars and 3% in local currency from $17.7 billion a year earlier. The difference between U.S. dollar and local-currency growth reflects foreign exchange movements; local currency is often the cleaner measure of underlying demand.
The revenue mix was balanced between Accenture’s two main types of work:
Managed services — longer-running outsourcing and operations contracts — slightly exceeded consulting revenue this quarter. That matters because managed services can provide more recurring revenue, while consulting is often more sensitive to discretionary client spending.
By geography, EMEA was the standout, with revenue up 10% in U.S. dollars to $6.9 billion, though only 4% in local currency. Asia Pacific grew 7% to $2.7 billion, while the Americas grew a more modest 2% to $9.1 billion. By industry, Communications, Media & Technology grew the fastest at 10%, followed by Financial Services and Products, each up 6%.
Accenture’s cost of services rose to $12.6 billion, or 67.2% of revenue, roughly flat with 67.1% a year ago. That suggests the company largely absorbed higher delivery costs while still growing revenue.
Operating income was $3.18 billion, up from $2.98 billion, and operating margin improved slightly to 17.0% from 16.8%. Sales and marketing expense was $1.81 billion, or 9.7% of revenue, while general and administrative costs were $1.15 billion, or 6.1%.
Net income attributable to Accenture plc was $2.34 billion, up 6% from $2.20 billion. Diluted EPS rose faster, up 9% to $3.80, helped by a lower share count. Diluted shares fell to 615.6 million from 630.5 million, reflecting the impact of buybacks.
For the first nine months of fiscal 2026, revenue reached $55.5 billion, up 7%, while operating income rose to $8.54 billion. However, nine-month operating margin slipped to 15.4% from 15.7%, partly due to $308 million of business optimization costs. Excluding those costs, Accenture says operating margin would have been 15.9%.
New bookings were $19.3 billion in the quarter, down 2% in U.S. dollars and 3% in local currency. That is still above quarterly revenue, implying a book-to-bill ratio of about 1.03x, but the mix shifted: consulting bookings rose 13% to $10.3 billion, while managed services bookings fell 15% to $9.1 billion.
For the nine-month period, bookings were stronger at $62.4 billion, up 5%, giving a healthier book-to-bill ratio of roughly 1.12x.
Cash generation remained a major strength. Operating cash flow for the first nine months was $9.3 billion, up from $7.6 billion a year earlier. Accenture returned substantial capital to shareholders, including $5.2 billion of share purchases and $3.0 billion of dividends. At quarter-end, the company still held $10.2 billion in cash and cash equivalents, against about $5.1 billion of debt.
One notable use of cash: acquisitions and investments. Accenture spent $3.0 billion on businesses and investments in the first nine months, far above $789 million a year earlier. Goodwill increased to $25.3 billion from $22.5 billion at fiscal year-end, reflecting continued acquisition activity.
Accenture delivered a solid quarter: mid-single-digit revenue growth, slightly higher operating margin, strong cash flow, and EPS growth supported by buybacks. The most interesting tension is between healthy consulting bookings and weaker managed services bookings in the quarter, especially as managed services now represents about half of revenue.
The filing also flags meaningful risks around AI development and use, cybersecurity, foreign currency, government contracting, and competition. That is especially relevant as Accenture positions itself as a key partner for enterprise AI adoption. In a crowded global IT services market, the company’s scale, cash generation, and acquisition capacity remain advantages — but sustaining growth will depend on converting AI and transformation demand into durable, profitable bookings.
Last updated: June 23, 2026
Explore prior quarterly filings, historical revenue breakdowns, and earnings trends.
