Accenture Q1 Results Beat Market, Cuts FY26 EPS View, Backs Adj. EPS Forecast; Stock Down

(RTTNews) - Professional services company Accenture plc (ACN) reported Thursday weak profit in its first quarter, while adjusted earnings and top line beat market estimates. Further, the firm issued second-quarter revenue view, and trimmed fiscal 2026 earnings view on a reported basis. However, the firm maintained annual forecast for adjusted earnings and revenue growth.

In pre-market activity, the shares were losing around 3.5 percent to trade at $264.38.

Looking ahead for the second quarter, the company projects revenues of $17.35 billion to $18.0 billion, with growth in local currency between 1 percent and 5 percent.

The Wall Street analysts on average expect the company to record revenues of $17.78 billion for the quarter. Analysts' estimates typically exclude special items. Further, for fiscal 2026, Accenture now expects earnings per share on a reported basis to be in the range of $13.12 to $13.50, an 8 percent to 11 percent increase from last year. The previous estimate was earnings in a range of $13.19 to $13.57 per share.

The company continues to expect adjusted earnings per share to be in the range of $13.52 to $13.90, a 5 percent to 8 percent year-over-year increase.

The analysts expect the company to report earnings of $13.77 per share for the year.

The firm still expects full-year revenue growth to be 2 percent to 5 percent in local currency. Excluding an estimated 1 percent impact from its U.S. federal business, the company continues to expect revenue growth to be 3 percent to 6 percent in local currency.

In the first quarter, Accenture's earnings totaled $2.211 billion or $3.54 per share, lower than $2.278 billion or $3.59 per share last year.

Adjusted earnings were $2.492 billion or $3.94 per share for the period. The Street was looking for earnings of $3.72 per share for the quarter.

The company's revenue for the period rose 6.0 percent to $18.742 billion from $17.689 billion last year. Analysts estimated revenues of $18.53 billion.

New bookings for the first quarter were $20.94 billion, an increase of 12 percent in U.S. dollars and 10 percent in local currency from the prior year.

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