TLDR
- ACN sinks 17.97% as softer revenue outlook overshadows Q3 growth.
- Accenture beats Q3 midpoint, but weaker guidance drives ACN selloff.
- ACN drops to $127.98 despite higher revenue, EPS, and cash flow.
- Accenture shares slide as bookings fall and full-year growth narrows.
- ACN stock tumbles after guidance cut offsets strong Q3 earnings.
Accenture plc (ACN) shares sank sharply even after the company reported higher third-quarter revenue and stronger earnings. ACN closed at $127.98, down 17.97%, after sliding from around $156 during the session. The drop placed pressure on the stock despite steady growth across major financial metrics.
Accenture Reports Higher Q3 Revenue
Accenture reported revenue of $18.72 billion for the third quarter of fiscal 2026. The figure rose 6% in U.S. dollars and 3% in local currency from last year. The result also came slightly above the midpoint of the company’s prior guidance range.
The company recorded new bookings of $19.32 billion during the quarter. However, bookings fell 2% in U.S. dollars and 3% in local currency from the prior year. Consulting bookings reached $10.26 billion, while managed services bookings totaled $9.06 billion.
Accenture’s revenue growth came from several markets and industry groups. EMEA revenue rose 10% in U.S. dollars, while Asia Pacific revenue increased 7%. Meanwhile, the Americas grew 2%, showing slower momentum than other regions.
ACN Stock Falls Despite Earnings Growth
Accenture posted diluted earnings per share of $3.80 for the quarter. That marked a 9% increase from $3.49 in the same quarter last year. Higher revenue, stronger operating results, and a lower share count supported the earnings increase.
Operating income rose 6% to $3.18 billion during the quarter. In addition, operating margin expanded by 20 basis points to 17.0%. The company also kept gross margin nearly steady at 32.8%, compared with 32.9% last year.
Still, ACN shares faced heavy selling pressure during the trading day. The stock’s decline showed that the market focused more on forward growth concerns. The updated outlook also pointed to slower full-year revenue growth than earlier expectations.
Accenture Updates Fiscal 2026 Outlook
Accenture now expects full-year revenue growth of 3% to 4% in local currency. The company previously expected growth of 3% to 5%. Excluding the estimated impact from its U.S. federal business, growth should reach 4% to 5%.
The company raised the lower end of its GAAP diluted earnings forecast. It now expects GAAP EPS between $13.38 and $13.50 for fiscal 2026. It also expects adjusted EPS between $13.78 and $13.90.
Accenture continued to project free cash flow between $10.8 billion and $11.5 billion. The company also expects at least $9.5 billion in capital returns for the year. However, the weaker revenue range weighed on sentiment and drove the sharp ACN stock decline.
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