NYSE:ACN
Accenture plc
Accenture is a global powerhouse in technology consulting and digital transformation, delivering over $69B in annual revenue through its extensive network of experts.
Key Metrics
Investment Thesis
Bull Case
Accenture offers compelling growth potential as an enabler of the AI revolution, with its massive client base creating immediate demand for implementation services. The stock provides a defensive quality profile with strong free cash flow generation and a history of returning capital through buybacks, supported by a healthy cash balance of $11.48B. Continued margin expansion from high-value growth services like Accenture Song and AI platforms should drive long-term EPS growth above inflation.
Bear Case
The business model faces headwinds from rising labor costs and potential saturation in the traditional outsourcing market which compresses margins over time. Valuation multiples may be stretched given the low single-digit percentage growth in revenue year-over-year compared to high-growth tech peers. Dependence on large enterprise clients leaves the company vulnerable to macroeconomic shifts that force customers to delay or cancel technology transformation projects.
About Accenture plc
Accenture plc (NYSE: ACN) is a global leader in technology consulting, outsourcing, and digital transformation services. Operating primarily in the professional services sector, the company serves clients across industries including healthcare, financial services, retail, and telecommunications with its cloud, analytics, and AI solutions. With revenue reaching $69.67B in 2025, Accenture leverages its vast global network to help enterprises navigate digital disruption.
Analysis
Management Discussion
Management successfully delivered $69.67B in revenue for 2025, representing solid growth from the prior year's $64.90B, while net income climbed to $7.68B. The company generated strong cash flow from operations of $11.47B, allowing it to return capital to shareholders via $4.62B in share repurchases despite paying down financing obligations. Despite a one-time discontinued operations loss of $154.0M, continuing operations profit remained robust at $7.83B, demonstrating operational resilience.
Industry Overview
The global professional services and IT consulting industry is experiencing a structural shift towards AI-driven solutions and cloud-native architectures. Companies in this sector compete on talent acquisition, intellectual property depth, and the ability to deliver integrated outcomes rather than just transactional services. The market is consolidating around leaders who can demonstrate clear ROI for clients investing in digital transformation initiatives.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $64.11B | $64.90B | $69.67B |
| Cost of Revenue | $43.38B | $43.73B | $47.44B |
| Gross Profit | $20.73B | $21.16B | $22.24B |
| Operating Expenses | $11.92B | $11.57B | $12.01B |
| Operating Income | $8.81B | $9.60B | $10.23B |
| R&D | $1.30B | $1.15B | $817.3M |
| G&A | $4.28B | $4.28B | $4.35B |
| Marketing | $6.58B | $6.85B | $7.04B |
| Stock-Based Comp | $1.91B | $1.94B | $2.09B |
| D&A | $1.41B | $1.44B | — |
| Depreciation | $620.7M | $547.9M | $622.5M |
| Amortization | $441.0M | $530.1M | $745.9M |
| Other OpEx | $-235.5M | $-712.0M | $-202.0M |
| Non-Operating Income | $329.4M | $103.5M | $44.7M |
| Interest Expense | $47.5M | $59.0M | $228.6M |
| Interest Income | $280.4M | $272.3M | $336.3M |
| Pre-Tax Income | $9.14B | $9.70B | $10.27B |
| Income Tax | $2.14B | $2.28B | $2.44B |
| Continuing Ops | $7.00B | $7.42B | $7.83B |
| Discontinued Ops | $-132.0M | $-154.4M | $-154.0M |
| Net Income | $6.87B | $7.26B | $7.68B |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $6.87B | $7.26B | $7.68B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $23.38B | $20.86B | $28.90B |
| Cash & Equivalents | $9.05B | $5.00B | $11.48B |
| Marketable Securities | $4.6M | $5.4M | $5.9M |
| Accounts Receivable | $10.69B | $11.87B | $13.07B |
| Other Current Assets | $3.64B | $3.97B | $4.35B |
| Long-Term Assets | $27.86B | $35.07B | $36.49B |
| PP&E (Net) | $1.53B | $1.52B | $1.57B |
| Goodwill | $15.57B | $21.12B | $22.54B |
| Operating Leases | $2.64B | $2.76B | $2.74B |
| LT Investments | $197.4M | $334.7M | $721.3M |
| Other LT Assets | $7.90B | $9.21B | $8.57B |
| Total Assets | $51.25B | $55.93B | $65.39B |
| Current Liabilities | $18.01B | $18.98B | $20.35B |
| Accounts Payable | $2.49B | $2.74B | $2.70B |
| Current Leases | $690.4M | $726.2M | $729.0M |
| Taxes Payable | $720.8M | $719.1M | $701.2M |
| Other Current Liab | $14.11B | $14.79B | $16.23B |
| Long-Term Liabilities | $6.78B | $7.79B | $12.80B |
| LT Operating Leases | $2.31B | $2.37B | $2.31B |
| Other LT Liab | $3.15B | $3.90B | $9.10B |
| Total Liabilities | $24.79B | $26.76B | $33.15B |
| Shareholders' Equity | $26.46B | $29.17B | $32.24B |
| Paid-In Capital | $12.78B | $14.71B | $16.60B |
| Retained Earnings | $19.32B | $23.08B | $21.02B |
| AOCI | $-1.74B | $-1.55B | $-1.47B |
| Treasury Stock | $7.06B | $10.56B | $7.75B |
| Total L&E | $51.25B | $55.93B | $65.39B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $6.87B | $7.26B | $7.68B |
| Non-Cash Adjustments | $2.69B | $1.02B | $1.03B |
| Working Capital Changes | $-39.3M | $845.4M | $2.77B |
| Cash from Operations | $9.52B | $9.13B | $11.47B |
| Capital Expenditures | $528.2M | $516.5M | $600.0M |
| Cash from Investing | $-2.62B | $-7.06B | $-2.02B |
| Share Buybacks | $4.33B | $4.52B | $4.62B |
| Cash from Financing | $-5.65B | $-6.06B | $-2.95B |
| FX Effect | $-101.3M | $-46.3M | $-32.2M |
| Net Change in Cash | $1.16B | $-4.04B | $6.47B |
| Beginning Cash | $7.89B | $9.05B | $5.00B |
| Ending Cash | $9.05B | $5.00B | $11.48B |
Frequently Asked Questions
How does Accenture plc make money?
The company's financial profile reflects a dominant position in high-margin professional services with significant investments in research and development ($817.3M) and marketing ($7.04B). Revenue streams are driven by strategic consulting, technology implementation, outsourcing, and specialized industry solutions that generate substantial gross profits relative to cost of revenue. The balance sheet shows robust cash flow from operations ($11.47B) funding capital expenditures and share repurchases, indicating a mature service business model focused on growth services.
What are the main risks for ACN?
Investors should monitor exposure to economic downturns that could lead to client budget cuts in discretionary consulting services. The heavy reliance on human capital creates risks related to labor shortages, wage inflation, and potential workforce disruptions. Concentration risk exists as a few large enterprise clients may disproportionately impact revenue if they reduce spend or switch providers. Regulatory changes regarding data privacy and cross-border service delivery could increase compliance costs.
What is ACN's competitive advantage?
Accenture's primary moat is its massive scale and deep client relationships, evidenced by $22.54B in goodwill representing long-term contracts and trust. The company maintains high switching costs for clients due to the complexity of integrated technology stacks and proprietary methodologies developed over decades. Its ability to generate strong operating profit ($10.23B) while managing significant operating expenses highlights efficient scaling and brand premium.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.