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Accenture May quarter revenue up 6% YoY; company cuts upper band of full year sales view

This story was originally published at 18:54 IST on 18 June 2026
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Informist, Thursday, Jun. 18, 2026

 

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--Accenture Mar-May revenue $18.72 bln, up 6% on year in dlr terms 
--Accenture Mar-May new bookings $19.32 bln, down 2% on year in dlr terms 
--Accenture guides revenue growth of 1-5% in local currency for Jun-Aug 
--Accenture expects Jun-Aug revenue at $17.75 bln-$18.40 bln 
--Accenture cuts upper band of full-year sales growth guidance to 4% from 5% 
--Accenture sees full-year sales growth at 3-4% 
--Accenture Mar-May operating margin 17%, up 20 bps on year 

 

MUMBAI – Accenture Plc. Thursday reported a revenue of $18.72 billion for the May quarter, up 6% on year in dollar terms and up 3% in local currency. The company revised downwards its sales guidance for the financial year 2025-26 (Sept-Aug) to 3-4% from 3-5?rlier, cutting the upper band of the guidance. Excluding an estimated 1% impact from US federal business, Accenture now expects its revenue for the full financial year to grow 4–5%, compared to the earlier 4-6% guidance, the company said in a release. The company's revenue for the May quarter was helped by a positive impact of 2.5% from foreign exchange movements, in line with its prior assumption.
 

The May quarter revenue of the company headquartered in Dublin, Ireland, slightly missed the consensus projection by analysts, according to data by FactSet. It has made several changes to its outlook for FY26. The company now expects an operating margin of 15.3%, which implies an expansion of around 60 basis points over FY25. In the trailing quarter, the upper end of the company's operating margin guidance was 15.4%. The company has also raised the lower end of its guidance for adjusted earnings per share to $13.78-$13.90 as on Jun. 18 from $13.65-$13.90 as on Mar. 19.

 

For the August quarter, the company expects revenues of $17.75 billion-$18.4 billion. In local currency terms, this implies an increase of 1-5% on year. This also includes a negative 0.5% impact from foreign exchange movements.

 

"Accenture delivered a strong third quarter, with broad-based revenue growth, a 9% increase in EPS (earnings per share), and $8.2 billion returned to shareholders year-to-date," Chair and Chief Executive Officer Julie Sweet said. The chief executive said demand for large-scale reinvention remains strong and the company has 104 quarterly client bookings of $100 million or more on a year-to-date basis, up 13% on year. These orders are seeing more large-scale artificial intelligence transformation programs, she said.

 

The company said it will buy majority stake in Dragos and fully acquire runZero and NetRise in a combined deal valued at $4.18 billion. "Our agreement to acquire a majority stake in Dragos and all of runZero and NetRise, leaders in OT Security, is the type of move that defines our strategy: it is expanding our addressable market, creating a new platformled growth opportunity, and positioning Accenture at the centre of one of the most critical cybersecurity challenges our clients face," Sweet said.

 

The company's revenue from its consulting business rose 4% on year in dollar terms and 1% on year in local currency to $9.33 billion. Revenues from the managed services segment grew 8% in dollar terms and 5% in local currency to $9.39 billion.

 

Accenture's revenue in the Americas was $9.14 billion, up 2% on year in dollar terms and 1% in local currency. Revenue from Asia-Pacific rose 7% on year in dollar terms to $2.7 billion. Its revenue from Europe, West Asia, and Africa rose 10% in dollar terms to $6.87 billion. Accenture recorded new bookings of $19.3 billion in the May quarter, slightly lower than $19.7 billion worth of bookings in the year-ago quarter.

 

Accenture recorded a gross margin, which is gross profit as a percentage of revenue, of 32.8% in the May quarter, compared with 32.9% a year ago. Operating margin, which is operating income as a percentage of revenue, expanded 20 basis points on year to 17%. The company continues to see free cash flow of $10.8 billion to $11.5 billion in FY26.

 

In the May quarter, Accenture repurchased or redeemed six million shares for $1.2 billion, including 5.8 million shares the company repurchased from the open market. Its total remaining share repurchase authority as of May 31 was around $3.2 billion, the company said. 

 

After missing the revenue estimate and revising its guidance downwards, Accenture's shares fell nearly 14% from Wednesday's close to $134.79 in pre-market trading in the US. Investors in Indian information technology services companies look towards Accenture's earnings as it gives them an idea of the demand and discretionary spending environment in the US. Following the weak financial results, American depository receipts of Wipro Ltd. and Infosys Ltd. also dropped 3% and 5%, respectively, in pre-market trading.  End

 

US$1 = INR 94.33

 

Reported by Eshitva Prakash

Edited by Rajeev Pai

 

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