Accenture plc (ACN) Stock Analysis and Equity Research Report for 2025
Welcome to our comprehensive Accenture plc (ACN) stock analysis and equity research report for 2025. As a leading global professional services firm, Accenture specializes in IT consulting, strategy, digital transformation, and operations. This report provides in-depth insights into ACN stock forecast, analyst ratings, valuation metrics, dividend analysis, and investment recommendations. Based on the latest FY2025 data, including revenue growth, AI initiatives, and forward projections, we evaluate whether ACN is a buy for investors seeking resilient growth in the technology sector.
Business Overview of Accenture plc (ACN)
Accenture plc (NYSE: ACN) is a powerhouse in the professional services industry, offering end-to-end solutions in IT services, consulting, and digital innovation. Drawing from Accenture's FY2024 10-K filing, earnings reports, and data up to March 13, 2025 (sourced from MacroTrends and investor presentations), here are the key points for ACN stock analysis:
- Diversified Segment Structure and Revenue Growth: Accenture operates through five key segments—Strategy & Consulting, Technology, Operations, Industry X, and Song—focusing on high-demand areas like AI, cloud, and data services. In FY2025, total revenues reached $69.7 billion (7% YoY increase), with Technology contributing 40.5% ($28.2 billion). This structure ensures balanced revenue and positions ACN for long-term growth in digital transformation.
- Geographical Diversification and Shift Toward Emerging Markets: Revenue is split with North America at 45%, Europe at 29%, and Growth Markets at 26%. The shift toward emerging markets (from 22% in FY2021 to 26% in FY2025) enhances resilience and taps into high-growth digital opportunities.
- Competitive Advantages and Forward Strategy Centered on AI and Innovation: With 779,000 employees in 120+ countries, strong partnerships (e.g., Microsoft, AWS), and AI focus, Accenture projects revenue growth in FY2025–FY2027 amid margin improvements, followed by mid-term expansion in digital and emerging markets.
- Resilient Revenue Growth Driven by Digital and AI Initiatives: Revenue grew from $50.5 billion in FY2021 to $69.7 billion in FY2025 (8.3% CAGR), outperforming peers like Infosys and Cognizant. AI revenues tripled in FY2025, with Products segment leading at 10% growth.
- Stable Margins Amid Investments and Cost Pressures: Gross margins averaged 31.9%–32.6%, with EBIT at $10.2 billion in FY2025 (14–15% margins). EPS reached $12.14, supported by cost controls and share repurchases.
- Robust Free Cash Flow and Return Profiles: FCF hit $10.9 billion in FY2025 (14–16% margins), with ROE at 27–30%. Forward estimates project FY2026 revenue at $71.8 billion (3% YoY) and EPS at $13.78, rising to $75.0 billion in FY2027.
For more on Accenture equity research report, including ACN analyst ratings and stock forecast, continue reading.
Financial Analysis of Accenture plc (ACN)
Our ACN stock analysis reviews historical performance from FY2021 to FY2025, using data from 10-K filings, Bloomberg, and FactSet. Key highlights include revenue resilience, profitability, and cash flow—essential for evaluating ACN investment report and valuation metrics.
Explore Accenture dividend analysis: Recent quarterly dividend of $1.63 (payable November 14, 2025) offers a 2.61% yield, making ACN attractive for income investors.
Pros and Cons of Investing in Accenture (ACN)
Pros: Market leadership in AI (tripled revenues, $5.9 billion in generative AI bookings), geographical diversification, strong FCF ($10.9 billion), and superior metrics (15.1% operating margin, 25.5% ROE) over peers like IBM.
Cons: Conservative FY2026 guidance (2–5% growth) due to economic volatility, restructuring costs ($865 million), and stock underperformance (20% five-year return vs. S&P 500's 85%).
| Segment | Revenue ($ billion) | % of Total | YoY Growth (%) |
|---|---|---|---|
| Strategy & Consulting | 14.5 | 20.8 | 6 |
| Technology | 28.2 | 40.5 | 8 |
| Operations | 12.3 | 17.7 | 7 |
| Industry X | 7.8 | 11.2 | 9 |
| Song | 6.9 | 9.9 | 10 |
Valuation Comparison for ACN Stock
At $239 (as of September 27, 2025), ACN trades at 16.5x forward P/E and 2.13x price-to-sales, undervalued vs. peers (industry P/E 18–20x). DCF implies $352.68 fair value (~47% upside). Analyst consensus target: $280.55 (~17% upside).
| Fiscal Year | Gross Margin (%) | EBIT Margin (%) | Net Income Margin (%) |
|---|---|---|---|
| 2021 | 32.4 | 15.1 | 11.7 |
| 2022 | 32.6 | 15.2 | 11.5 |
| 2023 | 32.3 | 14.8 | 11.1 |
| 2024 | 32.1 | 14.9 | 11.0 |
| 2025 | 31.9 | 14.7 | 11.0 |
Final Thoughts on Accenture plc (ACN)
Accenture (ACN) is undervalued with significant upside, driven by AI and digital strengths. Monitor AI bookings and macro trends. For premium ACN stock research, subscribe to our equity research reports.