Accenture beat August sales and guides steady growth with strong cash returns. I see 20 percent upside as bookings convert and the low multiple rebuilds.
Key points
- $22.2 billion of orders in Q4 FY26 at 1.2 times sales for the quarter support revenue growth into FY27.
- $11.6 billion of cash left after equipment in FY26 funded record payouts of $11.5 billion in FY26 plus deal spending.
- $9.5 billion of planned payouts in FY27 supports a cash dividend of 3.2 percent on the price in FY27 plus own share buys.
The call
The price assumes AI shrinks the business. At $214.96 the shares trade at 14.7 times next year profit. That level assumes organic growth stalls near 1 percent this year after deal help fades.
Quarterly revenue shows 7 percent beat after slowdownSEC XBRL plus Oct 1 release; as of Oct 14 2026.
I see steady work winning instead. Orders of $84.5 billion last year layer into $77.5 billion of sales this year. Cash of $12.8 billion last August plus cash left after equipment of 8.9 percent this year funds deals and own share buys as profit left from sales holds.
Valuation
| Driver | Estimate |
|---|
| Revenue in FY27 | $77.5 billion |
| Profit in FY27 | $14.60 per share |
| Profit in FY28 | $16.08 per share |
| Multiple (price per dollar of profit) | 16 times |
| Target in 12 months | $257.30 per share |
| Sixteen times FY28 profit fits steady growth with cash left after equipment near 9 percent of value in FY27. Past peaks near 20 times profit leave room up toward $292.00 per share. Even at 14 times FY28 profit the shares hold near $225.10 per share in FY28. | |
What the target pays for profit at different multiplesMy FY28 EPS $16.08 times multiple; as of Oct 14 2026.
Risks
- Renewal price cuts in FY27 spread and lower Consulting growth in FY27: watch quarterly Consulting growth and contract profit notes.
- Large deals stall in FY27 and lower orders in FY27: watch quarterly orders and orders divided by sales falling below 1.0.
- Federal probe costs in FY27 grow and cut cash in FY27: watch legal notes each quarter and any cash charges.
What would change my mind
If orders fall below 1.0 times sales for two quarters in FY27 I would cut the call.