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ACN Stock Risk & Deep Value Analysis

Accenture PLC

Technology • Information Technology Services

DVR Score

0.4

out of 10

Distressed

What You Need to Know About ACN Stock

We analyzed Accenture PLC using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran ACN through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.

Updated Apr 6, 2026Run Fresh Analysis →

ACN Risk Analysis & Red Flags

What Could Go Wrong

The ongoing U.S. Department of Justice investigation into Accenture Federal Services presents the most significant immediate risk. Potential substantial penalties or sanctions could not only impact Accenture's financial results but also damage its reputation and ability to secure future government contracts, leading to material stock price depreciation.

Risk Matrix

Overall

Moderate

Financial

Low

Market

Medium

Competitive

Medium

Execution

Low

Regulatory

High

Red Flags

  • Ongoing U.S. Department of Justice investigation (potential penalties/sanctions)

  • Market capitalization decreased from $136.63B to $123.60B since last analysis, reinforcing lack of 10x growth.

  • Single-digit local currency revenue growth guidance (3-5%) is insufficient for 10x target.

Upcoming Risk Events

  • 📅

    Unfavorable outcome or significant penalties from DOJ investigation

  • 📅

    Global economic slowdown impacting enterprise spending on consulting

  • 📅

    Increased competition from hyper-specialized firms or tech giants

When to Reconsider

  • 🚪

    Exit if local currency revenue growth consistently falls below 3%

  • 🚪

    Sell if the U.S. DOJ investigation results in significant financial penalties (e.g., >5% of annual net income) or operational restrictions (e.g., loss of key government contracts)

  • 🚪

    Exit if operating margins show sustained quarter-over-quarter compression

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What Does Accenture PLC (ACN) Do?

Market Cap

$123.60B

Sector

Technology

Industry

Information Technology Services

Employees

779,000

Accenture plc provides strategy and consulting, industry X, song, and technology and operation services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers systems integration and application management; security; intelligent platform; infrastructure; software engineering; data, AI, cloud; and automation and global delivery services. The company also operates business processes for specific enterprise functions, including finance and accounting, sourcing and procurement, supply chain, marketing and sales, and human resources, as well as industry-specific services, such as platform trust and safety, banking, insurance, network and health services; and designs, manufactures, and assembles automation equipment, robotics, and other commercial hardware products. It serves communications, media, and technology; financial services; banking and capital markets, and insurance; health and public service; consumer goods, retail, travel services; industrial; life science; and chemicals, natural resources, energy, and utilities sectors. Accenture plc has collaboration with Amazon Web Services (AWS) to deliver transformative digital services to public sector, defense, and national security organizations. Accenture plc was founded in 1951 and is based in Dublin, Ireland.

Visit Accenture PLC Website

Investment Thesis

Accenture represents a high-quality, stable investment in the professional services sector, poised to benefit from persistent global demand for digital transformation, cloud adoption, and AI integration. Its strong market leadership, consistent financial performance, and effective capital allocation strategy offer a reliable long-term position, though not a 10x growth opportunity within the given timeframe. The current valuation, below its historical P/E median, could offer a margin of safety for patient investors.

Is ACN Stock Undervalued?

Accenture (ACN) remains an exceptional, globally dominant professional services firm, evidenced by its Q2 FY2026 performance with record bookings of $22.1 billion, 8% USD revenue growth, and raised FY2026 guidance. It demonstrates robust financial health with strong cash flow and operating margins. However, its immense scale (current market cap $123.60B) and predictable single-digit to low-double-digit growth trajectory fundamentally preclude 10x growth potential to over $1.2 trillion within 3-5 years. While a high-quality investment for stable returns, ACN is a 'dud' for the specific high-risk, high-reward, 10x growth mandate. The ongoing U.S. Department of Justice investigation into Accenture Federal Services introduces a new material risk that warrants caution, further reinforcing its unsuitability for extreme growth targets despite strong operational execution.

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ACN Price Targets & Strategy

12-Month Target

$245.00

Bull Case

$294.25

Bear Case

$200.63

Valuation Basis

Based on ~18.3x forward P/E applied to the midpoint of FY2026 GAAP diluted EPS guidance of $13.375.

Entry Strategy

Dollar-cost average between $190-$200, considering ACN's current valuation and historical support levels (if available) for a stable, long-term position, not for 10x growth.

Exit Strategy

Take profit at $245-$265, reassess if the stock reaches 20x-22x FY2026 EPS. Implement a stop loss below $190 if growth significantly decelerates or regulatory risks materialize.

Portfolio Allocation

2-4% for a moderate risk tolerance, focused on stability and long-term capital preservation rather than explosive growth.

Price Targets & Strategy

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Is ACN Financially Healthy?

Valuation

P/E Ratio

22.40

Forward P/E

32.70

EV/EBITDA

1.00

PEG Ratio

1.49

Price/Book

5.80

Price/Sales

2.60

Profitability

Gross Margin

32.00%

Operating Margin

15.60%

Net Margin

11.70%

Return on Equity

18.00%

Revenue Growth

4.10%

EPS

$3.94

Balance Sheet

Current Ratio

1.20

Quick Ratio

1.00

Debt/Equity

0.35

Total Debt

$15.00B

Cash & Equivalents

$8.50B

Cash Flow

Operating Cash Flow

$11.20B

Free Cash Flow

$8.90B

EBITDA

$11.30B

Other

Beta (Volatility)

1.15

Dividend Yield

3.20%

Does ACN Have a Competitive Moat?

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Moat Rating

🏰 Wide

Moat Trend

Stable

Moat Sources

4 Identified

Brand PowerSwitching CostsIntangible Assets/IP (proprietary methodologies, human capital expertise)Efficient Scale

Accenture's wide moat is highly durable, stemming from its vast global network, deep-rooted client relationships, and continuous investment in cutting-edge technologies and specialized talent, making it extremely difficult for competitors to replicate its breadth and depth of service.

Moat Erosion Risks

  • Failure to attract and retain top talent in highly competitive tech/consulting fields
  • Disruption from smaller, highly specialized firms or platform businesses
  • Significant geopolitical or economic instability reducing global enterprise IT/consulting spending

ACN Competitive Moat Analysis

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ACN Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral (due to large-cap stability, not prone to rapid sentiment shifts)

Institutional Sentiment

Neutral (no specific analyst consensus or upgrades/downgrades provided, but Q2 results indicate continued confidence from management with raised guidance)

Insider Activity (Form 4)

Company repurchased $1.7 billion (6.8 million shares) in Q2 FY2026. No specific individual CEO/CFO insider buying/selling detailed in the provided data for the last 90 days.

Options Flow

Normal options activity (no specific unusual activity provided in research)

Earnings Intelligence

Next Earnings

Estimated June 2026

Surprise Probability

Medium

Historical Earnings Pattern

For a mature large-cap like Accenture, stock reaction to earnings is typically driven by guidance revisions and significant beats/misses, rather than massive swings.

Key Metrics to Watch

Local currency revenue growth rateNew bookings growth (especially in AI-related services)Operating margin performance and adjusted EPSUpdates on the U.S. Department of Justice investigation

Competitive Position

Top Competitor

Not specified in research, likely other global consulting firms (e.g., IBM Consulting, Deloitte, Capgemini)

Market Share Trend

Gaining (CEO notes taking 'significant share')

Valuation vs Peers

Trading at a trailing P/E of 16.49, which is 38% below its 10-year median (26.71), potentially indicating undervaluation relative to its own historical standards.

Competitive Advantages

  • Global scale and extensive client relationships
  • Deep industry and functional expertise across diverse sectors
  • Strong brand reputation and trusted advisor status
  • Significant investments and capabilities in AI, cloud, and digital transformation

Market Intelligence

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What Could Drive ACN Stock Higher?

Near-Term (0-6 months)

  • Q3 FY2026 Earnings Report (expected June 2026)
  • Updates/Resolution on U.S. DOJ Investigation

Medium-Term (6-18 months)

  • Continued market share gains in AI and digital transformation
  • Expansion of strategic partnerships and large-scale client engagements

Long-Term (18+ months)

  • Sustained leadership in next-generation consulting and technology services
  • Deepening integration of generative AI across client solutions

Catalysts & Growth Drivers

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What's the Bull Case for ACN?

  • Acceleration in local currency revenue and bookings growth

  • Positive resolution of the U.S. Department of Justice investigation

  • Consistent expansion or stability of operating margins

Bull Case Analysis

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Competing with ACN

See how Accenture PLC compares to related companies

CompanyMarket CapDVR ScoreP/ERevenueProfit MarginRev Growth

Accenture PLC

ACN

$123.6B0.422.4$72.1B11.7%4.1%

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How Accenture PLC Makes Money

Accenture PLC is a global professional services company that provides a broad range of services in strategy & consulting, interactive, technology, and operations. It helps clients across various industries improve their performance by applying technology and business process expertise. Accenture generates revenue by advising clients on business strategy, designing and implementing technology solutions (like cloud and AI), and managing business processes on their behalf, essentially serving as a partner in their digital transformation journeys.

Read Full Business Model Breakdown

FAQ

What is the DVR Score for Accenture PLC (ACN)?

As of April 6, 2026, Accenture PLC has a DVR Score of 0.4 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Accenture PLC?

Accenture PLC's market capitalization is approximately $123.6B. The company operates in the Technology sector within the Information Technology Services industry.

What ticker symbol does Accenture PLC use?

ACN is the ticker symbol for Accenture PLC. The company trades on the NYQ.

What is the risk level for ACN stock?

Our analysis rates Accenture PLC's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of ACN?

Accenture PLC currently has a price-to-earnings (P/E) ratio of 22.4. This is in line with broader market averages.

Does Accenture PLC pay a dividend?

Yes, Accenture PLC pays a dividend with a current yield of approximately 3.20%.

Is Accenture PLC's revenue growing?

Accenture PLC has reported revenue growth of 4.1%. The company is growing at a moderate pace.

Is ACN stock profitable?

Accenture PLC has a profit margin of 11.7%. The company is profitable but margins are modest.

How often is the ACN DVR analysis updated?

Our AI-powered analysis of Accenture PLC is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 6, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for ACN (Accenture PLC) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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