ACN Stock Risk & Deep Value Analysis
Accenture PLC
Technology • Information Technology Services
DVR Score
out of 10
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.
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 WebsiteInvestment 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?
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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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🏰 Wide
Moat Trend
Stable
Moat Sources
4 Identified
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
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
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Accenture PLC ACN | $123.6B | 0.4 | 22.4 | $72.1B | 11.7% | 4.1% | |
Apple Inc AAPL | $3.9T | 1.5 | 33.2 | $391.0B | 27.0% | 10.1% | Compare → |
Alphabet Inc GOOGL | $4.7T | 1.0 | 29.1 | $402.8B | 37.9% | 17.4% | Compare → |
Meta Platforms Inc META | — | 5.1 | 15.7 | — | 30.1% | 22.2% | Compare → |
Microsoft Corp MSFT | — | 0.5 | — | — | — | — | Compare → |
NVIDIA Corp NVDA | $4.4T | 5.3 | 38.5 | $215.9B | 55.6% | 65.0% | Compare → |
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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 BreakdownFAQ
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.