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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 May 11, 2026Run Fresh Analysis →

ACN Risk Analysis & Red Flags

What Could Go Wrong

A significant global economic downturn could severely reduce corporate discretionary spending on consulting services, leading to revenue contraction and margin pressure, as ACN's growth is tied to client IT budgets. This would directly impact earnings and shareholder returns.

Risk Matrix

Overall

Moderate

Financial

Low

Market

Medium

Competitive

Medium

Execution

Low

Regulatory

Low

Red Flags

  • Massive market cap and mature growth profile fundamentally limit 10x potential.

  • Recent stock price weakness despite earnings beats suggests market skepticism or higher expectations.

  • Consulting bookings (1.0 book-to-bill) show less momentum than Managed Services (1.2).

Upcoming Risk Events

  • 📅

    Global economic downturn impacting corporate IT spending

  • 📅

    Increased competitive intensity in key service areas

  • 📅

    Failure to attract and retain top talent in high-demand technology fields

When to Reconsider

  • 🚪

    Exit if local currency revenue growth turns negative for two consecutive quarters.

  • 🚪

    Sell if operating margins show sustained decline below 15%.

  • 🚪

    Exit if significant leadership changes occur without clear succession planning.

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What Does Accenture PLC (ACN) Do?

Market Cap

$109.02B

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 is a globally dominant professional services firm, exceptionally well-managed, financially robust, and poised to continue its leadership in digital transformation, cloud, and AI. While its size inherently limits '10x' stock growth potential, its consistent execution, strong cash flow, and shareholder returns make it a prime candidate for stable, long-term compounding and a defensive portfolio core, especially following its recent price retreat to more attractive valuation levels.

Is ACN Stock Undervalued?

Accenture (ACN) remains an exceptionally high-quality professional services firm, evidenced by Q1 FY2026 revenue of $18.7B (+6% USD) and EPS of $3.94 (+10% YoY), with robust operating margins (17%) and strong free cash flow ($1.5B). Its balance sheet is impeccable with low debt and ample cash. However, at a current market cap of $110.77B, its immense scale and predictable single-digit growth trajectory fundamentally preclude 10x growth potential to over $1.1 trillion within 3-5 years. While a stable, dividend-paying investment, ACN is a 'dud' for the specific high-risk, high-reward, 10x growth mandate. Recent stock weakness (52-week lows) further reinforces this, despite solid operational execution.

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ACN Price Targets & Strategy

12-Month Target

$249.66

Bull Case

$277.40

Bear Case

$138.70

Valuation Basis

Based on 18x forward P/E applied to $13.87 est. FY26 EPS = $249.66

Entry Strategy

Consider dollar-cost averaging on dips to the $170-$175 range, near recent 52-week lows, for long-term accumulation.

Exit Strategy

Take profit at $240-$250 (potential 12-month target). Stop loss if share price consistently breaks below $160 (significant support zone).

Portfolio Allocation

3-5% for moderate risk tolerance (stable core holding, not high growth).

Price Targets & Strategy

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Is ACN Financially Healthy?

Valuation

P/E Ratio

14.25

Forward P/E

12.75

PEG Ratio

3.80

Price/Book

3.37

Price/Sales

1.50

Profitability

Gross Margin

32.03%

Operating Margin

14.42%

Net Margin

10.61%

Return on Equity

24.71%

Revenue Growth

7.27%

EPS

$12.19

Balance Sheet

Current Ratio

1.42

Quick Ratio

1.42

Debt/Equity

0.17

Total Debt

$29.10B

Cash & Equivalents

$5.99B

Cash Flow

Operating Cash Flow

$11.47B

Free Cash Flow

$3.67B

EBITDA

$10.80B

Other

Beta (Volatility)

1.07

Dividend Yield

3.61%

Does ACN Have a Competitive Moat?

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Moat Rating

🏰 Wide

Moat Trend

Stable

Moat Sources

4 Identified

Brand PowerSwitching CostsIntangible Assets/IPEfficient Scale

Accenture's moat is highly durable, stemming from its deep integration into clients' operations, proprietary methodologies, vast global talent pool, and a brand synonymous with reliability and innovation in professional services. The complexity and mission-critical nature of its projects create high switching costs and reinforce its leadership.

Moat Erosion Risks

  • Rapid technological shifts (e.g., AI) requiring constant adaptation and investment
  • Increased in-house capabilities by clients, reducing reliance on external consultants
  • Intensifying competition from niche specialists and tech giants expanding their service offerings

ACN Competitive Moat Analysis

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ACN Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral (focus on stability and quality rather than rapid growth for retail investors).

Institutional Sentiment

Cautiously Positive (Moderate Buy consensus, but some target cuts like Truist indicate underlying caution).

Insider Activity (Form 4)

CFO Angie Y. Park bought 155 shares, CEO Julie Sweet bought 219 shares, and CEO-The Americas John F. Walsh bought 155 shares on 2026-05-05 at $176.995/share via a Voluntary Equity Investment Program (generally considered neutral activity).

Options Flow

Normal options activity (no specific unusual activity reported in research).

Earnings Intelligence

Next Earnings

2026-06-18

Surprise Probability

Medium

Historical Earnings Pattern

Stock price has shown sensitivity to earnings, sometimes dropping post-release even with beats, indicating high expectations or broader market sentiment impacting the stock.

Key Metrics to Watch

Local currency revenue growthBookings (Consulting and Managed Services book-to-bill ratios)Operating margin expansion/contractionUpdated full-year guidance (especially for FY2026 or FY2027 if available)

Competitive Position

Top Competitor

Deloitte (private) or Capgemini (CAP.PA)

Market Share Trend

Stable to Gaining (robust bookings and strategic acquisitions allow it to maintain/grow market share against a fragmented competitive landscape).

Valuation vs Peers

Accenture typically trades at a premium to many IT services peers due to its high-value consulting segments and consistent performance. At ~12.5x forward P/E based on recent prices, it may be more in line or slightly discounted to its historical average, making it attractive for a quality play.

Competitive Advantages

  • Unparalleled global scale and delivery network
  • Strong brand reputation and trusted client relationships
  • Broad portfolio spanning strategy, consulting, digital, technology, and operations
  • Deep industry-specific expertise and proprietary methodologies
  • Ability to attract and retain top talent globally

Market Intelligence

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What Could Drive ACN Stock Higher?

Near-Term (0-6 months)

  • Q3 2026 Earnings on 2026-06-18
  • Updates on AI strategy and new client wins

Medium-Term (6-18 months)

  • Recovery in Federal business performance (expected Q4 2026 reversal)
  • Strategic bolt-on acquisitions to expand service offerings
  • Continued global digital transformation initiatives driving managed services growth

Long-Term (18+ months)

  • Broader enterprise adoption of generative AI driving new consulting mandates
  • Consolidation in the professional services industry, strengthening Accenture's market leadership
  • Expansion into new high-growth verticals and emerging markets

Catalysts & Growth Drivers

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What's the Bull Case for ACN?

  • Acceleration in local currency revenue growth, particularly in Consulting

  • Sustained improvement in operating margins and free cash flow conversion

  • Significant new large-scale client engagements, especially in emerging tech

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

$109.0B0.414.3$72.1B10.6%7.3%

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How Accenture PLC Makes Money

Accenture PLC is a global professional services company that helps businesses, governments, and organizations improve their performance and achieve their strategic objectives. They do this by providing a comprehensive range of services, including strategy consulting, technology implementation (like cloud and AI solutions), and managing business processes on behalf of clients (outsourcing). Their revenue is generated through fees for these project-based services and long-term managed service contracts, solving complex challenges and driving innovation for their clients worldwide.

Read Full Business Model Breakdown

FAQ

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

As of May 11, 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 $109.0B. 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 14.3. This is below the market average, which could indicate the stock is undervalued or facing headwinds.

Does Accenture PLC pay a dividend?

Yes, Accenture PLC pays a dividend with a current yield of approximately 3.61%.

Is Accenture PLC's revenue growing?

Accenture PLC has reported revenue growth of 7.3%. The company is growing at a moderate pace.

Is ACN stock profitable?

Accenture PLC has a profit margin of 10.6%. 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 May 11, 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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