Accenture is facing a series of new challenges: first, investors have long feared that its critical mass, now fully reached, might further dampen its growth prospects; second, the US federal government, one of its major clients, has undertaken a general review of its outsourcing contracts; finally, the AI tidal wave - yet again - could directly threaten its very bread and butter.
Suffice it to say that investor expectations had adjusted accordingly. Indeed, Accenture's market capitalization has been almost halved since the beginning of 2025, crashing back to its pre-Covid levels. This, in some ways, did not quite do justice to its hitherto immaculate track record of growth and profitability.
Furthermore, despite the sudden shift in market sentiment, it should be noted that Accenture achieved the best fiscal year in its history in 2025, generating a cash profit - or free cash flow - before acquisitions of nearly $11bn, or $10bn after acquisitions. FY 2026 is shaping up to be of the same caliber according to management's initial forecasts.
Accenture's market capitalization currently represents an attractive multiple of 11x to 12x this cash profit, which is largely returned to shareholders via dividends and share buybacks, both of which are seeing sustained increases. Regarding acquisitions, it's a safe bet that the amount committed in this area was particularly modest in 2025, and that it should trend upward again this year.
Accenture published its interim results yesterday - as usual, they are excellent. It should be said that 2026 shows little sign of slowing down for now. On the contrary: revenue grew by 7% compared to H1 of the previous year, while operating profit rose 3.5%.
Share buybacks nearly doubled, from $2.3bn to $4bn over six months, while the dividend distribution increased 9.2%. One has certainly seen worse crisis environments.
Unsurprisingly, management attributes the group's recent contract wins to strong client demand for artificial intelligence solutions. If confirmed, this trend would support those who believe that AI represents a major opportunity - rather than a risk - for all major players in technology consulting.
