Accenture outlines targets through FY29 for mid-single-digit growth and margin gains
The plan includes at least $9.5 billion of free cash flow and $5.5 billion of share repurchases, the company said in its Investor Day presentation.
Key takeaways
- Accenture plc (ACN) outlined ambitions on Oct. 14 for fiscal 2027 to 2029, including mid-single-digit revenue growth in fiscal 2027 and 2028 and 10 to 30 basis points of margin expansion a year. The company's presentation also reported fiscal 2026 adjusted EPS of $13.97.
Accenture plc (ACN) outlined ambitions for fiscal 2027 through fiscal 2029 on Wednesday at its Investor Day, according to a presentation furnished with a regulatory filing.
The company's growth ambition is mid-single-digit revenue growth in local currency in fiscal 2027 and 2028, and mid-to-high-single-digit growth in fiscal 2029.
It also targets operating margin expansion of 10 to 30 basis points in each of those three years.
Capital returns are the other half of the plan. The presentation lists free cash flow of at least $9.5 billion and $5.5 billion of share repurchases among its targets. It does not say which year each figure applies to.
Other capital allocation markers include free cash flow of at least 1.1 times net income, dividend per share growth of 5%, and a dividend payout ratio in the high 40s as a percentage of prior-year net income. Share repurchases are to exceed issuances.
The presentation also reviewed fiscal 2026, which ended Aug. 31, against the company's original guidance.
Accenture reported adjusted earnings per share of $13.97, against an original guidance range of $13.52 to $13.90. GAAP diluted earnings per share were $13.56.
Revenue grew 5% in local currency, against an original guidance range of 2% to 5%. Adjusted operating margin was 15.8%, against guidance of 15.7% to 15.9%.
Free cash flow was $11.6 billion, against original guidance of $9.8 billion to $10.5 billion. Cash returned to shareholders totaled $11.5 billion, including $2 billion of additional repurchases in the fourth quarter.
Bookings were $84.5 billion, for a book-to-bill ratio of 1.1.
Acquisition capital deployed was $8.1 billion in fiscal 2026. That figure includes capital tied to the CyberOT acquisitions, including Dragos. The presentation says those deals were announced in the fourth quarter of fiscal 2026 and closed in the first quarter of fiscal 2027.
The presentation estimates an inorganic contribution to revenue of about 2% to 2.5% in fiscal 2027.
The company said it has expanded its total addressable market estimate to $3 trillion. The estimate is based on custom research by industry analyst firms.
The presentation contains no quotations from executives.