Accenture (NYSE:ACN) reported second-quarter results that surpassed analyst expectations, but its shares dropped about 3.5% after the company issued a full-year earnings outlook that fell slightly below market forecasts.
The consulting and professional services firm posted adjusted earnings per share of $2.93 for the quarter ended February 28, topping the analyst consensus estimate of $2.85 by $0.08. Revenue reached $18 billion, exceeding the $17.83 billion estimate and marking growth of 8% in U.S. dollars, or 4% in local currency, compared with the same period a year earlier. Accenture also reported record quarterly bookings of $22.1 billion, up 6% year over year in U.S. dollars.
Despite the strong quarterly performance, investors focused on the company’s fiscal 2026 earnings outlook. Accenture projected adjusted earnings per share between $13.65 and $13.90 for the full year, with a midpoint of $13.78 that falls below the analyst consensus estimate of $13.86. The company expects revenue growth of 3% to 5% in local currency, or 4% to 6% excluding an estimated 1% impact from its U.S. federal business.
“We delivered record second quarter bookings of $22.1 billion, including a record 41 clients with quarterly bookings greater than $100 million, with revenues at the top of our guided range, while continuing to take significant share in a competitive market,” said Chair and CEO Julie Sweet.
Operating margin increased by 30 basis points to 13.8% during the quarter. The company generated $3.7 billion in free cash flow and returned $2.7 billion to shareholders through $1.7 billion in share repurchases and $1 billion in dividends.
Accenture also raised its full-year free cash flow forecast to a range of $10.8 billion to $11.5 billion. The company highlighted its focus on helping clients expand the use of advanced artificial intelligence technologies across their organizations and drive broader AI-led transformation initiatives.