Accenture (NYSE:ACN) delivered robust financial results for its first quarter of fiscal 2026, posting a 12% increase in new bookings, totaling $20.9 billion.
The global consulting and professional services company also reported $18.7 billion in revenues, a 6% increase in U.S. dollars and a 5% rise in local currency, driven by continued demand for its services, especially in advanced AI solutions.
The company saw impressive growth in advanced AI bookings, which totaled $2.2 billion for the quarter, highlighting the growing importance of artificial intelligence in its business.
Despite this growth, Accenture’s GAAP operating margin for the quarter was 15.3%, down 140 basis points from 16.7% in Q1 FY2025, reflecting higher costs.
However, adjusted operating margin expanded by 30 basis points to 17%, demonstrating strong underlying operational efficiency.
GAAP diluted earnings per share (EPS) for the quarter came in at $3.54, a slight 1% decrease compared to the same period last year, while adjusted EPS rose by 10% to $3.94.
Accenture also reported free cash flow of $1.5 billion for the quarter, underscoring the company’s strong cash generation capabilities.
Total cash returned to shareholders was $3.3 billion, including $2.3 billion in share repurchases or redemptions, amounting to 9.5 million shares, and $1 billion in dividend payments, which represents a 10% increase from the prior year.
The company’s commitment to returning capital to shareholders remains a key priority.
Looking ahead, Accenture raised its full-year revenue growth outlook to 3% to 6% in local currency, excluding an estimated 1% impact from its U.S. federal business.