ACN Maintained by Susquehanna -- Price Target Raised to $153

Accenture (ACN) reports 100 new AI projects in Q3 2026, with AI partner bookings on track to double. Despite a 24% stock decline over the past year, shares rose 38% in the last three months. Revenue growth has been slow, with consulting revenue up just 1% in Q3. The company expects fiscal 2026 revenue growth of 3%-4%. ACN trades at a lower multiple than the S&P 500, reflecting slower growth expectations.

Accenture (NYSE:ACN) was selected by MotoGP Group to build a next-generation OTT streaming service. The deal leverages Accenture's Media Engage platform. In Q3 FY2026, Accenture reported $19.32B in total bookings, with managed services contributing $9.06B. Operating margins expanded to 17.0%, and free cash flow reached $3.6B. The company maintains a strong liquidity profile, returning $8.2B to shareholders year-to-date.

Meta Platforms (META) launched the Meta Enterprise Platform, targeting enterprise software with AI tools. The announcement caused a sell-off in software stocks, with ServiceNow (NOW) down 5%, Salesforce (CRM) down 4.5%, and others declining. Meta hired MongoDB's (MDB) CEO to lead the effort, causing MDB shares to plunge 25%. Investors are reassessing the impact on established software vendors.

Accenture reported Q3 earnings with net income up to $2.39B, free cash flow at $3.6B, and new bookings at $19.3B. Management lowered FY2026 revenue growth guidance to 3-4% but raised EPS guidance. The company announced a new AWS collaboration for AI and cloud services, and shares rose 1.6% premarket.

Accenture (ACN) was chosen by Anthropic as its first embedded evaluator for AI safety, with both companies committing at least $1 billion over five years. Accenture's AI division, Faculty, will work directly with Anthropic to test models and safeguards, potentially gaining expertise to offer similar services to other AI developers. However, the financial terms and potential risks, such as independence and reputational issues, remain unclear.

Accenture launched Accenture Construct, a new capital projects arm focusing on data centers, utilities, transportation, and advanced manufacturing. The move aims to capitalize on rising demand for AI data centers and infrastructure projects, with a market estimated at $260B, growing to $348B by 2030. Accenture invested $2.5B in this venture, targeting growth in high-demand sectors. The company reported $70B in FY25 revenue.