Global IT services giant Accenture has kicked off its 2026 financial year with robust performance, driven by steady corporate spending and a significant surge in demand for artificial intelligence (AI) projects. The company's first-quarter results, covering September to November 2025, exceeded expectations on several key metrics.
Strong Financial Performance Exceeds Guidance
Accenture announced revenues of $18.7 billion for the first quarter of its 2026 fiscal year, which runs from September to August. This figure represents a solid 6% increase in US dollar terms and a 5% growth when measured in local currency. The performance landed at the very top end of the company's own forecasted range of $18.1 billion to $18.7 billion.
Furthermore, the company outperformed its profitability targets. Accenture closed the quarter with an operating margin of 17%, a notable improvement over the guided range of 15.7% to 15.9%. This margin also marks an expansion of 10 to 30 basis points compared to the same period in the previous financial year.
Momentum in Large Deals and AI Investments
The momentum for the consulting firm is further evidenced by its new bookings, which serve as an indicator of future revenue. New bookings grew by 10% in local currency to reach $20.9 billion. A significant portion of this came from large-scale engagements, with 33 clients generating quarterly bookings exceeding $100 million each.
A standout highlight of the quarter was the explosive growth in Advanced AI bookings, which nearly doubled to $2.2 billion compared to the first quarter of the last fiscal year. This also represents a sequential increase from the previous quarter of FY2025. The company noted a "sharp surge" in demand for AI-led transformation initiatives.
In a strategic shift, Accenture signaled that it will stop reporting AI revenues as a separate line item moving forward. The firm explained that AI projects are no longer isolated endeavors but are now deeply embedded across its core service offerings. "We introduced the metrics in Q3 FY23 just months after GenAI burst onto the scene, initially to seize the reality of the opportunity and to demonstrate our early leadership," stated Accenture CEO Julie Sweet.
Outlook and Strategic Plans for FY26
Looking ahead, Accenture provided guidance for the second quarter, expecting revenues between $17.3 billion and $18.0 billion. This forecast factors in an estimated foreign exchange headwind of about 3.5%, with local currency growth projected to be between 1% and 5%.
For the full 2026 financial year, the company maintained its local currency revenue growth guidance at 2% to 5%. Accenture also plans to continue its aggressive acquisition strategy, expecting an inorganic growth contribution of approximately 1.5% and planning to invest around $3 billion in acquisitions throughout the year.
The results underscore a resilient technology services market where enterprises are prioritizing investments in AI and digital transformation to stay competitive, with major players like Accenture reaping the benefits.
