QS Research · Michael Burry's Scion Capital analyst template · 2006
Accenture plc (ACN)
As of 2026-11-08 · 13/15 boxes filled from SEC filings and market data
Conclusion: PASS
Conviction low · base case none · downside -9% · upside +8%
ACN is a high-quality cash generator but not a deep-value price: at $260.50 (N1) and $165.94B market cap (N6) it trades at 19.8x FY Aug 2026 net income (N27) and 12.1x FY Aug 2026 EBITDA (N24), while FY2027 guidance is only 3%-6% local revenue growth and EPS 3%-6% above FY2026 adjusted (S100). Base case: 12.1x N11 EBITDA $12.65B = $153.22B EV (N22) plus $12.72B net cash (N20) = $165.94B (N6), or 0% versus today. Downside: flat FY2027 revenue and a reversion to the FY2023 13.7% operating margin (S28) gives $74.18B x 13.7% = $10.16B EBIT plus $1.24B D&A (N10) = $11.40B EBITDA; at 12.1x = $137.94B EV plus $12.72B = $150.66B, -9.2%. Upside: FY2027 mid-point 4.5% local growth and 16.1% margin (S100) gives $77.52B x 16.1% = $12.48B EBIT plus $1.24B = $13.72B EBITDA; at 12.1x = $166.0B EV plus $12.72B = $178.72B, +7.7%. The long/short rule is not met either way; pass.
Key numbers
- Share price: $260.50
- Market cap: $165.94B
- Latest financial period: FY Aug 2026 to Aug 31, 2026
- Revenue (FY Aug 2026): $74.18B
- EV / EBITDA (FY Aug 2026): 12.1x
- P/E (FY Aug 2026): 19.8x
- Price / book: 5.26x
The 15 boxes
- ✓ 1. Long-form business notes
Accenture reported FY2026 revenue of $74.18B and operating income of $11.41B, versus FY2021 revenue of $50.53B and operating income of $7.62B in the six-year XBRL table. The FY2026 10-K describes a business reinvention and technology company selling consulting, managed services, proprietary assets and platforms, and increasingly software to more than 9,000 clients, including governments and large enterprises. Its FY2026 structure is three geographic markets plus seven Reinvention Partners and three Reinvention Engines, with a network of businesses at about 6% of revenue; FY2021 was organized by North America, Europe and Growth Markets and four services: Strategy & Consulting, Interactive, Technology and Operations.
- ✓ 2. Competitive advantage
The sources support a scale-and-breadth advantage in delivery, not a lock-in advantage: Accenture's own 10-K claims no other company offers the full range of services at scale, yet clients engage it non-exclusively, consulting work runs under 12-month contracts terminable on 30 days' notice, and managed-services termination charges may not cover costs. The return record is solid but remarkably flat: operating income went $7.62B (FY2021) to $11.41B (FY2026) on revenue of $50.53B to $74.18B, with operating margin around 15% at both ends and a dip to about 13.7% in FY2023 — growth came from volume, not widening margins. Cash generation and an asset-light model are the clearest evidence of advantage: FY2026 operating cash flow $12.36B against capex of only $742.7M.
- ✓ 3. 10-Q takeaways
Q3 FY2026 (quarter ended May 31, 2026) showed revenue of $18.7B, up 6% in U.S. dollars and 3% in local currency, with operating margin up 20 bps to 17.0% and diluted EPS up 9% to $3.80; but new bookings fell 2% in dollars (-3% local) to $19.3B on a 15% dollar drop in managed-services bookings. Nine-month figures to May 31, 2026 carry a $308M business-optimization charge recorded in Q1 FY2026 (none in Q3 of either year), so GAAP nine-month EPS of $10.27 compares with adjusted $10.67. Cash generation stayed strong: Q3 free cash flow $3.60B and nine-month operating cash flow $9,268M, funding $5.2B of nine-month share purchases and $1.0B of quarterly dividends, though total cash fell to $10.2B from $11.5B at August 31, 2025. Guidance was cut at the top end: full-year FY2026 local-currency revenue growth is now 3%-4% (was 3%-5%), with GAAP EPS $13.38-$13.50 and free cash flow $10.8B-$11.5B unchanged.
- ✓ 4. Corporate governance
Filled; members read this box.
- ✓ 5. Overview of the prior 3 years of 8-K filings
Filled; members read this box.
- ✓ 6. Other significant filings
Filled; members read this box.
- ✓ 7. Chronology of significant news and events
Filled; members read this box.
- ✓ 8. Comparables valuation interpretation
Filled; members read this box.
- ✓ 9. Insider trading interpretation
Filled; members read this box.
- ○ 10. Earnings-call notes
- ✓ 11. Impression of the shareholder letter
Filled; members read this box.
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ✓ 14. Current price suppression and potential catalysts
Filled; members read this box.
- ✓ 15. Conclusions
The call above.
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