Julie will then provide a brief update on our market positioning before Angie provides our business outlook for the second quarter and full year fiscal 2026. We delivered revenue of $18.7 billion, growing 5% in local currency at the top of our guided range, with broad-based growth across markets and both types of work. Adjusted operating margin expanded by 30 basis points year over year, and we delivered adjusted EPS growth of 10% compared to Q1 last year. At that time, bookings were about $100 million across roughly 100 projects, and revenue was immaterial.

To date, we have now delivered approximately $11.5 billion in bookings across 11,000 projects with revenue of $4.8 billion. Demand for reinvention remains strong, with our clients continuing to prioritize larger transformational programs focused on building their digital core and driving both efficiency and growth. Technology is front and center for every client, and the 60% of our revenue in Q1 from work we do with our top 10 ecosystem partners continued to outpace our overall growth. Together, they represent meaningful opportunities for growth and further strengthen our ability to deliver comprehensive end-to-end solutions.

Over the past year, in response to client demand, we've been expanding and, in some cases, forming new partnerships with emerging AI and data companies. These evolving partnerships, which are laid out in our earnings presentation, are a significant competitive advantage for us. Along with our FY25 acquisition of UK-based Soben, this meaningfully expands our capital projects capabilities and presence in the high-growth data center consulting market. And we're scaling new growth areas with NeuraFlash in the U.S., a Salesforce and advanced AI leader whose agentic solutions expand our reach into the mid-market.

What went well
  • Revenue of $18.7 billion grew 5% in local currency (6% in USD), landing at the top of the guided range with broad-based growth across all geographic markets and both consulting and managed services.
  • New bookings of $20.9 billion (12% growth in USD, 10% in local currency) with a 1.1 book-to-bill, including 33 clients with quarterly bookings over $100 million.
  • Adjusted operating margin expanded 30 basis points year over year to 17%, and adjusted EPS grew 10% to $3.94.
  • Advanced AI bookings nearly doubled year over year to $2.2 billion and were up from Q4, with advanced AI revenue reaching a milestone of approximately $1.1 billion (cumulative $11.5B bookings / $4.8B revenue across 11,000 projects).
  • Free cash flow of $1.5 billion and $3.3 billion returned to shareholders via accelerated buybacks and dividends; revenue per person grew 7% on talent rotation.
  • Earned the number four spot on the Great Place to Work world's best workplaces list (highest-ever ranking) and continued to take market share on a rolling four-quarter basis versus closest global competitors.
What went wrong
  • Federal business was a drag, cutting roughly 1 point off total revenue growth (2% impact in the Americas); public service revenue declined in the Americas.
  • Consulting was the softer of the two work types, with revenue up only 4% in USD / 3% in local currency versus managed services at 8% / 7%.
  • Discretionary and overall spending in the market remained at the same subdued levels seen over the past year, with no catalyst in sight to change client confidence.
  • Recorded $308 million in business optimization costs (mostly severance) this quarter, bringing the six-month total to $923 million; costs came in $58 million above original Q1 estimates, lowering GAAP EPS guidance.
  • Adjusted effective tax rate rose to 23.9% from 21.6% a year ago, and Days Services Outstanding increased to 51 days from 47 last quarter.
  • Large strategic transformational programs that clients are prioritizing convert to revenue more slowly, and enterprise AI adoption at scale remains nascent/early innings.

Guidance Changes

MetricPeriodCurrent guidance

Performance Breakdown

MetricYoYNote

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend

Q&A Summary

More on Accenture plc

Reported 2025-12-18 · figures from the Accenture plc Q1 2026 earnings call.

See how VectorShift works for your firm

Request Demo