We hope you've had an opportunity to review the earnings release, which we issued a short time ago. Julie will then provide a brief update on the market positioning before Angie provides our business outlook for the fourth quarter and full year fiscal 2026. Before Angie takes you through the detailed numbers, I will give you some color on the quarter and on the progress we're making on our growth strategy. To put our performance in context, we added approximately $1 billion in revenue in Q3 over FY 2025 and $3.4 billion year-to-date over the same period last year.

We also delivered strong margin expansion, EPS growth, and free cash flow while continuing to invest in our business and our people. This quarter, we had 30 clients with quarterly bookings over $100 million, bringing us to 104 of such bookings year-to-date, a 13% increase over the same period last year. I am also thrilled to congratulate our approximately 124,000 people who were promoted this fiscal year, a 30% increase over last year, including more than 900 who were promoted to managing director. Let's turn to how we're executing our growth strategy to be the reinvention partner of choice for our clients and the leader in the widespread adoption of AI.

We have announced a number of expansions of partnerships with our top 10 ecosystem partners in AI and data, and our revenue growth from these partners continues to outpace our overall growth. Now, let's talk about our big move in OT security to create a platform-led growth business with a non-FTE commercial model. We are also expanding our total addressable market by going after a new exciting customer segment, the mid-market. We estimate that the mid-market, which we look at as companies with between $300 million and $3 billion of revenue, is a $240 billion addressable market for us, growing high single digits.

What went well
  • Revenue reached $18.7B, up 6% in USD and 3% in local currency, above the midpoint of the guided range with broad-based growth across geographic markets, industry groups, and types of work; added ~$1B of revenue in Q3 and $3.4B year-to-date over FY2025.
  • EPS grew 9% to $3.80, and operating margin expanded 20 basis points to 17% while continuing to invest in people and the business.
  • Free cash flow was a robust $3.6B; returned $2.2B to shareholders in the quarter ($1.2B buybacks of 6M shares at $198.84 avg, plus a $1.63/share dividend up 10%), and $8.2B year-to-date ($1.3B more than last year.
  • 30 clients with quarterly bookings over $100M, reaching 104 year-to-date, a 13% increase versus the same period last year.
  • Managed services revenue grew 8% USD / 5% local currency ($9.4B), and Asia Pacific grew 8% in local currency led by Japan, Australia, and Singapore; continued to take significant market share on a rolling four-quarter basis.
  • Strong AI momentum: another 100 clients initiated advanced AI projects, on track to more than double bookings from key emerging AI/data partners vs FY2025, and demonstrated production AI ROI (e.g., Cox lead accuracy 13% to 97%, 55% faster campaign speed-to-market).
What went wrong
  • The Middle East conflict caused an ~$100M revenue impact versus expectations (all consulting work, split evenly between direct Middle East and indirect effects outside the region), with indirect softness in products and, to a lesser degree, resources discretionary spend in the last few weeks.
  • Sales in the Middle East were impacted by ~$400M, and EMEA sales were hit by longer decision-making.
  • A couple of large managed services opportunities slipped into FY2027 for company-specific reasons (over $2B lower bookings than some analysts expected), which will not bump Q4.
  • New bookings fell to $19.3B, down 2% in USD and 3% in local currency, with book-to-bill of 1.0.
  • Consulting revenue growth was tepid at just 1% in local currency ($9.3B), and consulting type of work ticked down due to the Middle East impact; the federal business was a ~1% drag on total revenue (~1.5% on Americas).
  • Gross margin slipped slightly to 32.8% from 32.9%, days services outstanding rose to 48 days (from 46 last quarter / 47 a year ago), and management flagged more of the guided range being in play for Q4 due to macro uncertainty.

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Reported 2026-06-18 · figures from the Accenture plc Q3 2026 earnings call.

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