Accenture PLC reported strong financial results for the third quarter of fiscal 2026, achieving $18.7 billion in revenue, a 6% increase in US dollars and 3% in local currency. The company delivered broad-based growth across all geographic markets, industry groups, and types of work, while returning $2.2 billion to shareholders through repurchases and dividends. Despite a $100 million revenue impact from the Middle East conflict and delays in large managed services opportunities, the firm maintained a robust operating margin of 17% and grew diluted earnings per share by 9% to $3.80.

Financial Performance

The company demonstrated solid profitability and cash generation during the quarter. Operating income stood at $3.2 billion, reflecting a 20 basis point expansion in operating margin to 17% compared to the same period last year. Free cash flow was $3.6 billion, resulting from cash generated by operating activities of $3.8 billion, net of property and equipment additions of $186 million. Accenture repurchased or redeemed 6 million shares for $1.2 billion at an average price of $198.84 per share and paid a quarterly cash dividend of $1.63 per share, totaling $1 billion.

Strategic Acquisitions and Growth

Accenture announced a significant capital deployment strategy, expecting to invest approximately $9 billion in acquisitions during fiscal 2026. This includes the acquisition of a majority stake in Dragos, a platform for operational technology cybersecurity, and the acquisition of all of Run Zero and Netrise. These moves are designed to create a first-of-its-kind OT security platform and expand the company's total addressable market in the cybersecurity sector. Additionally, the company is launching Accenture Edge, targeting the mid-market segment, which it estimates as a $240 billion addressable market.

Business Outlook

Looking ahead to the full fiscal year 2026, Accenture provided guidance reflecting continued growth and investment. The company expects revenue growth of 3% to 4% in local currency, with an adjusted operating margin of 15.8%. Management anticipates returning at least $9.5 billion to shareholders through dividends and share repurchases. For the fourth quarter, revenue is projected to be between $17.75 billion and $18.4 billion, assuming local currency growth of 1% to 5%.

Accenture and ServiceNow have launched a joint offering designed to help enterprises modernize their risk management by migrating legacy cybersecurity platforms. The solution integrates the ServiceNow AI Platform with Accenture AI-powered tools, aiming to remove cost and complexity barriers that often hinder such transitions.

The joint offering comprises two core components. The first is managed security services built on the ServiceNow AI Platform. The second is an Accenture AI-powered solution that automates the migration process from legacy systems to ServiceNow.

By combining these technologies, the companies seek to streamline the modernization of enterprise risk frameworks. The automation capabilities are intended to reduce the manual effort typically associated with moving off legacy platforms.

ServiceNow positions itself as the AI control tower for business reinvention. This collaboration leverages that framework alongside Accenture's migration tools to address specific challenges in cybersecurity platform upgrades.

The initiative targets enterprises struggling with outdated infrastructure. The focus on automating migration reflects a broader trend toward using AI to simplify complex IT transitions.