ACN: 3Q26 QuickTake: Broad-Based Growth Supports Strategic M&A and FCF Generation

Research evidence excerpt

ACN: 3Q26 QuickTake: Broad-Based Growth Supports Strategic M&A and FCF Generation

atform with proprietary data,

which will be enhanced by runZero's exposure assessment and attack-surface intelligence capabilities, as well as NetRise's software

supply chain dataset and firmware-level device visibility. The acquisitions are expected to deliver strong gross margins and, while

initially dilutive, should become accretive to earnings per share and free cash flow over time. The transactions are anticipated to

close in August or September 2026.

FY26 guidance update: ACN now expects revenue growth of 3% to 4% in local currency, or ~4% to 5% excluding an estimated 1%

impact from its US federal business, narrowed from the previous guidance of 3% to 5% in local currency or 4% to 6% excluding the

federal impact. The company continues to expect a FX impact of ~2% for the full year. Adj operating margin is now expected to

be 15.8%, representing 20 bps expansion over fiscal 2025 excluding business optimization costs, compared to the previous range

of 15.7% to 15.9%. The annual effective tax rate is expected to be in the range of 24.0% to 25.0%, narrowed from the previous

range of 23.5% to 25.5%. Adj EPS is now expected to be in the range of $13.78 to $13.90, representing 7% to 8% increase over

fiscal 2025, compared to the previous range of $13.65 to $13.90. The company continues to expect operating cash flow in the

range of $11.5-$12.2bn, and FCF in the range of $10.8-$11.5bn. Capital return expectations have been increased to at least $9.5bn

from at least $9.3bn previously.

F4Q26 guidance: ACN expects revenues in the range of $17.75-$18.4bn, growth of 1% to 5% in local currency with an estimated

FX ~-0.5%.

ACN will host a conference call to discuss its 3Q26 earnings at 8am.