ACN

ACN

Accenture

Dividend / Cash flow

★ Quality 73/100
Discounted

Price today

$186.72

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What this business is made of

73qualityReturnsMoatBalance sheetPricing powerReinvestment

The business

An army of 774,000 brains rented by the hour.

Accenture sells consulting and technology services: strategy, digital transformation, cloud, cybersecurity, and operational outsourcing. It charges per project and through multi-year managed-services contracts. It bills $69.7B with 774,000 employees — the business is people billing hours.

Its edge is scale, deep relationships with large corporations, and the ability to execute transformations that few can coordinate globally. It's not a tollbooth moat; it's reputation and switching costs. Clients don't swap consultants halfway through a $200M project.

Revenue history

$50.5B
2021
$61.6B
2022
$64.1B
2023
$65.0B
2024
$69.7B
2025
CAGR 5 años: +8%

From $50.5B to $69.7B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $69.7B · FY2025

Cost of sales$47.4B · 68%
Operations$12.0B · 17%
Taxes and other$2.5B · 4%
Net profit$7.7B · 11%

Of every $100 in sales, $89 goes to costs and operations; $11 is left as net profit (11% margin).

Catalysts and risks

GenAI bookings: $3B+ cumulative in 2025, growing every quarter.

FCF of $10.9B sustains buybacks and rising dividends year after year.

Tuck-in acquisitions (~$6.6B invested in FY24) that add capabilities and revenue.

⚠️

Gross margin of 32% — a people-intensive business, not software. Raise salaries, lower margin.

⚠️

Discretionary demand: in a recession, companies postpone consulting first.

⚠️

The same AI it sells could compress the billable hours it charges for.

Charlie's note

Paying 23x for a business growing 47% with 32% gross margins isn't a steal, but it's no gift either: the quality is there — scale, reputation, and real switching costs — so the discipline is about not overpaying for a good company and waiting patiently.

Analysis · June 2026

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