Accenture plc

(New York Stock Exchange)
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Bullish +75

ACN's Focus on Dividend-Payments Bodes Well: More Upside Ahead?

AI-generated analysis

πŸ“ˆ Accenture (ACN) maintains a strong dividend profile with a 3.30% yield and a five-year growth rate of 14.21%.

πŸ’° On September 25, 2025, ACN announced a 10.1% increase in its quarterly dividend to $1.63 per share.

πŸ“… The increased dividend was paid on November 14, 2025, to shareholders of record on October 10, 2025.

πŸ’Ή In fiscal 2025, Accenture returned $8.3 billion to shareholders through a mix of dividends and share repurchases.

πŸ”„ Free cash flow rose to $10.87 billion in fiscal 2025, compared to $8.61 billion the previous year.

πŸ“Š Operating cash flow increased to $11.47 billion in fiscal 2025 from $9.13 billion in fiscal 2024.

πŸ’Ό Management anticipates returning at least $9.3 billion in cash to shareholders in fiscal 2026.

πŸ”» ACN shares declined 26.3% over the past three months, outperforming the broader industry's loss of 21.2%.

πŸ“‰ The stock trades at a forward price-to-sales ratio of 1.72X, which is lower than industrial levels.

⭐ Zacks Consensus Estimate for fiscal 2026 and 2027 earnings per share has improved over the last 90 days.

⚠️ ACN currently carries a Zacks Rank #3 (Hold), while analysts highlight other stocks as potential strong buys.

πŸ† Dell Technologies recently approved a 19% dividend hike to 63 cents per share in February 2026.

πŸ–© Hewlett Packard Enterprise Company approved a 9.6% dividend boost in 2025, with a current yield of 2.52%.

πŸš€ Zacks experts highlighted a satellite-based communications firm as the top pick for potential doubling returns.

πŸ“¦ Free reports are available for analyzing Accenture, Dell, and HPE on the Zacks Investment Research website.

Bullish Signals
  • Accenture (ACN) increased its quarterly dividend by 10.1% to $1.63 per share, announced on Sept. 25, 2025, with payments made on Nov. 14, 2025.
  • The company returned a total of $8.3 billion to shareholders in fiscal 2025 through dividends and share repurchases, demonstrating strong capital return capabilities.
  • Free cash flow for Accenture grew from $8.61 billion in fiscal 2024 to $10.87 billion in fiscal 2025, reflecting improved cash-generating ability.
  • Operating cash flow increased significantly to $11.47 billion in fiscal 2025 compared to $9.13 billion in the prior year, supporting ongoing dividend payments.
  • Accenture anticipates rewarding shareholders with at least $9.3 billion in cash returns for fiscal 2026, indicating continued commitment to shareholder value.
  • ACN trades at a 12-month forward price-to-sales ratio of 1.72X, which is lower than industry levels, suggesting potential undervaluation.
  • The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings per share has improved in the past 90 days, signaling positive outlook.
Risk Factors
  • Shares of Accenture have declined 26.3% over the past three months, outperforming the industry loss of 21.2% with a steeper drop.
  • The Zacks Rank for Accenture is currently #3 (Hold), which is not a buy rating and suggests caution compared to stronger stocks in the portfolio.
Full Analysis
Accenture plc (ACN) has established itself as a reliable dividend stock within the Zacks Computer and Technology sector, attracting investor interest with a current yield of 3.30% and an impressive five-year dividend growth rate of 14.21%. The company's commitment to returning capital to shareholders is evident through its consistent track record, having increased its dividend five times over the past five years. On September 25, 2025, Accenture announced a 10.1% increase in its quarterly dividend to $1.63 per share, which was paid on November 14, 2025, to shareholders of record on October 10, 2025. This focus on consistent payouts positions the company as a dependable vehicle for long-term wealth creation, potentially offering less volatility than non-dividend payers and helping to offset economic turbulence. In fiscal 2025, Accenture returned $8.3 billion in total cash to shareholders, comprising $4.6 billion from share repurchases and $3.7 billion through dividend payments. This robust return of capital is supported by strong cash-generating capabilities, with free cash flow reaching $10.87 billion in fiscal 2025 compared to $8.61 billion in fiscal 2024, and operating cash flow rising to $11.47 billion from $9.13 billion year-over-year. Looking ahead to fiscal 2026, Accenture anticipates providing shareholders with at least $9.3 billion in cash, underscoring management's confidence in continued growth and shareholder engagement through dividends and buybacks. From a performance perspective, ACN shares have declined 26.3% over the past three months, outperforming the Zacks Computers - IT Services industry which saw a 21.2% loss. Valuation metrics indicate that Accenture trades at a 12-month forward price-to-sales ratio of 1.72X, which is noted as being lower than industry levels. Additionally, the Zacks Consensus Estimate for earnings per share for fiscal 2026 and 2027 has shown improvement over the past 90 days. Despite these fundamentals, Accenture currently holds a Zacks Rank #3 (Hold), reflecting a cautious market sentiment despite its strong dividend history and cash flow generation. The analysis also briefly highlights peers in the sector such as Dell Technologies Inc., which recently approved a 19% dividend hike in February 2026, and Hewlett Packard Enterprise Company, which raised its dividend by 9.6% in 2025, illustrating broader industry trends toward shareholder returns.