Q4 2026 Accenture PLC Earnings Call

October 1, 2026

Speaker #1: Good day, and welcome to the Accenture Fourth Quarter 2026 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal the conference specialist by pressing the star key followed by zero.

Operator: Good day, and welcome to the Accenture Q4 2026 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note today's event is being recorded. I'd now like to turn the conference over to Alexia Quadrani, Executive Director and Head of Investor Relations. Please go ahead.

Operator: Good day, and welcome to the Accenture Q4 2026 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note today's event is being recorded. I'd now like to turn the conference over to Alexia Quadrani, Executive Director and Head of Investor Relations. Please go ahead.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1, on your telephone keypad.

Speaker #1: To withdraw your question, please press star then 2. Please note, today's event is being recorded. And now, I turn the conference over to Alexia Quadroni, Executive Director and Head of Accenture Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, operator. And thanks, everyone, for joining us today on our fourth quarter and full-year fiscal 2026 earnings call. As the operator just mentioned, I'm Alexia Quadroni, Executive Director and Head of Investor Relations.

Alexia Quadrani: Thank you, operator. Thanks everyone for joining us today on our Q4 and full year fiscal 2026 earnings call. As the operator just mentioned, I'm Alexia Quadrani, Executive Director, Head of Investor Relations. On today's call, you will hear from Julie Sweet, our Chair and Chief Executive Officer, and Angie Park, our Chief Financial Officer. We hope you've had an opportunity to review both the earnings release and the accompanying presentation issued prior to this call. Let me outline the agenda for today. Julie will begin with an overview of our Q4 results and step back to look at fiscal 2026 overall before following with a brief update on our market positioning.

Speaker #2: On today's call, you will hear from Julie Sweet, our Chair and Chief Executive Officer, and Angie Park, our Chief Financial Officer. We hope you've had an opportunity to review both the earnings release and the accompanying presentation issued prior to this call.

Speaker #2: Let me outline the agenda for today. Julie will begin with an overview of our Q4 results and then step back to look at fiscal 2026 overall, before following with a brief update on our market positioning.

Speaker #2: Angie will then take you through the detailed financial numbers, including the income statement and balance sheet, along with key operational metrics for the fourth quarter and full fiscal year, before providing a business outlook for the first quarter and full year fiscal 2027.

Alexia Quadrani: Angie will then take you through the detailed financial numbers, including the income statement and balance sheet, along with key operational metrics for the Q4 and full fiscal year before providing a business outlook for the Q1 and full year fiscal 2027. We will then open the line for your questions before Julie closes with a wrap-up. Some of the matters we'll discuss on this call, including our business outlook, are forward-looking and as such, are subject to known and unknown risks and uncertainties, including, but not limited to, those factors set forth in today's earnings release and discussed in our annual report on Form 10-K and quarterly reports on Form 10-Q and other SEC filings. These risks and uncertainties could cause actual results to differ materially from those expressed in this call.

Speaker #2: We will then open the line for your questions before Julie closes with a wrap-up. Some of the matters we'll discuss on this call, including our business outlook, are forward-looking and, as such, are subject to known and unknown risks and uncertainties, including but not limited to those factors set forth in today's earnings release and discussed in our annual report on Form 10-K, quarterly reports on Form 10-Q, and other SEC filings.

Speaker #2: These risks and uncertainties could cause actual results to differ materially from those expressed in this call. During our call today, we will reference certain non-GAAP financial measures, which we believe provide useful information for investors.

Alexia Quadrani: During our call today, we will reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include reconciliations of non-GAAP financial measures, where appropriate to GAAP, in our earnings release or in the investor relations section of our website at accenture.com. As always, Accenture assumes no obligation to update the information presented on this conference call. Now let me turn the call over to Julie.

Speaker #2: We include reconciliations of non-GAAP financial measures, where appropriate, to GAAP in our earnings release or in the Investor Relations section of our website at accenture.com.

Speaker #2: As always, Accenture assumes no obligation to update the information presented on this conference call. Now, let me turn the call over to Julie.

Speaker #3: Thank you, Alexia, and everyone joining us this morning. And thank you to our more than 814,000 reinventors around the world for your extraordinary work and commitment to our clients.

Julie Sweet: Thank you, Alexia and everyone joining us this morning. Thank you to our more than 814,000 reinventers around the world for your extraordinary work and commitment to our clients. Before Angie Park takes you through the detailed numbers in our FY 2027 outlook, I will start with Q4 and then step back to look at fiscal 2026 overall. Starting with Q4, revenue was $18.7 billion, growing 7% in local currency above the top end of our guided range. Growth was broad-based across markets, industries, and both types of work, and we once again took significant market share. Revenue from work with our top 10 ecosystem partners continued to outpace our overall growth. We had $22.2 billion of bookings in Q4, reflecting the relevance of Accenture to our clients and demonstrating again our strong competitive position. I was particularly pleased with our 37 clients with bookings greater than $100 million.

Speaker #3: Before Angie takes you through the detailed numbers in our FY27 outlook, I will start with Q4 and then step back to look at fiscal 2026 overall.

Speaker #3: Starting with Q4, revenue was $18.7 billion, growing 7% in local currency, above the top end of our guided range. Growth was broad-based, across markets, industries, and both types of work.

Julie Sweet: Growth was broad-based across markets, industries, and both types of work, and we once again took significant market share. Revenue from work with our top 10 ecosystem partners continued to outpace our overall growth. We had $22.2 billion of bookings in Q4, reflecting the relevance of Accenture to our clients and demonstrating again our strong competitive position. I was particularly pleased with our 37 clients with bookings greater than $100 million.

Speaker #3: And we once again took significant market share. Revenue from work with our top 10 ecosystem partners continued to outpace our overall growth. We had $22.2 billion of bookings in Q4, reflecting the relevance of Accenture to our clients and demonstrating again our strong competitive position.

Speaker #3: I was particularly pleased with our 37 clients with bookings greater than $100 million. Our focus on being relevant where our clients are spending helped us capture this strong level of bookings, even though the overall demand environment, including discretionary spending, did not meaningfully change.

Julie Sweet: Our focus on being relevant where our clients are spending helped us capture this strong level of bookings, even though the overall demand environment, including discretionary spending, did not meaningfully change. We also delivered strong margin expansion, EPS growth, and free cash flow while continuing to invest in our business and our people. In Q4, we deployed $1.9 billion in acquisitions. Approximately 3 billion of capital related to the Cyber OT acquisitions, including Dragos, shifted into September due to regulatory timing, and we are pleased those transactions have now closed. In Q4, we continued to use our strong balance sheet and acquisition experience as competitive advantages to accelerate our strategy and ultimately fuel organic growth. As a reminder, we use acquisitions to scale in high-growth areas, deepen our industry and functional capabilities, and expand into new growth areas, which increasingly include businesses with non-FTE commercial models.

Speaker #3: We also delivered strong margin expansion, EPS growth, and free cash flow, while continuing to invest in our business and our people. In Q4, we deployed $1.9 billion in acquisitions.

Speaker #3: Approximately $3 billion of capital related to the Cyber OT acquisitions, including Dragos, shifted into September due to regulatory timing, and we are pleased those transactions have now closed.

Julie Sweet: Approximately 3 billion of capital related to the Cyber OT acquisitions, including Dragos, shifted into September due to regulatory timing, and we are pleased those transactions have now closed. In Q4, we continued to use our strong balance sheet and acquisition experience as competitive advantages to accelerate our strategy and ultimately fuel organic growth. As a reminder, we use acquisitions to scale in high-growth areas, deepen our industry and functional capabilities, and expand into new growth areas, which increasingly include businesses with non-FTE commercial models.

Speaker #3: In Q4, we continue to use our strong balance sheet and acquisition experience as competitive advantages to accelerate our strategy and ultimately fuel organic growth.

Speaker #3: As a reminder, we use acquisitions to scale in high-growth areas, deepen our industry and functional capabilities, and expand into new growth areas, which increasingly include businesses with non-FTE commercial models.

Speaker #3: In Q4, we closed Ookla, a global leader in network intelligence, competitive benchmarking, and customer experience analytics, which is an expansion into a new growth area with a non-FTE commercial model.

Julie Sweet: In Q4, we closed Ookla, a global leader in network intelligence, competitive benchmarking, and customer experience analytics, which is an expansion into a new growth area with a non-FTE commercial model. Ookla also deepens our industry skills in the core value chain of the comms and tech industries. We also closed Whalar, a leading creator and social agency recognized for its creative excellence and ability to deliver measurable business outcomes. Whalar is part of our focus on expanding our functional skills within our Accenture Song business in a high-growth area. To help accelerate our strategy to expand in the mid-market, we closed COMWARE, an end-to-end technology services provider with deep SAP, CRM, and manufacturing expertise serving Japan's mid-market. We also announced our agreement to acquire McCoy, a trusted Dutch SAP transformation partner for mid-market companies.

Speaker #3: Ookla also deepens our industry skills in the core value chain of the comms and tech industries. We also closed Wailer, a leading creator and social agency recognized for its creative excellence and ability to deliver measurable business outcomes.

Speaker #3: Wailer is part of our focus on expanding our functional skills within our growth business in a high-growth area. To help accelerate our strategy to expand in the mid-market, we acquired Comware, an end-to-end technology services provider with deep SAP, CRM, and manufacturing expertise, serving Japan’s mid-market.

Speaker #3: We also announced our agreement to acquire McCoy, a trusted Dutch SAP transformation partner for mid-market companies. Finally, we announced an agreement to acquire Industries Excellence Group, which deepens our engineering skills as part of our supply chain and engineering business.

Julie Sweet: Finally, we announced an agreement to acquire Industries eXcellence Group, which deepens our engineering skills as part of our supply chain and engineering business. Turning to demand in Q4. Large-scale reinventions, including many driven by AI, drove strong demand. These spanned transforming functions and building out digital cores. Our clients are also focused on AI and believe AI will help them achieve more than previously possible across the enterprise, but clients remain at very different stages of readiness. Much of our growth today comes from continuing to build their digital core data foundations and the enterprise AI stack that they need to use AI at scale, and many are just starting their AI journey. Nearly 100 additional clients initiated their first advanced AI work with us this quarter, bringing the fiscal 2026 total to more than 400.

Speaker #3: Turning to demand in Q4, large-scale reinventions, including many driven by AI, drove strong demand. These spanned transforming functions and building out digital cores. Our clients are also focused on AI and believe AI will help them achieve more than previously possible across the enterprise.

Speaker #3: The clients remain at very different stages of readiness. Much of our growth today comes from continuing to build their digital core, data foundations, and the enterprise AI stack that they need to use AI at scale.

Speaker #3: And many are just starting their AI journey. Nearly 100 additional clients initiated their first advanced AI work with us this quarter, bringing the fiscal 2026 total to more than 400.

Speaker #3: Because we are investing in our platforms and new solutions, we are able to embed advanced AI earlier into large-scale reinventions. Our proprietary assets and platforms, ecosystem relationships, and our ability to deliver the work through consulting, managed services, or a combination of both allow us to meet clients where they are and help them move at pace.

Julie Sweet: Because we are investing in our platforms and new solutions, we are able to embed advanced AI earlier into large-scale reinventions. Our proprietary assets and platforms, ecosystem relationships, and our ability to deliver the work through consulting, managed services, or a combination of both allows us to meet clients where they are and help them move at pace. Our managed services-led work also includes a significant consulting and AI expertise as many clients use this work to both reinvent and to get greater certainty around outcomes, including cost savings. Against this backdrop, two things stand out. First, our largest client relationships continue to expand as clients take on broader, more strategic transformations. FedEx is a great example of how our largest client relationships grow over time. We began by moving part of its applications to the cloud.

Speaker #3: Our managed services-led work also includes significant consulting and AI expertise, as many clients use this work to both reinvent and to gain greater certainty around outcomes, including cost savings.

Speaker #3: Against this backdrop, two things stand out. First, our largest client relationships continue to expand as clients take on broader, more strategic transformations. FedEx is a great example of how our largest client relationships grow over time.

Speaker #3: We began by moving part of its applications to the cloud. As more deliveries shifted to homes, FedEx launched One FedEx to create a more connected, flexible, and efficient operation.

Julie Sweet: As more deliveries shifted to homes, FedEx launched One FedEx to create a more connected, flexible, and efficient operation. Delivering on that vision requires coordinating the technology, data, and processes that keep the business running, all while FedEx moves millions of packages every day. Today, we are helping build the digital core behind One FedEx, while supporting its investment in its people through enterprise-wide AI fluency programs. Together, this work is helping FedEx make supply chains smarter and embed AI more deeply into the way work gets done. Our partnership has continued to deepen as FedEx has expanded our role with additional managed services and modernization work designed to streamline operations, enhance customer service, and support future growth. That is how our relationships grow. Each success creates the opportunity for the next.

Speaker #3: Delivering on that vision requires coordinating the technology, data, and processes that keep the business running — all while FedEx moves millions of packages every day.

Speaker #3: Today, we're helping build the digital core behind One FedEx, while supporting its investment in its people through enterprise-wide AI fluency programs. Together, this work is helping FedEx make supply chains smarter and embed AI more deeply into the way work gets done.

Speaker #3: Our partnership has continued to deepen as FedEx has expanded our role with additional managed services and modernization work, designed to streamline operations, enhance customer service, and support future growth.

Speaker #3: That is how our relationships grow. Each success creates the opportunity for the next. The second standout from the quarter is how our AI demand is broadening because of both the depth and breadth of our expertise and the various functions of an enterprise—across industry, process, operating model, data, technology, and AI.

Julie Sweet: The second standout from the quarter is how our AI demand is broadening because of both the depth and breadth of our expertise in the various functions of an enterprise across industry, process, operating model, data, technology, and AI. We continue to see AI being embedded in the broader transformations our clients are undertaking. BP, one of the world's largest energy and convenience businesses, operates across more than 150 markets with over 10 million customer touchpoints every day. To turn that scale into a growth advantage, Accenture Song is helping BP build a global marketing engine that combines data, AI, and marketing expertise, deepening customer intelligence to move from insight to action faster. BP's marketing teams operated with hundreds of regional processes, making it harder to scale campaigns consistently across markets. We replaced that complexity with a single scalable model, and the gains compound.

Speaker #3: We continue to see AI being embedded in the broader transformations our clients are undertaking. BP, one of the world's largest energy and convenience businesses, operates across more than 150 markets with over 10 million customer touchpoints every day.

Speaker #3: To turn that scale into a growth advantage, Accenture, Thong is helping BP build a global marketing engine: the combined data, AI, and marketing expertise.

Julie Sweet: To turn that scale into a growth advantage, Accenture Song is helping BP build a global marketing engine that combines data, AI, and marketing expertise, deepening customer intelligence to move from insight to action faster. BP's marketing teams operated with hundreds of regional processes, making it harder to scale campaigns consistently across markets. We replaced that complexity with a single scalable model, and the gains compound.

Speaker #3: Deepening customer intelligence to move from insight to action faster. BP’s marketing teams operated with hundreds of regional processes, making it harder to scale campaigns consistently across markets.

Speaker #3: We replaced that complexity with a single, scalable model, and the gains compound. BP is now producing 2.5 times more content with 23% less effort.

Julie Sweet: BP is now producing 2.5 times more content with 23% less effort. That benefit is also realized in customer reach. For example, customer engagement activity has grown threefold in the last 12 months alone. By intelligently optimizing across offer, channel, and customer moment, BP has been able to put its marketing budget in the right place at the right time, helping support measurable business results. Over the past year, active loyalty customers grew 12% and loyalty transactions rose 7%. This is what it looks like when marketing becomes a true commercial driver. We also continue to see green shoots of enterprise-wide AI transformations where our clients have been investing in strong digital cores. PPC is one of the leading early examples. Over the past several years, we have helped PPC Group, Greece's largest electricity utility, strengthen its digital core and build the foundations to drive continuous reinvention.

Speaker #3: That benefit is also realized in customer reach. For example, customer engagement activity has grown threefold in the last 12 months alone. By intelligently optimizing across offer, channel, and customer moment, BP has been able to put its marketing budget in the right place at the right time, helping support measurable business results.

Speaker #3: Over the past year, active loyalty customers grew 12%, and loyalty transactions rose 7%. This is what it looks like when marketing becomes a true commercial driver.

Julie Sweet: Over the past year, active loyalty customers grew 12% and loyalty transactions rose 7%. This is what it looks like when marketing becomes a true commercial driver. We also continue to see green shoots of enterprise-wide AI transformations where our clients have been investing in strong digital cores. PPC is one of the leading early examples. Over the past several years, we have helped PPC Group, Greece's largest electricity utility, strengthen its digital core and build the foundations to drive continuous reinvention.

Speaker #3: We also continue to see green shoots of enterprise-wide AI transformations, where our clients have been investing in strong digital cores. PPC is one of the leading early examples.

Speaker #3: Over the past several years, we've helped PPC Group, Greece's largest electricity utility, strengthen its digital core and build the foundations to drive continuous reinvention.

Speaker #3: Today, we're helping PPC put AI at the center of its next phase of growth as it transforms from a traditional utility into a power tech company.

Julie Sweet: Today, we're helping PPC put AI at the center of its next phase of growth as it transforms from a traditional utility into a power tech company, using AI to reinvent and expand into new businesses and markets. AI will be infused across the enterprise, from power generation and customer experience to renewables and corporate functions, bringing together larger volumes of data to get work done faster. For example, in energy management, AI will help to cut analysis time in half, helping traders make faster pricing and hedging decisions. At the same time, AI will help deliver more seamless digital experiences to millions of customers, increasing customer lifetime value and driving top-line growth. PPC Group is not inserting AI into its existing processes, it is reinventing them.

Speaker #3: Using AI to reinvent and expand into new businesses and markets. AI will be infused across the enterprise, from power generation and customer experience to renewables and corporate functions.

Speaker #3: Bringing together larger volumes of data to get work done faster. For example, an energy management AI will help cut analysis time in half, helping traders make faster pricing and hedging decisions.

Speaker #3: At the same time, AI will help deliver more seamless digital experiences to millions of customers, increasing customer lifetime value and driving top-line growth. PPC Group is not inserting AI into its existing processes; it is reinventing them.

Speaker #3: As the group expands beyond its traditional utility business, it is rebuilding how work gets done around clear outcomes, with people in the lead and agents on task—measuring the value of every change and reskilling its workforce in parallel.

Julie Sweet: As the group expands beyond its traditional utility business, it is rebuilding how work gets done around clear outcomes with people in the lead and agents on task, measuring the value of every change and reskilling its workforce in parallel. We're also seeing clients continue to move deeper into functions, particularly in areas such as customer experience, supply chain, and finance, as they redesign end-to-end processes and ways of working around AI. In customer experience, we're using conversational AI, including voice and chat agents, to handle live interactions, resolve inquiries faster, and provide a more personalized experience, helping organizations drive customer satisfaction and retention. In supply chain, we're using advanced AI to improve demand forecasting across complex distribution networks, enabling more accurate forecasts and faster, more automated decisions, which can optimize costs and improve margins.

Speaker #3: We're also seeing clients continue to move deeper into functions, particularly in areas such as customer experience, supply chain, and finance, as they redesign end-to-end processes and ways of working around AI.

Speaker #3: In customer experience, we're using conversational AI, including voice and chat agents, to handle live interactions—resolving queries faster and providing a more personalized experience.

Speaker #3: Helping organizations drive customer satisfaction and retention. In supply chain, we're using advanced AI to improve demand forecasting across complex distribution networks, enabling more accurate forecasts and faster, more automated decisions, which can optimize costs and improve margins.

Speaker #3: And in finance, we're building AI reasoning agents that allow CFOs and finance teams to ask questions in plain English and analyze detailed profit and loss data, helping finance leaders get ahead of trends, make faster, better-informed decisions, and free their teams to focus on the work that drives business results.

Julie Sweet: In finance, we're building AI reasoning agents that allow CFOs and finance teams to ask questions in plain English and analyze detailed profit and loss data, helping finance leaders get ahead of trends, make faster, better-informed decisions, and free their teams to focus on the work that drives business results. Increasingly, we are seeing AI move into the core value chain of industries. For a leading pharmaceutical company, we're using Faculty's Frontier platform to improve a critical part of developing a new medicine, clinical trial planning. The platform simulates different trial scenarios, helping teams decide where to run studies, which sites to use, and how to respond when patient enrollment falls behind.

Speaker #3: And increasingly, we are seeing AI move into the core value chain of industries. For a leading pharmaceutical company, we're using Faculty's Frontier platform to improve a critical part of developing a new medicine.

Speaker #3: Clinical trial planning: The platform simulates different trial scenarios, helping teams decide where to run studies, which sites to use, and how to respond when patient enrollment falls behind.

Speaker #3: In an initial application, the platform reduced the time needed to create and analyze trial scenarios from ten days to ten minutes, improved patient enrollment forecast accuracy by 60%, and identified study designs that could shorten trial timelines by up to three months.

Julie Sweet: In an initial application, the platform reduced the time needed to create and analyze trial scenarios from 10 days to 10 minutes, improved patient enrollment forecast accuracy by 60%, and identified study designs that could shorten trial timelines by up to three months. In an industry where each day of delay can mean up to $1 million in lost revenue, faster planning can help therapies reach patients sooner and improve the return on R&D investment. It is a strong example of how we combine our technology with deep life sciences industry expertise to turn faster, better decisions into meaningful business value. You can see in these examples the breadth of demand, which we expect to continue, and the breadth and depth of our expertise.

Speaker #3: In an industry where each day of delay can mean up to $1 million in lost revenue, faster planning can help therapies reach patients sooner and improve the return on R&D investment.

Speaker #3: It is a strong example of how we combine our technology with deep life sciences industry expertise to turn faster, better decisions into meaningful business value.

Speaker #3: You can see in these examples the breadth of demand, which we expect to continue, and the breadth and depth of our expertise. Today we've covered logistics, energy, and pharma, and they span from enterprise functions like finance to growth functions like marketing to the core value chain, like clinical trials, to the digital core.

Julie Sweet: Today, we have covered logistics, energy, and pharma, and they span from enterprise functions like finance to growth functions like marketing, to the core value chain, like clinical trials, to the digital core. Turning to our full fiscal year, we had another strong year delivering profitable growth, taking significant market share, returning record cash to shareholders, and investing at scale in our business to strengthen our near and long-term growth. We did so in a very dynamic macro environment, which we expect to continue. For the full year, we delivered revenue of $74 billion, growing approximately 5% in local currency and adding approximately $4.5 billion of revenue over FY25. We delivered these results while absorbing an approximately 1 percentage point impact from our federal business, which sunset at the end of Q3. We had bookings of more than $84 billion, up 5% in US dollars and 3% in local currency.

Speaker #3: Turning to our full fiscal year, we had another strong year—delivering profitable growth, taking significant market share, returning record cash to shareholders, and investing at scale in our business to strengthen our near- and long-term growth.

Speaker #3: We did so in a very dynamic macro environment, which we expect to continue. For the full year, we delivered revenue of $74 billion, growing approximately 5% in local currency and adding about $4.5 billion of revenue over FY25.

Julie Sweet: For the full year, we delivered revenue of $74 billion, growing approximately 5% in local currency and adding approximately $4.5 billion of revenue over FY25. We delivered these results while absorbing an approximately 1 percentage point impact from our federal business, which sunset at the end of Q3. We had bookings of more than $84 billion, up 5% in US dollars and 3% in local currency.

Speaker #3: We delivered these results while absorbing an approximately 1 percentage point impact from our federal business, which sunset at the end of Q3. We had bookings of more than $84 billion, up 5% in U.S. dollars and 3% in local currency.

Speaker #3: This included 141 quarterly client bookings greater than $100 million—12 more than last year. These bookings serve as a proxy for the effectiveness of our reinvention strategy and position us well for future transformations as AI scales.

Julie Sweet: This included 141 quarterly client bookings greater than $100 million, 12 more than last year. These bookings are a proxy for the effectiveness of our reinvention strategy and position us well for future transformations as AI scales. We also ended the year with 317 Diamond clients, our largest relationships. We also delivered strong adjusted earnings per share growth and free cash flow, and we returned a record amount of cash to shareholders, 38% more than in fiscal 2025. At the same time, we invested at scale in our business with $4.9 billion in strategic acquisitions, $1 billion in R&D, and $1 billion in learning and development as we continue to upskill and reskill our people for the AI era.

Speaker #3: We also ended the year with 317 Diamond clients—our largest relationships. We delivered strong adjusted earnings per share growth and free cash flow, and we returned a record amount of cash to shareholders, 38% more than in fiscal 2025.

Speaker #3: At the same time, we invested at scale in our business with $4.9 billion in strategic acquisitions, $1 billion in R&D, and $1 billion in learning and development, as we continue to upskill and reskill our people for the AI era.

Speaker #3: In fiscal 2026, our people completed 46 million hours of training, and we now have nearly 110,000 AI and data professionals, exceeding our three-year goal to double our AI and data workforce from 40,000 to 80,000 by the end of fiscal 2026.

Julie Sweet: In fiscal 2026, our people completed 46 million hours of training, and we now have nearly 110,000 AI and data professionals, exceeding our three-year goal to double our AI and data workforce from 40,000 to 80,000 by the end of fiscal 2026. As we look forward, we are confident in our future. We continue to believe the opportunities related to AI are greater than the impact of AI-related efficiencies in our business, and we expect that to continue as AI enables enterprises to do much more. At the same time, AI is making both our own delivery and the technologies we implement more efficient. Consistent with prior technology waves, we see this in two areas, the additional productivity we achieve in delivering our services, which creates greater value for our clients, and faster, more efficient implementations as our ecosystem partners embed more AI capabilities into their platforms.

Speaker #3: As we look forward, we are confident in our future. We continue to believe that the opportunities related to AI are greater than the impact of AI-related efficiencies in our business, and we expect that to continue as AI enables enterprises to do much more.

Speaker #3: At the same time, AI is making both our own delivery and the technologies we implement more efficient. Consistent with prior technology waves, we see this in two areas.

Julie Sweet: Consistent with prior technology waves, we see this in two areas, the additional productivity we achieve in delivering our services, which creates greater value for our clients, and faster, more efficient implementations as our ecosystem partners embed more AI capabilities into their platforms. Our strategy is to lean into these efficiencies precisely because they create value for our clients while continuing to invest and rotate our capabilities to capture the larger growth opportunities AI creates. That is why we continue to view AI as a tailwind for Accenture. As we look at the AI opportunity, our strong ecosystem position is one of the reasons we are so confident.

Speaker #3: The additional productivity we achieve in delivering our services creates greater value for our clients and enables faster, more efficient implementations as our ecosystem partners embed more AI capabilities into their platforms.

Speaker #3: Our strategy is to lean into these efficiencies, precisely because they create value for our clients, while continuing to invest and rotate our capabilities to capture the larger growth opportunities AI creates.

Julie Sweet: Our strategy is to lean into these efficiencies precisely because they create value for our clients while continuing to invest and rotate our capabilities to capture the larger growth opportunities AI creates. That is why we continue to view AI as a tailwind for Accenture. As we look at the AI opportunity, our strong ecosystem position is one of the reasons we are so confident. Our top 10 ecosystem partners represented more than 60% of our revenue in fiscal 2026, and revenue from that work group 6%, outpacing Accenture overall. For our eight emerging AI and data partners, bookings more than tripled and revenue more than doubled compared with fiscal 2025. The tech ecosystem is incredibly dynamic with nearly daily change related to AI.

Speaker #3: That is why we continue to view AI as a tailwind for Accenture. As we look at the AI opportunities, our strong ecosystem position is one of the reasons we are so confident.

Speaker #3: Our top 10 ecosystem partners represented more than 60% of our revenue in fiscal 2026, and revenue from that work grew 6%, outpacing Accenture overall.

Julie Sweet: Our top 10 ecosystem partners represented more than 60% of our revenue in fiscal 2026, and revenue from that work group 6%, outpacing Accenture overall. For our eight emerging AI and data partners, bookings more than tripled and revenue more than doubled compared with fiscal 2025. The tech ecosystem is incredibly dynamic with nearly daily change related to AI.

Speaker #3: For our eight emerging AI and data partners, bookings more than tripled, and revenue more than doubled compared with fiscal 2025. The tech ecosystem is incredibly dynamic, with nearly daily change related to AI.

Speaker #3: This means our clients have more choices, but they also have more decisions to make. And they turn to us to help them make these decisions.

Julie Sweet: This means our clients have more choices, but they also have more decisions to make, and they turn to us to help them make these decisions, to help them bring these technologies together and turn them into business outcomes. To give you a flavor of this dynamic environment, data and AI are now core to all of our partners, both our largest partners and our emerging data and AI partners. Our top ecosystem partners, the hyperscalers, and the SaaS players, are all introducing new AI features and functionality at speed. The model landscape also continues to evolve with frontier, specialized, smaller, and open-weight models. We are the number one partner of the top three frontier companies, and now we offer full lifecycle services for open-weight models. Over the last 12 months, the AI ecosystem has become much more interconnected.

Speaker #3: To help them bring these technologies together and turn them into business outcomes. To give you a flavor of this dynamic environment, data and AI are now core to all of our partners.

Speaker #3: Both our largest partners and our emerging data and AI partners, as well as our top ecosystem partners—the hyperscalers and the SaaS players—are all introducing new AI features and functionality at speed.

Speaker #3: The model landscape also continues to evolve, with open-weight models. We are the number one partner of the top three frontier companies, and now we offer full lifecycle services for open-weight models.

Speaker #3: Over the last 12 months, the AI ecosystem has become much more interconnected. Clients can now access frontier models directly through hyperscalers, and increasingly, through the SaaS applications they already use.

Julie Sweet: Clients can now access frontier models directly through hyperscalers and increasingly through the SaaS applications they already use. At the same time, SaaS providers are rapidly embedding AI and agentic capabilities into their applications and workflows. Additionally, private and sovereign AI are increasingly important to our clients, and we are at the heart of creating these solutions. This is why our strong network of ecosystem partnerships is so important to our growth. Reflecting how the landscape has evolved over the past year, we will now report our top 10 ecosystem partners and emerging AI and data partners together as one group. We have also added Dell, an important partner in private AI. Beginning in FY27, we will provide this update annually. Over to you, Angie.

Speaker #3: At the same time, SaaS providers are rapidly embedding AI agentic capabilities into their applications and workflows. Additionally, private and sovereign AI are increasingly important to our clients, and we are at the heart of creating these solutions.

Speaker #3: This is why our strong network of ecosystem partnerships is so important to our growth. Reflecting how the landscape has evolved over the past year, we will now report our top 10 ecosystem partners and emerging AI and data partners together as one group.

Speaker #3: We have also added Dell, an important partner in private AI. Beginning in FY27, we will provide this update annually. Over to you, Angie.

Speaker #1: Thank you, Julie, and thanks to all of you for taking the time to join us on today's call. Our performance reflects the strength of our fundamentals.

Angie Park: Thank you, Julie, and thanks to all of you for taking the time to join us on today's call. Our performance reflects the strength of our fundamentals. We remain focused on delivering results that create value for our clients, our people, and our shareholders while continuing to invest for market leadership. Revenue, operating margin, EPS, and free cash flow were all very strong. For the full year, we achieved or exceeded all aspects of our original guidance while returning a record level of cash to shareholders. Let me turn to some of the details of the quarter. New bookings were $22.2 billion for the quarter, a 4% increase in US dollars and 5% in local currency, with an overall book-to-bill of 1.2. Consulting bookings were $9.4 billion, with a book-to-bill of 1.0.

Speaker #1: We remain focused on delivering results that create value for our clients, our people, and our shareholders, while continuing to invest for market leadership. Revenue, operating margin, EPS, and free cash flow were all very strong, and for the full year, we achieved or exceeded all aspects of our original guidance for shareholders.

Speaker #1: Let me turn to some of the details of the quarter. New bookings were $22.2 billion for the quarter, a 4% increase in U.S. dollars and 5% in local currency, with an overall book-to-bill of 1.2.

Speaker #1: Consulting bookings were 9.4 billion dollars, with a book to bill of 1.0. Managed services bookings were record 12.8 billion dollars after our previous record in Q4 of last year, with a book to bill of 1.4.

Angie Park: Managed services bookings were a record $12.8 billion, after our previous record in Q4 of last year, with a book-to-bill of 1.4. Managed services bookings can be lumpy, which is why we focus on the trailing four quarter book-to-bill, which was 1.2. Fixed price work, which includes outcome-based, is now over 65% of bookings and continues to grow. Turning now to revenues. Revenues for the quarter were $18.7 billion, a 6% increase in US dollars and 7% in local currency. Consulting revenues for the quarter were $9.3 billion, up 6% in US dollars and 7% in local currency. Managed services revenues were $9.4 billion, up 7% in both US dollars and in local currency, driven by high single-digit growth in technology managed services, which includes application managed services and infrastructure managed services, as well as high single-digit growth in operations. Turning to our geographic markets.

Speaker #1: Managed services bookings can be lumpy, which is why we focus on the trailing four-quarter book-to-bill, which was 1.2. Fixed price work, which includes outcome-based, is now over 65% of bookings and continues to grow.

Speaker #1: Turning now to revenues. Revenues for the quarter were $18.7 billion, a 6% increase in U.S. dollars and 7% in local currency. Consulting revenues for the quarter were $9.3 billion, up 6% in U.S. dollars and 7% in local currency.

Angie Park: Consulting revenues for the quarter were $9.3 billion, up 6% in US dollars and 7% in local currency. Managed services revenues were $9.4 billion, up 7% in both US dollars and in local currency, driven by high single-digit growth in technology managed services, which includes application managed services and infrastructure managed services, as well as high single-digit growth in operations. Turning to our geographic markets.

Speaker #1: Managed services revenues were $9.4 billion, up 7% in both U.S. dollars and in local currency, driven by high single-digit growth in technology managed services, which includes application managed services and infrastructure managed services, as well as high single-digit growth in operations.

Speaker #1: Turning to our geographic markets, in the Americas, revenues grew 7% in local currency. Growth was led by high tech, software and platforms, utilities, and banking and capital markets.

Angie Park: In the Americas, revenues grew 7% in local currency. Growth was led by high tech, software and platforms, utilities, and banking and capital markets. Revenue growth was driven by the United States. In EMEA, we delivered 7% growth in local currency, led by growth in public service, banking and capital markets, and software and platforms. Revenue growth was driven by the United Kingdom and Italy. In Asia Pacific, revenue grew 7% in local currency, driven by growth in public service, insurance, and communications and media. Revenue growth was driven by Japan, Australia, and Singapore. Moving down the income statement, gross margin for the quarter was 32% compared to 31.9% for Q4 last year. Sales and marketing expense for the quarter was 9.7% compared with 10.2% for Q4 last year. General and administrative expense was 7% compared to 6.6% for the same quarter last year.

Speaker #1: Revenue growth was driven by the United States. In EMEA, we delivered 7% growth in local currency, led by growth in public service, banking and capital markets, and software and platforms.

Speaker #1: Revenue growth was driven by the United Kingdom and Italy. In Asia Pacific, revenue grew 7% in local currency, driven by growth in public service, insurance, and communications and media.

Angie Park: Revenue growth was driven by the United Kingdom and Italy. In Asia Pacific, revenue grew 7% in local currency, driven by growth in public service, insurance, and communications and media. Revenue growth was driven by Japan, Australia, and Singapore. Moving down the income statement, gross margin for the quarter was 32% compared to 31.9% for Q4 last year. Sales and marketing expense for the quarter was 9.7% compared with 10.2% for Q4 last year. General and administrative expense was 7% compared to 6.6% for the same quarter last year.

Speaker #1: Revenue growth was driven by Japan, Australia, and Singapore. Moving down the income statement, gross margin for the quarter was 32% compared to 31.9% for the fourth quarter last year.

Speaker #1: Sales and marketing expense for the quarter was 9.7%, compared with 10.2% for the fourth quarter last year. General and administrative expense was 7%, compared to 6.6% for the same quarter last year.

Speaker #1: Before I continue, I want to note that results in Q4 last year include costs associated with the business optimization actions, which impacted operating margin, tax rate, and EPS.

Angie Park: Before I continue, I want to note that results in Q4 last year include costs associated with the business optimization actions which impacted operating margin, tax rate, and EPS. The following comparisons exclude these impacts and reflect adjusted results. Operating income was $2.9 billion in Q4, reflecting a 15.3% operating margin, a 20 basis points increase from adjusted operating margin in Q4 last year. Our effective tax rate for the quarter was 27.3%, compared with an adjusted effective tax rate of 27.9% for Q4 last year. Diluted earnings per share grew 9% to $3.29, compared with adjusted diluted EPS of $3.03 in Q4 last year. Days Sales Outstanding were 50 days compared to 48 days last quarter and 47 days in Q4 of last year.

Speaker #1: The following comparisons exclude these impacts and reflect adjusted results. Operating income was $2.9 billion in the fourth quarter, reflecting a 15.3% operating margin, a 20 basis point increase from the adjusted operating margin in Q4 last year.

Speaker #1: Our effective tax rate for the quarter was 27.3%, compared with an adjusted effective tax rate of 27.9% for the fourth quarter last year. Diluted earnings per share grew 9% to $3.29, compared with adjusted diluted EPS of $3.03 in the fourth quarter last year.

Speaker #1: Days services outstanding were 50 days, compared to 48 days last quarter and 47 days in the fourth quarter of last year. Free cash flow for the quarter was $2.8 billion, resulting from cash generated by operating activities of $3.1 billion, net of property and equipment additions of $250 million.

Angie Park: Free cash flow for the quarter was $2.8 billion, resulting from cash generated by operating activities of $3.1 billion, net of property and equipment additions of $250 million. Our cash balance at 31 August was $12.8 billion, reflecting our $5 billion debt offering in Q4, compared with $11.5 billion at 31 August last year. With regards to our ongoing objective to return cash to shareholders, in Q4, we repurchased 17.6 million shares for $2.3 billion at an average price of $131.89 per share. Also in August, we paid a quarterly cash dividend of $1.63 per share for a total of almost $1 billion. This represented a 10% increase over last year. Now, I'd like to take a moment to summarize the year. We delivered bookings of $84.5 billion with a record 141 quarterly client bookings over $100 million and a book-to-bill of 1.1.

Speaker #1: Our cash balance at August 31st was $12.8 billion, reflecting our $5 billion debt offering in Q4 compared with $11.5 billion at August 31st last year.

Speaker #1: With regards to our ongoing objective to return cash to shareholders. In the fourth quarter, we repurchased 17.6 million shares for 2.3 billion dollars at an average price of 131 dollars and 89 cents per share.

Speaker #1: Also in August, we paid a quarterly cash dividend of $1.63 per share for a total of almost $1 billion. This represented a 10% increase over last year.

Speaker #1: Now, I'd like to take a moment to summarize the year. We delivered bookings of $84.5 billion, with a record 141 quarterly client bookings over $100 million, and a book-to-bill of 1.1.

Angie Park: Now, I'd like to take a moment to summarize the year. We delivered bookings of $84.5 billion with a record 141 quarterly client bookings over $100 million and a book-to-bill of 1.1. These results position us well for near-term growth and the large deals, in particular, for long-term growth, with work that layers in over multiple years and positions us to help our clients with the next wave of reinventions. Full year revenue was $74.2 billion, with growth of 5% in local currency, reflecting approximately 3% organic growth.

Speaker #1: These results position us well for near-term growth, and the large deals in particular for long-term growth, with work that layers in over multiple years and positions us to help our clients with the next wave of reinventions.

Angie Park: These results position us well for near-term growth and the large deals, in particular, for long-term growth, with work that layers in over multiple years and positions us to help our clients with the next wave of reinventions. Full year revenue was $74.2 billion, with growth of 5% in local currency, reflecting approximately 3% organic growth. We delivered these results while absorbing an approximately one percentage point impact from our federal business. Looking first at type of work. Consulting revenues were $36.9 billion, up 5% in USD and 3% in local currency. Managed services revenues were $37.3 billion, up 8% in USD and 6% in local currency, driven by mid-single-digit growth in technology managed services and high single-digit growth in operations. Before I continue down the income statement, as a reminder, the following comparisons exclude the impacts of business optimization actions I noted earlier and reflect adjusted results.

Speaker #1: Full-year revenue was $74.2 billion, with growth of 5% in local currency, reflecting approximately 3% organic growth. We delivered these results while absorbing an approximately 1 percentage point impact from our federal business.

Angie Park: We delivered these results while absorbing an approximately one percentage point impact from our federal business. Looking first at type of work. Consulting revenues were $36.9 billion, up 5% in USD and 3% in local currency. Managed services revenues were $37.3 billion, up 8% in USD and 6% in local currency, driven by mid-single-digit growth in technology managed services and high single-digit growth in operations. Before I continue down the income statement, as a reminder, the following comparisons exclude the impacts of business optimization actions I noted earlier and reflect adjusted results.

Speaker #1: Looking first at type of work. Consulting revenues were $36.9 billion, up 5% in U.S. dollars and 3% in local currency. Managed services revenues were $37.3 billion, up 8% in U.S. dollars and 6% in local currency, driven by mid single-digit growth in Technology Managed Services and high single-digit growth in Operations.

Speaker #1: Before I continue down the income statement, as a reminder, the following comparisons exclude the impacts of business optimization actions I noted earlier and reflect adjusted results.

Speaker #1: Adjusted operating margin of 15.8% was a 20 basis point expansion over our adjusted FY25 results. Importantly, we delivered this expansion while significantly investing at scale across acquisitions, learning and development, and R&D.

Angie Park: Adjusted operating margin of 15.8% was a 20 basis point expansion over our adjusted FY25 results. Importantly, we delivered this expansion whilst significantly investing at scale across acquisitions, learning and development, and R&D. Adjusted earnings per share were $13.97, reflecting 8% growth over adjusted FY25 EPS. Free cash flow of $11.6 billion was up 7% year-over-year, reflecting a very strong free cash flow to net income ratio of 1.4. With regards to our ongoing objective to return cash to shareholders, we returned a record $11.5 billion in fiscal 2026, a 38% increase over the prior year, including the $2 billion of additional share repurchases we executed in Q4. At the same time, we deployed $4.9 billion of capital across 17 acquisitions. Now, let me turn to the business outlook.

Speaker #1: Adjusted earnings per share were $13.97, reflecting 8% growth over adjusted FY25 EPS. Free cash flow of $11.6 billion was up 7% year over year, reflecting a very strong free cash flow to net income ratio of 1.4.

Speaker #1: And with regards to our ongoing objective to return cash to shareholders, we returned a record $11.5 billion in fiscal '26, a 38% increase over the prior year, including the $2 billion of additional share repurchases we executed in the fourth quarter.

Speaker #1: At the same time, we deployed $4.9 billion of capital across 17 acquisitions. Now, let me turn to the business outlook. For the first quarter of fiscal '27, we expect revenues to be in the range of $18.95 to $19.6 billion.

Angie Park: For Q1 of fiscal 2027, we expect revenues to be in the range of $18.95 to $19.6 billion. This assumes the impact of FX will be about -1% compared to Q1 of fiscal 2026 and reflects an estimated 2% to 6% growth in local currency. Moving to full fiscal year 2027, based upon how the rates have been trending over the last few weeks, we assume the impact of FX on our results in US dollars will be about flat compared to fiscal 2026. For the full fiscal 2027, we expect our revenue to be in the range of 3% to 6% growth in local currency over fiscal 2026. This year, we expect an inorganic contribution of 2% to 2.5%. For operating margin, we expect fiscal year 2027 to be 15.9% to 16.1%, a 10 to 30 basis point expansion over adjusted fiscal 2026 results.

Speaker #1: This assumes the impact of FX will be about negative 1% compared to the first quarter of fiscal '26, and reflects an estimated 2% to 6% growth in local currency.

Speaker #1: Moving to the full fiscal year '27, based upon how the rates have been trending over the last few weeks, we assume the impact of FX on our results in US dollars will be about flat compared to fiscal '26.

Speaker #1: For the full fiscal '27, we expect our revenue to be in the range of 3% to 6% growth in local currency over fiscal '26.

Angie Park: For the full fiscal 2027, we expect our revenue to be in the range of 3% to 6% growth in local currency over fiscal 2026. This year, we expect an inorganic contribution of 2% to 2.5%. For operating margin, we expect fiscal year 2027 to be 15.9% to 16.1%, a 10 to 30 basis point expansion over adjusted fiscal 2026 results. We do expect to see variability in the quarters on our way to 10 to 30 basis points of expansion for the year.

Speaker #1: This year, we expect an inorganic contribution of 2% to 2.5%. For operating margin, we expect fiscal year '27 to be 15.9% to 16.1%, representing a 10 to 30 basis point expansion over the adjusted fiscal '26 results.

Speaker #1: We do expect to see variability in the quarters on our way to 10–30 basis points of expansion for the year. We expect our annual effective tax rate to be in the range of 24.5% to 26.5%.

Angie Park: We do expect to see variability in the quarters on our way to 10 to 30 basis points of expansion for the year. We expect our annual effective tax rate to be in the range of 24.5% to 26.5%. This compares to an adjusted effective tax rate of 24.9% in fiscal 2026. We expect our full-year diluted earnings per share for fiscal 2027 to be in the range of $14.39 to $14.81, or 3% to 6% growth over adjusted fiscal 2026 results. For the full fiscal 2027, we expect operating cash flow to be in the range of $11.9 to $12.7 billion, property and equipment additions to be approximately $900 million, and free cash flow to be in the range of $11 to $11.8 billion. Our free cash flow guidance reflects a very strong free cash flow to net income ratio of 1.2 to 1.3.

Angie Park: We expect our annual effective tax rate to be in the range of 24.5% to 26.5%. This compares to an adjusted effective tax rate of 24.9% in fiscal 2026. We expect our full-year diluted earnings per share for fiscal 2027 to be in the range of $14.39 to $14.81, or 3% to 6% growth over adjusted fiscal 2026 results. For the full fiscal 2027, we expect operating cash flow to be in the range of $11.9 to $12.7 billion, property and equipment additions to be approximately $900 million, and free cash flow to be in the range of $11 to $11.8 billion. Our free cash flow guidance reflects a very strong free cash flow to net income ratio of 1.2 to 1.3.

Speaker #1: This compares to an adjusted effective tax rate of 24.9% in fiscal 2026. We expect our full-year diluted earnings per share for fiscal 2027 to be in the range of $14.39 to $14.81, or 3% to 6% growth over adjusted fiscal 2026 results.

Speaker #1: For the full fiscal 2027, we expect operating cash flow to be in the range of $11.9 to $12.7 billion, property and equipment additions to be approximately $900 million, and free cash flow to be in the range of $11 to $11.8 billion.

Speaker #1: Our free cash flow guidance reflects a very strong free cash flow to net income ratio of 1.2 to 1.3. With respect to capital allocation, we will use our strong free cash flow to both invest in the business for the near and long term, and return significant cash to shareholders.

Angie Park: With respect to capital allocation, we will use our strong free cash flow to both invest in the business for the near and long term and return significant cash to shareholders. We will invest both organically and inorganically. Our organic investments include R&D, learning, and talent development. With respect to our inorganic investments, as Julie mentioned, we just closed in September the Cyber OT acquisitions, which was about $3 billion of capital that shifted from Q4 of FY2026 into Q1 of FY2027 due to regulatory timing. Looking ahead, we currently expect to deploy another approximately $5 billion in acquisitions in fiscal 2027 based on the opportunities we see today to accelerate our growth strategy. We are planning for this level of investment because we currently see a number of opportunities that will position us for higher organic growth over the long term.

Speaker #1: We will invest both organically and inorganically. Our organic investments include R&D, learning, and talent development. With respect to our inorganic investments, as Julie mentioned, we just closed in September the cyber OT acquisition, which was about $3 billion of capital that shifted from Q4 of FY26 into Q1 of FY27 due to regulatory timing.

Speaker #1: Looking ahead, we currently expect to deploy approximately $5 billion in acquisitions in fiscal 2027, based on the opportunities we see today to accelerate our growth strategy.

Angie Park: Looking ahead, we currently expect to deploy another approximately $5 billion in acquisitions in fiscal 2027 based on the opportunities we see today to accelerate our growth strategy. We are planning for this level of investment because we currently see a number of opportunities that will position us for higher organic growth over the long term.

Speaker #1: We're planning for this level of investment because we currently see a number of opportunities that will position us for higher organic growth over the long term.

Speaker #1: And if you look at our history, when we've seen opportunities like this, we've acted on them. That discipline has served us well. The final amount will depend on the right opportunities and timing.

Angie Park: And if you look at our history, when we have seen opportunities like this, we have acted on them, and that discipline has served us well. The final amount will depend on the right opportunities and timing. On shareholder returns, we expect to return at least $9.5 billion, representing approximately 75% of operating cash flow through a combination of dividends growing 5% per share and $5.5 billion in share repurchases, which exceed issuances. Given this year's commitment and the elevated level of repurchases we executed last year, we expect to reduce our weighted average share count by approximately 3% in FY 2027. Our board of directors declared a quarterly cash dividend of $1.71 per share to be paid on 13 November. We now have approximately $7 billion of share repurchase authority remaining. With that, let's open it up so that we can take your questions. Alexia?

Speaker #1: On shareholder returns, we expect to return at least $9.5 billion, representing approximately 75% of operating cash flow, through a combination of dividends—growing 5% per share—and $5.5 billion in share repurchases, which exceed issuances.

Speaker #1: Given this year's commitment, and the elevated level of repurchases we executed last year, we expect to reduce our weighted average share count by approximately 3% in FY27.

Angie Park: Given this year's commitment and the elevated level of repurchases we executed last year, we expect to reduce our weighted average share count by approximately 3% in FY 2027. Our board of directors declared a quarterly cash dividend of $1.71 per share to be paid on 13 November. We now have approximately $7 billion of share repurchase authority remaining. With that, let's open it up so that we can take your questions. Alexia?

Speaker #1: Our Board of Directors declared a quarterly cash dividend of $1.71 per share, to be paid on November 13th. We now have approximately $7 billion of share repurchase authority remaining.

Speaker #1: With that, let's open it up so that we can take your questions. Alexia?

Speaker #2: Thanks, Angie. We ask that each participant keep to one question and a follow-up to allow as many participants as possible. Operator, you may now provide instructions to those on the line.

Alexia Quadrani: Thanks, Angie. We ask that each participant keep to one question and a follow-up to allow as many participants as possible. Operator, you may now provide instructions to those on the line.

Speaker #3: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1, on your telephone keypad.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question today comes from Tien-Tsin Huang with JPMorgan. Please go ahead.

Speaker #3: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2.

Speaker #3: And our first question today comes from Tin Jin Wong with J.P. Morgan. Please go ahead.

Speaker #4: Thank you. Hi Julie, Angie, and Alexia. Really strong results. I want to give a little bit more detail on maybe the withdrawal of the upside in the quarter, and any surprises across the three months as you saw the quarter play out.

Angie Park: Thank you. Hi, Julie, Angie, and Alexia. With the strong results, I want to get a little bit more detail on maybe what drove the upside in the quarter and any surprises across the 3 months as you saw the quarter play out, and how does that result inform the outlook here in fiscal 2027? I heard that the demand environment was steady, so just curious how you are thinking about the quarter and how it landed and how it drives the outlook.

Tien-Tsin Huang: Thank you. Hi, Julie, Angie, and Alexia. With the strong results, I want to get a little bit more detail on maybe what drove the upside in the quarter and any surprises across the 3 months as you saw the quarter play out, and how does that result inform the outlook here in fiscal 2027? I heard that the demand environment was steady, so just curious how you are thinking about the quarter and how it landed and how it drives the outlook.

Speaker #4: And how does that result inform the outlook here in fiscal '27? I heard that the demand environment was steady, so just curious how you're thinking about the quarter and how it landed, and how it drives the outlook.

Speaker #2: Great, thanks, Tin Jin. Yeah, no, look, we had a great quarter, and it really demonstrates the growth strategy that we've been executing and the fundamentals of our business.

Julie Sweet: Great. Thanks, Tien-Tsin. Yeah, no, look, we had a great quarter, and it really demonstrates the growth strategy that we have been executing and the fundamentals of our business. When you think about 7% growth in every market, in the consulting type of work, managed services, and positive growth in every industry, the big growth drivers for the quarter were our large-scale reinventions, the ecosystem, and data and AI, because it is now embedded across all of our work. You saw that with how the ecosystem for the year was greater than our average, and where with the emerging data and AI players, we doubled our revenue and tripled our bookings. As you look at the quarter, the Middle East, the direct impact of the Middle East continued to be a headwind, and in fact worsened in Q4.

Speaker #2: And so, when you think about 7% growth in every market and consulting type of work, managed services, and positive growth in every industry—the big growth drivers for the quarter were our large-scale reinventions, the ecosystem, and data and AI, because it's now embedded across all of our work.

Speaker #2: And you saw that with how the ecosystem for the year was greater than our average. And, with the emerging data and AI players, we doubled our revenue and tripled our bookings.

Speaker #2: Now, as you look at the quarter, the Middle East—the direct impact of the Middle East—continued to be a headwind. And, in fact, it worsened in Q4.

Speaker #2: But we did see the indirect impacts on discretionary spend for product and resources stabilize. And when you think about the overdelivery above the 5% at the top of our guided range, it was a number of factors.

Julie Sweet: We did see the indirect impacts on discretionary spend for product and resources stabilize. When you think about the over-delivery above the 5% at the top of our guided range, it was a number of factors. We saw an uptick in small deals. We were able to mobilize faster for some of the new contracts. Some of our acquisitions in our federal business over-delivered, and we allowed our people to carry over PTO, which meant we had people for the demand. We are really very pleased that this quarter really demonstrates the strong fundamentals in our business.

Speaker #2: So, we saw an uptick in small deals. We were able to mobilize faster for some of the new contracts, our acquisitions, and some of our acquisitions, and our federal business overdelivered.

Speaker #2: And we allowed our people to carry over PTO, which meant we had people for the demand. So we're really very pleased that this quarter truly demonstrates the strong fundamentals in our business.

Angie Park: Great. Sounds like good stuff. Just one-

Speaker #2: Yep, and I would just add, just for you.

Angie Park: Yeah, Ben, I would just add just for you that-

Tien-Tsin Huang: Please

Speaker #1: Oh, and Tin Jin, I would just add that no one factor was material in the outperformance.

Angie Park: Oh, and Tingen, I would just add that no one factor was material in the outperformance.

Speaker #4: Okay, good. No, it's nice to see this broad base. Just my quick follow-up then: I heard the $5 billion that you planned to deploy on acquisitions in '27, but you also bought a lot of stock in the fourth quarter.

Tien-Tsin Huang: Okay, good. No, it is just nice to see it is broad based. Just my quick follow-up then, I heard the $5 billion that you plan to employ on acquisitions in 2027, but you also bought a lot of stock in Q4. I heard the deferral by the month on some of the OT deals. Just curious, Julie, your appetite for doing acquisitions in 2027. Do you have good line of sight here on the spend and the areas of focus? Is this more opportunistic or again, do you have good line of sight into it? Thank you.

Speaker #4: I heard the deferral on, by the month, on some of the OT deals. But just curious, Julie here, your appetite for doing acquisitions, and in '27, do you have good line of sight here on the spend and the areas of focus?

Speaker #4: Is this more opportunistic, or, again, do you have a good line of sight into it? Thank you.

Speaker #2: Yeah, no, we thank you. We do have a good line of sight. And just as a reminder, right, we generate very strong free cash flow, and we use that to invest in our business and return a significant amount of cash to shareholders.

Julie Sweet: Yeah. Thanks. We do have a good line of sight and just as a reminder, we generate very strong free cash flow, and we use that to invest in our business and return a significant amount of cash to shareholders. We just did this last year, right? We are going to do it again. And it is part of our growth strategy. When we see significant opportunities in the market through acquisitions to either grow in really high-growth areas like data and AI, and to expand into new areas like we have done with data centers, we have done with data, and OT security, we go after them because that is how you position for long-term growth. And we have a good line of sight to good acquisitions, which is why we plan $5 billion additional investment.

Speaker #2: We just did this last year, right? We're going to do it again, and it's part of our growth strategy. When we see significant opportunities in the market through acquisitions to either grow in really high-growth areas like data and AI, or to expand into new areas—like we've done with data centers, with data, and OT security—we go after them because that's how you position for long-term growth.

Speaker #2: And we have a good line of sight to good acquisitions, which is why we plan $5 billion of additional investment. And of course, at the end of the day, it'll depend on whether the opportunities come in as we expect and the timing.

Julie Sweet: And of course, at the end of the day, it will depend on do the opportunities come in as we expect and the timing, but we are positioning for long-term growth when we invest in the business.

Speaker #2: But we are positioning for long-term growth, and we invest in the business.

Speaker #4: All right, well done. To your channel. See you at Investor Day, right? In a couple of weeks.

Tien-Tsin Huang: All right. Well done. See you at your end of this.

Julie Sweet: Thanks.

Tien-Tsin Huang: See you at Investor Day, right? In a couple of weeks.

Speaker #2: Yep. Thanks.

Julie Sweet: Yep. Thanks.

Speaker #3: Thank you. And our next question today comes from Darren Peller at Wolfe Research. Please go ahead.

Operator: Thank you. Our next question today comes from Darrin Peller at Wolfe Research. Please go ahead.

Speaker #4: Hey, guys. Thanks. Nice results, and thanks for the clarification on the quarter itself. Maybe just go a little further into the guide now, just because it does imply an organic deceleration.

Darrin Peller: Hey, guys. Thanks. Nice results and thanks for the clarification on the quarter itself. Maybe just go a little further into the guide now, just because it does imply an organic deceleration. Maybe just help us understand what you saw this quarter that you want to build in a little more conservatism around in the year ahead. If you could also just touch on the variability in the guide, what factors would lead to the low end versus the midpoint or the high end, that would be great.

Speaker #4: So, maybe just help us understand what you saw this quarter that makes you want to build in a little more conservatism around guidance in the year ahead.

Speaker #4: If you could also just touch on the variability in the guide—what factors would be to the low end versus the midpoint or the high end—that'd be great.

Speaker #2: Yeah.

Angie Park: Yeah. Hey, Darrin. Nice to talk to you. Let me just start with, I think that relative to whether it is Q1, I think it is important to have the framing of how we are seeing FY27 play out. Look, as Julie mentioned, our fundamentals are really strong when you look at it across our bookings, our revenue, our profit, our free cash flow. Let me tell you what we see for 2027. We just posted $85 billion in bookings, and that included 141 clients with quarterly bookings over $100 million. We see backlog. We see the big deals from those large deals layering in. Our pipeline is solid, and we see continued demand for those large deals. As it relates to the macro overall, we expect that dynamic to continue.

Speaker #1: I hear you, Darren. Nice to talk to you. Let me just start with, I think that, relative to whether it's Q1, it's important to have the framing of how we're seeing FY27 play out.

Speaker #1: And look, as Julie mentioned, our fundamentals are really strong when you look at it across our bookings, our revenue, our profit, and our free cash flow.

Speaker #1: But let me tell you what we see for '27. So, we just posted $85 billion in bookings, and that included 141 clients with quarterly bookings over $100 million.

Speaker #1: We see backlog. We see the big deals from those large deals layering in. Our pipeline is solid, and we see continued demand for those large deals.

Angie Park: Our pipeline is solid, and we see continued demand for those large deals. As it relates to the macro overall, we expect that dynamic to continue. But with respect to discretionary spend at the top end of the range, we have allowed for a stable to slightly improving discretionary spend environment, while at the bottom, we allow for deterioration. What I just covered with you for FY27, same holds true for Q1.

Speaker #1: And then, as it relates to the macro overall, we expect that dynamic to continue. With respect to discretionary spend, at the top end of the range, we have allowed for a stable to slightly improving discretionary spend environment, while at the bottom, we allow for deterioration.

Angie Park: But with respect to discretionary spend at the top end of the range, we have allowed for a stable to slightly improving discretionary spend environment, while at the bottom, we allow for deterioration. What I just covered with you for FY27, same holds true for Q1.

Speaker #1: And so, what I just covered with you for FY '27, the same holds true for Q1.

Speaker #4: Okay, all right. That's really helpful. Thanks, guys. Maybe just touch for a moment on pricing and the competitive landscape today. Are you seeing any competitors price more aggressively to win contracts, especially larger deals, in the context of some of the changes happening around, obviously, becoming more agentic, and just in general terms?

Darrin Peller: Okay. All right. That is really helpful. Thanks, guys. Maybe just touch for a moment on pricing in the competitive landscape today. Are you seeing any competitors price more aggressively to win contracts, especially larger deals in the context of some of the changes happening around obviously becoming more agentic and just in general terms?

Speaker #2: Yeah, Darren, look, we continue to operate in a highly competitive environment. And when you think about pricing in '26, it was overall stable. At the same time, in Q4, we saw lower pricing in many areas of our business.

Julie Sweet: Yeah, Daren. Look, we continue to operate in a highly competitive environment, and when you think about pricing in 2026, it was overall stable. At the same time in Q4, we saw lower pricing in many areas of our business. As we look to FY27, our guidance, including our 10 to 30 basis point margin expansion, assumes that we are going to have continued intense competition and our current expectations are baked in.

Speaker #2: And so as we look to FY27, our guidance, including our 10 to 30 basis point margin expansion, assumes that we're going to have continued intense competition, and our current expectations are baked in.

Speaker #4: Got it. Thanks, guys.

Darrin Peller: Got it. Thanks, guys.

Speaker #3: Thank you. All right, next question today comes from Brian King in that city. Please go ahead.

Angie Park: Yep. Thanks.

Operator: Thank you. Our next question today comes from Bryan Keane at Citi. Please go ahead.

Speaker #5: Hey guys, congrats on these definitely solid results here. I guess one thing I was thinking about, Julie, is just the delivery model. We're kind of pushing for this non-FTE kind of commercial model.

Bryan Keane: Hey, guys. Congrats on these definitely solid results here. I guess one thing I was thinking about, Julie, is just the delivery model. We're kind of pushing for this non-FTE kind of commercial model and just trying to reconcile that with the growth in headcount that was up 5%. To be honest with you, I thought with agentic, we'd be probably decreasing headcount. Just trying to reconcile those two factors going forward.

Speaker #5: And just trying to reconcile that with the growth and headcount—that was up 5%. To be honest with you, I thought with agentic, we'd probably be decreasing headcount.

Speaker #5: So, just trying to reconcile those two factors going forward.

Speaker #2: Sure. So, a couple of things, right? We're experiencing a lot of demand in new areas. So, we're both upskilling and hiring in data and AI.

Julie Sweet: Sure. A couple of things, right? We're experiencing a lot of demand in new areas, right? We're both upskill and hiring in data and AI. At the same time, and you saw that we increased revenue per person this year, so you are seeing an increase in revenue per person, which is what you would expect in part due to AI. But we're also in growth mode. When we look at next year, we expect to hire in every market, but it will be below what we've been hiring this year. But very importantly, we still expect to hire more entry-level, which is because we're very focused on really changing sort of what our entry-level workers do, what our reinvention do. So that we expect to also continue. It came in this year as expected, pleased with higher revenue per person.

Speaker #2: And at the same time, you saw that we increased revenue per person this year. So you are seeing an increase in revenue per person, which is what you would expect, in part due to AI.

Speaker #2: But we're also in growth mode. So, when we look at next year, we expect to hire in every market, but it will be below what we've been hiring this year.

Julie Sweet: When we look at next year, we expect to hire in every market, but it will be below what we've been hiring this year. But very importantly, we still expect to hire more entry-level, which is because we're very focused on really changing sort of what our entry-level workers do, what our reinvention do. So that we expect to also continue. It came in this year as expected, pleased with higher revenue per person. Next year, we do expect to hire, but it will be at a lower rate, in part due to AI.

Speaker #2: But very importantly, we still expect to hire more entry-level, which is because we're very focused on really changing sort of what our entry-level workers do, what our reinventors do, and then, and so that, we expect to also continue.

Speaker #2: So, it came in this year as expected. We're pleased with higher revenue per person. And next year, we do expect to hire, but it will be at a lower rate, in part due to AI.

Julie Sweet: Next year, we do expect to hire, but it will be at a lower rate, in part due to AI.

Speaker #5: Great, that's helpful. And then, just as a follow-up—just thinking about the managed services bookings in particular—that was a source of softness in the third quarter.

Bryan Keane: Great. That's helpful. Then just as a follow-up, just thinking about the managed services bookings in particular, that was a source of softness in Q3. It sounded like a couple of deals in particular were pushed. Then it was a source of strength this quarter. Just wondering, timing, did any of those deals come actually into Q4? Just trying to figure out how to model out the managed service booking since I know you guys say it's lumpy, but it's tough to get a handle on where it's going. Thanks.

Speaker #5: It sounded like a couple of deals in particular were pushed, and then it was a source of strength this quarter. So, just wondering about timing—did any of those deals actually come into the fourth quarter? I'm just trying to figure out how to model out the managed service bookings since, I know you guys say it's lumpy, but it's tough to get a handle on where it's going.

Speaker #5: Thanks.

Speaker #2: Sure, Brian. And you went to the right place, right? Our managed services—remember, our strategy is geared toward these large-scale deals, and those are lumpy.

Julie Sweet: Sure, Bryan. You went to the right place, right? Our managed services, remember, our strategy are these large-scale deals, and those are lumpy. That is what we explained in Q3, and you saw in Q4 they went up. They went up in Q4 not because of the deals that got pushed, which will come through, we expect, sometime in FY27, but because of the deals that we were seeing come through in Q4 came through. That is just the nature of our business as we continue to have large-scale transformations drive our business. It has always been lumpy. You have covered us for a long time. It is going to continue to be lumpy, which is why we do not guide to bookings. We really focus on revenue. Focusing on the three to six and understanding the fundamentals of our business is how we drive our business.

Speaker #2: And so that's what we explained in Q3. And you saw, in Q4, they went up. They went up in Q4, not because of the deals that got pushed, which will come through.

Speaker #2: We expect sometime in FY27, but because of the deals that we were seeing come through in Q4, they came through. And so that is just the nature of our business—we continue to have large-scale transformations drive our business.

Julie Sweet: That is just the nature of our business as we continue to have large-scale transformations drive our business. It has always been lumpy. You have covered us for a long time. It is going to continue to be lumpy, which is why we do not guide to bookings. We really focus on revenue. Focusing on the three to six and understanding the fundamentals of our business is how we drive our business.

Speaker #2: It's always been lumpy. You've covered us for a long time. It's going to continue to be lumpy, which is why we don't guide to bookings.

Speaker #2: We really focus on revenue. And so, focusing on the three to six and understanding the fundamentals of our business is how we drive our business.

Speaker #1: Yeah. And I would just add, Darren, as you think about the 3 to 6, for consulting and managed services, they'll both be in the range—the overall range.

Angie Park: Yeah. I would just add, Darren, as you think about the three to six for consulting and managed services, they will both be in the range, the overall range of the guide that we gave. When you look at it by market, by industry, by type of work, we do see broad-based and balanced growth in 2027.

Speaker #1: The guidance that we gave, and when you look at it by market, by industry, by type of work, we do see broad-based and balanced growth in '27.

Speaker #5: Great. Thanks so much.

Bryan Keane: Great. Thanks so much.

Speaker #3: Thank you. And our next question today comes from Jason Kupferberg with Wells Fargo. Please go ahead.

Operator: Thank you. Our next question today comes from Jason Kupferberg with Wells Fargo. Please go ahead.

Speaker #6: Good morning, guys. I just wanted to come back to the point you were making around the Middle East headwind. I think you said it worsened a little bit on the direct side, but it was in line on the indirect side.

Jason Kupferberg: Good morning, guys. I just wanted to come back on the point you were making around the Middle East headwind. I think you said it worsened a little bit on the direct side, but it was in line on the indirect side. I wanted to get a sense of what is assumed in the 2027 guidance with respect to the Middle East because presumably you will start to lap that during Q3.

Speaker #6: So I wanted to get a sense of what is assumed in the F-27 guidance with respect to the Middle East, because presumably you will start to lap that during the third quarter.

Speaker #2: Yep.

Angie Park: Yeah. Hi there. Good morning. The Middle East, let me just remind you, it is roughly about USD 1 billion on an annualized basis. Julie talked about what we experienced in Q4. We do expect that to continue, and we have baked that in. Overall, the top end of the range does not assume any growth, and the bottom of the range allows for deterioration.

Speaker #1: Hi there, good morning. So, the Middle East—let me just remind you—it's about $1 billion. It's roughly about $1 billion on an annualized basis.

Speaker #1: Julie talked about what we experienced in Q4. We do expect that to continue, and we've baked that in. Overall, the top end of the range doesn't assume any growth, and the bottom of the range allows for deterioration.

Speaker #6: Okay, understood. Thank you on that. And then I wanted to come back to the point you were making, in terms of one of the sources of upside in Q4 itself.

Jason Kupferberg: Okay. Understood. Thank you on that. I wanted to come back to the point you were making in terms of one of the sources of upside in Q4 itself. You talked about faster than expected mobilization. Just looking at utilization rates, it looked like they were steady quarter-over-quarter and year-over-year. Was just wondering if you could elaborate a little bit on those mobilization efforts that were a contributor to the strength there in Q4. Thanks.

Speaker #6: You talked about faster-than-expected mobilization. Just looking at utilization rates, it looked like they were steady quarter-over-quarter and year-over-year. So we were just wondering if you could elaborate a little bit on those mobilization efforts that were a contributor to the strength there in Q4.

Speaker #6: Thanks.

Speaker #2: Yeah, mobilization just means that we get the new contracts started sooner. So it doesn't affect the utilization. It's actually just having the people and getting them started on new contracts faster.

Julie Sweet: Yeah. Mobilization just means that we get the new contracts started sooner. It does not affect the utilization. It is actually just having the people and getting them started on new contracts faster. It is not about having the same people work harder.

Speaker #2: So, it's not about having the same people work harder.

Speaker #3: Thank you.

Operator: Thank you.

Speaker #4: Operator, next question.

Angie Park: Operator, next question.

Alexia Quadrani: Operator, next question.

Speaker #3: Yes, ma'am. And our next question today comes from Keith Bachman at BMO Capital Markets. Please go ahead.

Operator: Yes, ma'am. Our next question today comes from Keith Bachman at BMO Capital Markets. Please go ahead.

Speaker #7: Many thanks. I wanted to ask two questions, if I could. Julie, could you comment on the competitive environment with, excuse me, companies like Palantir and their FTE model?

Keith Bachman: Many thanks. I wanted to ask two questions if I could. Julie, could you comment on the competitive environment with, excuse me, companies like Palantir and their FDE model, but they are not the only ones. There are others trying to emulate that model, and these are in the software companies who are trying to deploy more FDE engineers. I just wanted to hear your comments on how that may be influencing the competitive dynamics. It seems like Accenture and others are sort of with Palantir, but how should we think about the competitive. Excuse me, and then I have a follow-up.

Speaker #7: But they're not the only ones. There are others trying to emulate that model, and even the software companies are trying to deploy more FTE engineers.

Speaker #7: And I just wanted to hear your comments on how that may be influencing the competitive dynamics. It seems like Accenture and others are sort of with Palantir, but how are you thinking about the competitive—excuse me.

Speaker #7: And then I have a follow-up.

Speaker #2: I'm sorry, can you repeat that? Because you kind of came in and out.

Angie Park: I am sorry. Can you repeat that? Because you kind of came in and out.

Julie Sweet: I am sorry. Can you repeat that? Because you kind of came in and out.

Speaker #7: Yes, I will. Thank you.

Keith Bachman: Yes, I will. Thank you. Julie, as you think about the competitive environment, I just wanted to see if you could comment on Palantir and the role of FDEs and how that is influencing the market. It is not just Palantir. Also, the software companies are deploying more forward-deployed engineers, and how is that influencing the competitive dynamics with Accenture and others?

Speaker #6: Julie, as you think about the competitive environment, I just wanted to see if you could comment on Palantir and the role of FTEs, and how that's influencing the market.

Speaker #6: It's not just Palantir. Other software companies are also deploying more forward-deployed engineers. How is that influencing the competitive dynamics with Accenture and others?

Speaker #2: Yeah, it's a great opportunity. As you know, we have a business group with Palantir, and the FDE model is a growth opportunity for us because we can scale FDEs. We're doing that with Palantir and with many of our other partners.

Julie Sweet: Yeah. It is a great opportunity. As you know, we have a business group with Palantir, and the FDE model is a growth opportunity for us because we can scale FDEs, and we are doing that with Palantir and with many of our other partners, and we have made those announcements publicly. Keep in mind that FDEs are used a lot with the new pioneering things, and then it becomes something of, it is a repeatable offering. What Accenture can do with all of these partners, is we can help them have more FDEs, because we are training and delivering more FDEs as part of our partnerships. Then as we create those new solutions, we have then the scale to go repeat them and take them to multiple clients. This is why you see so many of our partners.

Speaker #2: And we've made those announcements publicly. And keep in mind that FDEs are used a lot with the sort of new pioneering things, and then it becomes something that's a repeatable offering.

Speaker #2: And so what Accenture can do with all of these partners, right, is we can help them have more FDEs, because we're training and delivering more FDEs as part of our partnerships.

Julie Sweet: What Accenture can do with all of these partners, is we can help them have more FDEs, because we are training and delivering more FDEs as part of our partnerships. Then as we create those new solutions, we have then the scale to go repeat them and take them to multiple clients. This is why you see so many of our partners. It is why we are the number one partner for these emerging AI and data and our top ecosystem, because we have both delivery models.

Speaker #2: And then, as we create those new solutions, we have the scale to go repeat them and take them to multiple clients. This is why you see so many of our partners, it's why we are the number one partner for these emerging AI and data, and our top ecosystem, because we have both delivery models.

Julie Sweet: It is why we are the number one partner for these emerging AI and data and our top ecosystem, because we have both delivery models.

Speaker #6: Okay. Okay. Perfect. And my follow-up relates to renewals. I wanted to hear if you could speak to the economics of the renewals, and how that's changed, or any changes that might be occurring.

Keith Bachman: Okay. Perfect. My follow-up relates to renewals. I wanted to hear if you could speak to the economics of renewals and how that is changed or any changes that might be occurring. What I am really trying to understand is, with AI, there has been some deflationary forces. When you think about the guidance associated with FY27, how are you thinking about the impact of AI on like for like renewals and the amount of deflation that you are baking into those due to AI?

Speaker #6: And what I'm really trying to understand is, with AI, there have been some deflationary forces, and when you think about the guidance associated with FY27, how are you thinking about the impact of AI on sort of like-for-like renewals and the amount of deflation that you're baking into those due to AI?

Speaker #2: Oh, hi. Let me start.

Angie Park: Hi, let me start, Keith. I think that, as you step back and you think about the productivity, that is always been a part of what we do. That is what we provide to clients. That is why they come to us. As we look at the impact overall, it is really been steady.

Speaker #1: Keith, I think that as you step back and think about productivity, that's always been a part of what we do. That's what we provide to clients.

Speaker #1: That's why they come to us. And so, as we look at the impacts overall, it's really been steady, right? So the pace, duration, all of those things remain steady.

Keith Bachman: Okay.

Angie Park: The pace, duration, all of those things remain steady. What is important for us is we are there with our clients, and while we are helping them, we are also expanding our work with them.

Speaker #1: But what's important for us is we're there with our clients, and while we are helping them, we're also expanding our work with them.

Speaker #2: Yeah, so we are definitely seeing increased productivity due to AI. Overall, though, the impact has been steady, and we're offsetting—just as we have in the past—with new kinds of work, more scope, etc.

Julie Sweet: Yeah. We are definitely giving more productivity due to AI. Nick, overall though, the impact has been steady. We are offsetting, as we have in the past, with new kinds of work, more scope, et cetera. Absolutely giving more AI efficiencies and more than offsetting that as a whole.

Speaker #2: So absolutely giving more AI efficiencies, and more than offsetting that as a whole.

Speaker #6: Okay, so the FY27 assumes sort of steady efficiency gains. Okay, perfect. Thank you.

Keith Bachman: Okay. The FY27 assumes steady efficiency gains. Okay, perfect. Thank you.

Speaker #1: Yes.

Angie Park: Yes.

Speaker #3: Thank you. Our next question today comes from Jim Schneider at Goldman Sachs. Please go ahead.

Operator: Thank you. Our next question today comes from James Schneider at Goldman Sachs. Please go ahead.

Speaker #5: Good morning. Thanks for taking my question. I was wondering if you could maybe talk a little bit about some of the AI model safety work you've disclosed, in particular your partnership with Anthropic.

James Schneider: Good morning. Thanks for taking my question. I was wondering if you could maybe talk a little bit about some of the AI model safety work you've disclosed, in particular, your partnership with Anthropic. If you could scope anything about that in terms of size, magnitude, duration, and whether in light of the recent White House activities around AI safety, whether you've seen inbound inquiries from any other frontier labs or other potential customers around this kind of work?

Speaker #5: If you could provide any scope regarding that in terms of size, magnitude, and duration, and, in light of the recent White House activities around AI safety, whether you've seen inbound inquiries from other frontier labs or potential customers about this kind of work.

Speaker #2: Thanks for the question. Well, first of all, our acquisition of Faculty earlier this year was driven in part because they have deep safety experience.

Julie Sweet: Well, first of all, our acquisition of Faculty earlier this year was driven in part because they had deep safety experience already. That was us anticipating both the growth of safety as part of serving the frontier labs, but also even bigger. Safety is a big component of what all of the enterprises have to do. When you think about our growth drivers today in AI and data, a lot of that growth is us building out that enterprise AI technology platform and embedding safety. Safety is a big part of why companies turn to us both on the enterprise side, and as you saw, Anthropic selected us for our AI expertise, our security expertise, our AI safety expertise. That relationship is non-exclusive.

Speaker #2: Already. And that was us anticipating both the growth of safety as part of serving the frontier labs, but also even bigger, right? Safety is a big component of what all of the enterprises have to do.

Speaker #2: And so, when you think about our growth drivers today in AI and data, a lot of that growth is us building out that enterprise AI technology platform and embedding safety.

Speaker #2: So safety is a big part of why companies turn to us, both on the enterprise side, and as you saw, Anthropic selected us for our AI expertise, our security expertise, and our AI safety expertise.

Julie Sweet: Safety is a big part of why companies turn to us both on the enterprise side, and as you saw, Anthropic selected us for our AI expertise, our security expertise, our AI safety expertise. That relationship is non-exclusive. And in fact, it is important that we continue to actually work with multiple labs, which is what our expectation is. Of course, we are not going to comment specifically on any particular contract, but we are investing USD 1 billion over the next five years to build out that safety business, including a safety lab and the team.

Speaker #2: And that relationship is non-exclusive, and in fact, it's important that we continue to actually work with multiple labs, which is what our expectation is.

Julie Sweet: And in fact, it is important that we continue to actually work with multiple labs, which is what our expectation is. Of course, we are not going to comment specifically on any particular contract, but we are investing USD 1 billion over the next five years to build out that safety business, including a safety lab and the team.

Speaker #2: And of course, we're not going to comment specifically on any particular contract, but we are investing $1 billion over the next five years to build out that safety business, including a safety lab and the team.

Speaker #5: Thank you. And then as a follow-up, if you think about—and I realize you don't guide for it—if you think about your gross margin profile, you turned in some gross margin expansion for the full fiscal year '26, which is the first time, I think, in a couple of years. As you think about the 10 to 30 bps of expansion for fiscal '27, how much of a component of that is gross margins?

James Schneider: Thank you. As a follow-up, if you think about, and I realize you do not guide for it, if you think about your gross margin profile, you turned in some gross margin expansion for the full fiscal year 2026, which is the first time, I think, in a couple of years. As you think about the 10 to 30 basis points of expansion for fiscal 2027, how much of a component of that is gross margins? Can you expand gross margins, and can you maybe talk about some of the levers to get there, whether that be fixed price contracts, pricing, utilization, or anything else that would drive the gross margin side of the equation? Thank you.

Speaker #5: Can you expand on gross margins? And maybe talk about some of the levers to get there, whether that be fixed-price contracts, pricing, utilization, or anything else that would drive the gross margin side of the equation?

Speaker #5: Thank you.

Speaker #1: Hey, Jim. Good morning. As it relates to gross margins, within gross margins, we were really pleased with the 10 basis points expansion for the quarter and for the year, which were certainly a part of our overall expansion of 20 basis points in operating margin for the year as well.

Angie Park: Hey, Jim. Good morning. As it relates to gross margins, so within gross margins, we were really pleased with the 10 basis points expansion for the quarter and for the year, which were certainly a part of our overall expansion of 20 basis points in op margin for the year as well. When you think about gross margin, we are always focused on the different levers being pricing, contract profitability, efficiencies in how we deliver our services. But importantly, our investments are predominantly embedded in gross margin. So if you think about our acquisitions that we did this year, USD 4.9 billion, if you think about our talent and our learning that we do, our R&D, all of that, the majority of that hits gross margin. So what you do not see

Speaker #1: When you think about gross margin, we're always focused on the different levers: pricing, contract profitability, efficiencies, and how we deliver our services.

Speaker #1: But importantly, our investments are predominantly embedded in gross margin. So if you think about our acquisitions that we did this year, $4.9 billion; if you think about our talent, and our talent and our learning that we do, our R&D—all of that, the majority of that hits gross margins.

Angie Park: But importantly, our investments are predominantly embedded in gross margin. So if you think about our acquisitions that we did this year, USD 4.9 billion, if you think about our talent and our learning that we do, our R&D, all of that, the majority of that hits gross margin. So what you do not see is that our contract profitability, which expanded this year, which we were really pleased with, absorbs the massive investments that we make year in and year out. The best way to look at us is the guidance that we give for op margin, which is 10 to 30 basis points for the year.

Speaker #1: So, what you don't see is that our contract profitability—which expanded this year, which we were really pleased with—has absorbed the massive investments that we make year in and year out.

Julie Sweet: is that our contract profitability, which expanded this year, which we were really pleased with, absorbs the massive investments that we make year in and year out. The best way to look at us is the guidance that we give for op margin, which is 10 to 30 basis points for the year.

Speaker #1: And so, the best way to look at us is the guidance that we give for ops margin, which is 10 to 30 basis points for the year.

Speaker #5: Thank you.

James Schneider: Thank you.

Speaker #3: Thank you. Our next question today comes from Brian Bergen at PDC Callan. Please go ahead.

Alexia Quadrani: Thank you. Our next question today comes from Bryan Bergin at TD Cowen. Please go ahead.

Operator: Thank you. Our next question today comes from Bryan Bergin at TD Cowen. Please go ahead.

Speaker #7: Hi, good morning. Thank you. I wanted to ask about broader enterprise IT and was hoping you could talk about what you're seeing in overall IT budgets and what your guide is implying about clients' 2027 technology spend. Specifically, I'm curious what you're seeing regarding AI costs and all the considerations around tokenomics as they unfold.

Bryan Bergin: Hi. Good morning. Thank you. I wanted to ask about broader enterprise IT, hoping you can talk about what you are seeing in overall IT budgets and what your guide is implying about clients' 2027 technology spend. Specifically, I am curious what you are seeing in how AI costs and all the considerations around tokenomics are unfolding. Are clients getting a better handle whereby services spend can improve or not necessarily see budget reprioritization as you move forward?

Speaker #7: Are clients getting a better handle whereby services spend can improve, or not necessarily see budget reprioritization as you move forward?

Speaker #2: Thanks, Brian. So, we're assuming right now kind of more of the same in terms of overall budgets, and obviously the budget cycles for most of our clients who are calendar year-end are only starting now.

Julie Sweet: Thanks, Bryan. We are assuming right now more of the same, so in terms of overall budgets, and obviously the budget cycles for most of our clients who are calendar year end is only starting now, so we will know more in January and February. But we are assuming right now more of the same. You are seeing token costs go down. You have all probably been tracking, even just in the last few weeks, there has been new models. A big part of the new models has been the lower token costs, and of course, we are helping a lot of our clients work on their tokenomics. What we have seen so far is that even with the increase in spending on AI, which is as a net new category, we obviously just posted 5% growth.

Speaker #2: So we'll kind of know more in January and February, but we're assuming right now kind of more of the same. And you are seeing token costs go down.

Speaker #2: You've all probably been tracking—even just in the last few weeks—there've been new models, and a big part of them, the new models, has been the lower token costs.

Speaker #2: And, of course, we're helping a lot of our clients work on their tokenomics. What we've seen so far is that even with the increase in spending on AI—which is kind of a net new category—we obviously just posted 5% growth.

Speaker #2: So the way we think about the dynamic is, the more that token prices go down over the next couple of years, the more it's going to enable companies to use AI in more places and at scale.

Julie Sweet: The way we think about the dynamic is the more that tokens go down over the next couple of years, the more it is going to enable companies to use AI in more places and at scale. To use AI, they need to change their processes, reinvent their work, build out that AI stack in order to really do it, and all of that is what clients are turning to us. The more change there is, the more they turn to us. We see that dynamic as the token cost going down, and that is going to help generate longer term demand.

Speaker #2: And to use AI, they need to change their processes, reinvent their work, and build out that AI stack in order to really do it. And all of that is what clients are turning to us for.

Speaker #2: And so, the more change there is, the more they turn to us. So we see that dynamic as the token costs go down, and that's going to help generate longer-term demand.

Speaker #7: Okay, very good. And then my follow-up is on the federal business. Could you comment on how U.S. government demand evolved through the September fiscal year end?

Bryan Bergin: Okay. Very good. My follow-up is on the federal business. Can you just comment on how the US government demand evolved through the September fiscal year end? Aside from lapping the headwind that you faced last year, the partial headwind, can you just comment, are you expecting a recovery of growth and how it may perform relative to commercial?

Speaker #7: And aside from lapping the headwind that you faced last year—the partial headwind—could you just comment on your expectations for a recovery of growth and how it may perform relative to commercial?

Speaker #2: Yes. So, as I mentioned, one of the many factors that helped us overdeliver in Q4 was overdelivery by our federal business. No individual factor was material, but that was one of the factors.

Julie Sweet: Yeah. As I mentioned, one of the many factors that helped us over-deliver in Q4 was over-delivery by our federal business. No individual factor was material, but that was one of the factors. As we look at 2027, we expect that federal will be a significant contributor. Too early to talk about exactly whether it is above or at the same commercial, but we consider it to be very positive. You have seen some of our big wins that we just announced, like the data platform at the Department of the Army. We are very relevant to the agenda of the federal government right now and super pleased with how those things at federal are shaping up.

Speaker #2: As we look at '27, we expect that federal will be a significant contributor. Early to talk about exactly whether it's above or at the same level as commercial, but very, very—we consider it to be very possibly positive.

Speaker #2: And you've seen some of our big wins that were just announced, like the data platform at the Department of War. So we're very relevant to the agenda of the federal government right now, and super pleased with how things in federal are shaping up.

Bryan Bergin: Thank you.

Speaker #2: Operator, we have time for one more question, and then Julie will wrap up the call.

Alexia Quadrani: Operator, we have time for one more question, and then Julie will wrap up the call.

Speaker #3: Yes, ma'am. Our final question today comes from David Koenig at Baird. Please go ahead.

Operator: Yes, ma'am. Our final question today comes from David Koning at Baird. Please go ahead.

Speaker #7: Yeah. Hey, guys, thank you. When I looked at consulting versus managed services revenue growth, I think this is the first quarter in about 18 quarters or so that consulting grew as fast as managed services.

David Koning: Yeah. Hey, guys. Thank you. When I looked at consulting versus managed services revenue growth, I think this is the first quarter in about 18 quarters or so that consulting grew as fast as managed services. You also said you are guiding to 3% to 6% for both segments, which is encouraging for consulting. I guess I am wondering, is there anything about the business where you either have more insight into the year now or maybe more recurring revenue that is allowing it to grow as fast as managed services?

Speaker #7: And you also said you're guiding to 3 to 6 percent for both segments, which is encouraging. For consulting, I guess I'm wondering, is there anything about the business where you either have more insight into the year now, or maybe more recurring revenue that's kind of allowing it to grow as fast as managed services?

Speaker #2: One of the things that we're seeing, David, is that in our managed services business, our clients are really using managed services to transform, as well as to get certainty around business outcomes.

Julie Sweet: One of the things that we are seeing, David, is that in our managed services business, our clients are really using managed services to transform as well as get certainty around business outcomes. So we are seeing a lot of consulting, even in our managed services deals, in addition to the big reinventions, whether it is moving to the cloud or doing an ERP or transforming functions. That is why it all comes from our strategy that we want to help our clients really transform the way they work. So you need operating model, you need change management, you need process, and that is what makes us, of course, so unique is that we deliver that both in a consulting project as well as in managed services. So that is where we are seeing that strength. It is really across our business now.

Speaker #2: And so we're seeing a lot of consulting even in our managed services deals, in addition to the big kind of reinventions, whether it's moving to the cloud or doing an ERP or transforming functions.

Speaker #2: And that's why it all comes from our strategy—that we want to help our clients really transform the way they work. So you need an operating model.

Julie Sweet: That is why it all comes from our strategy that we want to help our clients really transform the way they work. So you need operating model, you need change management, you need process, and that is what makes us, of course, so unique is that we deliver that both in a consulting project as well as in managed services. So that is where we are seeing that strength. It is really across our business now.

Speaker #2: You need change management. You need process. And that is what makes us, of course, so unique, is that we deliver that both in consulting projects, as well as in managed services.

Speaker #2: And so, that's where we're seeing that strength—it's really across our business now.

Speaker #7: Gotcha, thanks. And just as a follow-up, acquisition spend relative to revenue contribution is a little higher. So the cost of acquisition seems a little higher—is that related to revenue, like faster revenue growth over the next few years from the acquisitions themselves?

David Koning: Got you. Thanks. Just as a follow-up, acquisition spend relative to revenue contribution is a little higher. So the cost of acquisitions seem a little higher. Is that related to faster revenue growth over the next few years from the acquisitions themselves? So we might not see it in this year in terms of the 2% to 2.5% contribution, but are the underlying acquisition that you are making growing faster than maybe some of the acquisitions you have made in the past?

Speaker #7: So, we might not see it in this year in terms of the 2 to 2.5 percent contribution, but are the underlying acquisitions that you're making growing faster than maybe some of the acquisitions you've made in the past?

Speaker #2: The answer is yes. And so, our acquisition spend is putting us into new areas, like data centers. Our data center acquisition DLB is growing at very high single digits, right?

Julie Sweet: The answer is yes. Our acquisition spend is putting us into new areas like data centers. Our data center acquisition, DLB, is growing very high double digits. Angie is like, "Double digit? What are you talking about?" Remember, what we always are thinking about is how do we scale in the areas that are growing now that if we scale inorganically, it is going to drive more organic growth because we can do it faster, but we also use them to expand into these areas that start small and then grow. Think about what we did with Song, what we have done with supply chain and engineering, what we have done with cloud over time. Those acquisitions really speak to the long-term growth, and they are all intended to fuel organic growth.

Speaker #2: And so, sorry, very high double digits. Andrew's like, "Double digit? What are you talking about?" So, and remember, what we always are thinking about, right, is how do we scale in the areas that are growing now, that if we scale inorganically, it's going to drive more organic growth because we can do it faster.

Speaker #2: But we also use them to expand into these new areas that start small and then grow. So, think about what we did with Song, what we've done with supply chain and engineering, and what we've done with cloud over time.

Julie Sweet: Think about what we did with Song, what we have done with supply chain and engineering, what we have done with cloud over time. Those acquisitions really speak to the long-term growth, and they are all intended to fuel organic growth. So you are not going to see them as big a contribution maybe in the first couple of years, but as we scale, it sets us up for that long-term growth.

Speaker #2: And so those acquisitions really speak to the long-term growth, and they're all intended to fuel organic growth. So you're not going to see them as big a contribution, maybe in the first couple of years, but as we scale, it sets us up for that long-term growth.

Julie Sweet: So you are not going to see them as big a contribution maybe in the first couple of years, but as we scale, it sets us up for that long-term growth.

Speaker #7: Great. Thank you.

David Koning: Great. Thank you.

Speaker #2: Thank you, David. So, in closing, I want to thank our shareholders for your continued trust and support, and all of our reinventors around the world for everything you're doing every day for our clients, our partners, and our communities.

Julie Sweet: Thank you, David. So in closing, I want to thank our shareholders for your continued trust and support, and all of our reinventors around the world for everything you are doing every day for our clients, our partners, and our communities. We will share more about our growth strategy and the opportunities ahead, and also provide time to spend with our senior executives at our upcoming Investor Day. So I hope that we can see you in New York on 14 October, and thank you for joining us today.

Speaker #2: We will share more about our growth strategy and the opportunities ahead, and also provide time to spend with our senior executives at our upcoming Investor Day.

Speaker #2: So I hope that we can see you in New York on October 14. Thank you for joining us today.

Operator: Thank you. That concludes today's presentation. We thank you all for attending today's conference. You may now disconnect your lines.