Accenture Analysts Raise Price Targets as AI Fuels Multi-Year Growth Plan

A couple of analysts raised the price target for Accenture plc (NYSE:ACN) after the company outlined a multi-year growth plan at its Investor Day on Wednesday.

• TD Cowen analyst Bryan C. Bergin raised his price target from $193 to $201 while keeping a Hold rating.
• Susquehanna analyst James Friedman raised his price target from $210 to $230 while maintaining a Neutral rating.

Accenture Sets Multi-Year Growth and Shareholder Return Targets

At its Investor Day, Accenture outlined a growth strategy focused on mid-single-digit revenue growth, continued margin expansion, strong free cash flow and substantial shareholder returns through dividends and share buybacks.

Accenture expects mid-single-digit revenue growth in local currency in fiscal 2027 and fiscal 2028, accelerating to mid- to high-single-digit growth in fiscal 2029.

The company targets annual operating margin expansion of 10–30 basis points throughout fiscal 2027–2029.

Accenture expects free cash flow to net income of at least 1.1x in fiscal 2027 and fiscal 2028, rising to 1.2x–1.3x in fiscal 2029. It also targets at least $9.5 billion in free cash flow in fiscal 29.

The company plans to return cash to shareholders through dividends and buybacks.

It targets a dividend payout ratio in the mid-40% range of prior-year net income in fiscal 2027, increasing to the high-40% range in fiscal 2028 and fiscal 2029.

Accenture also targets 5% dividend-per-share growth and $5.5 billion in share repurchases in fiscal 2027.

The company expects repurchases to exceed share issuances in both fiscal 2027 and fiscal 2028.

TD Cowen: AI Growth Potential Faces Execution Hurdles

TD Cowen analyst Bryan C. Bergin said Accenture presented a clear growth strategy as enterprise AI adoption expands, highlighting opportunities in capital projects, data and AI services, mid-market clients and operational technology cybersecurity.

However, investors remain focused on whether Accenture can accelerate growth despite AI-driven efficiencies. Execution in fiscal 2027 will be crucial to validating the company’s growth outlook.

Accenture’s multi-year growth framework draws on experience across more than 18,000 AI projects and an increase in Data and AI engagements worth more than $50 million.

Bergin added that the fiscal 2027–2029 outlook also depends on improving macroeconomic conditions and sustained mid-single-digit growth in Accenture’s core business, which accounts for 94% of revenue. Ongoing modernization in ERP, cloud, cybersecurity and data is expected to provide further growth opportunities.

Susquehanna Expects AI to Accelerate Revenue Growth

Susquehanna analyst James Friedman said Accenture’s past technology shifts, including offshoring, cloud and digital adoption, reduced costs and replaced some IT services but also stimulated demand for business services, supporting the company’s growth.

Friedman expects AI to follow a similar pattern, with revenue growth accelerating in fiscal 2029.

The analyst projects first-quarter fiscal 2027 revenue growth of 2.5% to $19.2 billion and full-year fiscal 2027 revenue growth of 4% to $77.2 billion. He forecasts EPS of $3.97 for the first quarter and $14.62 for the full year.

Revenue is expected to increase 5.7% to $81.6 billion in fiscal 2028 and 7% to $87.3 billion in fiscal 2029, with EPS reaching $16.00 and $17.78, respectively.

Operating margins are projected to expand from 16% in fiscal 2027 to 16.2% in fiscal 2028 and 16.4% in fiscal 2029.

ACN Stock Price Activity: Accenture shares were down 0.05%% at $224.90 at publication on Friday.

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