Accenture's (ACN) fiscal Q3 earnings per share beat and capital return were offset by weaker-than-expected bookings and moderate growth amid ongoing market volatility, UBS Securities said.
Bookings declined to $19.3 billion from $19.7 billion a year earlier. The company raised the low end of its fiscal 2026 EPS guidance to $13.78 to $13.90 from $13.65 to $13.90. Furthermore, it lowered the high end of its revenue growth guidance to 3% to 4% from 3% to 5%, according to the note Thursday.
Free cash flow guidance was unchanged at $10.8 billion to $11.5 billion and capital return was raised to at least $9.5 billion from about $9.3 billion.
Accenture reported a majority stake in Dragos and acquired runZero and NetRise for about $4.18 billion earlier this month. UBS said the deals increase the company's fiscal 2026 inorganic contribution to $9 billion from $5 billion.
UBS forecasts fiscal Q4 EPS at $3.24, compared with Street consensus of $3.28.
UBS has a buy rating on Accenture with a price target of $320.
Shares of the company fell nearly 7% in late Monday afternoon trading.
Price: $119.53, Change: $-8.45, Percent Change: -6.60%