Mizuho raises Accenture stock price target to $241 on strong results

Mizuho has increased its price target for Accenture plc (NYSE:ACN) to $241 from $226, maintaining an Outperform rating. The rating is based on Accenture's robust fourth-quarter fiscal 2026 results and initial guidance for fiscal 2027. The company's constant currency revenue growth of 7% year-over-year surpassed the high end of the previously announced guidance of 1% to 5%. This positive performance led to a stock surge of over 10% in the past week.

Accenture's new bookings growth has rebounded to 5% in constant currency year-over-year, marking a significant turnaround after a decline of 3% in the third quarter and improvement to 1% in the second quarter. The fiscal 2027 constant currency revenue growth guidance from Mizuho of 3% to 6% exceeded expectations. The firm believes Accenture's longer-term outlook has improved, noting a narrowing AI adoption gap due to decreasing token costs.

Enterprises are anticipated to increasingly rely on Accenture to revamp processes and scale AI adoption.

Mizuho has revised its fiscal 2027 revenue and earnings per share estimates following the strong results. Accenture is set to host an Investor Day on October 14. Analysts have also responded positively to Accenture's performance, with BMO Capital raising its price target to $235 and TD Cowen increasing it to $193, citing better-than-expected revenues and bookings, alongside improved revenue guidance for fiscal year 2027.

RBC Capital raised its target to $240, emphasizing Accenture's AI momentum and significant deal wins. Truist Securities recently set a new price target of $220, highlighting the company's solid year-end results and growth in AI and data partnerships. Wells Fargo adjusted its revenue and earnings estimates for subsequent fiscal years, raising its target to $210.

These developments underscore Accenture's strong financial performance and optimistic projections from multiple analysts.