Accenture Earnings: Impressive Performance Despite Macro Headwinds; Fair Value Estimate Up to $307

Wide-moat Accenture reported solid fourth-quarter results, with the top line meeting our estimates and the bottom line exceeding expectations. Amid a challenging macroeconomic environment and weak discretionary services demand, Accenture held its ground, as its large-scale deals and booking momentum helped mitigate the headwinds. As a result, we have raised our fair value estimate to $307 per share, up from $292 per share. We believe that, as companies continue to save on their IT spending to prioritize more purchasing power for GenAI spending, Accenture's deep industry knowledge, global footprint, and significant investments in top-tier talent will enable it to support companies' transition to this new digital landscape.