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ACN vs IBM
Accenture (ACN) vs IBM (IBM) Earnings Recap: Recent Results Highlight AI-Driven Momentum
Key Takeaways
- Accenture reported Q2 FY2026 (ended Feb. 28, 2026) adjusted EPS of $2.93, beating estimates of $2.87, with revenue of $18.0 billion, up 4% in local currency.
- IBM's Q4 2025 (ended Dec. 31, 2025) delivered non-GAAP EPS of $4.52, surpassing expectations of $4.29, and revenue of $19.7 billion, up 9% at constant currency.
- Both firms showcased robust AI demand: Accenture on track to double AI/data bookings; IBM's gen AI book exceeds $12.5 billion.
- Accenture new bookings hit record $22.1 billion in Q2; IBM software segment grew 14% YoY.
- FY2026 outlooks strengthened: Accenture revenue growth 3-5% local currency; IBM >5% constant currency.
- Strong cash generation: Accenture free cash flow $3.7 billion in Q2; IBM full-year 2025 $14.7 billion.
Earnings Context and Why This Comparison Matters
Accenture (ACN) and IBM (IBM) are titans in IT consulting and technology services, competing fiercely in AI, cloud, and digital transformation. Recent earnings from both underscore resilient demand amid economic uncertainty, with AI investments driving growth. Accenture's consulting-led model complements IBM's hybrid hardware-software strength, making this matchup key for investors eyeing enterprise tech spend.
Accenture Focus
Accenture released second-quarter fiscal 2026 results on March 19, 2026, for the period ended February 28, 2026. Adjusted EPS came in at $2.93, topping consensus estimates of $2.87, while revenue reached $18.0 billion, up 4% in local currency and 8% in USD. New bookings set a record at $22.1 billion, yielding a book-to-bill ratio of 1.2x, with year-to-date bookings at $43.0 billion, up 5% locally. Operating margin expanded 30 basis points to 13.8%, reflecting efficiency gains. Free cash flow was robust at $3.7 billion, supporting $2.7 billion returned to shareholders via repurchases and dividends.
AI momentum accelerated, with revenue from top 10 ecosystem partners (including Microsoft, AWS, Google Cloud) outpacing overall growth. The firm added ~100 advanced AI clients, reaching 1,400, and exceeded its 80,000 AI professionals goal early. Updated FY2026 guidance includes 3-5% revenue growth in local currency (4-6% excluding U.S. federal impact), adjusted EPS of $13.65-$13.90, and free cash flow of $10.8-$11.5 billion.
IBM Context
IBM reported fourth-quarter and full-year 2025 results on January 28, 2026, for the period ended December 31, 2025. Non-GAAP EPS was $4.52, exceeding forecasts of $4.29, with revenue of $19.7 billion, up 12% YoY and 9% at constant currency. Software revenue surged 14% to $9.0 billion, driven by hybrid cloud (up 10%), data (22%), and automation (18%). Infrastructure jumped 21% to $5.1 billion, led by 67% growth in IBM Z mainframes. Consulting grew 3% to $5.3 billion.
Full-year revenue hit $67.5 billion, up 8% (6% constant currency), with free cash flow at a record $14.7 billion. Generative AI book of business topped $12.5 billion. For 2026, IBM guides to more than 5% constant currency revenue growth and ~$1 billion free cash flow increase YoY, fueled by software (expected 10% growth) and AI traction.
Head-to-Head Earnings and Market Comparison
Accenture's Q2 revenue growth (4% local) trails IBM's Q4 surge (9% constant), but both beat estimates, highlighting execution strength. EPS growth was solid: Accenture +4% adjusted YoY, IBM +15% non-GAAP. AI is a shared tailwind—Accenture's ecosystem partnerships and IBM's watsonx/Red Hat drive bookings and software gains. Risk exposure differs: Accenture's consulting (49% revenue) faces project delays; IBM's infrastructure (24%) benefits from mainframe cycles but ties to hardware.
Fundamentals favor stability: Accenture's 15.7-15.9% FY2026 adjusted operating margin vs. IBM's expanding pre-tax margins. Sentiment leans positive on AI positioning, with both raising guidance amid macro caution. Year-to-date, ACN and IBM reflect sector volatility, but earnings quality supports resilience.
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Tickeron AI Verdict
Tickeron AI favors IBM with 60% probability over the next quarter, citing superior revenue acceleration, double-digit software/infrastructure growth, and higher free cash flow scalability amid AI demand. Accenture's consulting stability and bookings merit watch, but IBM's diversified margins and guidance edge it for trend strength.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ACN is a StrongBuy and IBM is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ACN’s FA Score shows that 1 FA rating(s) are green whileIBM’s FA Score has 3 green FA rating(s).
- ACN’s FA Score: 1 green, 4 red.
- IBM’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ACN’s TA Score shows that 4 TA indicator(s) are bullish while IBM’s TA Score has 5 bullish TA indicator(s).
- ACN’s TA Score: 4 bullish, 4 bearish.
- IBM’s TA Score: 5 bullish, 4 bearish.
Price Growth
ACN (@Information Technology Services) experienced а +1.62% price change this week, while IBM (@Information Technology Services) price change was +6.68% for the same time period.
The average weekly price growth across all stocks in the @Information Technology Services industry was +4.83%. For the same industry, the average monthly price growth was +17.53%, and the average quarterly price growth was +7.59%.
Reported Earning Dates
ACN is expected to report earnings on Jun 18, 2026.
IBM is expected to report earnings on Apr 22, 2026.
Industries' Descriptions
@Information Technology Services (+4.83% weekly)The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.
| ACN | IBM | ACN / IBM | |
| Capitalization | 120B | 238B | 50% |
| EBITDA | 12.1B | 17.3B | 70% |
| Gain YTD | -25.274 | -13.860 | 182% |
| P/E Ratio | 15.99 | 22.77 | 70% |
| Revenue | 72.1B | 67.5B | 107% |
| Total Cash | 9.41B | 14.4B | 65% |
| Total Debt | 8.35B | 64.6B | 13% |
ACN | IBM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 14 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 12 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 31 | |
SMR RATING 1..100 | 36 | 27 | |
PRICE GROWTH RATING 1..100 | 64 | 61 | |
P/E GROWTH RATING 1..100 | 87 | 92 | |
SEASONALITY SCORE 1..100 | 27 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ACN's Valuation (9) in the Information Technology Services industry is in the same range as IBM (12). This means that ACN’s stock grew similarly to IBM’s over the last 12 months.
IBM's Profit vs Risk Rating (31) in the Information Technology Services industry is significantly better than the same rating for ACN (100). This means that IBM’s stock grew significantly faster than ACN’s over the last 12 months.
IBM's SMR Rating (27) in the Information Technology Services industry is in the same range as ACN (36). This means that IBM’s stock grew similarly to ACN’s over the last 12 months.
IBM's Price Growth Rating (61) in the Information Technology Services industry is in the same range as ACN (64). This means that IBM’s stock grew similarly to ACN’s over the last 12 months.
ACN's P/E Growth Rating (87) in the Information Technology Services industry is in the same range as IBM (92). This means that ACN’s stock grew similarly to IBM’s over the last 12 months.
| ACN | IBM | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 56% | N/A |
| Stochastic ODDS (%) | 4 days ago 53% | 1 day ago 45% |
| Momentum ODDS (%) | 4 days ago 58% | 1 day ago 62% |
| MACD ODDS (%) | 4 days ago 64% | 1 day ago 59% |
| TrendWeek ODDS (%) | 4 days ago 60% | 1 day ago 62% |
| TrendMonth ODDS (%) | 4 days ago 60% | 1 day ago 61% |
| Advances ODDS (%) | 21 days ago 60% | 1 day ago 63% |
| Declines ODDS (%) | 11 days ago 60% | 11 days ago 50% |
| BollingerBands ODDS (%) | 4 days ago 63% | 1 day ago 69% |
| Aroon ODDS (%) | 4 days ago 63% | 1 day ago 37% |
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| 1 Day | |||
|---|---|---|---|
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| CPSL | 27.67 | 0.02 | +0.07% |
| Calamos Laddered S&P 500 Str Alt Prt ETF | |||
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| Flaherty & Crumrine Preferred and Income Securities Fund | |||
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| NEOS Enhanced Income Aggregate Bond ETF | |||
| VV | 325.74 | -0.80 | -0.24% |
| Vanguard Large-Cap ETF | |||
| HIBS | 31.21 | -0.66 | -2.07% |
| Direxion Daily S&P 500® Hi Bt Br 3X ETF | |||
ACN and
Correlation & Price change
A.I.dvisor indicates that over the last year, ACN has been closely correlated with CTSH. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if ACN jumps, then CTSH could also see price increases.
| Ticker / NAME | Correlation To ACN | 1D Price Change % | ||
|---|---|---|---|---|
| ACN | 100% | +1.88% | ||
| CTSH - ACN | 80% Closely correlated | +1.27% | ||
| EPAM - ACN | 68% Closely correlated | +3.57% | ||
| GIB - ACN | 68% Closely correlated | +1.28% | ||
| DXC - ACN | 66% Closely correlated | +2.21% | ||
| EXLS - ACN | 66% Closely correlated | +1.21% | ||
More | ||||