Accenture: Framing 2027 Federal from 10-K Tidbits

UBS maintains Buy on Accenture (ACN.N) with a US$278 price target (~16x 2029E EPS). The stock has rallied ~25% since the 10/1 print, with FY27 guidance much better than expected and the first analyst day since 2022 pointing to 2027-29 CC revenue growth accelerating to mid-to-high single digits by 2029, above Street expectations of continued mid-single-digit growth. FQ4 bookings returned to growth (+4% USD, +5% local) and revenue accelerated to +7% local currency; the 8 Emerging Alliances doubled revenue YoY with bookings more than tripling, and fixed-price work is now over 65% of bookings. The FY26 10-K shows Federal at ~7% of total revenue versus ~8% in FY25, and UBS expects Federal to become a FY27 tailwind worth +0.1%-2.1% of total revenue growth if IT spend recovers and share holds. At ~14x 2-year forward P/E, ACN trades at a discount to the S&P 500 for the first time.