“On March 19, before the open, we expect ACN to report 2Q26 revenue of ~$17.8bn (~3% cc, ~2% organic cc) and adj. EPS of $2.84,” analysts at the firm wrote in a note to clients. “Our cautious view on the IT Services sector remains unchanged heading into the print, as the industry faces pressures from a soft cyclical backdrop. This view has been echoed by industry participants, suggesting the CY26 selling environment is not likely to materially improve vs. last year’s levels. Further, recent geopolitical headlines likely create incremental caution around corporate IT spend.”

The analysts lowered their price target on Accenture to $230 from $280 but kept their Hold rating on the stock.

Additionally, the analysts said they will be paying attention to hear if Accenture has any updates to artificial intelligence adoption trends and if there has been movement from proof of concept to scaled solutions. Other focal points will be on the company’s federal business, notable given the uncertain macro and geopolitical environment.

“While we expect a moderate beat from ACN in 2Q26 and slight upside to where our current 2H26 estimates sit, given how the stock has traded and investor demand for continued beats and raises through the rest of FY26, we expect ACN will opt to raise the low end of its current FY26 guide to ~3-5% cc (from ~2-5% cc currently) while flowing through any adj. EPS beat in the [quarter],” the analysts added.

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He said the roughly $1.2 billion transaction reflects a strategic expansion of Accenture’s (ACN) data capabilities as enterprises invest heavily in AI driven systems.

“We look favorably on the timely transaction,” McVeigh wrote in a March 3 research note, pointing to the importance of network level data as artificial intelligence systems become more deeply embedded in digital infrastructure.

Ookla, which generated about $231 million in revenue in 2025, provides network intelligence and analytics tools including Speedtest and Downdetector. UBS estimates the acquisition price implies roughly 5.2 times sales.

Data advantage in AI era

McVeigh said Ookla’s products provide insights across networks, devices and applications that can help organizations manage increasingly complex digital systems.

That data could support a range of enterprise use cases, from fraud detection in banking to smart home analytics in utilities and customer traffic optimization in retail.

The analyst said integrating these capabilities into Accenture’s (ACN) consulting and technology services should strengthen its ability to help telecom operators, hyperscale cloud providers and large enterprises optimize Wi-Fi and 5G networks.

Larger deal but consistent with strategy

The acquisition stands out because it is larger than many of Accenture’s (ACN) typical transactions. The company has historically relied on smaller tuck in acquisitions rather than deals exceeding $1 billion.

Even so, McVeigh said the purchase aligns with Accenture’s (ACN) broader strategy of disciplined inorganic growth tied to cloud modernization, AI and industry specific digital solutions.

UBS expects acquisitions to contribute about 1.5% of Accenture’s (ACN) revenue growth in fiscal 2026, with the company planning roughly $3 billion in deal spending compared with about $1.5 billion the prior year.

AI fears may be overdone

McVeigh also framed the acquisition as a response to investor concerns that artificial intelligence could reduce demand for consulting services.

In his view, the market may be underestimating Accenture’s (ACN) ability to benefit from AI adoption rather than be disrupted by it.

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Ziff Davis shares rose 2% in premarket trading, while Accenture shares fell 1.2% in premarket trading.

Ookla, which is based in Seattle, is best known for its Downdetector, Speedtest, and RootMetrics products, which help check the status of internet websites and apps, internet speeds, and cellular network performance, respectively. It also offers other products, such as Ekahau, aimed at Wi-Fi optimization.

Accenture said the deal will help communication service providers, hyperscalers, and enterprises optimize their Wi-Fi and 5G networks.

Ziff Davis’ Connectivity division accounted for $231M in revenue in 2025. Ziff Davis said it intends to use the proceeds from the deal for “general corporate purposes and to fund its robust capital allocation activities in accordance with the terms of the company’s outstanding debt securities.”

“Modern networks have evolved from simple infrastructure into business-critical platforms,” said Julie Sweet, chair and CEO, Accenture, in a statement. “Without the ability to measure performance, organizations cannot optimize experience, revenue, or security. By acquiring Ookla, we will help our clients across business and government scale AI safely and build the trusted data foundations they need to deliver the reliable, seamless connectivity that creates value.”

“Joining Accenture will allow us to scale our premiere network data business across the world’s largest enterprises and accelerate our goal of creating better connected experiences,” said Stephen Bye, CEO, Ookla. “Our combined capabilities will enable us to more effectively serve CSPs, AI infrastructure providers, edge data centers and enterprise networks. Together, we will redefine how the world measures, understands and experiences connectivity.”

“This is a transformative deal for Ziff Davis, representing a significant realization of value for our shareholders and a concrete illustration of the quality of the businesses in our portfolio,” said Vivek Shah, CEO of Ziff Davis, in a separate statement. “I would like to thank our colleagues at Connectivity for building a terrific business that delivers best-in-class network intelligence and optimization solutions to service providers, enterprises, and regulators all around the world. The Connectivity team is thrilled at the prospect of joining Accenture, a leading global solutions and services company.”

Ookla was founded in 2006 by Ziff Davis, and its products generate roughly 250M consumer-initiated tests per month.

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In a report published Monday, UBS analyst Kevin McVeigh reiterated a Buy rating on Accenture (ACN) and maintained a $320 price target, implying roughly 49% upside from the current share price of $215.35.

AI seen as productivity driver, not disruption

UBS said investor concerns that generative AI could disintermediate IT services firms or compress margins appear overdone. Instead, the firm views AI as a productivity enhancer that could drive additional demand.

Accenture (ACN) recently reorganized its operations under a unified “Reinvention Services” model, integrating strategy, consulting, Song, technology and operations. UBS said this structure enables faster embedding of AI and data into client solutions and supports cross-selling, noting that 80% of the company’s largest deals span multiple service lines.

While some software investors worry that AI agents could reduce seat-based revenue models, UBS highlighted that about 60% of Accenture’s revenue is now fixed price, up from 50% in 2023, which may provide some insulation from pricing pressure.

Gen AI could add 250-300 basis points to growth

UBS estimates that generative AI-related revenue could contribute 250 to 300 basis points of annual growth for Accenture (ACN). Combined with steady expansion in digital transformation, cybersecurity and digital marketing, the firm projects total revenue growth of about 6% annually through 2030.

The report also points to a potential $1.5 trillion “services-as-software” opportunity by 2035, as AI, software and services converge into integrated outcome-based systems. Accenture’s partnerships with major large language model providers, including OpenAI, along with investments through Accenture Ventures, are seen as positioning the company to capture share as enterprise AI adoption matures.

Valuation at decade low

UBS said Accenture’s (ACN) valuation appears compelling, with the stock trading at about 14 times its two-year forward earnings multiple, the lowest level in more than a decade and at a discount to the S&P 500 for the first time.

The firm’s $320 price target is based on a 19.5 times multiple of 2028 estimated earnings per share.

Beyond growth, UBS cited Accenture’s (ACN) financial profile, including a roughly 15% adjusted operating margin and strong cash generation. Management has guided to at least $9.3 billion in capital returns in fiscal 2026, representing more than 90% of projected free cash flow at the midpoint.

UBS said the current valuation more than reflects fears of AI-driven disruption and does not fully account for Accenture’s (ACN) intellectual property base, alliance network and history of monetizing new technology cycles.

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The Microsoft (MSFT)-backed AI startup said it has formed “Frontier Alliances” with the four consulting

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The terminal value framework calculates the estimated value of a business or asset beyond an explicit, short-term forecast period, assuming the business will continue to operate and generate cash flows indefinitely.

Analyst Stefan Slowinski said that, as software stocks have stabilized somewhat, but not yet bounced, they revisited their SaaS Smash terminal value work.

The analysts added that they ran their terminal value framework (0% terminal growth, -2% terminal growth, and zero terminal value), this time applying the analysis to SBC-burdened free cash flow. The goal is to explicitly treat stock-based compensation as a ‘real’ expense, reflecting the growing investor debate around whether software free cash flow is overstated when SBC is excluded, the analysts added.

“Within our SBC-burdened FCF framework, we see some valuation support across our large-cap US software coverage, assuming some residual terminal value exists,” said Slowinski.

The analyst said that under this methodology, they see the most upside in ServiceNow (NOW), Adobe (ADBE), Workday (WDAY), and Intuit (INTU), with companies like Accenture (ACN) and Salesforce (CRM) pricing in some upside as well.

Slowinski sees a downside in companies that are either lower growth or carry depressed GAAP margins — Zoom Communications (ZM), IBM (IBM), and Snowflake (SNOW) — and in large-cap cyber and Electronic Design Automation, or EDA, names — Palo Alto Networks (PANW), Cadence (CDNS), Synopsys (SNPS), CrowdStrike (CRWD), and Cloudflare (NET).

“Investors are hesitant to re-engage as the sector remains susceptible to ongoing headline risk. While we have seen some confidence signals (i.e. mgmt. buying at SAP (SAP), Microsoft (MSFT), and ServiceNow, with Atlassian (TEAM) and ServiceNow (NOW) management pausing share sales), investors may view this as optics-driven especially vs. executive compensation levels; for example ServiceNow’s CEO Bill McDermott’s ~$3m open-market purchase vs. $113m of cumulative compensation since FY22 (NOW has not outperformed the IGV since announcement),” said Slowinski.

The analysts added that investors likely need more forceful signals.

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Shares of Accenture rose about 1% on Tuesday.

Analysts led by Jason Kupferberg said they upgraded the rating on: fiscal second-half revenue acceleration; conservative fiscal 2026 guidance; overblown AI fears; and valuation.

The analysts added that recent booking trends are encouraging, and Accenture could be poised for solid fiscal second-quarter results next month.

The Irish consulting services provider is slated to report its fiscal second-quarter results on March 19.

The analysts noted that they have increased confidence in fiscal second-quarter constant currency revenue growth acceleration, given two consecutive quarters of improved bookings growth, positive incremental discretionary spending commentary from peers, and easier comps.

In addition, the analysts said they view Accenture’s fiscal 2026 revenue guidance (which at the high end assumed no improvement in discretionary spending) as conservative. The analysts think the recent AI fears (spilling over from Software) are overblown and added that the valuation is attractive.

“Shares have been excessively punished recently due to latest round of AI fears, spilling over from anti-software sentiment. While ACN is not immune to AI headline risks we see ACN as well-positioned to emerge as a net beneficiary (sticky C-level client relationships, track record of navigating past tech paradigm shifts). CC revs [revenues] growth accel [acceleration] would support this thesis, catalyzing multiple expansion. F1Q AI-related revs/bkgs [revenue/bookings] grew 120%/83% though ACN is discontinuing such disclosures going forward,” said Kupferberg and his team.

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