Accenture Stock (NYSE: ACN) Building Momentum, Price Target Raised

Accenture (NYSE: ACN) shares are experiencing a notable upswing, up 18% over the past 3 months, yet 20% lower on a 1 year basis.

Wells Fargo have given bulls reason to look upwards, raising its price target on Accenture to $275 from $251, maintaining an “Equal Weight” rating. This adjustment reflects a cautiously optimistic outlook, anticipating largely stable growth and potential improvements in discretionary spending within the IT services sector. The firm views AI as a significant tailwind for Accenture's revenue streams.

Adding to the positive momentum, Morgan Stanley upgraded Accenture's rating from “Equal-Weight” to “Overweight,” significantly boosting the price target to $320 from $271. This upgrade signals increased confidence in Accenture's ability to capitalize on the growing demand for AI and digital transformation services.

Accenture's first-quarter fiscal 2026 earnings report, released on December 18, 2025, further bolsters the bullish case. The company reported revenue of $18.7 billion, a 6% increase year-over-year, and new bookings of $20.9 billion, up 12% from the previous year. Adjusted earnings per share (EPS) came in at $3.94, exceeding analyst expectations of $3.74. A particularly noteworthy highlight was the surge in advanced AI bookings, which nearly doubled from the prior year to $2.2 billion.

The company's AI revenue surge, with a reported 120% year-over-year increase, reaching approximately $1.1 billion in Q1 fiscal 2026, underscores its successful investments in AI capabilities. This rapid growth demonstrates Accenture's ability to meet the escalating demand for AI-driven solutions across various industries.

Despite the generally positive outlook, Accenture's stock experienced a temporary setback following the Q1 2026 earnings announcement, declining 2.1% in pre-market trading. This suggests that markets, while acknowledging the strong results, remain cautiously optimistic, potentially factoring in broader market uncertainties and future growth prospects for the consulting and technology services sector.

Near term momentum following a long term downtrend sets up an interesting stage for Accenture. Analysts have been revising upwards in anticipation of further growth, yet the next earnings report could prove pivotal in shaping what comes next. Sustained beats may be required to shift the longer term narrative.