How ACN (Accenture) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a professional services like Accenture (formerly Andersen Consulting) makes money is essential for investors and anyone interested in the business of consulting and IT services. In this post, we break down Accenture's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Accenture Overview

Accenture operates as a global professional services company, providing strategy, consulting, digital, technology, and operations services to clients across industries. Revenue comes primarily from managed services, consulting, and industry-specific solutions like digital transformation and cloud migration. The business is segmented by industry verticals including Products, Health & Public Service, Financial Services, and Communications, Media & Technology.

Revenue Breakdown

• Total Revenue (Q4 2025): $18.7B (+6.0% YoY)
  • Products Revenue: $5.74B (30.6% of total)
  • Health & Public Service Revenue: $3.80B (20.3% of total)
  • Financial Services Revenue: $3.60B (19.2% of total)
  • Communications, Media & Technology: $3.10B (16.6% of total)
  • Other: $2.50B
  • Growth is powered by strong demand in Financial Services (+13.7% YoY) and Communications, Media & Technology (+8.6% YoY), offset by a slight decline in Health & Public Service (-0.4% YoY).

Gross Profit and Margins

• Gross Profit: $6.17B (32.9% gross margin)
  • Cost of Revenue: $12.6B (+6.0% YoY)
  • Accenture maintains robust margins due to its scalable professional services model, high utilization rates of consultants, and shift toward higher-margin digital and cloud services.
• Most costs come from personnel expenses for billable consultants, subcontractor fees, and data center operations tied to technology implementations.

Operating Income and Expenses

• Operating Income: $3.15B (+6.9% YoY, 16.8% margin)
• Operating Expenses: $3.02B (+4.9% YoY)
  • R&D: N/A
  • SG&A: $3.02B (+4.9% YoY, 16.1% of revenue) — Primarily administrative costs, sales efforts, and general overhead supporting global operations and client acquisition.
  • Accenture continues to prioritize innovation while maintaining efficiency in operating costs through disciplined expense management and automation.

Net Income

• Pre-Tax Income: $2.97B (+0.4% YoY, 15.8% margin)
• Income Tax: $0.73B (24.5% effective tax rate)
• Net Income: $2.21B (+-3.0% YoY, 11.8% net margin)
• Accenture converts a significant portion of sales into profit due to efficiency in its asset-light services model and pricing power in high-demand consulting areas.

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What Drives Accenture's Money Machine?

• Products Revenue: 30.6%+ of revenue, driven by digital transformation and supply chain consulting for consumer goods and manufacturing clients.
• Financial Services Revenue: Strong 13.7% YoY growth, fueled by banking modernization, regulatory compliance services, and fintech integrations.
• Digital and Cloud Investments: Strategic focus on AI, generative AI, and platform modernization, reflected in segment growth.
• Future growth areas: Health & Public Service expansion through government contracts and healthcare digitization, though growth was flat at -0.4% YoY in this quarter.

Visualizing Accenture's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs, 11.8% of revenue drops to the bottom line.

Key Takeaways

• Accenture's money comes overwhelmingly from Products and Financial Services
• High gross and net margins illustrate the power of Accenture's asset-light consulting model
• Heavy investment in digital services, balanced by efficiency in operating costs
• Ongoing growth is driven by industry-specific demand in financials and technology

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FAQ About Accenture's Income Statement

1. What is the main source of Accenture's revenue in 2025?

Accenture generates over 30.6% of its revenue from Products Revenue. Additional significant sources include Health & Public Service (20.3%) and Financial Services (19.2%).

2. How profitable is Accenture in Q4 2025?

Accenture reported net income of $2.21B in Q4 2025, with a net margin of approximately 11.8%, reflecting strong profitability driven by robust gross margins and controlled operating expenses.

3. What are the largest expense categories for Accenture?

The biggest expenses on Accenture's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached N/A in Q4 2025, as Accenture prioritizes client-facing innovation through consulting projects.

4. Why does Other operate at a loss?

Other, despite generating $2.50B in revenue, is grouped within overall profitable operations in Q4 2025. This is because Accenture aggressively invests in emerging areas like sustainability services, believing these will drive long-term growth—even if the division shows variable margins today.

5. How does Accenture's effective tax rate compare to previous years?

Accenture's effective tax rate in Q4 2025 was 24.5%, consistent with previous years. This moderate rate is primarily due to international structuring and tax benefits from global operations.