Investing.com -- Accenture shares climbed about 4% following the company’s investor day presentation, where it outlined growth targets through fiscal year 2029 that exceeded market expectations.

The IT services company projected revenue growth in local currency of mid- to high-single digits for fiscal 2029, an improvement from the 3% to 6% growth previously guided for fiscal 2027. Accenture also forecast operating margin expansion of 10 to 30 basis points annually in fiscal years 2027, 2028, and 2029.

The company expects acquisitions to fuel organic growth, with deals contributing approximately 2% to 2.5% of revenue in fiscal 2027, up from roughly 1.5% in fiscal 2026.

For fiscal year 2026, which ended August 31, Accenture reported revenue of $74.2 billion, representing 5% growth in local currency and reaching the top of its original guidance range of 2% to 5%. This compared to $61.6 billion in fiscal 2022. Adjusted EPS came in at $13.97, above the guided range of $13.52 to $13.90. Free cash flow totaled $11.6 billion, exceeding the upper end of guidance of $9.8 billion to $10.5 billion.

Bookings for fiscal 2026 totaled $84.5 billion, reflecting a book-to-bill ratio of 1.1x. The company returned $11.5 billion to shareholders during the year, including $2 billion in additional buybacks during the fourth quarter.

For fiscal 2027, Accenture is targeting at least $9.5 billion in cash returned to shareholders, $5.5 billion in share repurchases, and dividend-per-share growth of 5%. The company expects its fiscal 2028 dividend payout ratio to reach the high 40s as a percentage of prior-year net income.

Accenture said it estimates its total addressable market at $3 trillion.

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