ACN or SAIC: Which IT Services Stock Should You Buy Currently?

Two companies drawing investor interest in the Zacks Computers – IT Services industry are Accenture ACN and Science Applications International Corporation SAIC.

Based in Reston, VA, SAIC is a prominent provider of information technology and professional services, mainly catering to U.S. government agencies. Meanwhile, Accenture has established itself as a trusted global consulting-services provider through sustained investments in digital, cloud and security capabilities. The company ranks among the world’s largest consulting firms by revenues, which grew 7.4% in fiscal 2025.

Given this backdrop, let us compare these two IT services companies to determine which currently offers the more attractive investment opportunity.

The Case for Accenture

Accenture issued a disappointing revenue growth outlook in June alongside its third-quarter fiscal 2026 results for the period ended May 31. The consulting and technology services provider reduced the upper end of its full-year revenue growth forecast, overshadowing an earnings-per-share beat against the Zacks Consensus Estimate. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 3.1%.

Accenture Price and EPS Surprise

Accenture price-eps-surprise | Accenture Quote

Accenture now anticipates fiscal 2026 revenue growth of 3% to 4% in local currency, down from its previous projection of 3% to 5%. The reduced guidance, coupled with third-quarter revenues falling short of expectations, understandably weakened investor sentiment.

AI-related disruption was also visible in Accenture’s fiscal third-quarter performance. New bookings declined 2% in U.S. dollars and 3% in local currency from the year-ago period. Investors have long worried that AI could reduce demand for certain services offered by companies such as Accenture, and the decline in bookings reinforced concerns about its potential impact on the business.

Despite Accenture’s substantial investments in AI, many companies remain uncertain about the technology’s ability to deliver measurable returns. Instead of immediately committing to large-scale AI programs, businesses are taking additional time to evaluate potential benefits, strengthen their data infrastructure and manage costs amid an uncertain economic environment.

As a result, many clients are starting with smaller AI pilot projects rather than pursuing broad transformation initiatives. Companies are also directing spending toward essential AI and cybersecurity programs while reducing investments in other technology areas. This shift is restraining demand across Accenture’s broader consulting and IT services portfolio, limiting revenue growth and pressuring its shares.

Nevertheless, Accenture remains confident about the long-term benefits of AI adoption and continues to invest heavily in the technology. The company recently entered into a multiyear collaboration with Dabur India Limited, one of India’s leading fast-moving consumer goods companies, to accelerate AI adoption and develop a future-ready digital enterprise.

Under the partnership, Accenture will help create a scalable and unified data foundation by combining internal and external data, both structured and unstructured, within a centralized data lake. This framework is expected to facilitate standardized, automated and reliable data flows across Dabur’s operations. The strengthened infrastructure will also support control towers and digital dashboards, providing real-time visibility into key performance indicators and enabling quicker, better-informed responses to changing market conditions. Accenture’s shareholder-friendly stance is another positive.

Geopolitical challenges, particularly the crisis in the Middle East, represent another concern for Accenture. Although recent developments have increased optimism about a possible agreement between the United States and Iran, economic uncertainty could continue until a final resolution is reached. The Middle East conflict reduced Accenture’s fiscal third-quarter revenues by approximately $100 million, and it expects a comparable headwind in the fiscal fourth quarter.

The Case for Science Applications 

Science Applications is benefiting from sustained mission demand across defense, intelligence and civilian customers as appropriations start to flow and digital modernization remains a priority.

Bookings and backlog levels support revenue visibility and the SilverEdge acquisition adds capability in cyber, software and AI-linked work. Cash generation supports ongoing dividends and buybacks. 

Science Applications’ exposure to Department of Defense, intelligence and homeland security programs keeps it tied to priority modernization areas such as secure data, cyber defense and AI-enabled operations. The October 2025 SilverEdge acquisition adds depth in cybersecurity, software and AI-linked national security work. In first-quarter fiscal 2027, SilverEdge contributed about $19 million of revenues, indicating early integration into the portfolio. SAIC has used acquisitions such as Koverse, Halfaker and Associates, Unisys and Engility to broaden offerings and customer access.

With a robust $22.9 billion backlog at the end of first-quarter fiscal 2027, fundamental momentum supports continued operational strength. Science Applications’ strong operating cash flow has helped it return cash through regular quarterly dividend payments and share repurchases, reflecting the shareholder-friendly stance.

In June, Science Applications reported better-than-expected results for the first quarter of fiscal 2027, with both top and bottom lines surpassing the Zacks Consensus Estimate.

Strong revenues from the Defense and Intelligence unit, which accounted for 76.9% of the top line, boosted results. The earnings beat ensured the company maintained its impressive earnings surprise record, outpacing the Zacks Consensus Estimate in each of the past four quarters. The average beat is 35.6%. 

Science Applications International Price and EPS Surprise

Science Applications International price-eps-surprise | Science Applications International Quote

SAIC Scores Over ACN on Price Performance

Shares of SAIC have gained in the double digits (%- wise), in contrast to ACN’s double-digit fall.

YTD Price Comparison

Image Source: Zacks Investment Research

Valuation Check: SAIC & ACN

SAIC’s shares currently trade at 0.75X forward sales. Accenture’s forward-to-sales ratio of 1.62 is higher than that of SAIC, making the latter more attractive on the valuation front as well.

Image Source: Zacks Investment Research

Conclusion

Agreed that the ongoing digital transformation of both IT companies is praiseworthy. However, SAIC’s better price performance compared with ACN, which is suffering from a host of negatives, as presented in the write-up, gives the former an edge.  SAIC seems to be more attractive valuation-wise as well. Its substantial backlog also supports growth.

Driven by the positives, Science Applications emerges as the winner in this face-off of IT Services stocks. Consequently, SAIC appears to be the more attractive choice at this time and is worth betting on. Currently, SAIC carries a Zacks Rank #2 (Buy) and ACN has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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