Accenture (ACN) is on track to more than double bookings with its emerging alliances with Nvidia (NVDA), OpenAI and Palantir (PLTR), reinforcing the view that the company is not being disintermediated, UBS said in a Tuesday note.

The company is scheduled to report fiscal Q4 results Thursday.

With 2027 guidance in focus, the brokerage expects the market to focus on AI impact on the core business as enterprise adoption surfaces, inorganic contribution, a potential Federal recovery, and capital allocation amid strong free cash flow generation, according to the note.

Another key focus will be pricing and contract type, with about 60% of revenue currently coming from fixed price contracts. Operating margin is set to benefit from efficiencies, while UBS expects capital returns of more than $9 billion in fiscal 2027, the note added.

In fiscal Q4, UBS expects revenue growth of 2.2%, compared with guidance of 0.5% to 4.5% growth. While the timing of revenue remains uncertain, given historical inorganic growth contributions of 1.5% to 5%, the brokerage believes management's 2027 outlook for inorganic revenue contribution could be conservative.

UBS kept a buy rating on Accenture with a price target of $275.

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