Do You Believe in the Upside Potential of Accenture (ACN)?

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Accenture plc (NYSE:ACN). Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was 2.02%, and its shares lost 33.94% of their value over the last 52 weeks. On November 10, 2025, Accenture plc (NYSE:ACN) stock closed at $244.55 per share, with a market capitalization of $151.655 billion.

Madison Large Cap Fund stated the following regarding Accenture plc (NYSE:ACN) in its third quarter 2025 investor letter:

"At Accenture plc (NYSE:ACN), Department of Government Efficiency (“DOGE”) efforts have weighed on the Public Service customer group, but results have otherwise been consistent with our expectations. However, its shares have lagged as its valuation multiple has contracted considerably due to concerns that generative AI will negatively impact its business. We continually weigh the opportunities and threats of AI technologies for Accenture but believe that broad technological change and the need for large enterprises to integrate new technologies is generally a benefit. Today, Accenture has over three hundred Diamond Clients spending over one hundred million dollars annually with it and counts over 75% of the Fortune Global 500 as clients. Over the last couple of decades, Accenture has helped enterprises integrate broad swaths of technology into their operations and believe the integration of AI will be similar."

Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the second quarter, compared to 69 in the previous quarter. In the fiscal fourth quarter of 2025, Accenture plc (NYSE:ACN) reported revenues of $17.6 billion, reflecting a 7% increase in U.S. dollars and 4.5% in local currency. While we acknowledge the potential of Accenture plc (NYSE:ACN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Accenture plc (NYSE:ACN) and shared Columbia Global Technology Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.