Sequoia Strategy's Outlook on Accenture Plc (ACN)

Ruane, Cunniff LP, an investment adviser managing Sequoia Strategy, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Sequoia Strategy returned 9% in Q4 compared to 2.7% for the S&P 500 Index. The Strategy delivered a return of 21.9% in 2025 versus 17.9% for the Index. In a year characterized by both strength and volatility, the Strategy outperformed the Index. The firm strives to invest in high-quality, fundamentally and financially strong businesses at reasonable prices. The Strategy is concentrated while it covers a wide range of sectors, business styles, and regions. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Sequoia Strategy highlighted Accenture plc (NYSE:ACN) as a recent addition. 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 -14.36%, and its shares lost 37.81% of their value over the last 52 weeks. On February 6, 2026, Accenture plc (NYSE:ACN) stock closed at $240.60 per share, with a market capitalization of $149.218 billion.

Sequoia Strategy stated the following regarding Accenture plc (NYSE:ACN) in its fourth quarter 2025 investor letter:

"Notable new positions added this past year included MSA Safety, Inc., Accenture plc (NYSE:ACN), and Align Technology, Inc. We introduce each of these investments below.

Accenture Plc (“Accenture”), another notable new position, is the market leader in information technology (“IT”) services, providing strategic advice, systems implementation, IT outsourcing, and business process outsourcing to Global 2000 enterprises. Originally a spin-out of accounting firm Arthur Andersen, the firm has grown to nearly 800,000 employees and over $70 billion in revenues. Its market capitalization currently exceeds $180 billion.

Accenture is another company that we have followed and admired for years. More specifically, we have been impressed by the company’s strong and consistent execution against an attractive industry backdrop. Like the engineering services space, which we know well from our prior investment in Jacobs Solutions Inc., the IT services space has enjoyed consistent, GDP-like growth with minimal invested capital. While barriers to entry are low, barriers to success are high, particularly with large corporate customers for whom a vendor’s reputation and track record are paramount..." (Click here to read the full text)

Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the third quarter, which was 65 in the previous quarter. In the first quarter of fiscal 2026, Accenture plc (NYSE:ACN) reported revenues of $18.7 billion, reflecting a 5% increase in local currency and a 6% increase in USD. 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 the list of AI stocks analysts are watching. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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