Accenture Surges on Strong AI Bookings

Accenture, a prominent consulting giant, saw its shares rise after releasing third-quarter results that exceeded profit estimates and showed a surge in artificial intelligence (AI)-related bookings.

The company reported revenue of $16.47 billion for the quarter, slightly lower than analysts’ expectations of $16.55 billion. However, net income beat estimates, with a profit of $1.93 billion or $3.04 per share.

One of Accenture’s strengths lies in its AI-related bookings, with new bookings reaching $900 million for the quarter and totaling $2 billion fiscal year-to-date. This success highlights the company’s leadership in generative AI technology.

Furthermore, Accenture achieved milestones in its overall new bookings which reached $21.06 billion, a 22% increase from the previous year. These bookings were split between consulting services and managed services.

CEO Julie Sweet emphasized the company’s success in AI sales and revenue, showing promising growth in this critical technology sector.

Accenture also announced a quarterly dividend of $1.29 per share and disclosed a $1.4 billion stock buyback in the quarter, with $3.3 billion remaining in the current buyback plan.

Looking ahead, Accenture provided guidance for the fourth quarter, projecting revenue between $16.05 billion and $16.65 billion, slightly below analyst estimates but with narrowed growth projections. The company adjusted its full-year revenue growth guidance to a range of 1.5% to 2.5%.

Additionally, Accenture revised its full-year diluted earnings per share (EPS) guidance to a range of $11.29 to $11.44, reflecting the impact of the uncertain macro environment and reduced client spending on discretionary items.

Despite challenges faced earlier in the year, Accenture’s shares rose by 6.2% following the earnings report, reaching $302.90 as of Thursday morning. However, the shares remain down over 13% year-to-date.

In conclusion, Accenture’s strong performance in AI-related bookings and overall revenue, coupled with strategic financial decisions, position the company for continued success in the evolving consulting industry.