Accenture beats quarterly revenue estimate as AI services drive strong first-quarter sales
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Accenture beats quarterly revenue estimate
Accenture has surpassed revenue forecasts for the first quarter. Strong demand for its artificial intelligence IT services fueled this growth. The company's AI strategy is showing positive results. Enterprises are increasingly adopting AI for cost reduction and productivity gains. New bookings also saw a significant rise. However, demand from public sector clients remains mixed. Accenture beat Wall Street expectations for first-quarter revenue on Thursday, driven by robust demand for its artificial intelligence-driven IT services, sending its shares up 2% in premarket trading. The results indicate Accenture's AI strategy is gaining traction, as enterprises accelerate efforts to embed the technology into workflows to cut costs and boost productivity. But the company continues to face uneven demand from public sector and government clients amid a federal push to lower costs and refocus funds. Accenture said new bookings for the first quarter rose 10% in local currency to $20.94 billion. The company reported revenue of $18.74 billion, compared with analysts' average estimate of $18.52 billion, according to data compiled by LSEG.
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Accenture 1Q Sales Rise on AI Bookings
Accenture reported higher first-quarter sales on the back of growth in its AI business. The technology consulting company reported net income of $3.54 a share, down from $3.59 a share in the year-ago quarter. Adjusted earnings rose 10% to $3.94. Analysts had expected adjusted earnings of $3.74 a share, according to FactSet. Revenue rose 6% to $18.7 billion. Wall Street had expected $18.53 billion. New bookings rose 12% to $20.9 billion. The company reported advanced AI new bookings of $2.2 billion. Accenture reiterated its full-year revenue growth forecast of 2% to 5% in local currency and its adjusted earnings outlook of $13.52 to $13.90 a share. Analysts see full-year adjusted earnings of $13.77 a share. Write to Nicholas G. Miller at [email protected]
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Accenture exceeded Wall Street expectations for first-quarter revenue, reporting $18.74 billion against analyst estimates of $18.52 billion. The technology consulting company's performance was fueled by robust demand for artificial intelligence IT services, with advanced AI new bookings reaching $2.2 billion. Despite mixed demand from public sector clients, the company's AI strategy is gaining traction as enterprises accelerate AI adoption.
Accenture Surpasses Quarterly Revenue Estimate With Strong AI Performance
Accenture has beaten Wall Street expectations for its first-quarter revenue, reporting $18.74 billion compared to analysts' average estimate of $18.52 billion
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. The technology consulting company's strong first-quarter sales were driven by robust demand for its artificial intelligence IT services, sending its shares up 2% in premarket trading1
. Revenue rose 6% from the year-ago quarter, demonstrating solid growth momentum as enterprises accelerate their AI adoption strategies2
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Source: ET
Advanced AI New Bookings Reach $2.2 Billion
The results indicate Accenture's AI strategy is gaining traction across its client base. New bookings for the first quarter rose 10% in local currency to $20.94 billion, with a 12% increase reported in constant currency terms
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. Notably, advanced AI new bookings reached $2.2 billion, underscoring the growing appetite for AI-driven solutions2
. This substantial figure reflects how enterprises are increasingly embedding AI technology into workflows to achieve cost reduction and boost productivity across their operations1
.Financial Performance Exceeds Analyst Expectations
Accenture reported adjusted earnings of $3.94 per share, up 10% from the prior year and surpassing analyst expectations of $3.74 per share
2
. Net income came in at $3.54 per share, slightly down from $3.59 per share in the year-ago quarter2
. The quarterly revenue estimate beat demonstrates the company's ability to capitalize on the AI transformation wave sweeping through corporate IT services departments. Wall Street analysts had projected revenue of $18.53 billion, making the actual performance a meaningful outperformance2
.Related Stories
Full-Year Financial Forecasts Remain Unchanged
Despite the strong quarterly performance, Accenture reiterated its full-year financial forecasts, maintaining revenue growth guidance of 2% to 5% in local currency and an adjusted earnings outlook of $13.52 to $13.90 per share
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. Analysts currently project full-year adjusted earnings of $13.77 per share, sitting comfortably within the company's guidance range2
. However, the company continues to face uneven demand from public sector clients amid a federal push to lower costs and refocus funds, which may temper growth expectations in certain segments1
. As enterprises continue accelerating efforts to embed AI into their operations, Accenture's positioning in artificial intelligence IT services will be critical to watch in upcoming quarters.References
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