Accenture Raises Revenue Forecast as AI Services Demand Surges

Accenture raises full-year revenue forecast on AI services demand

March 20 (Reuters) - Accenture (ACN.N), opens new tab raised the lower end of its annual revenue forecast on Thursday, betting on growing demand for its services to help clients integrate AI-powered tools into their operations. Strong demand for large-scale projects in cloud migration, artificial intelligence-led digital transformation and data security has helped companies such as Accenture. Accenture has secured several large projects and partnered with banks, telecommunication firms and sports firms among others. The company now expects annual revenue to grow between 5% and 7%, compared with its prior forecast of 4% to 7%. Analysts had expected revenue growth of 5.7%, according to data compiled by LSEG. Reporting by Priyanka.G in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Accenture's Generative AI booking rise to $1.4 billion in Q2 FY25

Accenture's Generative AI bookings totalled $1.4 billion in Q2 FY25, up from $1.2 billion in the last quarter, signalling a sustained momentum in the AI space. The company announced its financial results for the second quarter of fiscal 2025, ending February 28, 2025, on Thursday, and highlighted its broad-based revenue growth across markets, industries, and service lines. In Q2 FY25, the consulting giant reported $16.7 billion in revenue. Julie Sweet, chair and CEO of Accenture, credited the company's strategic focus on reinvention for its performance. "Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us," Sweet said. She acknowledged that trust and confidence in their unique strengths and capabilities are reflected in 32 clients with quarterly bookings over $100 million. The company posted strong growth in cloud, security, and creative business divisions. In June 2023, the company reported $100 million in pure-play generative AI projects, and the sales have nearly doubled every quarter since. In fiscal 2024, the company invested about $6.6 billion in acquisitions to strengthen its position in the IT industry and bolster its AI mission. Accenture expects the annual revenue to grow between 5% and 7%, compared with its prior forecast of 4% to 7%, Reutersreported. In comparison, analysts had expected revenue growth of 5.7%

Accenture raises full-year revenue forecast on AI services demand

Strong demand for large-scale projects in cloud migration, artificial intelligence-led digital transformation and data security has helped companies such as Accenture. Accenture raised the lower end of its annual revenue forecast on Thursday, betting on growing demand for its services to help clients integrate AI-powered tools into their operations, sending the company's shares up 3% before the bell. Strong demand for large-scale projects in cloud migration, artificial intelligence-led digital transformation and data security has helped companies such as Accenture. Accenture has secured several large projects and partnered with banks, telecommunication firms and sports firms among others. The company now expects annual revenue to grow between 5% and 7%, compared with its prior forecast of 4% to 7%. Analysts had expected revenue growth of 5.7%, according to data compiled by LSEG. In fiscal 2024, Accenture invested about $6.6 billion in acquisitions to strengthen its position in the IT industry, improve management of large-scale projects and bolster AI capabilities. The company's GenAI business recorded new bookings of $1.4 billion in the second quarter. Accenture reported second-quarter revenue of $16.66 billion, compared with the average analyst estimate of $16.62 billion, according to data compiled by LSEG.

Accenture: Strong AI Demand Fuels Beat | The Motley Fool

In a quarter that for many was marred by customer hesitation to spend, Accenture continues to see strong demand for its consulting and tech modernization services. The company grew earnings per share by 7% and revenue by 6% year over year, beating Wall Street expectations. Accenture continues to see generative AI fueling growth, with $1.4 billion in new bookings related to Gen AI in the quarter. Work for the financial services industry led the way, up 11% year over year, with health and public service revenue also up 10%. Overall, Accenture has 32 clients with quarterly bookings of greater than $100 million, a reflection of the company's importance to its customers. Work in the Western Hemisphere led the way, up 11% year over year, while Europe revenue climbed by 8% and Asia-Pacific, Accenture's smallest region, was up just 1%. Accenture has generated $3.6 billion in free cash flow in the first six months of its fiscal 2025, and shareholders continue to be big beneficiaries of that cash. So far in fiscal 2025, the company has repurchased about $2.3 billion worth of shares and recently increased its dividend payout by 15%, with dividends totaling $1.9 billion so far this year. Accenture does not tend to be a volatile stock and usually does not see dramatic swings in the premarket, but investors seem to like what they see in the results. Shares of Accenture were up about 3% in premarket trading following the release after being up less than 1% heading into the announcement. Accenture narrowed the low end of its full-year fiscal 2025 guidance, projecting earnings of between $12.55 and $12.79, up from $12.43 to $12.79, and revenue growth of 5% to 7%, up from 4% to 7%. The company recorded $20.9 billion in new bookings in the quarter, a healthy 1.3 times what it billed in the previous year's quarter. Though that bookings number is down about 3% from a year ago, it is flat when adjusted for currency fluctuations. In fiscal 2024, Accenture committed more than $6 billion to acquisitions in order to build its tech prowess and take advantage of the AI revolution. The latest results suggest that investment is paying off, setting Accenture up for more gains in the quarters to come.