Key Points
- Accenture reported Q1 revenue of $17.7 billion, exceeding estimates of $17.12 billion.
- Shares rose 4.72% in premarket trading due to strong AI-driven demand.
- Annual revenue growth is forecasted at 4%-7%, up from the previous 3%-6% range.
- Q2 revenue guidance of $16.2-$16.8 billion is slightly below market expectations.
Accenture surpassed Wall Street expectations for its first-quarter revenue, reporting $17.7 billion, exceeding analysts’ forecast of $17.12 billion. The company’s performance reflects the growing demand for services that help businesses integrate AI-powered tools into their operations. This optimism drove Accenture’s shares up by 4.72% or 16.39 to 364.00 in premarket trading.
Businesses increasingly invest in scaling AI projects and digitizing core operations to enhance efficiency and reduce costs. This trend has bolstered IT service providers like Accenture, which continues to see robust demand across its offerings. The company reported new bookings of $18.7 billion in the first quarter, slightly higher than the $18.4 billion recorded in the same period last year.
A key highlight was the $1.2 billion new bookings for Accenture’s GenerativeAI segment, underscoring the surging interest in artificial intelligence. Meanwhile, its consulting and outsourcing segments also delivered strong results, securing $9.2 billion and $9.5 billion in bookings, respectively.
Analysts had anticipated that improved technology budgets for the fiscal year 2025 would favor IT service providers such as Accenture and EPAM Systems. Accenture’s guidance for annual revenue growth of 4% to 7% aligns with this optimism, surpassing its earlier forecast of 3% to 6%. Analysts had predicted growth of around 5.63%.
However, the company’s outlook for the second quarter suggests revenue between $16.2 billion and $16.8 billion, with the midpoint falling slightly below analysts’ average projection of $16.63 billion. Despite this, Accenture remains poised to capitalize on the growing demand for AI-driven digital transformation services.
The company’s consistent ability to attract large bookings and its strategic focus on emerging AI technologies positions it as a key player in the evolving IT services landscape. Accenture’s diversified offerings ensure steady growth opportunities as businesses continue to scale their AI initiatives.
