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Shares of the company rose more than 6% in premarket trading,
after having fallen about 19% this year on market expectations
for subdued IT services demand as economic uncertainty and
elevated interest rates force companies to rein in spending.
Accenture, however, has been a go-to consultant and outsourcing
service provider for businesses migrating their operations to
the cloud, partially shielding the company from enterprise
budget cuts.
It has also benefited from businesses increasingly adopting
generative AI technologies to automate certain operations,
helping them boost productivity and save costs.
Accenture's new bookings, a metric indicating value of customer
contracts with a spending commitment, rose to $21.06 billion for
the third quarter from $17.25 billion a year ago.
Of that, $900 million in new bookings was for its GenAI
services, taking the total for the full year to more than $2
billion.
The company expects annual revenue to grow between 1.5% and
2.5%, compared with analysts' expectations of 1.6%, according to
LSEG data. It had earlier forecast growth of 1% to 3%, but on
Thursday flagged a negative foreign-exchange impact of 0.7% for
the fiscal year ending August.
It reported quarterly profit of $1.93 billion, while revenue of
$16.47 billion missed estimates of $16.53 billion.
Excluding items, the company earned $3.13 per share, missing
estimates of $3.15.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika
Syamnath)
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