Accenture Misses Earnings Estimates, But Stock Rises on AI Momentum
Accenture has had its stock rose on Thursday despite the technology consulting firm reporting fiscal third-quarter earnings and sales slightly below expectations. The company’s strong bookings, driven by demand for generative artificial intelligence, helped offset the earnings miss.
Accenture reported adjusted earnings of $3.13 per share on sales of $16.47 billion in the quarter ended May 31. This was below the average analyst projection of $3.16 per share on sales of $16.54 billion. In the same period a year earlier, Accenture posted adjusted earnings of $3.19 per share on sales of $16.57 billion.
The company recorded $900 million in new bookings related to generative AI in the quarter, with $2 billion in generative AI bookings for its fiscal year to date. This growth in AI bookings helped drive Accenture’s overall bookings, which rose 22% year-over-year to over $21 billion.
Accenture’s Chief Executive Julie Sweet emphasized the company’s focus on AI, stating, “We achieved strong new bookings of over $21 billion, up 22% over last year, and continued to accelerate our strategy to be the reinvention partner of choice.”
Despite missing earnings expectations, Accenture’s stock jumped 7.9% in premarket trading to $308.02. The company guided to sales of $16.05 billion to $16.65 billion for the current quarter ending with August, which was slightly below analyst projections.
Accenture’s stock has been down 18% this year and off 9% in the past 12 months. However, the company’s strong AI momentum and growing bookings have helped boost investor confidence.
Background details about Accenture
Accenture is a global technology consulting firm headquartered in Dublin, Ireland.
The company provides a range of services, including strategy, consulting, digital, technology, and operations.
Accenture has been expanding its AI capabilities, including generative AI, to help clients with digital transformation and innovation.
The company’s AI bookings have been growing rapidly, with over $2 billion in bookings for the fiscal year to date.
Accenture’s stock has been under pressure in recent months due to concerns about the company’s sales outlook and competition in the consulting space.
Continue reading: CDK cyberattack: Company shuts down car dealership software across US
