Accenture Stock Jumps as AI-Related Bookings Soar

Key Takeaways

• Accenture shares jumped Thursday following the release of third-quarter results that saw revenue miss analysts’ estimates but net income beat expectations.

• The company’s AI-related bookings remain a source of strength, as they grew to $900 million for the quarter, for a total of $2 billion fiscal year-to-date.

• Accenture also narrowed or lowered some of its guidance ranges for the full fiscal year.

Accenture (ACN) shares rose Thursday after the consulting giant reported third-quarter results that saw profit beat estimates and artificial intelligence (AI)-related bookings surge.

Accenture reported $16.47 billion in revenue for the quarter, down from $16.56 billion in the third quarter of 2023 and below the $16.55 billion analysts expected, according to estimates compiled by Visible Alpha.

Net income attributable to the company beat estimates, however, with Accenture posting profit of $1.93 billion, or $3.04 per share, down from last year’s $2.01 billion and $3.15 per share but better than the $1.91 billion and $3.01 per share analysts expected.

AI Bookings Growing

The company said its AI efforts are paying off, surpassing $900 million in new bookings related to generative AI for the quarter, pushing Accenture’s total AI-related bookings to $2 billion fiscal year-to-date.

Overall new bookings were $21.06 billion, up 22% from the same time last year, with 44% of the bookings coming from consulting services and the other 56% from Accenture’s managed services division.

“We also achieved two significant milestones this quarter — with $2 billion in Generative AI sales year-to-date and $500 million in revenue year-to-date — which demonstrate our early lead in this critical technology,” Accenture Chief Executive Officer (CEO) Julie Sweet said.

Dividend Declared, Guidance Updated

The company also declared its next quarterly dividend, announcing plans to pay out $1.29 per share on August 15 for shareholders of record on July 11 . Accenture also bought back $1.4 billion in its own stock over the quarter, and said it has $3.3 billion remaining in its current buyback plan.

Accenture projected revenue to be within a range of $16.05 billion to $16.65 billion for the fourth quarter, compared to analyst estimates of $16.54 billion. For the full year, Accenture adjusted its guidance, projecting revenue growth from 1.5% to 2.5%, narrowed from the previous range of 1% to 3%.

Accenture also lowered its full-year diluted earnings per share (EPS) guidance to a range of $11.29 to $11.44, down from its previous range of $11.41 to $11.64. The company previously said that it had faced an “uncertain macro environment” and had seen clients cut back on some discretionary spending.

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Accenture shares rose 6.2% to $302.90 as of 10:21 a.m. ET Thursday, but remain down more than 13% so far this year.

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