Accenture Beats Q2 Estimates, Raises Guidance

Accenture reported stronger-than-expected results for its fiscal second quarter on Thursday, driven by robust demand for artificial intelligence services and cloud migration, though a cautious outlook highlighted ongoing client hesitancy on major IT projects. The Dublin-based consulting giant posted revenue of $18.04 billion for the period ended February 28, up 8.3 percent from a year earlier and surpassing analyst estimates of $17.84 billion. Earnings per share came in at $2.93, beating forecasts of $2.84.

The company also announced record new bookings of $22.11 billion, a 6 percent increase year over year, with 41 clients committing more than $100 million each. Consulting revenue rose 7 percent, while managed services grew 10 percent in U.S. dollars. Operating margin expanded to 13.8 percent, up 30 basis points from the prior year. Accenture attributed much of the performance to AI adoption, noting that advanced AI initiatives are now embedded in nearly all large transformation programs. CEO Julie Sweet stated during the earnings call, "We see AI as a tailwind because it's helping us win more today and take market share. It is creating new opportunities for growth over time."