Global IT services leader Accenture reported stronger-than-expected revenue for its first quarter, driven by soaring demand for generative AI solutions and digital transformation services. Following the announcement, the company’s shares climbed 5% in premarket trading.
As businesses increasingly focus on scaling AI initiatives and streamlining operations, Accenture has emerged as a key partner for enterprises aiming to boost efficiency and reduce costs. This trend was reflected in the company’s new bookings, which increased to $18.7 billion, up from $18.4 billion in the same quarter last year.
Generative AI continues to be a standout area for Accenture, contributing $1.2 billion in new bookings during the quarter. Additionally, its consulting and outsourcing divisions posted strong performances, securing $9.2 billion and $9.5 billion in bookings, respectively.
Accenture’s first-quarter revenue reached $17.7 billion, surpassing analyst projections of $17.12 billion, based on data from LSEG. The company has also revised its annual revenue growth forecast to a range of 4%-7%, up from its previous guidance of 3%-6%. Analysts had anticipated a midpoint growth of 5.63%.
Looking ahead, Accenture projects second-quarter revenue of $16.2 billion to $16.8 billion. While the midpoint of this range falls slightly below analysts’ expectations of $16.63 billion, the company’s sustained growth in generative AI and other emerging technologies positions it strongly in an evolving market.
Industry analysts suggest that improving technology budgets for fiscal year 2025 could further benefit IT service providers like Accenture and its competitors, including EPAM. As organizations continue to prioritize AI-driven solutions, Accenture remains well-positioned to lead this transformative wave.
Mary Gamble
