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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.
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.