Accenture Gains on AI-Driven Earnings and Revenue Beat
The consulting giant surpassed Q4 expectations, reporting $1.8 billion in new generative AI bookings for the quarter as demand for technology services surges.
Accenture (ACN) shares climbed in pre-market trading after the global consulting firm announced fourth-quarter earnings and revenue that topped Wall Street estimates, propelled by robust growth in its artificial intelligence and cloud services.
The company posted quarterly revenue of $17.60 billion, a 7.3% increase year-over-year, comfortably beating the consensus analyst expectation of $17.36 billion. Adjusted earnings per share came in at $3.03, also ahead of the anticipated $2.96 per share. Management pointed directly to surging client demand for AI-powered business transformations as a primary driver of the strong performance.
A key highlight from the report was the explosive growth in artificial intelligence. Accenture reported a staggering for the quarter, bringing the full-year total to $5.9 billion. This surge underscores a broader corporate trend where companies are aggressively investing in AI to modernize operations and create new efficiencies.
In a statement, CEO Julie Sweet credited the results to the company's strategy of helping clients build a 'digital core.' She emphasized the growing demand for data preparation, process reimagination, and workforce training as foundational elements for AI adoption. The company's total new bookings for the quarter were an impressive $21.3 billion, reflecting continued momentum.
Looking ahead, Accenture provided guidance for its 2026 fiscal year, projecting revenue growth in the range of . The company also announced an $865 million restructuring plan aimed at realigning its workforce to better capture the immense opportunities in digital and AI services, signaling a strategic pivot to capitalize on high-growth sectors.
Investor reaction was positive, with the stock trading approximately 1% higher following the announcement. The performance suggests that despite macroeconomic uncertainties, enterprise spending on critical technology and digital transformation projects remains a top priority. on Accenture shares remains a 'buy,' with many seeing the firm as a primary beneficiary of the ongoing AI revolution.